Khaitan & Co has promoted Mumbai associates Joy Jacob, Ashwin Mathew and Savita Singh to its partnership and announced associate bonuses of as much as 90 per cent of annual salaries at the top end.
Jacob specialises in infrastructure, Mathew in private equity and corporate and Singh is a real estate practitioner.
Khaitan & Co has also announced its 2009-10 financial year associate bonus payments, which on average ranged between 30 and 50 per cent of annual salaries, although in some cases reached 90 per cent, according to associate sources.
Partner Rabindra Jhunjhunwala said that despite the recent aggressive lateral hires the firm did not want to stop growing. "The idea of taking our lateral hires to keep growing, strengthening our existing team, complementing our core areas and to be truly full service."
He conceded that managing last year's growth at the firm would be difficult but that senior partners would have to spend more time on management to bed down the process.
He added that the firm would have to show it was transparent in its internal partnership career progression by rewarding good and competent associates.
Mathew, who had been with Khaitan & Co for three years after finishing an LLM in Cambridge, said: "It's been a long road and it's a very good feeling."
In respect of internal promotions vis-à-vis lateral hires he noted: "The volume of work is such that what they're doing makes complete sense and the hiring in areas which are viewed as growth areas of the future."
All three new internal partners are Mumbai-based. Jhunjhunwala said that the promotion process across the firm's offices was complete for this year.
Khaitan & Co operates an all-equity partnership where shares are determined by a variety of factors.
Khaitan & Co associate sources told Legally India that associate bonuses for the past financial year were slightly better than last year, when the firm had taken a more conservative view of market conditions.
It is understood that the majority of bonuses ranged between 30 and 50 per cent of annual salaries, although in some cases this figure rose up to bonus payments equivalent to 90 per cent of salaries.
"Truly there is no upper limit," commented Jhunjhunwala. "It is entirely dependent on associate performance, at whatever level he or she may be. We like to reward our people and we like to make our people feel that at the end of the year they are going to be paid what they are due or elevated to what they are due."
Typically, five-year qualified associate salaries at Khaitan & Co can be around Rs 20 lakh ($45,000) per year or higher, according to data from Legally India's associate engagement survey from late 2009.
For newly qualified associates the standard annual salary at Khaitan & Co is between Rs 10 lakh to Rs 11 lakh ($22,500), according to the firm. [Correction: starting salaries were originally erroneously stated as being 6 lakh]. [clarification 2: the Rs 10 to 11 lakh figure provided by Khaitan included potential bonuses and other benefits]
According to associate engagement survey data, most bonuses at Khaitan & Co in the 2008-09 financial year were between 20 and 30 per cent of annual salaries.
Three new Khaitan & Co Mumbai partners; Associate bonuses 30 to 50%
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[Hi, I had unfortunately underestimated somewhat the difficulties of keeping responses confidential but still extracting meaningful data and it is taking more time than originally planned. I know it has been months now and I am chipping away at it to put it into a presentable format but not quite there yet. I hope to integrate them gradually into stories and coverage and soon be able to publish something comprehensive.
Apologies for the ultimately inexcusable delay again. - Kian]
Associate for 5 years .... isn't that unusual? As in, don't most people become senior associates in 3-4 years at bigger firms like Amarchand etc.?
At the bigger firms like AMSS etc., is the senior associate (4-5 years) salary above 30 lacs?
[Thanks for your comment but sorry, I fail to follow your reasoning or argument on that one... -Kian]
Kian, you were closer with the 6 lakhs figure stated originally...
Leaving that task only to anonymous posts? Agreed, that you dump all these anonymous posts as comments, but thats a very lame excuse for journalistic discretion.
In fact, you will discover a pattern, the anonymous posts offer much better information than the gushing headlines that you create.
No doubt, you will get enriched in the process, but quite soon you will lose all credibility.
[See #19 below for response. -Ed]
Congrats to Ashwin Matthew (a truly exceptional legal genius), Joy Jacob and Savita Singh. And a very big thumbs up to Kian for his comment to #7! :D
Thanks for your comment and some of the valid points and thought provoking points you raise - apologies for the delayed response, which I hope addresses some of your queries.
Journalism is based, to a large extent, about building long-term relationships where you find out whether you can trust sources and rely on the information they give you.
A lot of this is based on gut-feeling and experience as it is impossible within time constraints to triple-check every single piece of information when it comes from a normally trusted source.
In this case, we have actually spoken anonymously to several associates to confirm the actual bonus figures and other details. However, we are investigating the starting salary and will come up with measures to deal with and correct this, if necessary.
The anonymous comments by their nature are able to be much more critical than any balanced news article ever can be. Part of the reason these go up largely unmoderated is so that there can be transparency about news and things that are wrong can be highlighted by readers.
Hopefully, they also help in bringing out the truth through reasoned debate.
However, I disagree that we only ever run positive stories - we regularly publish a number of stories that point out difficulties in firms or other organisations when there is sufficient evidence for it.
Partly, negative stories also take much more time to fully research and stand-up and we are currently somewhat short-staffed with the volume of news that is coming out of law firms.
I would love to be able to take on a larger team, of course to be able to do proper investigative reporting, but with "enrichment" as you put it still expectedly a long, long time away, we have to do the best we can with the current resources.
In any case, our mission and aims remain unchanged to what they were when we first started less than a year ago.
www.legallyindia.com/legally-india-all-news-about-the-indian-legal-market
Do keep letting me know your thoughts and please bear with us during any teething problems we experience.
Best regards,
Kian
There is nothing known as meritocracy in KCO. Its all about how well you can [lobby]. If your partner likes your face you get 110% of your sal as bonus and if not then you get nothing. It isnt fair...but where is it???
At the same time, I have heard from many people that Khaitan is a great place to work (as compared to some other similar positioned law firms). Also, the way their name has come up in Mumbai in last few years is remarkable! I am told that Haigreve Khaitan is one of the finest lawyers around. I have also heard highly about Murali Neelakantan.
Also, the new people who they have laterally recruited (reported earlier on Legally India) also seem to be very capable. This should iron-out quality issues, if any.
At the end of the day and in a market like India, once cannot have hegemony of only couple of law firms. There is need of more quality law firms for competitiveness and serving clients better. I think emergence of Khaitan as an alternate is exciting and I am keen to track progress of this firm in next few years.
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