Associate Bonus Watch: A Chance To Exceed The Cravath Scale

Some associates at this firm can make up to $20,000 more than the Cravath scale.

Back in October, we wrote about Fried Frank bringing greater transparency to its bonus scheme. Those changes apply to 2016 bonuses. The firm’s 2015 bonuses, which FFHSJ just announced, are governed by prior guidelines.

We’ve posted the full memo, from firm chairman David J. Greenwald, on the next page. It provides for bonuses “up to” — and in some cases above — the Cravath scale:

Bonuses will be paid on December 29, 2015 to associates actively employed at the Firm on the date of payment. Associates at every level may be eligible to receive additional bonus amounts of up to $20,000, based on seniority, in recognition of exceptional performance.

Being able to beat the Cravath scale by $20,000 is nice — nicer even than the Skadden scale, which gives high-performing senior associates up to $10,000 more than Cravath. But it’s not clear how many Fried Frank associates will get the extra cash.

How do FFHSJ associates feel about the news? Here’s what one tipster told us:

[M]ost associates are happy because our corporate group was very busy this year and that is most people in the firm, so there should be quite a few folks getting more than the Cravath base. However, in litigation and some smaller groups there are also a number of juniors who missed the 2000-hour target and may receive 25-50% of the Cravath base. Senior associates in the busier corporate groups pushed for the extra bonus money over the past year and were successful in getting the firm to commit to it, so I imagine they’ll have a very merry Christmas.

Generally, the firm offers a full bonus at 2,000 billable hours, with 300 of pro bono and 125 of certain qualified nonbillable hours counting (e.g., recruiting, firm committees, or client development). At over 1800 hours you can get a half bonus. I think most corporate associates will get full bonuses. Less busy practice groups may not all receive a full bonus, but many litigators max out pro bono and hit the bonus hours despite lower billables. Not sure about exact numbers who get and don’t get the full bonus. It’s not published.

It’s amazing how much can be concealed by two little words in the bonus memo — “up to,” as in “year-end discretionary bonuses to New York and Washington, DC associates in varying amounts up to the following levels.” One can see why Fried Frank associates are happy about the new and more transparent system for 2016 bonuses.

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Congrats, Fried Frank associates — especially those of you getting the extra $20K.

(Flip to the next page for the complete Fried Frank bonus memo.)

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