While major law firms remain silent on bonus announcements for 2024, boutique firms have begun to make their move on the bonus front, leaving their larger competitors in an uncomfortable position. Notably, Texas-based boutique firm Vartabedian Hester & Haynes (VHH), specializing in complex commercial litigation, has recently championed the bonus arena. The firm has confirmed that its associates will receive the special bonus money akin to the Milbank bonus, along with bonuses that match Milbank’s well-publicized year-end bonus scale, unveiled this past Monday.
The announcement, made by VHH—an enterprise less than a year old—signals a significant step into the competitive compensation scene typically dominated by larger firms. Despite an initial period in 2024 with no significant revenue, the firm attributes its current position to unwavering client commitment and hard work, allowing it to meet ambitious compensation goals, including reduced billable hour requirements for associates.
As highlighted in the firm’s bonus memo, VHH’s goal has been to deliver excellent client service without the high financial burden seen in Biglaw, while ensuring generous compensation for their associates.
The bonus schedule released by VHH offers a lucrative pay scale:
- Class of 2024: $21,000
- Class of 2023: $26,000
- Class of 2022: $40,000
- Class of 2021: $72,500
- Class of 2020: $95,000
- Class of 2019: $115,000
- Class of 2018: $130,000
- Class of 2017 and 2016: $140,000
These bonuses, scheduled for release by December 31st, are contingent on meeting a billable hour target of 1800 hours. VHH associates have expressed considerable enthusiasm over this development, which extends beyond just a salary increment but signifies fulfillment of the firm’s promise to match or surpass leading firms like Cravath and Milbank in terms of competitiveness in compensation.
For further details, refer to the complete article on Above the Law.