Big Law’s corporate associates likely will have a harder time qualifying for the extra cash several firms are doling out to top performers this year, thanks to dwindling demand.
An unexpected boom in capital markets and merger and acquisition work over the last two years has now cooled, leaving junior lawyers with less work in 2022.
“Many associates this year had a significant decrease in their billable hours,” said Katherine Loanzon, New York-based managing director of Kinney Recruiting. “There has been a slowdown in work and in many cases it was at no fault of their own.”
Most firms are matching last year’s bonus scale—topping out at $215,000—a sign that the industry is returning to pre-pandemic consistency after a stretch of swirling demand that boosted firm profits. But extra bonuses—often tied to billable hour totals—on top of the standard year-end payments will be more difficult to attain, according to industry observers.
Washington, D.C. heavyweight Covington & Burling will increase its bonus scale by 10% for associates who exceed 2,200 billable hours, for example, and will add 10% for those who go beyond 2,400 billable hours, according to a report by Above the Law. Hogan Lovells said it will give out bonuses to associates who exceed minimum hours expectations, but the firm didn’t provide a specific threshold.
Other major firms similarly pledged...
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