Biglaw Firms Maintain Competitive Bonuses
In the competitive world of Biglaw, firms often follow prevailing market trends when it comes to year-end and special bonuses. These bonuses, initially set by industry leaders such as Milbank in November, serve as benchmarks across the sector. However, some firms aim to differentiate themselves by offering exceptional financial rewards to associates who exceed expectations in their billable hours.
Dechert: A Top Performer on the Am Law 100
Dechert LLP, which reported an impressive $1.29 billion in gross revenue in 2023 and ranked No. 39 on the Am Law 100, has established itself as a leader in rewarding hard-working associates. In November, the firm announced that it would match Milbank’s market rates while continuing its tradition of providing “extraordinary” bonuses for associates hitting ambitious billable hour targets.
Associates who achieved 2,200 and 2,400 billable hours in 2024 were rewarded with bonuses of 30% and 40% above the market standard, respectively. But Dechert didn’t stop there.
Enhanced Bonuses Announced on Christmas Eve
On Christmas Eve, Dechert’s co-chairs, Mark E. Thierfelder and David W. Forti, sent a firmwide memo expressing gratitude for the team’s dedication throughout 2024. Alongside their thanks, the memo introduced an additional layer of bonuses for those who demonstrated exceptional commitment and performance.
Here’s an excerpt from their announcement:
“This year, in addition to our usual 30% and 40% above-market bonuses, we have enhanced bonuses up to 130% above the market to thank those who went well beyond our normal hours grid. For associates in EMEA who met the U.S. bonus targets, their bonus amounts will be commensurate with the U.S. scale. This is not setting a new hours expectation, but we recognize the incredible personal sacrifices that some of our lawyers have made to deliver truly outstanding client service.”
Recognition for Outstanding Effort
These “enhanced” bonuses, reaching up to 130% above the market standard, underscore Dechert’s commitment to acknowledging the extraordinary efforts of its associates. While the firm emphasized that these bonuses do not establish new expectations for billable hours, they reflect an appreciation for the personal sacrifices made by top-performing lawyers to deliver exceptional client service.
Payment Timeline
The enhanced bonuses are slated to be distributed by the end of January, ensuring that associates are swiftly rewarded for their hard work. This move positions Dechert as not just a follower of market trends but as a firm willing to go above and beyond for its employees.
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Industry Implications
Dechert’s decision to provide such significant additional bonuses may influence other Biglaw firms to rethink their compensation strategies. By rewarding extraordinary effort with unmatched financial incentives, the firm has set a high standard for recognizing and valuing its workforce.
Congratulations to everyone at Dechert for their well-deserved bonuses and for setting a remarkable example in the industry.
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