All eyes on US after Skaddens bonus freeze
Legal Week reports
December 03, 2003 at 07:03 PM
2 minute read
New York giant Skadden Arps Slate Meagher & Flom has disappointed the world's most highly-paid lawyers by kicking off the 2003 bonus round by sticking to its 2002 rates.
As revealed exclusively on www.legalweek.com on 26 November, Skaddens has indicated that the firm will repeat last year's rates of between $2,500 (£1,472) and $20,000 (£11,780) according to seniority.
The move, the first serious test of the strength of the returning confidence in the world's largest legal market, has dampened hopes that New York's legal elite would reverse two years of sliding bonus awards.
US lawyers will now be closely watching top firms like Cravath Swaine & Moore and Davis Polk & Wardwell, which have traditionally set their bonuses at the top of the market. They are expected to at least match 2002′s range of $15,000 (£8,834) to $25,000 (£14,742), depending on seniority. Skaddens has traditionally paid out slightly lower bonuses than its rivals because of its high basic salary of $140,000 (£82,454).
Leading London firms will be hoping Skaddens' rivals adopt a conservative stance. Many top UK firms now match US bonus rates for their US-qualified lawyers despite the fact that their profitability continues to lag well behind that of their New York rivals.
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