Cravath is typically acknowledged as a part of the Biglaw compensation leader group. Despite this reputation, the firm had been somewhat behind when it came to clerkship bonuses until now. Its generous new policy could inspire a shift among Biglaw and top-tier boutiques. This may influence bonus structures for legal professionals who have completed one to two years of a federal clerkship and are now moving into the private sector.
Cravath’s website reveals that the firm is now offering a clerkship bonus of $125,000 to incoming associates who have completed a qualifying clerkship. Those who have completed a two-year clerkship or two one-year clerkships will receive a bonus of $150,000. Moreover, associates who have completed a U.S. Supreme Court clerkship, along with at least one other qualifying clerkship, will receive additional bonuses and two years of class credit for all purposes.
Elite firms such as Susman Godfrey and Dovel & Luner have already been offering hefty six-figure bonuses for clerkships. However, the majority of Biglaw firms still offer clerkships bonuses in the range of $50,000 to $75,000. With Cravath’s upgraded clerkship bonus structure, it will be interesting to see if more top-tier names will follow suit, as they often do with year-end bonuses.
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