Cravath, Paul Hastings Match Milbank With Pair of Bonuses (3)

Cravath Swaine & Moore and Paul Hastings are among top law firms giving their associates up to $140,000 in extra cash as year-end bonus season officially kicks off.

Cravath announced annual and special bonuses on Tuesday, mirroring a pair of bonuses handed out by Milbank earlier this year. Paul Hastings, McDermott Will & Emery, and Fried Frank Harris Shriver & Jacobsen said Wednesday that they also would match the bonuses.

The firms’ associates will get year-end bonuses ranging from $15,000 to $115,000, based on seniority, as well as special bonuses ranging from $6,000 to $25,000, according to memos viewed by Bloomberg Law.

Cravath will pay out its bonuses in its New York and Washington offices on Dec. 13, while London associates will receive theirs on Dec. 16. Paul Hastings will pay out its bonuses on Feb. 14, 2025.

Fried Frank associates and special counsel are eligible for special bonuses if they recorded a minimum of 1,850 hours. They are also eligible to receive a premium above the year-end bonus amount for their class, ranging from $3,000 to $34,500. The firm will pay out bonuses on Dec. 31 to associates in good standing. McDermott year-end bonuses are merit-based while it’s special bonuses are based on class year, a firm spokesperson said.

Manhattan-founded Milbank, a first mover in associate compensation, rolled out special bonuses over the summer. Its peer law firms did not immediately match, unlike in years prior, leaving associates wondering if and when they would get the extra cash. Milbank announced last week that it would hand out annual bonuses using the same scale law firms did last year.

“I’m actually, to be honest, surprised,” Kate Reder Sheikh, a recruiter for Major Lindsey & Africa, said. “I thought that when the special summer bonuses were not matched when there was just resounding silence from the market that it was going to be a one off.”

Cravath has traditionally been the associate compensation setter among Big Law firms. Its bonus announcement was first reported by Above the Law.

Law firms are bouncing back after a relatively slow two-year stretch. Law firm revenue grew nearly 12% through three quarters of 2024 compared to the same time last year, driven by strong demand and productivity, according to Citi’s Global Wealth at Work Law Firm Group.