Associate Bonus Watch: Simpson Thacher Matches Cravath
And another one bites the dust. Simpson Thacher just announced associate bonuses, and they’re using the Cravath scale.
Here is one source’s concise communication: “Simpson Thacher bonus memo just released — matching Cravath. A**holes.” Says a second: “I feel like I got punched in the gut.” From a third: “People here are livid. Can’t believe they announced a month later than normal and matched. What BS.”
Another top firm matching Cravath? Honestly, it doesn’t sound shocking.
Legal AI: 3 Steps Law Firms Should Take Now
But the Simpson match might be slightly more newsworthy than the recent Cravath matches by Davis Polk, Cleary, and Debevoise. Here’s why….
Simpson can, on occasion, be a market leader on associate compensation. Remember that it was Simpson, almost three four years ago — on January 22, 2007 — that raised starting salaries to $160,000 (and created the Biglaw salary scale — 160/170/185/210/230/250/265 — that’s still widely used today).
The Simpson pay raise spread like wildfire, first throughout New York, and then around the rest of the country. If you’re enjoying a salary on the $160K scale right now, you have STB to thank.
Sponsored
The Business Case For AI At Your Law Firm
Early Adopters Of Legal AI Gaining Competitive Edge In Marketplace
Legal AI: 3 Steps Law Firms Should Take Now
Navigating Financial Success by Avoiding Common Pitfalls and Maximizing Firm Performance
So Simpson isn’t always a follower; it has demonstrated leadership in the past. But not today.
Earlier: Breaking: Simpson Thacher Raises Associate Base Salaries!!!
Associate Bonus Watch 2010