Trilegal pays special 1 month Covid salary for all on top of bonus after ‘exceptional’ financials • SAM, JSA unfreeze

Surprise bonus + bonus at Trilegal
Surprise bonus + bonus at Trilegal

As many firms had frozen salaries (or recently unfrozen them), Trilegal has paid out an unconditional one month’s extra salary to all fee-earners and staff, on top of expected usual performance-related bonus payments and scheduled PQE increments, two sources with knowledge of the move have confirmed.

Financial results at the firm, which will be finalised by 31 March 2021, are expected to be “exceptional”, according to one equity partner with knowledge of projections announced internally.

Bonuses are usually paid at the end of April, but the additional one month salary payment over and above this is understood to have been announced as a gesture of appreciation from the partnership to fee-earners as well as support staff for their hard work (and presumably difficult circumstances in which such work took place) this year.

The news was first published earlier today in a Legally India discussion on Covid bonuses (which had perhaps been started ironically).

Trilegal management declined to comment on the bonuses when contacted.

Trilegal is is also one of the few firms that never announced a salary freeze of annual ordinary post-qualification experience (PQE) year increments, which normally automatically take place as fee-earners become more senior every year.

Indeed, at the beginning of the pandemic in May 2020, Trilegal had also paid out its performance bonuses in a bid at projecting “business as usual” (though performance-linked bonuses were understood to have been a little lower than usual).

Update 22:16: According to Trilegal, a “conservative” payout in May 2020 was adequately balanced out by a higher September 2020 bonus. “The firm stayed true to its commitment in 2020 and paid out the lawyers and staff bonus, as per the guidance however in two tranches,” said Trilegal head of human resources, Kavita Mathur.

This is in contrast to most other big firms.

Both Shardul Amarchand Mangaldas and Cyril Amarchand Mangaldas had effectively temporarily deferred bonuses.

SAM and JSA retrospectively pay PQE increments

Bar & Bench had reported earlier this week that Shardul Amarchand Mangaldas had announced “bumper increases and performance bonuses”, with a “10% increment in the fixed retainer fee of its lawyers, with retrospective effect from April 1, 2020”.

According to Bar & Bench, billing targets to calculate bonuses had not adjusted at the beginning of the pandemic, with future bonuses to be paid depending on whether lawyers exceed pre-agreed billing targets that would depend on fee-earners “Cost to Company (CTC)”:

The variable fee payment will be based on the target agreed at the beginning of the financial year. For the coming financial year (2021-22), the lawyers’ CTC will be considered as if it has increased by 10% for both fixed and variable payments.

We understand that this increase does not apply to first-year associate fresher salaries at the firm.

We were not able to confirm whether this 10% increase is equivalent to standard retrospective PQE increases or beyond that.

We have reached out to SAM for comment and further explanation earlier this week but have not heard back.

J Sagar Associates (JSA) too has announced earlier this week that there would be a universal 10% increment to lawyers and staff applied retrospectively (though not applicable to first-year associate fresher salaries). Those increments had been held back previously.

The previously frozen PQE increments had been resumed from September 2020, retrospectively.

According to a statement from the firm:

On 19th March 2021, J. Sagar Associates (JSA) was pleased to announce the restoration of the full increment for attorneys and staff despite the impact of the COVID-19 pandemic, with retrospective effect from April, 2020. This will be paid out at the end of March, 2021. The bonus has already been paid to all in September, 2020.

Executive Committee at JSA said “It has been a difficult year. Our colleagues stepped up to the challenges and worked as a team to overcome them. The Firm recognises their contribution, and their hard work in adapting to the changing environment and the new normal. This is a message to JSA Family that the worst is over and good times will soon be here.”

Update 27 March: Clarified JSA situation that PQE increments were unfrozen in September and that the currently announced increments were on top of that.

Photo by Nick Youngson.

