It’s that time of year again in Biglaw where raises and year-end bonuses are being distributed. Significant moves have been made by Arnold & Porter, one of the top grossing law firms in the U.S., which has announced that it will implement a new compensation scheme. Notably, the firm has decided to adopt the Cravath scale for its associate pay increases, a system embraced by many law firms for fair compensation distribution. Arnold & Porter, which brought in a significant revenue of $1,038,782,000 in 2022, now ranks at No. 49 in the most recent Am Law 100 ranking. With this considerable revenue, the firm is going about rewarding their associates in full measure.
According to the new scheme, the following salaries are expected to be paid to associates as of 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
Besides implementing the Cravath scale for regular compensation, Arnold & Porter is also providing its hard workers with end-of-the-year bonuses based on the same scale. The bonuses, to be paid on January 31, 2024, are as follows:
- Class of 2023 – $15,000 (pro-rated)
- 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
- Class of 2016+ – $115,000
The reward scheme goes even further for the firm’s highest billers. Associates billing between 2,400 – 2,499 hours, 2,500 – 2,599 hours, and 2,600+ hours can expect to receive an additional bonus of 10%, 15%, and 20% respectively. This indeed presents an opportunity for dedicated associates to earn a substantial amount on top of their year-end bonuses.
In a time when competition among law firms for the best talents has grown, innovative and attractive compensation schemes like these can be key to attracting and retaining top lawyers. The new compensation model at Arnold & Porter indeed marks an interesting time in Biglaw’s continual evolution.
For more information on the new compensation scheme, read the original report here.