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This never made sense to me because associates really don’t have any control over realization. They just bill their time and hope the partner doesn’t write it off.
My smallish firm used to do this. It sucked because they had workflow issues. I never met my bonus level in 3 years of working there
Pro
Yes. And this is the biggest thing that associates misunderstand, especially those that work a transactional practice. Year end bonuses are discretionary, so while there may be an “automatic bonus” for hitting a certain number of hours, you can still get a bonus if you were highly profitable. As an example, my firm’s automatic bonus was $10,000 this year for 2100 hours. I was at 2050. I got a $40,000 bonus because I was highly profitable and realized nearly 100% of my billable time.
Who paid you to make this post 😂
I’ve worked at a firm that had something similar. Your bonus was 10% of X amount that was collected off your billables. Worked out nicely for me but sucked for associates that worked on cases with low rates.
We have a compensation to revenue ratio that we have to maintain in order to get bonuses, but no one I know of has ever had an issue with it.
How do they calculate this
I've heard Fisher Phillips does
Do any biglaw firms do this? I’ve never heard of it but not sure if I’m just unaware.
Highly doubt it, I assume most BL just full bills everything. I put this in general law I thought!
Just origination bonuses (which is fair).