Comments

Lee Kuan 26 Mar 2021, 16:57
+39 -1
Sir, now please stay ahead of the curve on this one too.
Guest 26 Mar 2021, 17:01
+7 -1
A summary of position at SAM:
1. Fixed fee for 20-21 increase by a standard 10% (of 19-20 fixed fee) across the board, without consideration of whether a higher or lower increment was warranted.
2. Variable pay out for 20-21 remains same as that for 19-20.
3. For the limited purpose of calculations for 21-22, variable pay for 20-21 to be deemed as increased by 10% over the variable pay of 19-20. However this 10% will not actually be paid out to retainers.
4. No extra covid bonus.
SPA 26 Mar 2021, 17:14
+35 -38
Thanks for setting out the relevant term sheet clause. Kindly place this in Schedule B of the SPA.
Damn 26 Mar 2021, 17:27
+79 -6
That's so unnecessary dude :/ failed attempt at humour
Damn?? 26 Mar 2021, 17:41
+3 -21
I think its hilarious. Do you work for a [...]?
Guest 26 Mar 2021, 18:20
+15 -1
[img]https://media2.giphy.com/media/LOuFH5FMwy3yzKU6U9/200.gif[/img]

Ha ha. Aren't you funny.
Not right 27 Mar 2021, 06:46
+4 -0
Although announced, retainers have not been increased at 10 percent of fixed component. Please don’t joke. But yes, no “extra covid bonus”.
Kco 26 Mar 2021, 17:03
+16 -2
Hope Kco pays the arrears even if we just got 6% hike
Guest 27 Mar 2021, 06:38
+29 -1
People die pulling this Firm's weight but the increments are meagre and they spend money in all of this hullabaloo. And this Firm has the audacity to try and get a clean chit by pulling out medical records of the victim.
Guest 28 Mar 2021, 04:32
+16 -0
They should be called out for toxic work environment.
Cammy 26 Mar 2021, 17:24
+91 -3
I guess when you don’t open a Singapore office you can afford to pay the associates who keep the house standing.
Righto Cammy 26 Mar 2021, 20:19
+37 -0
Actually valid point. On one hand hardly an increment announced for 2020-21. As a publicity gimmick the announcement of it was made such a big deal (peanuts that is) and now the retrospective payment of arrears (again peanuts) will be made a big deal. With all of this, there is enough splurging on a Singapore office, new partner hires in all sort of rubbish practice areas. Better pay our valid dues rather than making a PR/HR stunt of each time you fail us.
Guest 27 Mar 2021, 11:43
+22 -0
Is this a cammie and Kco dialogue? Same story at KCO
Looteras 26 Mar 2021, 17:40
+9 -2
Someone please tell our LL peeps to pay us.
Peninsula stuck 26 Mar 2021, 17:42
+10 -1
Will we get a bonus?
Mind boggling 26 Mar 2021, 19:03
+20 -0
How will Cam calculate is my question. Since the bonus is supposedly from October onwards and for the prior part of financial year, the old bonus estimates apply. Any attempt at clarification has been met only with opacity. Surprise surprise.
Why no PR 26 Mar 2021, 17:58
+39 -1
"Trilegal management declined to comment on the bonuses when contacted." - CLASS ACT.

I'm just imagining the long speeches from the usual suspects [...] / [...] if this had been announced in their firms..
Mill 27 Mar 2021, 06:57
+41 -2
Meanwhile CAM put out those verbose nonsense articles all over the internet about how they're embracing WFH in all shapes and sizes then silently asked everyone to come back to office as usual. PR is out of control in this industry.
Update 27 Mar 2021, 07:25
+16 -0
Just an update, they announced yesterday that all offices will work from home till end of May.

