Not many firms try to trump Cravath, the traditional market leader when it comes to year-end bonuses. Most major firms are followers.
There are a few exceptions, and one of the exceptions is Skadden Arps. Back in 2008, Skadden announced bonuses before Cravath, and those Skadden bonuses turned out to be much higher than Cravath’s. When most other firms subsequently followed Cravath instead of Skadden, my colleague Elie Mystal mocked these firms for their “Half-Skadden” bonuses.
Skadden just announced its 2013 year-end bonuses. Did it beat the Cravath bonuses, or did it join them?
The Empire State Building, lit up with the colors of the Philippine flag to show support for Typhoon Haiyan victims. (Photo courtesy of Natalie Navarrete.)
When disaster strikes, lawyers are there (and not just to hand out their business cards). Lawyers and their law firms have responded swiftly and generously in the wake of natural disasters, giving of their time and treasure to help the victims of calamities around the world.
Lawyers and their law firms, especially Biglaw firms, have come to the aid of people affected by Hurricane Sandy, the Japanese earthquake and tsunami, and earthquakes in Haiti and China. We have chronicled and commended these efforts in Above the Law over the years.
In light of this track record, it should come as no surprise that one of the world’s top law firms is giving generously to support relief efforts in the Philippines, my ancestral homeland, where thousands have died due to Typhoon Haiyan (local name Yolanda). Which firm, and how much is it giving?
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….
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….
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….
The holiday season is upon us, and yet again, you have no idea what to get for the fickle lawyer in your life. We’re here to help. Even if your bonus check hasn’t arrived yet, any one of the gifts we’ve highlighted here could be a worthy substitute until your employer decides to make it rain.
We’ve got an eclectic selection for you to choose from, so settle in by that stack of documents yet to be reviewed and dig in…
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: email@example.com.
We currently have a very exciting and rare type of in-house opening in China at one of the world’s leading internet and social media companies. Our client is looking for an IP Transactional / TMT / Licensing attorney with 2 to 6 years experience. The new hire will be based in Shenzhen or Shanghai. Mandarin is not required (deal documentation will be in English) but is preferred. A solid reason to be in China and a commitment to that market is required of course. This new hire will likely be US qualified (but could also be qualified in UK or other jurisdictions) and with experience and training at a top law firm’s IP transactional / TMT practice and could be currently at a law firm or in-house. Qualified candidates currently Asia based, Europe based or US based will be considered. The new hire’s supervisors in this technology transactions in-house team are very well regarded US trained IP transactional lawyers, with substantial experience at Silicon Valley firms. The culture and atmosphere in this in-house group and the company in general is entrepreneurial, team oriented, and the work is cutting edge, even for a cutting edge industry. The upside of being in an important strategic in-house position in this fast growing and world leading internet company is of the “sky is the limit” variety. Its a very exciting place to be in China for a rising IP transactional lawyer in our opinion, for many reasons beyond the basic info we can share here in this ad / post. This is a special A+ opportunity.
If your firm is in ‘go’ mode when it comes to recruiting lateral partners with loyal clients, then take this quiz to see how well you measure up. Keep track of your ‘yes’ and ‘no’ responses.
1. Does your firm have a clearly defined strategy of practice groups that are priorities of growth for your office? Nothing gets done by random chance, but with a clear vision for the future. Identify the top practice areas for which you wish to add lateral partners. Seek input from practice group leaders and get specifics on needs, outcomes, and ideal target profiles.
2. In addition to clarifying your firm’s growth strategy, are you still open to the hire of a partner outside of your plan? I’ve made several placements that fit this category. The partner’s practice was not within the strategic growth plan of my client, but once the two parties started talking with each other, we all saw how it could indeed be a seamless fit. Be open to “Opportunistic Hires.” You never know where your next producing partner might come from, so you have to be open to it. I will be the first to admit that there is a quirky element of randomness in recruiting.
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