Merry Christmas! Allen & Overy Cuts Associate Bonuses in Half

Allen & Overy has announced its year-end bonuses for its US associates, with lawyers seeing half of what they receieved last year.

The Magic Circle firm’s US lawyers will take home a bonus in the range of $17,500 to $32,500.

Last year A&O lawyers took home between $35,000 and $65,000 in a January payout. Associates were also handed a special bonus in December of $10,000 to $50,000, depending on seniority.

The move mirrors that of rival Clifford Chance , which publicly announced earlier this month that it was cutting its bonuses.

The majority of Wall Street firms this year have decided to halve their bonuses and scrap the additional bonuses paid out in last year’s bonus war.

On Wednesday, Latham & Watkins became the first major law firm to announce that it is freezing associate pay for 2009 at 2008 levels. The firm is one of the most generous with newly-qualified lawyers netting £96,000 ($145,000) in London, while their New York counterparts start at $160,000.

Via Law.com.