Eric J. Friedman

Associate Bonus Watch: Skadden Matches Cravath

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Stick a fork in it, because it’s almost done. There’s a high likelihood that the 2012 associate bonus season is complete, at least for all practical purposes, and if so, it will look a lot like past bonus seasons: Cravath leads, and everyone else follows.

“High likelihood,” but not yet a certainty. There’s one major wild card that’s still out: Sullivan & Cromwell, which sometimes takes the lead on associate compensation. Remember, of course, that the 2011 spring bonuses were brought to you by S&C. One could certainly see a scenario in which Sullivan & Cromwell trumps Cravath, in order to get Cravath back for how CSM showed up S&C on spring bonuses.

Unless and until Sullivan & Cromwell beats Cravath, though, we’re playing the usual game of follow Cravath. Let’s check out the latest firm to fall in line….

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Associate Bonus Watch: Skadden Matches Cravath

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No surprises here: Skadden has matched the 2011 Cravath bonus scale. Given the sheer size of Skadden, in terms of attorney headcount, this announcement directly affects the pocketbooks of more lawyers than the Cravath news (although the indirect effects of Cravath as market leader are, of course, huge).

So we won’t have a repeat of 2008, when Skadden paid twice as much as Cravath (aka Half-Skadden). Firms are essentially recycling last year’s bonus schedules. Hence our snazzy “recycling money” image, which will be the logo for Associate Bonus Watch 2011.

Let’s look at the memo, along with reactions from SASMF associates….

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Skadden Name Partner Joe Flom, R.I.P.

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Earlier this month, the son of Joseph Flom — name partner at Skadden, Arps, Slate, Meagher & Flom, and a legendary figure of the M&A bar — wrote a moving tribute to his father. He explained that the 87-year-old Flom was gravely ill and not far from death.

This morning, Skadden confirmed the sad news of Joe Flom’s passing….

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Associate Bonus Watch: Skadden Matches the Cravath Spring Bonuses!

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This shouldn’t come as a shock: Skadden is paying spring bonuses. And it’s doing so on the top-of-the-market Cravath scale. Yay!

According to a memorandum sent to the Skadden Arps partnership by email this morning — before 8 a.m., so prior to the Davis Polk announcement — the firm was originally planning to match market for the most junior ($2,500) and most senior ($20,000) associate classes. As for mid-level associates, it was going to split the difference between the Cravath scale and the Sullivan & Cromwell scale: “We are planning a mid-level associate bonus range which is somewhat higher than the general pack, but not the highest levels currently announced.”

But then came the Davis Polk announcement, at around 10:30 a.m., in which DPW went with the Cravath scale. And now Skadden has too.

Did the Davis decision change the thinking at Four Times Square? Let’s look at the memos….

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