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Typical Bonuses in Boutique dt Toronto firms


Isthatlegal

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Isthatlegal
  • Lawyer

I have a question on what a typical Christmas bonus is at a boutique mid-size firm in downtown Toronto. It’s not stated in our contracts. Is it usually around 10%? Is it normal to receive around 2% of your salary? There is no transparency at all in how the bonus is structured, and it’s not in the employment letter. We were not told of any criteria whatsoever we need to meet to get a bonus either. I am getting the distinct feeling that I am being taken advantage of (esp since I know for a fact I’ve been pulling long hours and working my ass off and they know it too). But I need to know what the standard bonus is at a typical boutique in dt Toronto is before I go talk to the higher ups. I know for a fact that we get a bonus and I know other associates got one. However they aren’t being forthcoming in revealing what it is. This isn’t the first time that I have gotten the short end of the stick either (I.e. I was never told that associates are on a cell phone plan and only found out months later and had to go ask the firm to get on it). If I can get an idea of what some of the standard numbers are from anyone who knows and how it’s usually structured, I’d really appreciate it. I know this may sound ignorant but it’s my first job and I don’t know where to find this info. Thanks in advance.

 

Edited to add (in case it makes a diff) that it’s a fairly reputable firm and it hasn’t been struggling (in fact quite the opposite) this year.

Edited by Isthatlegal
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Rashabon
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Unfortunately there is no standard for a boutique mid-size firm. Even Bay Street firms aren't consistent with their bonus, but at least there there is a bit more pressure to standarize.

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As noted, there is no standard. I don’t think it’s unusual for boutiques to have either an entirely discretionary bonus, or one that’s part discretionary and part based on a percentage of your hours billed over your target. I also don’t think they’re typically “Christmas” bonuses, but rather year end (which for many firms may be Dec. 31 but not necessarily). Why not ask them directly what the structure is when they talk to you about giving it to you (or before)?

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Ohshmagoda
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Speaking generally, I think it’s most common for firms to pay a yearly bonus in the new year (February) that is intended to compensate performance / billable hours / hard work during the previous calendar year. The criteria for determining the amount of this bonus will vary drastically from firm to firm. Associates within the same firm or practice group will receive different amounts based on their seniority and how they match up to the performance criteria.

Separately, many firms pay a small holiday bonus in December. This bonus is not talked about much at all. I have received a bonus of this sort every year but it feels like I’m supposed to see it as discretionary (and not expect to receive it). My experience suggests that if a firm pays this form of bonus, each associate typically receives the same amount and the quantum is fairly nominal ($2,000-$5,000).

To OP - your concerns will be better addressed by your associate peers in your firm. It won’t be as awkward to ask as you think. Especially if you are newer, just pretend to be grateful about what you did receive and ask your associate peers whether the holiday bonus is paid every year, whether it goes up every year, etc. They’ll probably volunteer all the information you’re looking for. 

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Isthatlegal
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Thank you @Ohshmagoda @Blurg and @Rashabon for your answers. As an update -I asked around and I did not like what I found. Found out an associate that is junior to me is getting paid more in general and they got paid a bigger percentage of their salary for the bonus. I got paid a much lower percentage of my (lower) salary. This is after doing two trials within two months and pulling hellish hours for both and getting told I’m doing a phenomenal job. It’s become clear to me that I’m underpaid - in more ways than one. One of the partners was almost apologetic at the number of hours I was pulling to help them and it now makes sense to me as to why - they know full well I’m underpaid. Suffice to say I’m feeling very bitter. Also - no the firm does not give a bonus in February. The bonus (I guess it’s the year end bonus) we got in December is it. 
 

Just wanted to add that I now know from experience how valuable it is for there to be transparency around salary, including bonuses. And the only reason the other associate told me what they were making is because they just quit the firm. Had that not happened I may have never found out. Firms - no matter how nice the people may be - have no qualms about taking advantage of you. 
 

And this may need a new thread but - I’d be very interested to hear if anyone has any advice on negotiating salary and how you’ve managed to stand firm and get what you want (maybe even higher). 

Edited by Isthatlegal
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  • 2 weeks later...
tortstortstorts
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If you're underpaid, the easiest and most effective way to negotiate salary, by a significant margin, is to get an offer elsewhere and ask for a match or similar.  But you need to be open to leaving if the post-offer negotiations with your current employer fall through.  

 

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easttowest
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On 12/22/2021 at 4:32 AM, Isthatlegal said:

Thank you @Ohshmagoda @Blurg and @Rashabon for your answers. As an update -I asked around and I did not like what I found. Found out an associate that is junior to me is getting paid more in general and they got paid a bigger percentage of their salary for the bonus. I got paid a much lower percentage of my (lower) salary. This is after doing two trials within two months and pulling hellish hours for both and getting told I’m doing a phenomenal job. It’s become clear to me that I’m underpaid - in more ways than one. One of the partners was almost apologetic at the number of hours I was pulling to help them and it now makes sense to me as to why - they know full well I’m underpaid. Suffice to say I’m feeling very bitter. Also - no the firm does not give a bonus in February. The bonus (I guess it’s the year end bonus) we got in December is it. 
 

