Sucka! Boo Yah!

my bonus: first

first, and dang

First

First Sucks, This Rocks

NY Firms must match this to continue to retain top talent.

First!

Figgity first!

FIRST

first, and dang

i predict a comment clusterf**k

so. . . graduate from lawschool, start off making $205,000/yr. Not bad work if you can get it.

Sucka! Boo Yah!

What will other firms do? Do they traditionally give bigger bonuses at Cravath than at other shops?

Is it common for first-years to get a year-end bonus after only 3 or so months of work, or is this just a Cravath thing?

What does special bonus mean?

source?

first!

Is it common for first-years to get a year-end bonus after only 3 or so months of work, or is this just a Cravath thing?

Is it common for first-years to get a year-end bonus after only 3 or so months of work, or is this just a Cravath thing?

Yeah, what's a "special bonus"?

What does special bonus mean?

Special bonus is paid next week. Rest is paid at year end. Firms who want to remain top-tier will match the total (though not necessarily the timing).

Yeah, what's a "special bonus"?

please explain to me why i shouldn't think that anyone who writes "first" is not a total douche.

Usually, first-years get a pro-rated bonus for time at the firm. This one looks nice if accurate.

Mmm...Special K.

Hahahaha, that's it that Cravath pays in bonuses? For all those hours? What an absolute scam. I guess the attorneys are paid in prestige points.

I assume the year end bonus for class of 2007 is pro-rated, right? So who's going to top this?

Mmmm.....Special K.

"Is it common for first-years to get a year-end bonus after only 3 or so months of work, or is this just a Cravath thing?

Posted by: SP | October 29, 2007 04:44 PM "

Um. Class of 2006 has only been working 3 months. Riggghttt.

Joke bonuses.

doesn't class of 2007 mean fall '06 starters whose stub year ends 12/06 and real hours start 1/07? as such, this year's fall class is the class of 2008 -- and would get a pro-rated $35K

doesn't class of 2007 mean fall '06 starters whose stub year ends 12/06 and real hours start 1/07? as such, this year's fall class is the class of 2008 -- and would get a pro-rated $35K

You're mistaken.

4:58: No.

4:58, I don't know what you are saying but it made no sense. The "Class of" refers to the year you graduated from law school. Get a clue.

This is just depressing. I'm going home to sulk.

wrong unless. class is measured by when you start. thus, this year's entering class gets pro-rated 35K and no special K.

I have been trying to get into Movable Type to update this post, but I have been unable to. Here is what I would add if I could:

1. No official comment back from the firm, but this news is solid -- confirmed by multiple sources at Cravath, by phone and by email.

2. As noted previously in this comment thread, the "special" bonuses will be paid on November 9. The year-end bonuses will be paid in December.

3. I would add a Drudge-style siren to this post if I could get into it to revise it.

Forgive my ignorance, but is class of 2007's bonus pro rata or does Cravath given them the get the full 35K?

So is the special bonus in addition to the year-end bonus? Do class of 2002 get a *total* of $95K?

When do we get out mountain bikes?

"class" usually denotes the year those people graduated from school and began working. so "class of 2006" graduated in May '06 and began work in Sept. '06. probably why '07 gets no "special" bonus...only 3 months' work. but 35K pro-rated for 4-5 months' "work" (depending on when the fiscal year ends) is pretty good.

how does this compare with Cravath's bonuses last year?

Class of XXXX refers to the year that they graduated from law school

that's what i was confirming. some firms use "class" to denote fiscal year when your hours start counting.

Only stupid firms.

i for one and happy with this early announcement b/c there is a lot of uncertainty in the market. plus, it's a raise.

i for one am happy with this early announcement b/c there is a lot of uncertainty in the market. plus, at least it's a raise.

That's almost more than I make in salary! I need to jump ship!

Last year, the class of 2006 at most BigLaw firms paying NYC market received 35K pro rated, correct? Still unsure, therefore, whether this 35K reflects the pro rated amount itself, or whether the 35K figure will be pro rated for the amount of time the associates have actually worked (some started in September, others in October or November, etc).

looks like a substantial raise for juniors and a dramatic raise for senior associates -- undoubtedly a response to S&C's supplemental bonus for seniors.

Here are last years and this years numbers compared:
30 45 + 15
35 55 + 20
40 65 + 25
45 80 + 35
50 95 + 45
55 110 +55

First years always get a pro-rated bonus. So that nice 35K is, in reality, around 6-8K for those who started this year.

Sucks for Class of 2006!

"Special" = code for the raise in bonuses being a one-time event.

