The successful Biglaw firm, Boies Schiller Flexner, has recently announced its decision to adhere to the Cravath scale for raises and bonuses, exciting associates nationwide. Having grossed over $220,000,000 in revenue for 2022, this considerable figure places the firm at No.157 in the widely-referenced Am Law 200.
As outlined in the firm’s official statement, the following scales will apply to associates’ salaries effective January 1, 2024:
- Class of 2023 – $225,000
- Class of 2022 – $235,000
- Class of 2021 – $260,000
- Class of 2020 – $310,000
- Class of 2019 – $365,000
- Class of 2018 – $390,000
- Class of 2017 – $420,000
- Class of 2016+ – $435,000
On the matter of bonuses, associates at Boies Schiller have the choice of either opting for the market bonus system, in which case they will be compensated according to the Cravath scale ranging from $15,000 to $115,000, or selecting the firm’s formula compensation system. The latter offers a revenue share component, allowing associates to earn a share in the proceeds of the matters they work on. The formula compensation system can be highly rewarding, particularly for contingency work, resulting in potential massive payouts.
It was noted in the firm’s report on their formula bonuses this year that:
- The market bonus scale ranges from $15,000 (for Class of 2023, prorated) to $115,000 (for Class of 2016 and above).
- 87% of associates received a bonus matching or surpassing what they would have received under the market pay system. In fact, nearly half (47%) received a bonus at or above the typically highest market value, with a number of associates recording bonuses of $300,000 or more.
- The highest associate bonus reached more than 13 times what it could have been under the market system.
- As a collective, the associates’ bonus pool more than doubled what it would have been under the market pay system.
Associates at Boies Schiller not only praised the compensation structure but also the quality of work, professional respect, and experience offered. Furthermore, Boies Schiller is committed to offering “extraordinary” and “extra-extraordinary” bonuses for associates aligned with the Cravath market bonus system. Billing 2000 hours qualifies associates for a standard bonus. However, billing 2350 and 2600 hours respectively can lead to significantly higher compensation, greatly surpassing the market scale.
More details on the firm’s compensation structure can be found in their detailed memo here.