Cravath sets the stage once more as US bonus season begins
US firm confirms end-of-year bonuses with Paul Weiss and Milbank among first to fall in line
November 28, 2017 at 05:14 AM
3 minute read
Cravath Swaine & Moore has once again set the US associate bonus season in motion, announcing it will pay 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 (£11,300) and senior associates earning as much as $100,000 (£75,000) on 15 December
According to Cravath's memo, "virtually all" associates will receive the full bonus, and the firm will not 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 did not immediately respond to messages seeking comment.
The bonuses mean that at Cravath and matching firms, a first-year associate could earn $195,000 (£146,600), including the $180,000 (£135,000) starting associate salary that Cravath set as the market standard last year for top firms. Eighth-year associates will earn $415,000 (£312,000), including $100,000 (£75,000) in bonus and $315,000 (£237,000) 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 22 December, while Milbank said bonuses will be paid on or before 29 December.
It is 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%, compared with the industry average of 3.6%. Revenue growth was driven in large part by rate increases. Citi data showed billing rates for New York firms has increased 4.7% in the first nine months of 2017, while for the industry as a whole, rates were up 4%.
Cravath's full bonus scale
Class of 2017 — $15,000 (pro-rated)
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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