So, to clarify, ALL the associates at Cravath are receiving year-end AND "special" bonuses? Or are the "special" bonuses tied to some hours requirement?

looks like a substantial raise for juniors and a dramatic raise for senior associates -- undoubtedly a response to S&C's supplemental bonus for seniors.

Here are last years and this years numbers compared:

stub year: who cares
1st year : 30 45 + 15
2nd 35 55 + 20
3rd: 40 65 + 25
4th: 45 80 + 35
5th: 50 95 + 45
6th: 55 110 +55

Does anyone know how these compare to last year's bonuses?

so does this mean kirkland 1st years will average 50k?

Does anyone know how these compare to last year's bonuses?

Any word on other firms matching?

First years always get a pro-rated bonus. So that nice 35K is, in reality, around 6-8K for those who started this year.

cravath never ties hours to bonuses...so prob. means special as in “boom year”

Does anyone know how these compare to last year's bonuses?

I want the next generation I-Pod before it comes out. Frivolous bonuses = my firm!

So many clueless commenters. "Special" generally indicates the bonus is given because the firm had such a good year. "Class" refers to the calendar year you graduated. Class of '07 lawyers get pro-rated bonus.

The real question: will my Vault 10 firm pay a special bonus?!

Are special bonuses new to Cravath, or have they paid special bonuses previously?

Cravath and other top NYC firms never tie to hours -- why should they, because you either work like a slave or get fired.

is this in addition to any hours-based bonuses?

Special bonuses to show appreciation. How odd.

Sweet holy moses. It's rainin' gold bricks!

Two thoughts:

1) Yippee! I don't see how top-tier firms avoid matching the "special" bonus, lest it be seen as admitting they've had a shittier deal than their peers.

2) This comes right on time for fall recruiting. Anyone choosing between Cravath and, say, S&C, just had a big push in Uncle Cravath's direction. Unless, of course, Uncle Sully is quick to match!

Bonus #3) In Y2K dollars, what would this be? At least 20-30 bucks, right? God bless you, Ben Bernanke.

So, to clarify, ALL the associates at Cravath are receiving year-end AND "special" bonuses? Or are the "special" bonuses tied to some hours requirement?

The base bonus is same as last year. The "special bonus" the amount each class is getting this year over last and is intended to tell associates "don't count on this as the floor for 2008."

Typical lawyers - can't get the numbers right. All previous comparisons to last year posted were incorrect. You were using stub year of last year as first year. See below:

Stub: who cares
1st: 35 45 +10
2nd: 40 55 +15
3rd: 45 65 +20
4th: 50 80 +30
5th: 55 95 +40
6th: 60 110 +50
7th: 60 110 +50

Has Cravath usually paid market bonuses in years past or is this the first time in recent memory that Cravath has tried to separate itself from the pack this way?

Cravath will really benefit from recruiting with this. The other top NY firms had better announce quick if they don't want to really lose out on the best 2Ls.

The next person who asks if it is tied to hours should be shot.

I wonder if this is tied to hours.

The other Vault top 10 firms, whose partners are all filthy rotten rich, better pay up too, or in-the-trenches associates will be even less cooperative with them than is the norm as.

543: not really, I'd guess that at least 90% of Cravath offers have been accepted already.

With respect to recruiting, this would most significantly affect 3Ls who have yet to accept an offer and ho have a deadline of this week to decide where to accept employ since 2Ls have a later deadline and firms will have more time to react to the raise for 2Ls.

Clearly though, this move is meant to detract from S&C's senior associate pool. In almost a year, senior associate total compensation has increased by 33% at Cravath. Cravath must be having some significant retention problems (like most other firms) and throwing more money at associates is its attempt to resolve the issue. Perhaps it will work, but I think reducing slavish time constraints on senior associates would have been a better measure at least for Cravath.

Will Cravath become the new Simpson and be the first to announce new raises?

That's the test of a true top firm.

should I shoot him now, or wait until I get home. Shoot him now, shoot him now!!!!

This is a raise. this is all you're gonna get this year

This is a raise. this is all you're gonna get this year

5:43: Cravath hasn't separated itself from the pack, the pack will follow.

What portion of this bonus is tied to hours?

543: not really, I'd guess that at least 90% of Cravath offers have been accepted already.

With respect to recruiting, this would most significantly affect 3Ls who have yet to accept an offer and ho have a deadline of this week to decide where to accept employ since 2Ls have a later deadline and firms will have more time to react to the raise for 2Ls.

