This year, bonus season came early, what with Milbank jumping the gun and announcing bonuses very early — November 7th, to be precise. But with bonus levels the same as last year, lots of folks were actually disappointed about the static amounts and thought Milbank had work to do to live up to its “Thrillbank” moniker.
So with the first bonus volley welcomed, but a little lackluster, Biglaw waited for perennial compensation leader, Cravath, to make their move. If they up the ante, then that becomes the new industry standard for those firms wanting to prove their position at the top of the Biglaw heap. If they hold the line, well, with fears of a recession looming, who could blame them? But either course would shape the tone of the rest of the bonus season.
Well, the wait is over. This afternoon, they announced, and, well, here are the numbers:
Class of 2019 – $15,000 (pro-rated)
Class of 2018 – $15,000
Class of 2017 – $25,000
Class of 2016 – $50,000
Class of 2015 – $65,000
Class of 2014 – $80,000
Class of 2013 – $90,000
Class of 2012 – $100,000
Yup, it’s the same as Milbank (and last year’s bonuses). So, for the time being at least, Cravath is letting Milbank set the standard. It seems likely that now that these two compensation powerhouses have weighed in, the rest of the industry will fall in line. (Read the full memo on the next page.)
Early reactions from ATL tipsters are similar to the murmurings from Milbank’s announcement:
Cravath announces bonuses and they’re the same. Cravath associates disappointed given many recent successes for the firm and the fact that 2018 compensation was higher with summer bonus.
But the economy is in a precarious position, and this move is right on-brand for a traditionally risk adverse industry (and still generous despite them being the same as last year’s bonuses).
What do you think about Cravath’s 2019 bonuses? Sound off by text us (646-820-8477) or email, funny or otherwise interesting thoughts could make it into an update or follow up to this story. Speaking of contacting Above the Law, remember, we depend on your tips to stay on top of important bonus updates, so when your firm matches, please text us (646-820-8477) or email us (subject line: “[Firm Name] Matches”). 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.
And if you’d like to sign up for ATL’s Bonus Alerts (which is the alert list we also use for all salary announcements), please scroll down and enter your email address in the box below this post. If you previously signed up for the bonus alerts, you don’t need to do anything. You’ll receive an email notification within minutes of each bonus announcement that we publish. Thanks for your help!
Kathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).