JD Journal » cravath

Cahill Announces Bonuses

jim — Wed, 14 Dec 2011 13:06:50 +0000

In 2010, the law firm of Cravath Swaine & Moore low-balled the market for bonuses, which was then steamrolled by the firm of Cahill Gordon. The low bonus scale set by Cravath last year was matched by the firm this year for the most part. Cahill is beating the scale set by Cravath again this year, but they are going one step further with their bonuses.

In 2011, Cahill is issuing a special bonus payment to its employees in their next paycheck. This bonus payment is coming before the company even hands out its year-end bonuses, which Cahill agrees Cravath has set at a low mark, simply by handing out bonuses much higher than the Cravath scale.

So now you must be wondering how special these early bonuses are?

The early bonuses are so special that Cahill is handing out $10,000 to every associate in each class year with their December 15 paycheck. Talk about having a Happy Holiday. This bonus in the December 15 paycheck will be in addition to the year-end bonus handed out by Cahill before December is complete. Experts believe that the year-end bonuses from Cahill will be just as good, if not better than, the Cravath bonuses. The associates at Cahill should consider the December 15 bonus as a down payment for the total bonus coming in two weeks.

Cahill did not send out memos to its associates about the bonuses. Instead, the firm called its partners to tell them of the news yesterday, according to Above the Law.

Experts believe that Cahill associates will be receiving year-end bonuses that beat the scale set by Cravath to go on top of the $10,000 they are receiving in their December 15 paychecks. Some of the Cahill associates received bonuses that totaled $35,000 more than the Cravath bonus for relevant class year in 2010. Representing the floor for Cahill associates is the Cravath scale plus the $10,000 the associates are receiving in their paychecks on December 15. There is no definite answer as to the Cahill scale but the bonuses could always get better.

In the bonus market of 2010, the majority of Cahill associates fared better than their colleagues at Cravath because of their spring bonuses. Cahill also pays its associates a mid-year bonus, with the last one being paid in June, ranging from $5,000-$25,000. As you can imagine, associates at Cahill are unbelievably happy right now. Here is the money Cahill associates are expected to pull down in 2011:

Associates will be receiving $10,000 now, a Cravath-like bonus at the end of the year. They also received $20,000 in June if they were hired in 2006. The year-end bonus should be around $25,000, which means an associated hired in 2006 will have pulled down $55,000 this year, which seems like a pretty good year.

Two More Law Firms Jump on Cravath Bonus Bandwagon

jim — Tue, 13 Dec 2011 21:38:48 +0000

Two more law firms have announced that they will be handing out $42,500 year-end bonuses to their eighth-year associates and above before 2011 comes to an end. According to Law360, the two new firms are Paul Weiss Rifkind Wharton & Garrison LLP and Davis Polk & Wardwell LLP. The two firms are matching the scale set forth by Cravath Swaine & Moore LLP.

Davis Polk and Paul Weiss will be matching the new scale that was established last week by the law firms of Debevoise & Plimpton LLP, Cleary Gottlieb Steen & Hamilton LLP, Simpson Thacher & Bartlett LLP and Sullivan & Cromwell LLP. All of these firms announced last week that they would be handing out bonuses of $42,500 to their associates who were hired in 2003 or earlier.

The remainder of the pay scale falls in line with the scale set by Cravath, which announced its year-end bonuses last month. The firms will issue bonuses of $7,500 for first-year associates to $37,500 for seventh-year lawyers. Associates hired in 2004 represent the most-senior level associates at the firm of Cravath.

The law firm of Weil Gotshal & Manges LLP announced that it would match the scale set by Cravath but will not match the extended scale. The eight-year associates at Weil will receive bonuses of $37,500. Weil will pay its bonuses on December 23 and made the following statement in a memo sent to employees on December 8:

“On behalf of all Weil partners, we thank you for your hard work and dedication over the past year.”
The Cravath scale will be matched by the law firm of Ropes & Gray LLP for just the first-year and second-year associates. The bonuses handed out to the firm’s most-senior level associates will be dealt with on a case-by-case basis. Ever since the bonus scale was released by Cravath last month, the list of law firms matching the scale has increased steadily.

