To some extent, the bonus game is all about expectations. It’s why Davis Polk responded to Cravath’s bonus announcement with a supplemental “special bonus” rather than just raising the bonus amounts — the firm wants to be able to go back to the Cravath level next year and write off 2021 as an outlier.
No one wants to retreat from expectations. We’re seeing that with the Kirkland bonuses, where the firm yet again beat the market, but by significantly less than it beat the market in the past. Associates notice these things.
Today, McKool Smith informed attorneys of individual bonuses and, from what tipsters report, the firm matched!… Cravath.
However, according to our intel, the firm opted out of the special bonus scale set by Davis Polk and ultimately matched by the Biglaw market (including Cravath eventually).
For the second year in a row the firm fails to give associates the special bonuses. While last year the firm ultimately did pay them, their failure to do so again is a bad look and associates are pissed.
It’s a curious strategy especially given last year. After weathering the criticism of 2020 and then handing over all the cash anyway, one might have thought the firm learned that this wasn’t tenable. We’ll have to wait and see if it has another tranche of payments in its future.
Remember everyone, we depend on your tips to stay on top of this stuff. So when your firm matches, please text us (646-820-8477) or email us (subject line: “[Firm Name] Matches”). Please include the memo if available. You can take a photo of the memo and send it via text or email if you don’t want to forward the original PDF or Word file.
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