- Davis Polk, one of the most profitable law firms in the United States, announced special bonuses of $ 7,500 to $ 40,000 for its employees, which will be paid out this month.
- "There was a lot of activity throughout the law firm," the law firm heads told the staff in an email.
- Davis Polk is the latest company to announce special bonuses after Cooley did so earlier this week.
- The news comes days after Davis Polk announced plans to make changes to its Lockstep compensation system, which pays partners based on seniority.
- Do You Know More About Law Firm Rewards? Contact the reporter at firstname.lastname@example.org or reach him through Signal at 314-971-1627.
- You can find more stories on the Business Insider homepage.
Davis Polk & Wardwell is the latest law firm to alert its employees to the financial success of a weak economy.
The company told its employees that it had had a busy year and would be paying "special bonuses" between $ 7,500 and $ 40,000, three sources told Business Insider. Bonuses for attorneys on part-time agreements will be lower, but the law firm won't cut the standard bonuses employees receive at the end of the year, the sources say.
"We understand that the level of activity has been high across the company and we are grateful for the exceptionally hard work you have done," the company executives said in an email from Business Insider.
These awards are in addition to the compensation that employees are normally entitled to and only apply to those based in the United States, where most of Davis Polk's lawyers are located. The company has more than 450 employees in the United States, according to its website.
Employees who joined the company in 2019 will receive an additional $ 7,500 on September 30th. Those in the 2018 class will receive an additional $ 10,000, those in the 2017 class will receive an additional $ 20,000, those in the 2016 class will receive an additional $ 27,500, those in the 2015 class will receive an additional $ 32,500, those in the 2014 class receives an additional $ 37,000 and those older will receive a $ 40,000 bonus, the email said.
Continue reading: A "profound shift" is taking place in large law firms that lay off workers while they raise their wages
The news comes a day after the legal industry news page Reported on the law that Cooley, an international law firm with roots in California, made its own special bonuses of $ 2,500 to $ 7,500 and a few weeks after Husch Blackwell According to reports The bonuses that were supposed to be paid out earlier in January have been increased.
Some companies have laid off, others have reversed the pay cuts imposed earlier in the year, some have not done both, and some have done both, even at the same time.
The performance of large law firms has changed dramatically in recent months as the coronavirus pandemic has disrupted the global economy. Companies like Paul Weiss and Milbank said their performance was strong while others expect double-digit sales decline. According to Citi, who regularly reports on law firm business, projected demand for legal services and revenue has generally improved over the past few months for the leading law firms in the United States.
Continue reading: Davis Polk has just abandoned its strict seniority-based compensation system and put pressure on law firms that still use an old-school lockstep structure to follow suit
The news comes less than a week after Davis Polk announced he was going to change his Lockstep partnership compensation system. Such systems rate partners based on seniority, and many companies have modified them to attract and retain superstar talent.