Last week, the law firm of Kaye Scholer LLP announced its bonuses, which will be given to those associates who work at least 1,950 hours per year. Associates who work at least 2,400 hours per year will be receiving a bonus of $57,500.

Shearman & Sterling LLP announced that bonuses will be handed out by the firm that will match the Cravath scale. This firm’s announcement occurred only one day after Proskauer Rose LLP announced its bonus plans for 2011.
The 2011 bonus scale announced by Cravath closely matches the bonuses issued by the firm to its employees in 2010. The only exception was that seventh-year associates in 2010 were given bonuses of $35,000. Cravath is the leader in handing out bonuses, as the firm issued spring bonuses in 2011, giving $20,000 to associates hired from 2004 to 2006, $15,000 to associates hired in 2007, and $2,500-$10,000 to associates hired later.

Shearman & Sterling Jumps on the Spring Bonus Bandwagon

joshua — Thu, 24 Feb 2011 21:25:23 +0000

We spent much of the first half of winter bemoaning the sorry state of associate bonuses which held firm at last year levels despite widespread increases in firm profits. Now we get to spend the end of winter celebrating the fact that most firms seem to have caught on to this particular inequity.

Following a pattern set by Cravath, which has become a pattern itself, Shearman & Sterling has announced that associates will receive a spring bonus at the end of April. The numbers are by now familiar – $7500 to $20,000, depending on seniority.

Cravath was not the first firm to announce spring bonuses, but it set the bar a bith higher in terms of size and most firms have lined up behind Cravath.

Linklaters Paying Spring Bonus to US Associates

joshua — Wed, 23 Feb 2011 18:56:44 +0000

In yet another sign that things are looking up in the legal industry, Linklaters became the second Magic Circle firm to announce spring bonuses for its US based associates. Freshfields announced its spring bonuses last week, following a string of New York firms breaking the ice.

Linklaters will pay associates in its US offices as well as US-qualified associates outside the country between $7500 and $20,000 dollars at the end of April. These bonuses match the scale set by US firms like Cravath and Cleary Gottlieb.

Linklaters has 26 offices in 19 countries and is one of the five members of the “Magic Circle” of prominent UK law firms.

Clifford Chance Partners with a Former Banker

marvins — Wed, 15 Dec 2010 00:33:12 +0000

Clifford Chance LLP, a UK-based law firm and one of the largest firms in the world, announced the addition of a former investment banker to their firm. Robert F. Masella, a former mergers-and-acquisitions banker at Bank of America Merrill Lynch, is now the latest partner and member of the global law firm’s M.&A. practice. Masella was a former member of Cravath, Swaine & Moore and spent nearly a decade with the New York-based firm. He studied in the University of Pennsylvania where he earned his law and business degrees. He did his undergraduate work at William & Mary.

In an interview, Masella said that his decision to go back to the practice of law is a natural progression for his career. “The business and legal environments have become complex and intertwined. As I reflected on my practice, I became convinced that the demands of this complex environment required legal advisers who can bring both legal and business perspectives to discussions.”

According to Dealbook, a report from the New York Times, Masella’s move was not new in the legal sector. The reports said that some years ago, there have been several big names who went back to the law firms after working in the glamorous big-bonus world of investment banking. James Sprayregen reunited with the Kirkland & Ellis in December 2008, a few years after working as a Goldman Sachs restructuring banker. In 2007, Harvey R. Miller went back to Weil, Gotshal & Manges and led the firm’s prominent bankruptcy practice, after working as a vice chairman at Greenhill & Company.

Morning Roundup

joshua — Fri, 26 Nov 2010 13:47:30 +0000

Good morning everyone! Today is Friday, November 26th, and it’s Black Friday! Here’s a quick look back at the latest headlines.

