Breaking: Skadden Bonuses Are Out ... And Not Very Exciting

onNovember 19, 2009 at 3:35 PM

Skadden has decided to match the Cravath scale.
Here’s the scale:

2008 — $7,500
2007 — $10,000
2006 — $15,000
2005 — $20,000
2004 — $25,000
2003 — $30,000
2002 — $30,000

With Skadden and Cravath on the same page, the rest of this bonus season might be devoid of any real drama. Associates will take their $7,500 and up and like it.
Skadden’s move here isn’t all that surprising. Last year, the firm doubled the Cravath payment. While that generated a lot of positive press for the firm, evidently good cheer isn’t something that shows up on the partners’ bottom line.
And you know that Cravath has to be happy about this. Now the firm won’t have to look like it paid low bonuses two years in a row.
We should expect the rest of the top firms to fall in line. Now the question turns to firms that are not in the position of Cravath, Skadden, and Cleary. Will they fall into line with the big boys, or might they go even lower?
Then again, how much lower can this bar really go?
After the jump, check out the memo senior associates got from Skadden about their Cravath bonus.

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From The Team at Scale LLP

SKADDEN — MEMO — BONUSES
RE: 2009 Associate Bonuses
We are pleased to announce that we will be paying a discretionary bonus this year. The discretionary bonus is an indication of our appreciation for your hard work and dedication to
the Firm and our clients.
While the economic environment has had an impact on our clients and the demand for legal services, the Firm remains strong and we are optimistic about the future. Accordingly, associates in the class of 2003 and senior will be paid a year end bonus of $30,000 on December 18, 2009.* As in the past, bonuses will be paid to associates in good standing who have been reasonably busy over the course of the year. Payment will only be made to associates employed by the Firm on December 18th.
Best wishes for the holiday season.
* If applicable, bonus amounts will be prorated based on start dates and status changes.