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Summary: More than just the big American law firms are matching Cravath’s end-of-year bonus scale for associates.
More law firms across the globe are announcing changes to their pay scales in an attempt to keep up with the rates set by Cravath Swaine & Moore in New York. Since their announcement of an over 10 percent increase to first-year associate salaries earlier this year and then announcing just last week that their bonus schedule will stay the same, other laws firms have been scrambling to match those rates.
Paul, Weiss, Rifkind, Wharton & Garrison were the first to announce just two hours after Cravath that they were following the same terms for their bonuses. Since that time several other U.S. firms have announced their intent to match Cravath once more, including Milbank, Tweed, Hadley & McCloy.
London-based Clifford Chance and Allen & Overy are the first of the magic circle firms to release their associate bonuses for their U.S. associates. This will be the third year that top-level associates will bring in $100,000, matching Cravath’s rates. These bonus rates have been the same for the past two years.
Now associates at Philadelphia-based Dechert can earn up to $100,000 in bonuses depending on their graduation year. First-year associates that graduated last spring that meet performance expectations at the firm will be given a $15,000 bonus. Associates that graduated in 2009 or earlier are given a $100,000 bonus.
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Performance expectations that allow associates in the U.S. to be eligible for bonuses include at least 1,950 “bonus hours” which are billable, pro bono, and firm-as-client work as well as 25 hours of partner shadowing. The most productive associates may be considered for bonuses even greater.
The full scale for Clifford Chance, Allen & Overy, and Dechert are as follows:
Class of 2016- prorated up to $15,000
Class of 2015- $15,000
Class of 2014- $25,000
Class of 2013- $50,000
Class of 2012- $65,000
Class of 2011- $80,000
Class of 2010- $90,000
Class of 2009 and up- $100,000
Do you think any law firm will try to one-up the rest by giving their associates a bigger bonus? Tell us in the comments below.
To learn more about Cravath’s salary for associates, read these articles:
- Cravath Keeps Year-End Bonus the Same
- “Cravath Effect” Takes Place with Several Firms Upping Salary Rates
- Firms Follow Cravath’s $180,000 Base Pay Scale
Photo: flickr.com