Former Texas solicitor general Gregory Coleman died in a plane crash…

Milbank will pay associate bonuses on what is rapidly becoming known as the Cravath scale…

Skadden matched the associate bonus scale announced earlier this week by Cravath…

Milbank Falls In Line On Bonuses

joshua — Wed, 24 Nov 2010 19:33:22 +0000

Milbank will pay associate bonuses on what is rapidly becoming known as the Cravath scale. For the second year in a row, Cravath started bonus season off with bonuses far below those of two years ago, and firms have hastily fallen in behind issuing bonuses at the same rate. With numbers matching exactly there isn’t even a pretense that the bonuses are reflective of the firm’s actual profits for the year, and all three firms that have announced bonuses so far this year have said that nearly every associate will receive the full bonus, which means that they are no longer even pretending that the bonuses are conditional on an associate’s individual contribution to the firm.

First year associates will receive a bonus of $7,500 and seventh years will get $35,000. For most classes, these bonuses are exactly the same as last year’s, with only seventh year associates getting bumped up from $30,000.

But it’s still early and most firms have yet to announce their year end bonuses. Maybe they’ll surprise us.

Skadden Follows Cravath’s Lead for Bonuses

joshua — Wed, 24 Nov 2010 13:39:49 +0000

Skadden, Arps, Slate, Meagher & Flom have matched the associate bonus scale announced earlier this week by Cravath, Swaine & Moore.

The numbers range from $7,500 for first-year associates to $35,000 for more senior associates.

Skadden is the second Am Law 100 firm to announce its year-end bonuses, and, according to the article at amlawdaily.com, as Nate Raymond at the New York Law Journal reports, this suggests the market is solidifying around Cravath’s scale.

Recruiters and partners at rival firms told the New York Law Journal on Monday that they expect other firms to match the scale, too.

For the last three years, Cravath has set the market rate for associate bonuses, the NYLJ reports. The firm is seen as a rate leader, especially among New York’s white shoe firms.

With over 2,000 attorneys, Skadden is one of the largest and highest-grossing law firms in the world.

Morning Roundup

joshua — Wed, 24 Nov 2010 01:17:48 +0000

Good morning everyone! Today is Wednesday, November 24th. Here’s a quick look back at yesterday’s headlines.

The exchange of artillery fire between North and South Korea set the stage for China to make a distinctive mark on the world stage…

The law firm bonus season began…

Crowell & Moring LLP & the University of the District of Columbia David A. Clarke School of Law established the Took Crowell Institute for At-Risk youth…

Wilmer Hale announced a plan for leadership succession…

Bonus Season has Begun

joshua — Tue, 23 Nov 2010 20:09:38 +0000

Last year, Cravath kicked off the bonus season with a bonus schedule that represented huge cuts from previous years. Most firms followed behind, although some firms took the Sullivan & Cromwell model instead, which differed only in that the most senior associates got an extra $5,000.

We can only hope that Cravath isn’t as influential at setting the market rate this year. Cravath will be paying bonuses that look identical to Sullivan’s 2009 scale – that is to say, no different from their own 2009 bonuses unless you are a 7th year associate. First year associates will receive $7,500, senior associates will get $35,000 and everyone else falls somewhere in between. AM Law has the full bonus scale and a copy of the firm’s memo here.

Obviously 2009 was a difficult year for the legal industry, as it was for the rest of the economy, but most signs indicate that 2010 was a vast improvement. We had hoped to see that reflected in bonuses for the year. It’s possible that other firms will buck the Cravath scale, even though very few did last year, but according my magic 8-ball the outcome is doubtful. Skadden has already followed with an identical bonus schedule.

Cravath Swain’s Forrest Leaves Firm for Department of Justice

joshua — Mon, 18 Oct 2010 20:20:13 +0000

Cravath Swaine & Moore litigation partner Katherine B. Forrest is leaving the firm to serve the U.S. Department of Justice as deputy assistant attorney general in the antitrust division. According to the New York Law Journal, which first reported the news, Forrest is the fourth Cravath partner to leave the venerable firm this year.

Forrest, an antitrust and intellectual property specialist, joined Cravath in 1990 and made partner in 1998. In her role at the DOJ, she will oversee the operations of the antitrust division’s criminal and civil programs, the New York Law Journal reports.

Evan R. Chesler, presiding partner of Cravath, Swaine & Moore, commented on the move in a prepared statement.

