Last night, we identified Skadden Arps and Sullivan & Cromwell as the only two firms that might dare to top Cravath’s generous bonus scale. As of this morning, it’s all eyes on S&C.
Skadden just announced bonuses. It’s matching the Cravath scale — for the most part. Certain SASMF associates will get more than the Cravath amounts, but because this has happened in past years, it’s not as exciting as it sounds (and won’t cause other firms to make retroactive changes to their bonus schemes).
As we’ve explained in prior years, Skadden Arps does not issue a universal bonus memo listing every associate class and their bonus. Instead, a memo from executive partner Eric Friedman goes out to each class stating the applicable bonus for that particular class. (We’ve posted the memo template on the next page.)
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We’ve confirmed Cravath matches for the classes of 2013, 2010, and 2009, which suggests matching up and down the scale. As one Skadden source said, “Looks like a match across the board. People are happy, but they aren’t high-fiving in the hallways like in 2014.”
As in prior years, some top-performing associates in senior classes — the class of 2010 and senior, we believe — will get more than the Cravath scale. How much more? As noted in the class of 2010 memo (also posted on the next page), “In recognition of extraordinary performance, some associates will receive a bonus of $100,000.” We have confirmed that top-performing associates from the class of 2009 will also get $100,000.
One source suggests that Skadden’s definition of “top-performing” is generous: “For sixth-years [class of 2010] and up, they’re really setting above-market bonuses, as most associates seem to receive the higher amount.” So that’s nice.
Although many of the major players have announced, we will continue to cover bonuses vigilantly, as different market segments — Magic Circle shops, elite boutiques, West Coast powerhouses — start to weigh in. When your firm’s bonus memo comes out, please email it to us (subject line: “[Firm Name] Bonus”). We always keep our sources on bonus stories anonymous. There’s no need to send the memo using your firm email account; your personal email account is fine. Please be sure to include the memo as proof; we like to post complete bonus memos as a service to our readers. You can take a photo of the memo and attach as a picture if you are worried about metadata in a PDF or Word file. You can also text us if you prefer, at 646-820-8477.
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(Flip to the next page for (1) the template of the general bonus memo and (2) the bonus memo sent to the class of 2010, both from Eric Friedman.)
Earlier: Associate Bonus Watch (2016): Cravath Announces Its 2016 Associate Bonuses!
Associate Bonus Watch (2015): Skadden Does Its Thing
David Lat is the founder and managing editor of Above the Law and the author of Supreme Ambitions: A Novel. He previously worked as a federal prosecutor in Newark, New Jersey; a litigation associate at Wachtell, Lipton, Rosen & Katz; and a law clerk to Judge Diarmuid F. O’Scannlain of the U.S. Court of Appeals for the Ninth Circuit. You can connect with David on Twitter (@DavidLat), LinkedIn, and Facebook, and you can reach him by email at [email protected].