Cravath Bonuses Set New Industry Standard with Dual Payouts for Associates

Cravath, Swaine & Moore has officially started the Biglaw bonus season. The firm announced both year-end and special bonuses for its associates. This move sets the compensation benchmark for other elite law firms.

The announcement came on November 18th. It confirms the firm’s continued leadership in associate pay scales. Every major law firm in the country is now expected to respond.

Bonus Structure Mirrors Previous Scale with Added Special Payments

Year-end bonuses match last year’s amounts exactly. First-year associates will receive $15,000. The scale increases with seniority, reaching $115,000 for the most senior associates.

Additionally, Cravath is distributing special bonuses. These mirror the summer bonuses previously announced by Milbank. According to Reuters, this dual-payment approach creates significant financial upside for eligible lawyers.

The combined payout represents one of the most generous compensation packages in recent memory. Associates in New York and Washington D.C. will receive their payments on December 12th. London-based colleagues will get their bonuses one week later.

Industry-Wide Impact and Expected Firm Responses

The legal industry now watches for matching announcements from other major players. Firms like Davis Polk and Paul Weiss are historically quick to follow Cravath’s lead. Latham & Watkins typically makes its move with confidence.

This development signals strong financial health across the corporate legal sector. Law firms continue to compete fiercely for top legal talent. Generous bonus structures remain a key weapon in this ongoing recruitment war.

For associates, the coming days will involve intense email monitoring. The domino effect of matching announcements typically completes within 72 hours. The entire industry adjusts its compensation strategy based on this single announcement.

The Cravath bonuses have reset the market expectation for legal industry compensation. This dual-payment approach demonstrates the firm’s commitment to retaining top talent. The legal world now waits to see which firms will match this aggressive move.

Thought you’d like to know-

What are the Cravath bonus amounts for 2024?

The year-end bonus scale ranges from $15,000 for first-year associates to $115,000 for the most senior class members. These amounts are identical to last year’s bonuses.

When will associates receive their bonus payments?

New York and D.C. associates get paid on December 12th. London associates receive their bonuses on December 19th. The firm maintains its traditional no-hours requirement for eligibility.

What are the special bonuses Cravath announced?

The special bonuses mirror the summer bonuses previously announced by Milbank. They represent additional compensation beyond the standard year-end bonuses.

How do these bonuses affect the broader legal market?

Cravath’s announcement typically triggers industry-wide matching. Most major firms will announce similar compensation packages within days.

Why does Cravath’s bonus announcement matter?

The firm has historically set compensation standards for the entire Biglaw industry. Their announcement effectively begins the annual bonus season.