The week’s almost over, but we’ve got more bonus news for you. While Sullivan & Cromwell, by matching Cravath, might have dashed your hopes of the bonus market climbing higher, there’s still a chance — probably a one-in-a-million chance — that another very special firm could do it.
In fact, every time an associate says, “I don’t believe in higher bonuses,” there’s a would-be Boies-level bonus someplace that falls down dead.
I love how this picture is somehow demeaning to both men and women. Being a stay-at-home spouse does NOT involve filing your nails while someone goes out there with a sledgehammer.
This weekend, the New York Times ran a big, splashy article about house husbands and their wealthy, “Wall Street” wives. The premise is that successful Wall Street women are doing it with the help of stay-at-home spouses… you know, the way that wealthy Wall Street men have been doing it for generations.
It’s an annoying premise. Of course, working a high-intensity job is easier when somebody is taking care of everything else at home. But, as Slate’s Jessica Grose points out, the problem is that anybody is expected to work to the point that they have to outsource their entire domestic lives.
Vivia Chen points out another problem in her article in Time. The New York Times article focuses on very wealthy women and their kept men. But is this really a trend? Are husbands really willing to stay home when their wives make a more “pedestrian” salary — like, say, what a lawyer makes?
A major theme of the 2013 bonus season so far: WWSCD — What Will Sullivan & Cromwell Do? With a few exceptions — like Boies Schiller, land of the $300,000 bonuses — everyone has fallen in line behind Cravath.
But we (and many others) wondered whether S&C, Cravath’s arch-rival, might up the ante. As I wrote while discussing the Cleary Gottlieb bonuses, “When it comes to challenging the compensation dominance of Cravath, House Shenker (or should it still be House Rodge?) is the strongest contender. Recall that it was Sullivan & Cromwell’s generous 2011 spring bonuses that ignited a trend that spread throughout Biglaw.”
The other white shoe just dropped: S&C just announced. Did SullCrom beat Cravath? Or mention possible spring bonuses?
(Please note the UPDATES at the end of this post.)
Associate bonuses at market-leading Cravath and all of Cravath’s followers are staying the same this year. As I’ve stated in these pages, and on CNBC and Bloomberg, this is a good thing. In times of uncertainty and instability for Biglaw, treading water is a victory.
But just because this year’s bonuses are good news doesn’t mean there isn’t better news out there. Today the better news comes from the litigation powerhouse of Boies Schiller & Flexner, where the average bonus was $85,000 and the top bonus was $300,000 — even higher than last year’s $250,000.
Even if you bill like a maniac — and BSF’s compensation system does reward the industrious — how on earth do you get to a $300,000 bonus? We spoke with legendary litigator David Boies, founding partner and chairman of the firm, to find out….
* When it comes to the air pollution case that’s currently before the Supreme Court, it seems like the justices had absolutely no difficulty at all in evaluating the type of problem at hand. It’s apparently a “tough” one and a “hard” one. [New York Times]
* Thanks to the historic new Senate rules put into action last month, Patricia Ann Millett, the co-head of Akin Gump’s Supreme Court and national appellate practice group, has been confirmed to the D.C. Circuit. You go girl! [Post Politics / Washington Post]
* The Senate showdown isn’t quite over yet, folks. We could see another confirmation vote on Georgetown Law professor Nina Pillard’s nomination to the D.C. Circuit sometime today. [Blog of Legal Times]
* “We risk failure in having a profession that is as diverse as the country we serve.” OMG guys, the legal profession is bad at diversity. This is new information that no one’s heard before. [National Law Journal]
* Now that the recession is over, women are gaining their jobs back faster than all their male counterparts. Not to worry, guys — they’re still being paid 77 cents to every dollar a man earns. [Corporate Counsel]
* Here are the top five social media mishaps by lawyers and law students of 2013. If you value your career, you should really try not to do any of these embarrassing things during the new year. [Strategist / FindLaw]
Back in 2007, Simpson Thacher led the charge to $160,000. Not Cravath, not Skadden, not Sullivan & Cromwell — it was STB that was first out of the gate with associate salary raises. Simpson Thacher is one of the most respected law firms in the country, and it used to be a compensation leader.
But those days appear to be long gone. Now, the firm is just a follower. Its theories about associate compensation seem to have nothing to do with the health of the firm, and everything to do with doing whatever Cravath tells it to do.
Associates are the firm seem quite disappointed by that….
Last week, we joked about the glacial pace of the 2013 Biglaw bonus season. After all, Cravath made its announcement on December 9, and in that time, we’ve only heard from as many firms as days have passed since that time — seven.
Well, maybe things are finally heating up. Yesterday afternoon, two more firms sent out word of their associate bonuses by class.
Well, the bonus scale has been set. Cravath led — by copying their bonus payments from last year — and now everybody is following. I’m on record saying that these bonuses are underwhelming and disappointing.
Gone are the days where the first-year bonus represented a significant chunk of your law school debt. Sure, you can pay down some interest with your bonuses, or you can prudently save it, or maybe even invest it. But you can also blow it. I mean, it’s a “bonus,” right? In this depressed market, your bonuses look less like deferred compensation and more like “found money.” Instead of making a fiscally sound decision, using your bonuses for profligate, discretionary spending might make you feel better. (Disclosure: Elie Mystal is not a registered financial adviser and is too… stupid to follow a budget.)
Bonuses range from $10,000 for first-year associates to $60,000 for senior people. Professor Paul Caron of Tax Prof Blog tells me that associates can expect to take home about 60% percent of that, depending on where they live and how many dependents they have.
What can a young lawyer buy with that? In addition to what’s in the ATL holiday gift guide, here are 10 things…
Happy Monday, everyone! What better way to start a new week than to bring you more bonus news?
As it turns out, Willkie Farr and Shearman & Sterling weren’t the only firms to participate in the Friday afternoon bonus dump. Two more firms broke word of their bonus intentions before the weekend, and now the question on everyone’s minds is whether they bucked the system and beat Cravath.
We’ve got the announcements from Cadwalader and Proskauer Rose for your viewing pleasure. Did either firm have the guts to top Cravath’s market rate?
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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…
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