Cravath Doles Out Associate Bonuses Ranging Up to $140,000 (2)

Cravath Swaine & Moore is giving junior lawyers up to $140,000 in bonuses, kicking off flurry of moves by competitors.

The Wall Street law firm is paying annual bonuses on a seniority-based scale, starting at $20,000 for first-year associates and ranging up to $115,000, according to a person familiar with the situation. It’s also handing out special bonuses of $6,000 to $25,000 to match those rolled out by Milbank LLP in August.

Three other firms—McDermott Will & Schulte, Paul Hastings, and Cadwalader Wickersham & Taft—quickly said they would match the Cravath bonuses.

Cravath has long been a market leader in setting associate salary and bonuses scales, with Milbank more recently making a splash as a first mover. The combined payments announced Tuesday are on the same scale used by top firms last year.

Firms were expected to stick to last year’s scale, according to Stephanie Biderman, an associate recruiter for Major Lindsey & Africa. It’s still possible that a rival firm will ratchet up the bonus scale.

“There are some firms that have the profitability to support that raise and it was a strong year,” Biderman said. “We’ve seen a lot of stratification in the market, particularly with the elite firms.”

Cravath brought in $1.2 billion in gross revenue last year, according to data from The American Lawyer. Its profits per equity partner neared $6.9 million.

Cravath’s bonus announcement was first reported by Above the Law.