“We are very excited for Katherine as she takes on this new challenge,” Chesler said. “The firm has a long tradition of commitment to public service and Katherine is joining a long line of Cravath partners who have accepted important government service roles over the years.”

He added that he hopes Forrest would eventually return to the firm when her term in public service is completed.

Firms Looking to Increase Summer Hires

joshua — Fri, 30 Jul 2010 18:08:16 +0000

AM Law Daily provided some encouraging news Friday in a preview of the upcoming summer hiring season. According to its reporting, summer associate class-size is expected to show significant increases in some cases among the more prestigious firms.

Cravath, Swaine & Moore, which has a summer class size of 23 now, is expected to increase its hiring to around 75 for next summer. The story notes how Cravath “shocked the market” when it slashed its summer class size from 123 in 2009 to this year’s low number.

The number of summer associates at Skadden, Arps, Slate, Meagher & Flom fell from 225 in 2009 to 79 this year, but that number could jump back to over 100.

While still not at the levels from before the cuts, the AM Law Daily notes that the increases are “a modest jump, but modest jumps are what pass for good news these days.”

Ropes & Gray could go over 100 summer associates after having 82 this year. Jones Day expects to increase its summer class from the 124 of this year and Proskauer Rose will hold steady.

None of this is official, however, as much of the information for the story is based largely on anonymous sources.

Morning Roundup

joshua — Wed, 21 Jul 2010 10:18:34 +0000

Good morning everyone! Today is Wednesday, July 21st. Here’s a quick recap of yesterday’s stories.

BuckleySandler added three attorneys to its practice…

Head of Clifford Chance’s UK fund practice left for Simpson…

A Reed Smith partner committed suicide…

Wachtell topped the Vault Law 100 again…

Kagan’s confirmation was approved by judiciary committee…

Adam Taliaferro joined Duane Morris…

Wachtell Again Atop Vault Law 100

joshua — Tue, 20 Jul 2010 20:49:50 +0000

The 2011 Vault Law 100 was released Tuesday and again topping the list was Wachtell Lipton Rosen & Katz.

The only change in the top 5 was Sullivan & Cromwell leapfrogging Skadden, Arps, Slate, Meagher & Flom for the third spot. In a press release, Vault.com Managing Editor Brian Dalton noted the continuing rise of litigation boutiques in the rankings. As an example, Dalton notes Quinn Emmanuel has jumped from No. 43 in 2008 to No. 19 this year. He theorizes the down economy has allowed boutiques to compete with full-service firms for top students.

“As the Great Recession is well into its litigation phase, litigation boutiques are increasingly competing with the large full-service firms for the top law student talent,” Daltonsaid. “Quinn Emmanuel’s meteoric rise through our rankings reflects the growing success and impact of the boutique model industry-wide.”

The rankings were compiled through an anonymous survey of more than 15,000 attorneys at 165 law firms.

Here is Vault.com’s Top 10:

1. Wachtell

2. Cravath, Swaine & Moore

3. Sullivan & Cromwell.

4. Skadden

5. Davis Polk & Wardwell

6. Simpson Thacher & Bartlett

7. Weil, Gotshal & Manges

8. Williams & Connolly

9. Cleary Gottlieb

10 Covington & Burling

Morning Roundup

joshua — Thu, 15 Jul 2010 11:25:27 +0000

Good morning everyone! Today is Thursday, July 15th. Here’s a quick look back at yesterday’s stories.

Corporate law firm Cravath, Swaine & Moore is considering adding a four-person marketing team…

The American Association for Justice named Alabama-based attorney C. Gibson Vance its new president…

McKool Smith earned its 2nd consecutive selection to National Law Journal’s Midsize Hot List…

Bracewell & Giuliani opened an office in Seattle…

Manatt, Phelps & Phillips added a new team of lawyers and advisers to its New York City government practice…

Cravath Considers Marketing Team

joshua — Wed, 14 Jul 2010 23:37:23 +0000

Corporate law firm Cravath, Swaine & Moore plans to employ new tactics to help drum up business, according to a report today in The American Lawyer.

