Cravath to award larger bonuses this year
Cravath, Swaine & Moore is seen as the benchmark for the grant of bonuses to law firm associates, with other firms either matching Cravath’s figures... or not.
This week Cravath announced end-of-year bonuses ranging from $10,000 for the most junior lawyers to $60,000 for senior associates - which is substantially higher than bonuses awarded in the previous two years. The jump in bonuses reflects a strong performance for the firm this year.
Cravath’s move will put pressure on competitors to increase their bonuses in order to keep associates happy and committed.
“For years, Cravath has set the bar for what it pays its associates, and other law firms follow them like lemmings to avoid any negative inference about their financial strength,” said Bruce MacEwen, a law firm consultant who publishes the web site Adam Smith, Esq. “And they need to reassure their associates that they’re a top-tier firm.”