Cravath Announces Bonuses for Its Associates

It is around this time of year that associates at the country's largest law firms start wondering about their year-end bonuses.

Cravath, Swaine & Moore kicked off the season on Monday by announcing bonuses for its associates that ranged from $10,000 for first-year associates to $60,000 for senior associates, according to a memo obtained by DealBook.

The numbers are a significant bump from last year, when bonuses at Cravath ranged from $7,500 to $37,500. Indeed, the figures are now back to pre-financial crisis levels.

While the business environment across the Big Law landscape remains soft, Cravath, one of the nation's most profitable law firms, has had a busy year. Large mergers-and-acquisition assignments included advising Hertz Global Holdings in its acquisition of Dollar Thrifty Automotive Group, and Grupo Modelo in its combination with Anheuser-Busch. On the litigation side, it is representing Credit Suisse and JPMorgan Chase in various lawsuits relat ed to mortgage-backed securities.

“Thank you very much for your hard work during 2012,” the memo said. “We wish you a happy holiday season and new year.”

Here is the memo in full:

We are pleased to announce that the year-end bonus amount for each associate class is as follows:

Class of 2012 - $10,000 (pro-rated)
Class of 2011 - $10,000
Class of 2010 - $14,000
Class of 2009 - $20,000
Class of 2008 - $27,000
Class of 2007 - $34,000
Class of 2006 - $40,000
Class of 2005 - $50,000
Class of 2004 - $60,000

Bonuses will be paid on Friday, December 21. Absent special circumstances (approved by the Managing Partners), an associate must still be at the Firm on December 21 to be eligible for the bonus. The Firm does not apply any billable hour or similar criteria in determining eligibility for associate bonuses. As always, while receipt of the bonus for each individual attorney is dependent on suitable performance at that attorney's experience level, virtually all of our associates will receive the full bonus.

Attorneys who were with the Firm for only part of the year or are working part-time will receive a pro-rated portion of the applicable class-level bonus. Bonuses for senior attorneys, specialist attorneys, discovery specialist attorneys and foreign associate attorneys will be determined on an individual basis.

Thank you very much for your hard work during 2012. We wish you a happy holiday season and new year.