The venerable New York-based firm is considering adding a four-person marketing team, which would provide an array of services, anonymous sources told the publication. It would include finding work assignments “that fit within the firm’s history” and promoting the firm to industry publications that provide law firm rankings.

The American Lawyer points out the changes “will not necessarily represent a sea change for the firm,” because two of the hires would fill existing positions that are currently vacant.

A Cravath spokesman would not comment on the story. The American Lawyer notes the news has caused some surprise in the legal world, but that it appears to be a sign of the times.

Cravath saw a 7 percent increase in revenue in 2009 to $569 million. The firm had 477 lawyers, an 8 percent jump from the previous year.

Law Firms Dealing With Mandatory Retirement Policies

joshua — Mon, 19 Apr 2010 17:30:42 +0000

The recent discrimination suit filed by the Equal Employment Opportunity Commission against Kelley Drye & Warren because of its mandatory retirement policy has brought the controversial mandate back into focus. The Washington Post touched on the subject in a report out Monday.

In the story, Greenberg Traurig partner Leslie Corwin called the provision “one of the biggest issues facing the legal profession and other professional service firms today.”

When the American Bar Association recommended law firms end mandatory retirement policies back in 2007, several firms heeded the advice, according to the report, including Cadwalader Wickersham & Taft, Dewey & LeBoeuf, Pillsbury, and K & L Gates. Kelley Drye joined the ranks last week when it announced it had dropped its mandatory retirement policy in the face of the EEOC lawsuit.

According to the report, only 38 percent of firm leaders who have set retirement ages felt it should be enforced. The story goes on to note industry experts believe firms are liable “to pay the price when partners forgo retirement benefits to defect to competing firms and take their clients with them.”

The New York Law Journal lists several New York firms that still have mandatory retirement. They include Cravath, Swaine & Moore, which has a retirement age of 65; Weil Gotshal & Manges has 68 as its mandatory retirement age; Paul Weiss lists the age at 70; and at Willkie Farr, the age is 65.

Revenue and Profits Increase at Cravath

joshua — Thu, 18 Mar 2010 15:45:29 +0000

Despite the tough economic climate in 2009, Cravath, Swaine & Moore managed to increase its business, the AM Law Daily reports. Revenue at the firm rose to $569 million last year, a seven percent jump from 2008, and profits per partner came in at $2.7 million, an increase of eight percent.

The lone blemish in the report was the firm’s revenue per lawyer, which decreased 1.5 percent to $1.192 million.

Perhaps the most encouraging news for Cravath is it managed the increases without having to cut its workforce. The number of lawyers at the firm increased to 477, an eight percent jump, and the number of equity partners went from 90 to 92, reports AM Law Daily.

Cravath, Swaine & Moore is a general practice firm. Founded in 1819, the firm is headquartered in New York City.

Morning Roundup

sara — Tue, 09 Mar 2010 13:40:59 +0000

Good morning everyone! Today is Tuesday, March 9, and here’s a quick look back at yesterday’s news…

An Illinois judge refuses to dismiss a lawsuit against Donald Rumsfeld…

Former Greenberg Traurig partner Mark McCombs is charged with stealing $1 million from a local community…

Former New Jersey state official Karen J. Kominsky joins Cozen O’Connor…

Cravath, Swaine & Moore will represent Air Products and Chemicals in it’s attempted takeover of rival Airgas…

Swiss voters strike down an initiative giving free government appointed legal representation to animals…

A group of lawyers and the Brookings Institution have condemned recent attacks on Justice Department lawyers…

Chief Justice Roberts will speak at the University of Alabama…

The Supreme Court will review a case involving The Westboro Baptist Church during the Fall Term…

Squire, Sanders, & Dempsey promote a dozen lawyers…

Gross revenue remains almost unchanged profits increased slightly at Weil Gotshal…

Latham & Watkins add 8 energy partners to their Houston office…

Jackson Lewis welcomes three partners and two associates to its Raleigh office…

Morning Roundup

joshua — Fri, 19 Feb 2010 12:26:26 +0000

Good morning everyone! Today is Friday, February 19. Let’s kick the weekend off with a look back at yesterday’s stories…

JK Rowling, author of the Harry Potter books, has been named in a plagiarism suit…