Agree about the verbosity bit and the obvious lack of clarity that accompanies all announcements, but to keep everyone in the loop.
PR,then official 27 Mar 2021, 23:28
+25 -0
Wait for the policy update to get official.There will probably be a PR article announcing the partners,the family owners as benevolent and praiseworthy to continue their "industry changing" "talent attracting" WFH policy till May in kindness,consideration and nobility of sparing a thought for the lives of their overworked, depreciated associates.Oh,we give thy right to live.
Indented 29 Mar 2021, 09:27
+20 -0
They like to portray that they are holier than all when reality is far from that. It is all about money and how to make more of it for the equity.
True That 29 Mar 2021, 10:39
+16 -0
True.Why the pretense.All do see right through the hollow statements.
Y so quiet? 13 Apr 2021, 18:14
+5 -0
The usual PR is missing after the bonus on 31 march.No PR announcements on the bonus or increment?y so quiet at the CAM camp?
Fellow Kamie 26 Mar 2021, 18:00
+23 -0
After deduction of increments for the period of Apr to Sep and announcing exponential financials on public platforms further to opening of SGP office, recruitment of couple of dozens of people... AOTC should give the exponential looking bonus as well! :)
Munnabhai MBBS 26 Mar 2021, 18:25
+33 -0
What is the procedure to change firms Sir?
Quickest Process 27 Mar 2021, 23:53
+32 -1
The easiest quickest process is to walk to the 5th floor and announce that Our Lives Matter.In less than 5 minutes,you would have completed leg 1 of the "process to change firms" transaction.
L&L 26 Mar 2021, 18:27
+12 -2
You 2 keep fighting and continuously displaying how less you care for the firm's constituents while other firms rock! #ShameOnRKLvMS
All guilty 27 Mar 2021, 05:58
+4 -0
It's not just the two of them. There are three more in this play. All of them are responsible for putting us through so much misery during these difficult times.
#shameful
#shamelessL&Lpartners
Guest 26 Mar 2021, 19:46
+0 -2
What's the broad salary of an A2 and A3 in SAM and CAM for litigation or sectoral teams? If possible please provide fixed and variable component details as well.
Excluding MPD 27 Mar 2021, 04:49
+2 -4
A2 - late 15/16.2 + 3.9/4/4.1 (depending on band)
A3 - 18 + 6 (higher band)
The Dude 27 Mar 2021, 08:28
+27 -1
Why are you lying. Which SAMCo associate (A2 or A3) makes 6 bonus. Please lets not exaggerate salaries on this page. This isn't college.
The lady 27 Mar 2021, 08:48
+5 -3
Agree. 6 times is not at all I heard any of my peers got at SAM for the last 2 years. 1-2 times is usual.
Yeah 30 Mar 2021, 08:03
+13 -1
This comment gave me major FOMO, thinking I was missing out on some magic 6 lakh bonus that my peers are getting. Neither SAM nor CAM pay 6 lakhs, in fact the upper band is 4
Cammie 30 Mar 2021, 10:00
+3 -3
CAM does pay 6 lakhs bonus at the A3 level. At the top end of the band, 18 lakhs fixed +6 lakhs bonus is correct.
CAM SA 30 Mar 2021, 16:33
+3 -3
CAM pays 6 Lakhs
Flex 26 Mar 2021, 21:20
+24 -0
I got so depressed looking at the title - I came straight to the comments section to shit on myself.... FML
Keeping it classy! 27 Mar 2021, 01:59
+44 -0
Refreshing to see that the management hasn’t run out to issue a press release or give long speeches on how great they are. In times when every WFH policy, every payout and every breath the promoters take is announced to the world, no grandstanding is the way to go! Super duper stuff and very nicely done.
Classy 27 Mar 2021, 07:29
+42 -0
Trilegal is not run by promoters. Most founders aside from the managing partner have retired or live retiree lives. All equity where every partner would have paid a percentage of their profits to pay out the covid special bonus. Collective decision and collective leadership. Excellent move which other firms in the industry should replicate as they are putting out Linkedln posts saying topping M&A league tables. Come on SAM and AZB, show me and my better half who works at your sweat shop the money!!!!!!!!!!!!!
Brilliant 29 Mar 2021, 07:07
+26 -0
This covid-19 has exposed that at times like this, why does it really matter that you are part of a firm driven by professionals and not family promoters firm.Increments,bonus got frozen across but when things got better the firm rewarded those who kept the wheels turning.Great gesture by Trilegal,when no other firm has done this.this put pressure on other firms.They probably also figured now's a good time to poach talent.so this works better as a strategy to attract talent than PR on WFH policy.
Truly classy Trilegal 31 Mar 2021, 01:56
+24 -1
Top move to give all a covid bonus(and not just "high performers").But what's indeed the truly classy move is not to put an unending PR spin on this,not make it an opportunity of pomp and show.
JasoosVakil 27 Mar 2021, 03:59
+14 -2
The matter should be investigated by NIA, CBI and ED. Some have done well and not paid. Only they kmow the truth.
Yikes 27 Mar 2021, 08:22
+1 -0
Sounds like a horrible place. Why stick around?
aZb 27 Mar 2021, 04:17
+14 -0
No increments for 2020 - 2021. Given track record, bonus for this year will take longer than the country getting vaccinated. No acknowledgment of any contribution by the associates during the year. Come reviews, people will be told they had too much free time. Could do with a lesson from some of the others.
J.ASthana 27 Mar 2021, 05:57
+1 -0
1. What will be the percentage of increment? Is it going to be uniform across all offices and levels? Will it be based on 19-20 performance? Given that this increment has been announced at the end of FY 20-21, will the performance (recoveries) of 20-21 would also be taken into account (even a fraction of it)?
2. Will this payment of arrears have an implications on FY recovery targets or will there be a relaxation? No clarity from the management on this. This would then have an implication on the variable component. Either ways we get screwed.
Happy Sammie 27 Mar 2021, 06:06
+4 -26
I got a 200% bonus and at least 12 I know of in my practice area got 150% or more!! SAM unfortunately has a [...] or doesnt believe in this type of marketting but im getting more than my counterparts at other firms (icld TL)
Brown Munde 27 Mar 2021, 06:31
+8 -0
How Macho of you to say that! Champion you are, bro! Keep it up
Lol 27 Mar 2021, 06:59
+5 -1
Isn't a 150% bonus actually very low for a firm like SAM? Most places pay you 3-4x your monthly salary as your bonus.
Not lol 27 Mar 2021, 09:44
+0 -1
It's the % of the bonus amount given to you. For example, if the bonus component of your CTC is 3L, you get 4.5L if 150%
Lawl 27 Mar 2021, 14:44
+7 -7
150% is not of monthly salary, it's of annual salary component.

