Tom Borman, LawFuel Big Law contributor
Biglaw bonus season is in full swing, with four major firms matching the lofty levels provided by Cravaths and Millbank.
Cravath, Paul Hastings, McDermott, and Fried Frank have all announced bonuses ranging from $21,000 to $140,000 for associates.
Cravaths kicked off the bonuses with their bonus payments, followed swiftly by the Millbank accouncement.
This includes year-end bonuses of $15,000 to $115,000 and special bonuses of $6,000 to $25,000, depending on class year.
Cravath’s memo indicated that “virtually all” associates will receive full bonuses without billable-hour requirements.
Paul Hastings and McDermott have set specific payout dates, while Fried Frank offers potential premium bonuses for high performers.
McDermott are reportedly also paying merit-based bonuses as well as the end-of-year and special bonuses according to Above the Law.
Ropes & Gray associates on track for partnership are also to receive additional bonus money if they are credited with at least 1,900 hours but less money if they have fewer hours, according to Above the Law.
In addition, Fried Frank has said some associates and special counsel may earn a “premium” of $3,000 to $34,500, Law.com reports, citing Above the Law information.
The bonus round is notable as Milbank announced special bonuses in summer, which weren’t immediately matched.
The recent announcements follow a strong year for Biglaw, with top firms seeing average revenue growth of 14.6 percent in the first three quarters of 2024.
Despite the positive financial outlook, the year-end bonus scale has remained unchanged since 2021. Firms seem to be using “special” bonuses to boost compensation without committing to higher standard bonuses in future years.
Whatever the reason (and law firms will award bonuses based on a variety of factors ranging from various practice-specific areas to practice area performance, competition factors, partner-tracking and the like. Whatever, the competition among big law firms and big paying boutique specialty law firms continues to show the way for associates and large remuneration deals.