BuckleySanders brought on a new attorney as Counsel…

A school district in Pennsylvania has been accused of violating the privacy of its students in a stunning fashion…

Patton Boggs picked up a former Bristol-Myers executive…

Revenue and profits fell at O’Melveny Myers…

Fish & Richardson was honored by an IP magazine…

Cravath is facing a conflict of interest complaint…

Profits were up in 2010 for Sidley Austin, even as revenues fell…

Katten added a new partner to its health care practice…

Six attorneys left Venable for Arent Fox…

And Consumer Watchdog is urging the court to reject the settlement agreement in the Google Book case…

Enjoy your weekend everyone!

Morning Roundup

joshua — Thu, 04 Feb 2010 13:31:16 +0000

Good morning everyone! Today is Thursday, February 4, and here’s a quick look back at yesterday’s headlines.

Woodcock Washburn has a new litigation chair…

Adams & Reese is expanding in Florida with an office in Tampa…

Sidley Austin has received an award for its work in life sciences law…

Thompson Hines promoted 10 law clerks to associates…

Foley & Lardner picked up a former managing partner from Nixon Peabody…

Jones Day added four lateral partners and promoted four more partners in California…

Greenberg Traurig opened a San Francisco office…

Akin Gump picked up threefrom Woodcock Washburn…

UMass is moving forward with plans for the state’s first public law school…

Cravath is holding a deferral lottery – first prize is the chance to start working…

Just when you thought it was safe to go back in the water – Layoffs at Howrey…

and Dorsey & Whitney report 2009 decline in revenues and profits…

Cravath Changes Course on Deferred Associates

sara — Wed, 03 Feb 2010 16:45:24 +0000

Cravath, Swaine & Moore informed incoming associates that some of them can begin their employment with the firm this fall, one year sooner than originally planned. Hiring partner Rowan Wilson said in an email, “those who have not yet committed to something else for 2010-11, if they are interested in starting at Cravath in2010, we will be able to take some of them.”

Last June the firm announced delayed start dates for 120 incoming associates and in exchange each one received a monthly stipend of $65,000. How many associates the firm will take on this fall has not been decided. If too many associates decide to begin in the fall a lottery will be held by the firm to select associates.

Cravath, Swaine & Moore is a general practice firm with 500 attorneys in two offices. Founded in 1819, the firm is headquartered in New York City.

Morning Roundup

joshua — Fri, 29 Jan 2010 12:45:07 +0000

Good morning everyone and TGIF! Today is Friday, January 29. Last night we were saddened to hear of the passing of Robert Joffe, the former presiding partner at Cravath, and extend our condolences to his friends, family and colleagues…

Here’s a look back at the other headlines from Thursday…

The Supreme Court of Nevada has blocked a planto pipe in ground water from the rural areas into Las Vegas on procedural grounds…

The EEOC is taking Kelley Drye to court for age discriminationin a case that could have deep repercussions…

Orly Taitz, queen of the birthers, is back – and talking about running for office…

Andrews Kurth is launching a fixed fee service to help small business get started…

Revenue is down at Reed Smith, but profits are up…

Robins Kaplan is opening in New Yorkwith some lateral moves from Lovells…

Joshua Sable has left Bryan Cave to be general counsel at an HR firm…

Andrews Kurth added three to its DC office…

Chabourne & Parke launch what appears to be the first practice specializing in alternative energy cars…

Nixon Peabody announced a pair of promotions…

And a former associate has brought a discrimination claimagainst Howrey…

Robert Joffe, Former Presding Partner of Cravath, Dead at 66

joshua — Fri, 29 Jan 2010 06:52:06 +0000

Robert Joffe, presiding partner at Cravath, Swaine & Moore from 1999 to 2006, died Thursday of cancer at age 66.

Joffe spent 42 years at Cravath where he developed a special practice, advising independent directors on corporate boards. Among other notables, he advised the directors of Fannie Mae during its accounting scandal in 2004 and again during the government buyout in 2008. He recently assisted Citigroup as the bank accepted billions in government bailout funds. As a corporate lawyer, he represented Time Inc. in its mergers with Warner Brothers and again with AOL.

