In the bustling world of compensation, boutique firms are garnering attention with their lofty offerings, dwarfing many of the substantial bonus scales offered by Biglaw firms. One noteworthy example is Gjerset & Lorenz, a healthcare boutique firm based in Austin, Texas. The firm has introduced an exceptionally generous compensation package, making its associates’ financial dreams become achievable reality.
The firm is implementing the Cravath scale for determining base bonuses with a requirement of 1900 hours billed. For every additional hundred hours billed by associates, the firm is offering further increments to their bonuses. In addition to these, Gjerset & Lorenz is issuing individualized merit bonuses based on an associate’s intellectual contributions to the firm’s innovation, support of others, timeliness of work, and contribution to the training of other professionals at the firm. The firm’s defined bonus grid outlines a maximum bonus potential of up to $310K.
And that’s not all, in addition to these rewards, Gjerset & Lorenz has implemented a profit-sharing and cash balance plan. This financial intervention will lead to significant increments in the associates’ bank accounts just in time for the holiday season. Reportedly, the firm’s liberal financial disposition has enabled several associates to earn above $700,000 in total compensation for this year alone.
In terms of salaries, the firm will be matching the Cravath salary scale, leading to the following salary structure, effective from January 1, 2024:
- Class of 2023 – $225,000
- Class of 2022 – $235,000
- Class of 2021 – $260,000
- Class of 2020 – $310,000
- Class of 2019 – $365,000
- Class of 2018 – $390,000
- Class of 2017 – $420,000
- Class of 2016 – $435,000
This commendable step to uplift associates’ salary and bonus structure is a welcome move reflecting on Gjerset & Lorenz’s generosity. It sets a practical benchmark for other firms to contemplate their compensation packages with a lenient eye. To conclude, this scenario brings in a welcome change for the professional sphere and deserves a round of applause for the teams at Gjerset & Lorenz. For more details, you can read the original report by Staci Zaretsky here.