Clearly though, this move is meant to detract from S&C's senior associate pool. In almost a year, senior associate total compensation has increased by 33% at Cravath. Cravath must be having some significant retention problems (like most other firms) and throwing more money at associates is its attempt to resolve the issue. Perhaps it will work, but I think reducing slavish time constraints on senior associates would have been a better measure at least for Cravath.

Hod did JG from Suffolk find out about this so quickly?

JG in da house: is this tied to hours?

5:49 - your naïveté is painfully apparent. Last year was Simpson's first year to lead the salary raises. In the past, it was always Cravath or S&C (perhaps also Davis Polk? I can't recall).

Sharon is definitely getting that Prada bag. Yeeha!!

6:03 - History means little. A firm that was a leader yesterday can easily fall behind if it doesn't keep up.

Simpson garnered all the press this year, therefore it was king of the mountain.

If this is Cravath's attempt to knock them off, they have failed.

Permanent raises are the name of the game, not one time bonuses.

5:49 - your naïveté is painfully apparent. daffy duck always ended up getting shot in the face cheney-style.

5:49: the real question is whether Cravath will become the new Simpson and Simpson the old Cravath while Weil becomes yesterday's Skadden but not tomorrow's White & Case but only if Cleary is Davis Polk until Latham is Paul Weis, but no matter, bacuse nobody is Wachtell. Except Wachtell.

Post at 5:54 - 3Ls who did not summer at Cravath who have yet to accepted have until Dec. 1.

3Ls who did summer at Cravath (or anywhere else) can extend the deadline to Dec. 1 with firm permission.

ONE HUNDRETH!!

543: not really, I'd guess that at least 90% of Cravath offers have been accepted already.

With respect to recruiting, this would most significantly affect 3Ls who have yet to accept an offer and ho have a deadline of this week to decide where to accept employ since 2Ls have a later deadline and firms will have more time to react to the raise for 2Ls.

Clearly though, this move is meant to detract from S&C's senior associate pool. In almost a year, senior associate total compensation has increased by 33% at Cravath. Cravath must be having some significant retention problems (like most other firms) and throwing more money at associates is its attempt to resolve the issue. Perhaps it will work, but I think reducing slavish time constraints on senior associates would have been a better measure at least for Cravath.

It is the same exact scale as last year, but a little more pro-rated for the new folks that just started and the extra bonus for everyone else. The real question is what are other firms going to do to match the Special Bonus? Is Cravath trying to become like Wachtell in this respect?

100th

6:03 - History means little. A firm that was a leader yesterday can easily fall behind if it doesn't keep up.

Simpson garnered all the press this year, therefore it was king of the mountain.

If this is Cravath's attempt to knock them off, they have failed.

Permanent raises are the name of the game, not one time bonuses.

Simpson has 48 hours to match or I'm accepting my offer at Cravath.

Harvard 2L: seriously, this is the determining factor for you? You aren't even going to see a bonus from them until December 2009 (pro rated, which makes it even less significant). You might want to consider a few other factors before making a decision... Not to mention that all serious firms will definitely match because they're all trying to hire megalomaniacal ignorant students like you...

So is the Special Bonus tied to hours?

Or does "special" mean that the bonus is hidden somewhere in the Partners Dining Room and I have to find it?

Is it "special" because I can elect to have it paid off in a commodity like pork bellies? If so, I choose my "special" bonus to be paid off in cabbage patch children or if they are to hard to obtain perhaps in real children. I just love children.

Well let me be the FIRST to say Thank You, CSM, for setting the bar.

you idiot 6:31 p.m.! it is SPECIAL because a Cravath partner deemed it so. period. end of story.

Well, that, and because the dollars that they pay it out in are PURPLE. THAT's what makes it special.

Look out for Davis Polk to more than match with "SO SPECIAL" Bonuses that are just that much more special.

This will enable me to pay more visits to my "special" friend who gives me "special" happy endings.

Cravath rides the short bus.

i know your special friend and she has something special for you that penecillin will not cure.

Do people think that other firms will match this special bonus also? If so, which firms? Simpson, Cleary, Latham, Sidley, Debevoise?

This is a high bar for bonus season. Thank you Cravath.

The $50,000 question is: Who matches?

Almost certainly, Simpson, Davis, Skadden, Sullivan, and the rest of the V10 will match in total comp.

From there down, it gets interesting. It's easy to see 11-15 matching, but difficult to see 50-60 matching. In other words, where will the line be drawn?

The move to $160k took its toll on the bottom of the Vault 100. You see it in increased billables and increased whispers of "performance related" associate departures.

In the end, though, this is all about the ability of the top firms to attract and retain top talent. Over the past several years, firms in the bottom half of the Vault have benefitted from parity in associate compensation, and have attracted talent that otherwise would be going to the top firms.

