New York Firm Pays Summer Bonuses as Big Law Associates Wait (1)

Manhattan law firm Otterbourg P.C. is jumping ahead of the pack with $15,000 summer bonuses for its associates.

The extra cash comes as Big Law associates are waiting to see if industry giants will dole out mid-year incentives. Milbank LLP last year set the market standard with bonuses ranging up to $25,000, bringing back the extra summer compensation trend that took off during the Covid-19 pandemic.

The bonuses reflect “our deep appreciation for their contributions and our confidence in the continued strength of the firm,” Otterbourg’s chairman Richard L. Stehl said. Otterbourg says it has 65 lawyers, including 30 associates.

The firm, which has represented financial institutions and commercial businesses for 100 years, doesn’t routinely provide summer bonuses. Otterbourg, which has recently been involved in high-profile matters related to the J&J talc litigation bankruptcy and mediation of Catholic Church abuse scandal litigation, decided to announce the payment this week after financials showed the firm enjoying a banner year, Stehl said.

The bonuses are not tied to billed hours or in-office work. The firm is paying a flat rate to associates across the board, unlike the seniority-based scale used by Milbank and other large firms.

Milbank has yet to signal whether it will dole out the extra payments again this year. That gap has allowed some firms, like Vartabedian, Hester & Haynes, a Dallas-Fort Worth boutique, to make news with $5,000 summer bonuses for all attorneys and staff, and $1,500 for summer associates and interns.

Stehl acknowledged competition for talent in New York is tough. He said that his firm competes by balancing compensation with efforts to support staff and boost morale—like four-month paternity leave that he encourages everyone eligible to take.

“We want to make it a really great place to work, and the bonuses were an aspect of that, but not a driver for keeping people,” he said.