Biglaw

Finally, A Firm That's 'Beating' The Cravath Scale!

We haven't seen very much deviation from the Cravath scale thus far, but that ends right now.

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Bonus announcements continue to pour in from Biglaw firms across the country, and most have one thing in common: they’re straight Cravath matches. We haven’t seen very much deviation from the Cravath scale thus far, but that ends right now.

Last night, associates from Cadwalader, Wickersham & Taft received word from Pat Quinn, the firm’s managing partner, that they’d be receiving Cravath-style bonuses. (Recall that about two years ago, the firm eliminated billable hours requirements from its bonus eligibility standards, and then reinstated them last year.) In case you’ve forgotten, this is what CSM bonuses look like for the 2017 bonus season:

Class of 2017 — $15,000 (pro-rated)
Class of 2016 — $15,000
Class of 2015 — $25,000
Class of 2014 — $50,000
Class of 2013 — $65,000
Class of 2012 — $80,000
Class of 2011 — $90,000
Class of 2010 — $100,000
Class of 2009 — $100,000

You may be asking yourself, “What’s so special about yet another Cravath match?” This is where the firm threw in a very exciting twist for associates. Things look much different for high billers at Cadwalader. According to the firm’s bonus memo, associates who have billed 2200 or more hours will receive bonuses equal to 120 percent of the Cravath scale. This is what bonuses look like for associates who have made outstanding contributions to Cadwalader in 2017:

Class of 2017 — $18,000 (pro-rated)
Class of 2016 — $18,000
Class of 2015 — $30,000
Class of 2014 — $60,000
Class of 2013 — $78,000
Class of 2012 — $96,000
Class of 2011 — $108,000
Class of 2010 — $120,000
Class of 2009 and senior — $120,000

That’s awesome! Cadwalader is technically beating the Cravath scale thanks to its rewards for top billers. What’s not as awesome is that Cadwalader’s bonuses will be paid during the last full week of February 2018. This is when the firm traditionally pays its bonuses, but with a tax code that’s still very much in flux, Cadwalader associates could wind up paying more taxes on their bonuses than their Biglaw compatriots — especially the high billers, who will be receiving thousands more than other associates.

Nonetheless, congratulations to everyone at Cadwalader! This is the first firm we know of that’s strayed from the Cravath bonus scale, so it’s time to celebrate.

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(Flip to the next page to see Cadwalader’s bonus announcement.)

As a little reminder, we love covering the Biglaw bonus season, but we need your help. Remember: as soon as 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 at 646-820-8477. We look forward to hearing from you.

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Staci ZaretskyStaci Zaretsky has been an editor at Above the Law since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.

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