Sonnenschein, Nath & Rosenthal is the latest Am Law 200 firm to move away from lockstep compensation for associates, and in its decision — and others — we are beginning to see a new consensus emerge on how exactly firms believe a merit-based system should be structured.
Like Orrick, Herrington & Sutcliffe, Sonnenschein’s plan, which the firm is announcing Tuesday and will roll out in early 2010, will involve a three-tier system in which associates will advance once they meet various merit-based criteria. The firm did not immediately release base salary figures for associates in each tier. Bonuses for individual associates will be tied to the same criteria instead of being linked “almost exclusively to billable hours,” as under the old system, the firm said. The system is designed so that “high-performing associates will be able to earn above-market compensation faster than they would have under the old model,” the firm said.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]