Earlier this month, Milbank turned heads in the legal industry by announcing unexpected raises in addition to usual bonuses. Until now, no other law firm had followed suit. However, Cravath recently broke the trend, announcing a similar move amidst the industry’s clamoring. The announcement has specifically piqued the interest of associates anxiously waiting to see if they’ll be remunerated at the top end of the market as the new year rolls around.
In what is seen as a response to Milbank’s compensation scheme, Cravath has not only matched Milbank’s compensation scale for junior associates, but has also announced better scales for mid-level and senior associates. This move has underscored Cravath’s long-standing reputation as a compensation leader in the Big Law arena.
Cravath’s new salary scale is as follows:
- Class of 2023: $225,000 (a $10,000 raise)
- Class of 2022: $235,000 (a $10,000 raise)
- Class of 2021: $260,000 (a $10,000 raise)
- Class of 2020: $310,000 (a $15,000 total raise, $5,000 more than Milbank)
- Class of 2019: $365,000 (a $20,000 total raise, $10,000 more than Milbank)
- Class of 2018: $390,000 (a $20,000 total raise, $10,000 more than Milbank)
- Class of 2017: $420,000 (a $20,000 total raise, $10,000 more than Milbank)
The new scales will come into effect on January 1.
Alongside the new scales, Cravath also revealed their year-end bonuses, matching Milbank’s numbers and those of the preceding year:
- Class of 2023: $15,000
- Class of 2022: $20,000
- Class of 2021: $30,000
- Class of 2020: $57,500
- Class of 2019: $75,000
- Class of 2018: $90,000
- Class of 2017: $105,000
Considering Cravath’s influence in the industry, it may not be long before other Biglaw firms react to this move. For more detailed information, including Cravath’s official compensation memo, visit the original article.