With the exception of a two year fellowship in Malawi where he worked on law reform projects, Joffe spent his entire career with Cravath. He passed up many other attractive offers to remain with the firm he loved, including the position of general counsel for Time Warner. Joffe was committed to pro bono work and encouraged colleagues to do the same. In 1989 he took Martin v Wilks, a pro bono civil rights case in which he represented black firefighters in Alabama to the US Supreme Court.

In a fitting display of compassion for the man who loved his firm and loved his work, Cravath’s home page is black tonight with a simple memorial for Robert Joffe.

Morning Roundup

joshua — Mon, 28 Dec 2009 14:51:26 +0000

Good morning everyone! Today is Monday, December 28, and here’s a look back at the news from last week.

Kirkland & Ellis paid out bonuses…

Newly released records detail Rothstein’s non profit activities…

Cravath confirmed that no new partners will be named this year…

A dozen lawyers have left Dickstein Shapiro….

A federal appelate court has upheld a large judgement against Microsoft….

and Weil Gotshal’s bonuses are out…

Cravath Confirms: No Partners to be Named in 2009

Aine Ford — Wed, 23 Dec 2009 21:44:41 +0000

Making partner at a big New York firm has been a possibility for only the shining stars of the legal profession. In this recession, however, the chances of becoming partner have quickly gone from bad to worse. At many prominent firms, the number of new partners has significantly dropped: four at Cleary Gottlieb Steen & Hamilton (six in 2008); two at Wachtell, Lipton, Rosen & Katz (six in 2008); two at Debevoise & Plimpton (six in 2008); and three at Weil, Gotshal & Manges (seven in 2008). Finally, and by far the most dismal of all: Cravath, Swaine & Moore has just announced that it will not be making any new partners this year.

While Cravath has always carried the reputation of being hard to break into partnership, there has yet to be a year where not one associate has made partner. There have been rumors that the firm was hit harder than other firms during the economic crisis, as Cravath did suffer a 24 percent drop in its profits per partner for 2008.

Cravath’s deputy presiding partner, Allen Parker, denies that this decision has been influenced by the economic crisis, but rather attributes it to the fact that no one has met the firm’s standards. There are reports that only a handfull of attorneys from the class of 2002 are left with the firm and that the superstars all got out several years ago.

Is There a New Standard for Bonuses?

joshua — Fri, 04 Dec 2009 20:52:52 +0000

Up until this week, the scale for bonuses seemed pretty set in stone with every firm falling in lockstep with Cravath. But earlier this week Sullivan & Cromwell dared to be different. Of course, it’s only different if you’re a senior associate in which case you’ll get an extra $5000, small consolation for not being made partner. For everyone else, it’s exactly the same as the Cravath bonuses.

Never the less, at least one firm is jumping on the Sullivan & Cromwell bandwagon. Paul Weiss gave its associates the news today. $7500 for the first years, $35,000 for the seniors, and the same sliding scale for everyone else.

More Bonuses

joshua — Wed, 25 Nov 2009 21:11:24 +0000

-Insert cookie cutter story here-

Debevoise & Plimpton announced bonuses today. Second verse, same as the first… I’m rapidly running out of new and creative ways to say this, so here it is – it’s the same bonus schedule first issued by Cravath, then followed by Cleary Gottlieb, Skadden, Wilkie Farr, Simpson Thatcher, and Davis Polk. $7500 for first year associates, seniors get $30k, and everyone else is on a sliding scale somewhere in between.

Nothing to see here, move along…

Davis Polk Bonuses

joshua — Wed, 25 Nov 2009 17:46:47 +0000

Davis Polk has announced its year end bonus schedule and, surprise!, it looks all too familiar. Yup, it matches the bonuses put out by Cravath, which match the bonuses of every biglaw firm to announce bonuses in the days after Cravath set the bar. New associates are receiving $7500, with seniors making $30,000 and everyone else sliding in the middle.

Davis Polk & Wardwell is an international law firm headquartered in New York. The firm employs more than 700 attorneys and is primarily known for its corporate, litigation and tax practices.

