Do any of your firms base your associate’s end year bonus on collections? Meaning, unless you’re profitable you don’t get a bonus?

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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.

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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

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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.

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Who paid you to make this post 😂

funny

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.

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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.

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How do they calculate this

I've heard Fisher Phillips does

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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).

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