Cravath plays bonus catch-up as larger law firm payouts spread

Cravath, Swaine & Moore offices in New York. REUTERS/Andrew Kelly

(Reuters) – Cravath Swaine & Moore, whose holiday bonus announcement last month initially set the market scale for major U.S. law firms, said Tuesday that it will pair those year-end payouts with “one-time” bonuses for associates matching amounts announced this week by rival Davis Polk & Wardwell.

Many of Cravath’s other competitors, including Debevoise & Plimpton; Milbank; Paul Hastings; Paul, Weiss, Rifkind, Wharton & Garrison; Skadden, Arps, Slate, Meagher & Flom and Willkie Farr & Gallagher, have also opted to follow Davis Polk’s combined year-end and special bonus scale, which awards up to $138,000 for the most senior associates.

Fried Frank also said Tuesday in an internal memo reviewed by Reuters that it will match the combined scale for associates in New York, Washington, D.C., and London who meet its billing credit requirements, and will pay bonus premiums for those that meet certain criteria.

In an internal memo on its latest bonuses, Cravath’s leadership said the firm will not apply “billable hour or similar criteria” to determine associates’ eligibility. The special bonuses will be paid on the same date as its year-end bonus on Dec. 17.

The memo was published by legal blog Above the Law Tuesday; a Cravath spokesperson declined to comment.

Like many others, Cravath had already offered two-installment “special” bonuses in the spring and fall to reward hardworking associates and stave off departures amid high demand for legal work.

With all those bonuses combined, the firm’s most senior associates are line to receive up to $202,000 in cash awards on top of their salaries this year. Many U.S. law firms, including Cravath, also raised associate salaries earlier this year.

Katten Muchin Rosenman, which also matched the original Cravath year-end bonus scale, said Tuesday that it is offering additional “discretionary” bonuses for associates who bill 2,000 hours or more. Bonuses increase for every additional 100 hours billed, with those billing up to 2,400 earning from $31,000 to $172,500, according to a memo reviewed by Reuters.

Read more:

Law firm bonus wave continues, with boost from Davis Polk

Cravath kicks off year-end bonus season with payouts reaching $115K

More law firms join end-of-year bonus race following Cravath

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