ShutterstockBonus Season Begins as Cravath Again Sets the Stage
Cravath, Swaine & Moore on Monday announced end-of-year bonuses that match last year's scale. Paul Weiss and Milbank were among the first to fall in line.
November 27, 2017 at 05:30 PM
3 minute read
The original version of this story was published on New York Law Journal
Once again, Cravath, Swaine & Moore has set associate bonus season in motion, announcing on Monday it was paying year-end bonuses on the same scale as recent years.
The announcement, first reported on Above the Law, showed most recent law school graduates receiving $15,000 and senior associates earning as much as $100,000 on Dec. 15.
According to Cravath's memo, “virtually all” associates will receive the full bonus, and the firm won't apply any billable hour or similar criteria in determining eligibility. Bonuses for senior attorneys, specialist attorneys and foreign associate attorneys will be determined on an individual basis, the memo said.
A representative at Cravath didn't immediately respond to messages seeking comment.
The bonuses mean that at Cravath and matching firms, a first-year associate could earn $195,000, including the $180,000 starting associate salary that Cravath set as the market standard last year for top firms. Eighth-year associates will earn $415,000, including $100,000 in bonus and $315,000 in base compensation.
Within hours of Cravath's announcement, Milbank, Tweed, Hadley & McCloy and Paul, Weiss, Rifkind, Wharton & Garrison told associates they were matching the scale, representatives from the firms said. Other top firms are likely to announce similar bonuses in the coming days and weeks.
Paul Weiss said in a memo that it will pay bonuses on Dec. 22, while Milbank said bonuses will be paid on or before Dec. 29.
It's still unclear whether this year will be a big moneymaker for New York firms. According to data by Citi Private Bank's Law Firm Group about the first nine months of 2017, revenue growth for New York firms was up 2 percent, compared with the industry average of 3.6 percent. Revenue growth was driven in large part by rate increases. Citi data showed billing rates for New York firms has increased 4.7 percent in the first nine months of 2017, while for the industry as a whole, rates were up 4 percent.
Here is the full bonus scale announced Monday by Cravath:
Class of 2017 — $15,000 (prorated)
Class of 2016 — $15,000
Class of 2015 — $25,000
Class of 2014 — $50,000
Class of 2013 — $65,000
Class of 2012 — $80,000
Class of 2011 — $90,000
Class of 2010 — $100,000
Class of 2009 — $100,000
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