Two More Firms Match Cravath on Bonuses

joshua — Fri, 20 Nov 2009 20:02:29 +0000

Was everyone waiting to see what Skadden would do? Now that Skadden has fallen in line, it looks as though everyone else Is going to play ball too. Today, Willkie Farr and Simpson Thatcher & Bartlett both announced their bonus schedules and they’re a match for Cravath. New associates will get $7500 and the scale slides on up to cap out at $30k.

Skadden Bonuses Match Cravath and Cleary

joshua — Thu, 19 Nov 2009 21:02:58 +0000

If you’re an associate at Skadden Arps, the good news is not only do you still have a job, you’re getting a bonus for surviving the year. The not so good news is that it’s the same as associates from Cravath and Cleary. There had been some hope that Skadden would buck the trend, much as they did last year when it paid bonuses around double that of most firms, but such is not the case. Like Cravath and Cleary, Skadden’s bonuses run from $7,500 up to $30,000.

Skadden, Arps, Slate, Meagher and Flom, LLP is a global firm headquartered in New York City with offices in twenty-four cities around the world. Core areas of practice include mergers and acquisitions, litigation, bankruptcy, tax, and securities law.

Cleary Gottlieb Follows Cravath on Bonuses

joshua — Fri, 06 Nov 2009 21:49:21 +0000

Cleary Gottlieb Gottlieb has confirmed their bonus schedule for this year, which falls right in line with Cravath. Cravath was the first major law firm to announce its year end bonuses. The bar was set so low by Cravath that it’s no great feat for other firms to meet it. Gottlieb

Like Cravath, bonuses at Cleary Gottlieb this year will range from $7500 for first year associates up to a cap of $30,000 for the most senior associates. Of course it could always be worse… at least there are no pink slips attached to the checks.

Cleary Gottlieb Steen & Hamilton has 12 offices and 900 attorney spread around the world. It is headquartered in New York City, which also houses its largest office.

Bonus Season has Begun!

joshua — Mon, 02 Nov 2009 21:13:24 +0000

Cravath Swaine & Moore has officially kicked off this years bonus season. It should come as no surprise that bonuses are lower than last year. The class of 2008 will get a $7500 bonus, and the class of 2002 caps out the bonuses at $30,000.

On the one hand, these are low. On the other hand, everyone receiving a bonus still has a job, which in today’s legal economy is a bit of a bonus in and of itself. What remains to be seen is how other big firms will react. Will this trigger a race to the bottom with other firms using Cravath’s low bonus rates as an excuse or will other firms pay out bonuses more in keeping with their own bottom line? Either way, we’ll keep you posted!

Rumor: Cravath Holds Stealth Layoffs, Cuts 25 Associates

Erik Even — Tue, 16 Jun 2009 17:33:50 +0000

Blawgs are reporting that Cravath has been holding stealth layoffs of associates since December 2008, letting 25 lawyers go for “performance” reasons.

According to online sources, more layoffs are expected this month. Cravath has refused to comment.

Apparently this news is coming out because laid off associates are angry that Cravath will pay incoming 2009 associates $80,000 to defer to 2010.

Cravath, Swaine & Moore LLP is based in New York City, with an additional office in London. The second oldest firm in the US, Cravath was founded in 1819.

Cravath Defers 2010 Associate Class to 2011; Offers Sweet Deferal Option to 2009ers

Erik Even — Fri, 12 Jun 2009 16:32:11 +0000

Cravath, which in March deferred its 150-member incoming associate class to October or November 2009 or January 2010, has some more deferring to do.

First: the 2009 class is being offered a voluntary deferral option. Anyone willing to defer to Fall 2010 will get an $80,000 stipend, health care, $1,000 a month in student loan repayment, and a guaranteed job when the deferral is over.

The offer requires no public interest fellowship, and there are no strings attached.

Second: the 120 members of the 2010 incoming associate class will be deferred to Fall 2011. It’s mandatory, but includes a $65,000 stipend plus the health care and the student loan repayment.

Cravath, Swaine & Moore LLP is based in New York City, with an additional office in London. The second oldest firm in the US, Cravath was founded in 1819.