Retainers paid by fund firms are helping drive up bonuses at Beantown law firms. The Boston Globe reports
that Ropes & Gray
is paying out bonuses of $25,000 to first year associates. That is up from $10,000 last year and the cash is hitting the accounts today. Second year associates are getting a cool $30,000 each.
Fund firms are one reason for the sharp increase. Ropes & Gray counts Putnam Investments, Scudder Investments, MFS Investment Management, and PIMCO Advisors among its clients.
Billable hours charged to these clients rose as the fund scandals and multiple investigations hit the industry. Each of those four firms negotiated settlements with regulators in 2004.
The increased business also pushed up starting salaries to $135,000 for just-graduated recruits. First years earned $125,000 last year.
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