At an PA level for example, The salary split is 60%(fixed) and 40%(bonus) (So 42 lakhs fixed, 28 lakhs bonus). So when you get 100% bonus, that is already 8 times monthly salary. 150% means that you get your annual salary again, in bonus. 200% means you get more than that.

I know PAs who made almost 1 crore this year. They don't do this notional "lets give everyone 1 month salary" news piece, but some people probably got an extra 4-5 months' salaries with the 200% bonuses.

Also, better to award the performers and not everyone no? This way the good folks at TL know there's more money to be made at SAM, and the bad ones at SAM know there's more to be made at TL!
Culture 28 Mar 2021, 09:38
+16 -1
The bonuses at Sam are linked to 2 thresholds (which can be waived/altered depending on who your partner is and how much the management likes them).

You need to personally recover 3 times your CTC and your team needs to hit it’s recovery target to be eligible for 100% bonus. Based on your personal recovery numbers it scales up to 200%.

Great for “performers”. But for regular folk who aren’t in teams which bill out in foreign currency or have a huge book, it progressively gets harder to hit the 3x threshold as your salary goes up. This leads to situations where billing becomes extremely contentious (people padding their own hours at the cost of others in the team or outside or slashing hours for associates down greatly).

I don’t believe recovery stress should be passed on to associates who have very little control or visibility on the process.

Targets are also very opaque and not documented or communicated. At the end of the day the whole system is very discretionary where most people have no visibility on how to plan ahead for a year.