Just wanted to add that I now know from experience how valuable it is for there to be transparency around salary, including bonuses. And the only reason the other associate told me what they were making is because they just quit the firm. Had that not happened I may have never found out. Firms - no matter how nice the people may be - have no qualms about taking advantage of you. 
 

And this may need a new thread but - I’d be very interested to hear if anyone has any advice on negotiating salary and how you’ve managed to stand firm and get what you want (maybe even higher). 

Call a recruiter.

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On 12/22/2021 at 4:32 AM, Isthatlegal said:

Thank you @Ohshmagoda @Blurg and @Rashabon for your answers. As an update -I asked around and I did not like what I found. Found out an associate that is junior to me is getting paid more in general and they got paid a bigger percentage of their salary for the bonus. I got paid a much lower percentage of my (lower) salary. This is after doing two trials within two months and pulling hellish hours for both and getting told I’m doing a phenomenal job. It’s become clear to me that I’m underpaid - in more ways than one. One of the partners was almost apologetic at the number of hours I was pulling to help them and it now makes sense to me as to why - they know full well I’m underpaid. Suffice to say I’m feeling very bitter. Also - no the firm does not give a bonus in February. The bonus (I guess it’s the year end bonus) we got in December is it. 
 

Just wanted to add that I now know from experience how valuable it is for there to be transparency around salary, including bonuses. And the only reason the other associate told me what they were making is because they just quit the firm. Had that not happened I may have never found out. Firms - no matter how nice the people may be - have no qualms about taking advantage of you. 
 

And this may need a new thread but - I’d be very interested to hear if anyone has any advice on negotiating salary and how you’ve managed to stand firm and get what you want (maybe even higher). 

Sounds like you should be looking at leaving ASAP

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Vizslaw
  • Lawyer
On 12/22/2021 at 4:32 AM, Isthatlegal said:

Thank you @Ohshmagoda @Blurg and @Rashabon for your answers. As an update -I asked around and I did not like what I found. Found out an associate that is junior to me is getting paid more in general and they got paid a bigger percentage of their salary for the bonus. I got paid a much lower percentage of my (lower) salary. This is after doing two trials within two months and pulling hellish hours for both and getting told I’m doing a phenomenal job. It’s become clear to me that I’m underpaid - in more ways than one. One of the partners was almost apologetic at the number of hours I was pulling to help them and it now makes sense to me as to why - they know full well I’m underpaid. Suffice to say I’m feeling very bitter. Also - no the firm does not give a bonus in February. The bonus (I guess it’s the year end bonus) we got in December is it. 
 

Just wanted to add that I now know from experience how valuable it is for there to be transparency around salary, including bonuses. And the only reason the other associate told me what they were making is because they just quit the firm. Had that not happened I may have never found out. Firms - no matter how nice the people may be - have no qualms about taking advantage of you. 
 

And this may need a new thread but - I’d be very interested to hear if anyone has any advice on negotiating salary and how you’ve managed to stand firm and get what you want (maybe even higher). 

I think they key is to look at how many hours you're billing and how much revenue you are generating, then compare that to your salary. It's been said elsewhere but a general starting point may be that you take home at least 1/3 of what you bring in to the firm as an associate. The other 2/3s are usually split between the cost of employing you and other overhead expenses and then profit to the firm at large. That is definitely not some golden rule but it might help to give you a starting point for how to approach things. From your description it sounds like you are not being paid as much as someone junior to you, but that doesn't answer whether the other lawyer brought in more revenue to the firm and thus was justified in being paid more. It could just as well be because your employer is underpaying you as it could be that they are paying you appropriately based on what you bring in... Do you have target hours? Are you meeting them? Things can also get complicated - depending on your firm - because they may not bill their clients for every hour that you docket, and they may not get paid for every hour they bill.

Not to take away from your hard work or efforts - it obviously depends on the practice, but running two trials in two months does not sound like it would necessarily result in hellish hours. For many firms that would be normal or even below average, so it's really hard to compare. If your firm rarely runs trials that would be different.  

In terms of approaching your firm, I would want to know the answer to some of these questions: how many hours are you billing and how much revenue are you generating for the firm? Do you bring in clients or have a high retention rate if you do consultations that are assigned to you? Try to quantify all of that and speak to your boss. Tell them that you think you're bringing in (roughly) X to the firm every year and that you want to know why you're only being paid Y. You can also ask what the future looks like in terms of advancement or how they calculate compensation if that's not already clear.

You can always look elsewhere and then ask if they would match an offer (if you get one) but you have to be prepared to leave if they say no.

 

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