US legal elite announce associate bonus payouts of up to $60,000
A host of top-tier US firms have announced their end-of-year associate bonuses, with the majority following the lead of Cravath Swaine & Moore and hiking payments significantly across the board. Cravath has traditionally been the first Wall Street firm to announce its year-end bonuses, with the firm handing out a payout of between $10,000 (£6,200) and $60,000 (£37,000) to its junior lawyers this year.
December 11, 2012 at 11:42 AM
2 minute read
A host of top-tier US firms have announced their end-of-year associate bonuses, with the majority following the lead of Cravath Swaine & Moore and hiking payments significantly across the board.
Cravath has traditionally been the first Wall Street firm to announce its year-end bonuses, with the firm handing out a payout of between $10,000 (£6,200) and $60,000 (£37,000) to its junior lawyers this year.
The bonuses mark a significant increase on last year, when Cravath handed out payouts ranging between $7,500 (£4,800) for those in the firm's 2010 intake, increasing incrementally to $37,500 (£24,200) for the class of 2004.
The payments are made on a pro rata basis, with those associates that started at the firm in 2012 receiving the $10,000 bonus while those from the class of 2004 set to be handed a $60,000 payout this year.
Meanwhile, Weil Gotshal & Manges has also matched Cravath's bonus scale, with payments at Davis Polk & Wardwell and Sullivan & Cromwell also understood to be in line with the Wall Street leader, according to US website Above The Law.
The payments come after a group of around 20 firms that kicked off a new trend of paying spring bonuses last year opted not to do the same this spring, with the exception of Sullivan & Cromwell.
The 2011 spring bonuses ranged between $2,500 (£1,500) and $20,000 (£12,400); however, the majority of firms did not continue this in 2012 in light of uncertain market conditions.
The bonuses, which are subject to performance review at some firms, will be paid out across December and January.
US firms are also well known for their high salary bands for junior associates with the majority of newly-qualified lawyers receiving an annual sum of around $160,000 (£99,000) at the top firms.
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