Most firms have had a good year on the whole. It’s sad to see that the benefits of that aren’t being passed on to the workforce who have done exceptionally well in these bizarre times we live in.
Tier 2 firms be like 27 Mar 2021, 06:32
+43 -1
[img]https://indianmemetemplates.com/wp-content/uploads/2019/03/hindi-medium-hum-shuddh-gareeb-hai.jpg[/img]
meethichruuri 27 Mar 2021, 07:17
+2 -0
So they SAM increased team targets but offer an increase only to the fixed and not variable. Gents there is a lesson in there for us all.
What? 27 Mar 2021, 14:45
+2 -0
I think the comment says they didn't increase the targets. Appears the lesson is one in comprehension.
Full Ijjat 27 Mar 2021, 09:47
+11 -0
For anyone still keeping a count for HSA. We've finally gotten our 2019-20 bonus.
[img]https://images.app.goo.gl/XDWKvXHW9TKX85NW7[/img]
Strategizer 27 Mar 2021, 14:38
+8 -0
What about retainer? Bonus de diya but retainer ka backlog. Whattay strategy
KCO 27 Mar 2021, 10:55
+10 -0
While KCO sent plants
Tier 1 27 Mar 2021, 11:18
+5 -8
This is why top tiers are the best. Tier 2s even defer increment and bonuses having a lot of work in the garb of covid. Time to leave tier 2 firms that do not pay and defer increments and give less bonuses
Hitman 29 Mar 2021, 13:09
+1 -1
It is 50 for SAM, 55 for S&R and KCO and 60 for Trilegal. For others its peanuts.
Scott Hall 27 Mar 2021, 11:41
+4 -0
How much does one make as a first year PA in SAM/CAM/Trilegal/KCO/S&R?
Its 27 Mar 2021, 14:07
+10 -0
200 rupye dihadi
Nuff 27 Mar 2021, 15:27
+2 -2
Enough to rent a 3bhk apartment alone in SoBo.
AZB RESOURCE 27 Mar 2021, 14:44
+10 -0
Hope, AZB will take note of these things and do the increments. Deferred bonus won't make people stay. Mass exits in line, probable in June.

Hope, decisions are taken for so called 'Resources' in the firm.
Sahi hai 27 Mar 2021, 15:40
+12 -16
Trilegal has learnt well from vertices partners , to put its people first. Both firms rule this industry.
Anuradha Chit Fund 27 Mar 2021, 15:42
+36 -0
Trilegal really said

[img]https://humornama.com/wp-content/uploads/2020/12/25-Din-Mein-Paisa-Double-meme-template-of-Phir-Hera-Pheri-1024x576.jpg[/img]
Sad associate 28 Mar 2021, 07:45
+0 -8
This is why tier 1s are tier ones compared to mid tier promoter run firms. If the situation continues with delayed increment and low bonuses one must consider tier 1 law firm jobs. If one has the talent they should move and not slog it out for another partners.
No baby 28 Mar 2021, 20:21
+2 -1
Don’t think tier 1 are dying to hire you
Denny Crane 28 Mar 2021, 13:29
+5 -0
We dont need increments or a good bonus. Just the opportunity to work with AOTC peeps is compensation enough. We are the best!. Paisa to haath ka mail hota hai. Aur coz mein to haath saaf rakha zaruri hai.
MAIL 28 Mar 2021, 13:53
+1 -0
Take bath everyday. You will never bother about money.
Denny Crane 28 Mar 2021, 14:35
+0 -0
Corona mein*
Freshhhouttacollege 29 Mar 2021, 09:03
+3 -0
Ayo the person who commented at 12.7.1.1 - So you're telling me an A0 needs to cover only 3 times his/her CTC to be eligible for bonus?

Somebody please give gyaan for how bonuses are calculated?
Amma 30 Mar 2021, 23:18
+1 -1
Dude...if you keep doing clause referencing like this - you'll spoil the entire contract and soon enough your career!
Trilegalisthebest 30 Mar 2021, 04:39
+19 -3
Such a generous move of Trilegal to pay extra salary, everyone got a happy surprise. Trilegal is the best. Bonus and increments are also on its way. Kudos Trilegal!
Freezemymoney 31 Mar 2021, 18:12
+4 -0
And there is s&r
staff 19 Apr 2021, 15:06
+0 -0
Is there anybody from SAM staff? They are giving some staff so much and someone is not getting anything. The richer is becoming more rich and the poorer is more poor. Why is this differential here in SAM? Kya SAM ke management ko yeh pata nahi ya bataya nahi jata. Very upset................