Biglaw

Cravath Is NOT Offering Special Bonuses, And Associates Are Pissed

Ooof. The former bonus leader has really made its associates angry.

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It’s been about two weeks since Biglaw firms started handing out cash to associates in appreciation for all of their hard work during the pandemic. First came Cooley, which started the COVID bonus trend in the first place. Next came Davis Polk, which blew the Cooley scale out of the water, and others firms quickly fell over themselves to match the generous scale, one by one by one by one. So many firms have matched the bonus scale that we’ve started a bonus tracker here at Above the Law.

All the while, we’ve been wondering: Where is Cravath? Why hasn’t the perrenial bonus leader entered the bonus fray?

Cravath has heard Biglaw’s whispers and has finally entered the COVID bonus wars — but alas, the elite firm seems to be echoing Kirkland’s response. HA.

That’s right, Cravath will not be offering its associates a fall bonus. Cravath, the firm whose equity partners earned $4,414,000 in profits in 2019, is going to be sitting this one out, and unlike Kirkland — which pledged to “take into account … the fall bonuses paid by any other firm” in determining its December bonuses — didn’t even commit to taking the fall bonuses into consideration in announcing its year-end bonuses.

Read the memo for yourself:

Cravath associates are understandably not thrilled by this news:

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It’s embarrassing that we bill so much at Cravath, but make less than our peers, especially when you consider our terrible benefits. We’re suckers.

Cravath’s bonus memo also makes no commitment that 2020 bonuses will be at least at 2019 levels. No reassurance for its associates on any level –> why say anything?

This is insulting to associates and short-sighted by the partners. It looks particularly bad not to make a similar type of commitment to what Kirkland made. It makes you think: did these guys lose a big malpractice arbitration? Do they not have enough cash on hand to make this kind of payment without doing a capital call? Goodbye #1 Vault ranking.

People come to Cravath for two reasons: the training and prestige. The Firm’s decision not to pay out COVID bonuses (at least not yet (I hope)), directly undermines the prestige factor. And that hurts associates and partners alike, which I assume the partners appreciate. Which leads me to wonder: are they hurting financially? We associates don’t know because you won’t find a partnership less transparent than this one in BigLaw.

Cravath is outright insulting their associates. They don’t even guarantee the same bonuses as last year, so they are worse than K&E.

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Cravath gave associates the dick punch. No bonuses.

Ouch.

So, what do you think? Is this a sign to other firms not to match? Has Cravath given up its seat as Biglaw’s bonus leader? Feel free to sound off by email, by text message (646-820-8477), or by tweet (@ATLblog). A fun or insightful response — we’ll keep you anonymous — could find its way into an update to this story.

Please help us help you when it comes to bonus news at other firms. As soon as your firm’s bonus memo comes out, please email it to us (subject line: “[Firm Name] Bonus”) or text us (646-820-8477). Please include the memo if available. You can take a photo of the memo and send it via text or email if you don’t want to forward the original PDF or Word file.

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Staci ZaretskyStaci Zaretsky is a senior editor at Above the Law, where she’s worked 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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