As 2023 drew to a close, the Am Law 100 firm Cozen O’Connor abstained from distributing year-end bonuses, a move that has sparked notable discord among its associates. Historically, excluding this year, Cozen O’Connor has consistently awarded year-end bonuses annually, often supplementing these with special bonuses. The lack of bonuses this year has left many puzzled and questioning the firm’s current financial stability. In a surprising twist, as noted by Above the Law at the end of 2022, special bonuses had been significantly reduced, leading to the somber prediction that “at least they’re getting bonuses at all.”
The discontent is not only tied to the bonuses, but also to the firm’s apparent reluctance to raise the salaries of existing staff. Following a review, the firm announced that starting salaries for the incoming 2024 class would be bolstered by a margin of between $10,000 and $15,000, with no mention of adjustments for current attorneys.
The firm shared its 2024 compensation strategy in an announcement, indicating that compensation adjustments would be implemented during the normal compensation process in February/March 2024, retroactive to January 1, 2024. However, the information seems to have caused further confusion as it was shared with attorneys who are not part of the 2024 class.
Despite the firm reflecting strong performance throughout 2023, there was no discussion of compensating lawyers based on the cuts from the previous year, and surprisingly, no bonuses were awarded. Associates also received no prior warning that they would be left without the expected year-end perk.
In the legal industry, bonuses are often viewed as a “variable salary tier” rather than a surplus. Consequently, firms typically depend on the market standards to determine bonus amounts. Omitting these bonuses without forewarning has therefore justifiably incensed numerous attorneys at Cozen O’Connor, who often factor these into their annual income expectation.
Notably, counsel members were also not granted bonuses, although they were forewarned about this decision. This omission of year-end bonuses has led many to liken Cozen O’Connor’s situation to the plot of the National Lampoon’s Christmas Vacation film, where bonuses are expected but not delivered.