Quote:
Originally Posted by Unregistered
Say you are paid $4,500 per month (that’s your base).
But if firms were to pay $4,500 per month, no one would join.
So to entice young associates, they pay $6,000 for instance. But the $1,500 is frontloaded.
Which means when you get your bonus of 2-3 months, it is based on the $4,500 per month. So if you calculated $4,500 x 3 months (bonus) it’s equal to $13,500 which is 2.25 months on $6,000 salary.
In firms that don’t practice front load, it means your bonus of 3-4 months is based on $7,500. That’s the meaning
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Got it. At the end of the day, I think most firms are sneaky enough to work out their true "budget" on how much to pay their associates per year (inclusive of bonus component). They're already pretty much committed to paying, say $120k p/a for some junior associate based on expected revenue per lawyer. Then they shift some numbers around to make the monthly comp look attractive.
Unless you're in DSC team or some hard charging team, few big local firms really splash out bonuses based on discrete / measurable targets. It's all very nebulous and non transparent.