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Associate Bonus Watch: Sullivan & Cromwell’s Super-Special Bonuses
(And a digression on open discussion of salaries.)

associate bonus watch 2007 law firm Above the Law blog.jpgWe inquired into this topic previously, and one of you even put up a Community post. What’s up with those supplemental bonuses for senior associates over at Sullivan & Cromwell?

This gossip has been circulating:

Rumor has it that S&C put out a memo about the special senior bonuses [last week]. Apparently, the $2.5 million they “put aside” [mostly] went to cover the Cravath special bonus. The actual amount of the bonus was unknown as of last night as far I could tell.

The memo, which I don’t have, seemed to suggest that the money was spent, but that they were going to give a small amount because they had promised. If S&C senior associates are lucky, maybe they’ll get a gift certificate to Chili’s.

And it’s true. We couldn’t get our hands on the memo, but we have confirmed with sources at the firm that S&C paid out its special “senior associate bonuses” last week. We don’t know the numbers for all years, but word on the street is that current fifth-years received around $2,500.

Three grand is small compared to the whopping year-end bonuses that Sullivan already paid to its senior associates. But contrary to our tipster, it buys you more than a few meals at Chili’s. Maybe the Cheesecake Factory?

Update (12/18/2008): According to Am Law Daily, the numbers were better than $3K: “[A] source within the firm told The New York Law Journal the additional bonus ranged from $15,000 for fifth-years to $30,000 for eighth-years; those numbers have never been confirmed by the firm.”

In related news, the Sunday Styles section of the New York Times has an interesting article entitled “Not-So-Personal Finance.” It’s all about how among young people — say, folks in their twenties and thirties — open discussion of salaries and compensation isn’t as taboo / tacky as it is among older folks. Lawyers get a shout-out:

Several workers under 35 said that greater salary transparency among friends only makes sense in an age when there is so much information freely available online. Young professionals, in fact, have all sorts of ways to find out how much their friends make, even without asking. Associates at law firms anonymously report their own salaries to Web sites like www.greedyassociates.com.

Greedy Associates? That’s a bit “five years ago.” If you check out their front page now, you’ll see it’s overrun with spam and postings about lawyer salaries in Kiev (no offense to our Ukrainian brethren).

We realize that the readership of Above the Law isn’t exactly a random sample, but please take our poll:

Not-So-Personal Finance [New York Times]

Earlier: Associate Bonus Watch: Sullivan & Cromwell Matches (and More)

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