As the end of the year approaches, the focus for many Biglaw associates is shifting towards the upcoming bonus season. Historically, firms have extended special bonuses, particularly during the pandemic when the lateral hiring market was especially active. This year, however, the anticipation appears to be higher than usual, as many associates continue to perform significant billable hours in hopes of securing not just regular bonuses, but additional special bonuses as well.
According to a recent report by Above the Law, more than half of the associates surveyed expect bonuses in 2024 to surpass those awarded in 2023. This optimism seems rooted in current economic conditions, with echoes of past trends emphasizing an increasing expectation of special bonuses alongside traditional year-end bonuses. Notably, last year, 83% of associates did not anticipate special bonuses, whereas this year, 62% believe they will be offered, perhaps in response to the Milbank summer bonuses.
The firms’ previous years’ bonus amounts serve as an interesting backdrop. In 2023, senior associates could see year-end bonuses reaching $115,000. This year, most associates believe their firms will attempt to at least match, if not exceed, the prior year’s offerings with potential additional perks like above-market bonuses for high billers.
The hours associates expect to bill this year mimic those of the previous year, though there has been an uptick in those planning to exceed 2,400 billable hours. These trends indicate a strong desire among associates to maximize their earning potential through consistent high-performance metrics. Firms, meanwhile, are under pressure to respond with incentives that match these expectations, knowing full well the potential repercussions of not meeting anticipated bonus levels.
Bonus announcements are also closely watched, with the timing traditionally taking place around mid-November. The timing could differ this year, potentially influenced by firms like Cravath, which have previously adjusted timelines unpredictably. Associates are eager, not just for the financial bonuses, but also the prestige and recognition that accompany these industry-standard incentives.
As we move closer to the year’s end, all eyes will be on the firms to see how they balance financial challenges with the need to stay competitive in retaining top legal talent.