All articles tagged with #cravath
Cravath has announced both year-end and special bonuses for its associates, matching the bonus scale set by Milbank. These bonuses will be distributed in December across their New York, D.C., and London offices without specific billable hours requirements. This move is expected to influence other major Biglaw firms to follow suit in their bonus offerings.
Following Cravath's announcement of salary raises and bonuses, many Biglaw firms have matched their compensation scale, but others have remained silent. Jeff Lowe of Jeffrey Lowe Partners predicts that there may be more surprises in the coming weeks as firms compete with each other. He expects at least the top 50 firms and possibly further into the top 100 to match Cravath's scale, but notes that as you move down the Am Law 100, there is less money available for compensation.
Cravath has announced raises for its associates, matching the scale set by Milbank for junior associates and surpassing it for midlevel and senior associates. The new salary scale will take effect on January 1, with raises ranging from $5,000 to $20,000. Cravath has also announced year-end bonuses that match Milbank's numbers. As a leader in compensation, Cravath's move is expected to prompt other Biglaw firms to react.
Cravath, Swaine & Moore has introduced a salaried partner tier, joining other Wall Street law firms in restructuring their pay models to adapt to changing market dynamics. The move allows the firm to retain and promote exceptional talent while freeing up cash for top partners. The creation of non-equity partner tiers has become more common as firms seek to attract and retain talent and provide flexibility in compensation. Cravath's decision follows reports that peer firm Paul, Weiss, Rifkind, Wharton & Garrison is considering adopting a similar tier in 2024. The move away from lockstep compensation and single-tier partnerships is driven by competition in the hiring market. Cravath, known for its top-tier deals practice, has made other significant changes, including loosening its lockstep pay model and opening new offices.