As for timing, it's no coincidence that we are right in the heart of the decision phase for 2Ls. A potential summer who has narrowed the list down to Cravath and other top firms is paying attention, and this bonus will easily tip the scales, all other things equal. This is an immediate boon for Cravath, as it will be looked at as a "Cravath bonus" in the early stages.

Expect Simpson, Skadden, DPW and Sullivan to match this week. From then on, it will be interesting, but this could be the start of a shift toward higher compensation at the top end of the Vault.

I don't know which other firms are matching the special bonus, 6:53, but I can say with certainty that I gave a special bonus to your mom.

Money still goes further in DC even with a special bonus in NY. NY is behind in general.

Will the newly formed Dewey and LeBoeuf make a statement and match? Is D&L ready to play in the major leagues? Will D&L show some aggressiveness and play hardball with the big guys?

6:58 is clearly an associate at Dewey LeBoeuf and is hoping that the Firm will read that comment and raise. Dream on.

Why wouldn't D&L match?

Wait, I have it on good word that Stroock just matched........

HAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!!!!!!!!

This will take the place of salary hikes and will probably not be repeated in future years.

Shame on Cravath for announcing this the day after the Boston Red Sox won the World Series. Putting their own associates' interests above those of the game is just not right.

I bet CWT matches.

I have it on good authority that Gallion & Spielvogel have matched.

Uh oh, 7:00, should I be concerned about accepting my offer at D&L and go to a higher ranked firm that I think will start paying more?

I bet CWT matches.

7:09 (2) - Why did you accept an offer at D&L if you have offers on the table from higher-ranked firms? I have nothing against the firm (aside from the typical tierist snarkiness), I'm just a little perplexed. When you say "higher ranked firm", are you referring to V10?

4:48 - Because being FIRST is FUN!!!!!!!!

6:56 and others who do the same thing: we really need to stop looking at Vault to figure out who is going to match/raise/whatever. the AmLaw charts are much, much better in that regard, because the AmLaw charts provide the relevant underlying numbers (RPL, PPP, etc.) note how, e.g., Schulte and Cadwalader are typically no-doubters as to whatever the market does, even though they're further down on Vault. (and no, I don't work at either firm.)

obviously, going to 160, it didn't matter, because everyone matched. but if we ever get to a point that the top 10-20 or whatever start separating, I'd look to the AmLaw rankings, not the Vault rankings, to figure out who's likely to be able to keep pace.

7:16, Haven't accepted yet. Have the opportunity to go to higher ranked firms, but no V10 firms. Liked people I met at D&L, but not in love with it. If it looks like the top firms are seperating themselves from the pack in terms of comp I might just go higher.

7:22 - can you send the link to the AmLaw rankings? thanks

I can confirm that Gallion & Spielvogel have indeed matched the "special bonus." But there's more! This year, G&S is also paying a unique "successful evidence spoliation bonus" that is being generous subsidized by an anonymous "friend of the firm." Remember friends, we just as extremely prestigious as such peer firms as, say, the eminent Sullivan & Cromwell.

Gallion OUT!

There is a lot to be said for picking a firm where the fit feels right. After all, you will be spending an ung_dly number of hours at this place.

However, there is also something to be said for not eyeing the associates at the firm next door, knowing that you are working the exact same number of hours but they are making more than you (and that their freedom from student loans, downpayment, exit from BigLaw, whatever, is therefore that much closer).

A lot of you have asked me for my thoughts on this matter.

I say, Cravath is surely doing this to distract attention from the fact that one of its members has broken the cardinal rule of groppage: Thou shalt not grope children.

Even with the "special bonus," is Cravath paying more than K&E?

sorry, my firm provided me with a shiny copy of the magazine, so I don't have a link, but I assume "amlaw profits per partner" is a pretty easy google search.

Before everyone praises Cravath, consider this: I heard from a credible source at a top firm that a salary increase in the coming weeks was under serious consideration. Perhaps Cravath is trying to signal to the rest of the market not to increase salaries any further.

I would not count on Simpson or Skadden to match. They have many more senior associates than Cravath and it would be a much greater burden on them to pay all of their numerous senior assocates these size bonuses.

CWT matched and topped it with a kick in the balls.

cahill will surely match, they promise associates they will match market and are more profitable than almost all of v10

7:45 (2), WTF are you talking about? Simpson and Skadden also have a lot more partners and revenue than Cravath. You should worry about the hit on PPP, not the total cost of dishing out bonuses.

97th?

142nd!!

