The Cravath Scale and Associate Salaries Nationwide
For many years, the associate lawyer salary trajectory at top-tier law firms has been dictated by the Cravath scale. This compensation structure, originating from Cravath and similar NYC powerhouses, established a clear progression of base salaries based on an associate’s year of practice. What began in New York has since become a national standard, meaning that a first-year associate starting at a large firm in Dallas can generally expect to earn the same base associate lawyer salary as their counterparts in New York or San Francisco. This standardization simplifies expectations for those entering Biglaw and promotes a degree of salary transparency across geographically diverse markets.
Evolution of Associate Lawyer Salary: Focus on Mid-Level and Senior Associates
While entry-level associate lawyer salary has largely been standardized by the Cravath scale across major legal markets, significant shifts in compensation have emerged in recent years, especially for mid-level and senior associates. In a competitive talent landscape, law firms are increasingly focused on associate retention. This drive to keep experienced lawyers has led to disproportionately larger salary increases for those beyond their first few years of practice compared to the more modest adjustments seen at the entry-level. For associates navigating their third year and beyond, this trend has resulted in a more pronounced increase in their associate lawyer salary, reflecting the value firms place on retaining experienced talent.
Understanding the Biglaw Bonus System for Associates
Beyond the base associate lawyer salary dictated by the Cravath scale, Biglaw compensation packages also include a standardized bonus system. Associates across the industry typically receive year-end bonuses and, in some cases, summer bonuses, mirroring a market bonus scale largely influenced by leading firms. Bonus eligibility is usually contingent on meeting specific performance metrics, most notably billable hour requirements set by individual firms, although not all firms enforce strict minimum hour thresholds for bonus payouts.
How Cravath Bonuses Set the Annual Standard
The announcement of year-end bonuses in Biglaw is a highly anticipated event, typically occurring in late November or early December. Historically, Cravath, Swaine & Moore LLP has often been the first firm to release its bonus memo, setting the benchmark for the rest of the market. Cravath partners traditionally hold their weekly meeting on Mondays, making Monday afternoons the most likely time for their bonus announcement to be released publicly, often quickly followed by reports on legal news platforms like Above the Law and legal journals.
The legal community watches closely to see if other firms will match the Cravath bonus scale or potentially exceed it, leading to what is colloquially known as “bonus season.” While it’s rare, if a firm announces bonuses before Cravath or offers a higher bonus scale, the market tends to quickly consolidate around the most generous offers, establishing the Biglaw bonus standard for that year. It’s worth noting that some firms, often litigation boutiques like Susman Godfrey, may operate outside this typical bonus structure, occasionally offering significantly higher, six-figure bonuses, particularly in years of exceptional firm performance. These, however, remain outliers in the broader Biglaw compensation landscape.
