Weil, Gotshal & Manges defers associates’ bonuses to January 2013

The firm seems to be protecting itself against potential tax hikes, but the associates will have to deal with the consequences

It’s end-of-the-year bonus time at law firms, where I can only presume lawyers are greedily rubbing their hands together in anticipation of a fat stack of cash. But at Weil, Gotshal & Manges, associates won’t be seeing their bonuses until January.

The firm used to do this before 2009, but this time it is being interpreted as a fancy accounting maneuver to defer expenses to 2013, in order to reduce taxes in the event that this country swan dives off the fiscal cliff into the murky tax-infested waters below. President Barack Obama and Congress are working on a plan to avoid the tax hikes that will go into effect in 2013 if they do nothing, but it seems that Weil is hedging its bets.

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