The best measure is Revenue Per Lawyer, not PPP, and Cravath is #3, just behind Sullivan (though looking at growth figures, not for long)

I want to kiss Evan Chesler on the mouth, very gently. This is great news.

oh, and Cravath's PPP is greater than Sullivan's...

I think that brings total comp for the most senior associates to something like $390k ($280 base + $110 bonus). I'm pretty sure that's considerably more than what junior equity partners take home for all but maybe the top 20 firms. It's highly unlikely that the #40-100 firms in Big Law can match. This bonus might finally have set the big boys apart.

Three things:

Does the "special" bonus mean that Cravath has accepted the fact that bonuses in recent years aren't bonuses at all, but really deferred compensation?

I think the numbers to look at in seeing who will match (or top) CSM are ppp and leverage. The Vault is meaningless when it comes to $$.

If your firm ties bonuses to hours, its different than those (like CSM) that don't. Comparisons between the two are basically meaningless.

rough estimate, assuming his/her mildly-prestigious-yet-notoriously-cheap-and-horribly-rated-in-associate-surveys firm matches this surprising move by cravath, what should an intrepid 5th year (i.e., class of '03) expect to take home on an 80k bonus after taxes? my rudimentary and accidental knowledge of state and federal income taxes tells me the young, hardworking associate can look forward to roughly 49500-50000 smackeroos. that sound about right?

8:27
Yea that sounds about right - be thankful you are getting it before Democrats raise taxes

The bottom line is this: Cravath has just set the standard. Every other firm is just serving big ole shit sandwiches, and all their associates are taking a bite.

Doesn't Kirkland usually match or exceed even Cravath?

8:30, many thanks.

8:30, many thanks.

Bilaam's Donkey | October 29, 2007 08:14 PM:

at my firm the first-year partners made almost double $380k last year.

it has a PPP of around 1.5m.

Can someone please make this Gallion tool stop signing all his posts with that ridiculous attempt at a catch-phrase.

It reminds me of Fred Willard's character's catch-phrase from A Mighty Wind - "Wha' happened?"

Hey, Gallion - No one cares!

Nice bump, although those numbers still won't pass Kirkland. I'm hoping that K&E will continue to maintain its victory margin over the market.

Hey Gallion - stop signing all your posts with a ridiculous attempt at a catch-phrase.

8:27 - If you're unfortunate enough to work at a firm that pays the bonus post-Jan. 1, taxes and social security will take nearly 50%, rendering the $80K closer to $40-42 when it hits your bank account. Many, many firms pay , during January, when social security is being withdrawn -- it stops being drawn around the $95K mark, i.e., somewhere between April and June, depending on class year.

DAYUMN!

i don't understand. who cares?

Orrick matched and then went bankrupt.

I feel really bad for the 2 CSM associates that didn't make hours. DOH!!!

Second?

LAT, CAN WE GET A MEMO????

Total Comp

Stub: 195
1st: 205
2nd: 225
3rd: 250
4th: 290
5th: 325
6th: 360
7th: 375

Arent their '00 and '01 bonuses what jolly investment bankers pay for a meal in one of the fancier restaurants in London?

My prediction is that most vault 100 firms will match, but that the special bonus will be a lot more subjective outside the top 10. I wouldn't be shocked if a lot of firms paid the "special" bonus in tiers based on number of hours over 2000, becoming eligible for some small amount of special bonus money at 2100 hours, but only getting the whole thing if you bill 2500 or more.

Being in the class of 2005, I'll be happy so long as I get $45k (i.e. what the class of 2006 got last year).

Gallion OUT has a double meaning.

Baker & McKenzie just announced (no, we are not McD):

Class of 2007 -- Double Whopper $45,000, with cheese $5,000
Class of 2006 -- Double Whopper $55,000, with cheese $15,000
Class of 2005 -- Double Whopper $60,000, with cheese $20,000
Class of 2004 -- Double Whopper $65,000, with cheese $25,000
Class of 2003 -- Double Whopper $70,000, with cheese $35,000
Class of 2002 -- Double Whopper $75,000, with cheese $45,000
Class of 2001 -- Double Whopper $80,000, with cheese $55,000
Class of 2000 -- Double Whopper $90,000, with special cheese $70,000 (not the same as 2001)

congratulations on the raise. i'm making 300k in my first year.

hey 10:28, is that total comp?

'MCDONALDS OF LAWFIRMS' TO 190!

Will skadden really match for all (i.e. any number of billables - i.e. regular bonus)

Good pay if you can get it, most lawyers (and MBAs) can't.

PE first years are also a lot more expendable in a bad economy. Be sure to put a lot of that $300k in the bank.