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Webster, Scott A
Thursday, January 15, 2015 1:55 PM
DG-Associates BOS; DG-Associates DC; DG-Associates LA; DG-Associates NY; DGAssociates SF; DG-Associates SV; DG-Counsel BOS; DG-Counsel DC; DG-Counsel LA;
DG-Counsel NY; DG-Counsel SF; DG-Counsel SV
DG-ARC; DG-Partners All; DG-Attorney Development Managers; DG-BU Managers
2014 Bonus Program and 2015 Compensation

SCOTT A. WEBSTER, CHAIR, ATTORNEY REVIEW COMMITTEE (ARC)

2014 BONUS PROGRAM AND 2015 COMPENSATION
On behalf of the firm and its partners, I would like to thank each of you for your contributions to the
firm over the past year. The firm had a record year, notwithstanding the challenging and
consolidating legal market. This was due in no small part to your hard work and commitment.
This memo outlines the 2014 bonus determinations, describes the firms plans for 2015 base salaries
and provides an overview of bonus eligibility for 2015.
2014 Bonus
For calendar year 2014, we continued our practice of awarding bonuses based on a combination of
factors legal excellence; the amount of time spent on billable, pro bono, legal advice to the firm and
shadow training; overall productivity and efficiency; the nature of investment time; and commitment to
professional development and diversity initiatives.
Associates in good standing who met the 1,950-hour threshold during our fiscal year ending
September 30, 2014 through annualized billable, pro bono work, legal advice to the firm and shadow
training under the firms shadow training policy are eligible to receive bonuses. Since bonuses are
based on performance during our fiscal year ending September 30, 2014, newly hired associates
(including the Class of 2014) are not eligible to receive bonuses.
The 2014 U.S. associate bonuses are determined by reference to the bonus scale listed below. As in
past years, individual bonus awards in each class may be above or below these class amounts
based on an evaluation by ARC of the factors described above. These determinations are made as
follows:
1. We use a simple grid, with hour ranges for the columns and merit ratings for the rows. Each
box in the grid contains a percentage that is multiplied by the relevant class amount.
2. The same grid is used for all U.S.-based associates and for all class years, although the
percentage for those with a Meets Basic Expectations rating is lower for the more senior
classes than it is for the more junior classes.
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3. Those with a Strong rating at the lowest hour range (which starts at 1,950) will receive less
than the full class amount, but those with a Distinctive rating at the lowest hour range will
receive the full class amount.
4. Those with a Strong rating at the second hour range will receive the full class amount, those
with a Distinctive rating at the second hour range will receive more than the class amount.
5. Those with Strong and Distinctive ratings at higher hour ranges will receive more than the
class amount.
This year, over 69% of associates are receiving bonuses. Of those receiving bonuses, 36% will
receive an amount greater than the amount listed below for their class, 32% will receive their class
amount and 32% will receive less than their class amount.
As has been the case in the past, bonuses will be pro-rated for recent hires, leaves of absence and
part-time schedules during calendar year 2014.
Class

Bonus

2013

$15,000

2012

$25,000

2011

$50,000

2010

$65,000

2009

$80,000

2008

$90,000

2007

$100,000

2006+

$100,000

Bonuses for counsel and other professional track attorneys will be determined on an individual basis,
rather than by reference to the bonus scale listed above. However, a similar grid formula using hours
ranges and merit ratings is considered in determining bonuses for our counsel and other professional
track attorneys.
Bonus determinations will be delivered individually to each associate, counsel and other professional
track attorney on January 22, 2015. Bonuses will be paid by direct deposit on January 23.
2015 U.S. Associate Base Compensation Levels
Our base salary scale for U.S.-based associates will remain the same as 2014. We will recognize
and reward our salaried associates for their contributions through the class year bumps in base
salary as listed below. The class year bumps will be effective January 1, 2015, and base salary
adjustments will be reflected in the January 23 monthly paycheck.
Class

Calendar 2015 Salary

2014

$160,000

2013

$170,000

2012

$185,000
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2011

$210,000

2010

$230,000

2009

$250,000

2008

$265,000

2007+

$280,000

Base compensation for counsel and other professional track attorneys will be determined on an
individual basis and be effective January 1, 2015, reflected in the January 23 monthly paycheck.
Base salary adjustments will be delivered individually to each associate, counsel and other
professional track attorney on January 22, 2015.
Bonus Eligibility for 2015
As always, quantitative and qualitative components will form the basis for bonus eligibility and
awards. The 2015 bonus eligibility threshold for associates will continue to be 1,950 hours during the
fiscal year. ARC will consider the following when determining whether an attorney has met the
threshold.

Billable hours

Pro bono hours

Legal services on behalf of the firm

Shadow training under the firms shadow training policy

As has been the case in the past, bonuses for associates, counsel and other professional track
attorneys will continue to be pro-rated for recent hires, leaves of absence and part-time schedules
based on the calendar year.
Pro Bono and Investment (91) Time
The firm remains committed to the Pro Bono Institute Pledge of dedicating 3% to 5% of its annual
billable hours to legal matters on behalf of people in poverty or to advance civil rights and has asked
that all of the firms lawyers commit a minimum of 50 hours annually to pro bono. Goodwin Procter
believes that pro bono service is a shared contribution on the part of the firm and each individual
attorney. Pro bono hours will continue to be credited toward the bonus determinations (both eligibility
and amount). Pro bono hours will be treated the same as billable hours.
The firm strongly encourages attorneys to expand their professional development through investment
or 91 time, which includes involvement in marketing activities, knowledge management, Business
Unit and Legal Practice Area initiatives, diversity initiatives, training and firm committees. In 2015,
ARC will continue to focus on the quality, not the quantity, of these efforts, although each associate
should aim for at least 100 hours as a guideline. All attorneys are expected to invest their time in a
way that challenges them professionally and contributes both to the firm and to their own
development.
ARC will assess the quality of attorneys investment hours on that basis, but as in 2014, investment
hours will not count toward the 1,950 bonus eligibility threshold or the quantitative aspect of the
bonus.
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Meetings
We recognize that you may have questions about the 2014 bonus program and/or the 2015 base
salaries and bonus eligibility. We will convene three meetings (one for associates at 2:30 p.m.
ET/11:30 a.m. PT, one for Counsel at 3:15 p.m. ET/12:15 p.m. PT and one for Senior, Department
and Discovery attorneys at 4 p.m. ET/1 p.m. PT) on Tuesday, January 20, to discuss these plans and
answer any questions you may have. A calendar invitation will follow shortly.
If you would like to submit questions anonymously in advance of the meetings, please use our online
survey by 11 a.m. ET/8 a.m. PT on Tuesday, January 20. We will make every effort to address your
questions. In the meantime, please do not hesitate to call me, Heidi Goldstein Shepherd, any ARC
member or your Office, Department, BU or Legal Practice leaders, with any questions or comments.
Again, thank you for your hard work and many contributions to the firm.