I'm hoping someone can give me some insight into the bonus structures at big law firms (specifically the sister firms). Of course I've looked up the starting salaries for associates (using the NALP directly), and most firms say first-year associates are eligible for bonuses, so that's definitely encouraging.
I spoke with a small-town lawyer whose firm uses the following structure: multiply your base salary by 2.5, once you've earned that much in revenue (from your billable hours), any money that comes into the firm beyond that, you get 45%. So, for example, if your salary is $50,000, your target is ($50,000 x 2.5) = $125,000. Let's say your hourly rate is $200 and you work 1100 billable hours (remember, this is small town). Then, after the first ($125,000 / $200) = 625 hours, you're earning 45% of your billable hours, so your bonus would be:
1100 hours - 625 hours = 475 hours
475 x $200 per hour = $95,000
Bonus: $95,000 x 45% = $42,750
For a total compensation of: $50,000 + $42,750 = $92,750
Is this structure similar to Big Law? Looking at past threads, I've read mentions of "lockstep" bonuses as well as more subjective bonuses.
Any insights are appreciated!