Biglaw firms are renowned for their rewarding salary structures and bonuses, with many following the Cravath scale. Among these firms, Schulte Roth & Zabel has recently stirred the market by setting a precedent of lucrative bonuses for its associates, exceeding what the Cravath scale typically permits. The firm has demonstrated this by announcing rewards that amount to a staggering maximum bonus of $160,000 for senior associates.
Above the Law reports that the firm’s bold move comes after an impressive generation of $509,400,000 gross revenue in 2022, earning it the 94th spot in the latest Am Law 100 ranking.
Notably, the bonus structure at Schulte Roth & Zabel encourages high-billing associates to strive for more. With categories at 2300, 2500, and 2700 billable hours, these tiers are seen as extraordinary contributions to the firm and are well-rewarded. The firm also showed forbearance to those associates who could not achieve their minimum target hours. Partial credit bonuses are provided where associates with 1600 hours get a 50% class bonus, while those with fewer than 1600 hours are greeted with a $5,000 bonus.
Aside from the generous bonuses, Schulte Roth & Zabel also plans to use the Cravath scale for its salary hikes, effective January 1, 2024. The increased pay scales are as follows:
- 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
- Class of 2015 – $445,000
Schulte Roth & Zabel joins Sidley and Ropes in offering their ninth-year associates a lucrative $445,000 salary, stirring the question of whether other firms will follow suit.