For those aspiring to a career in corporate law, understanding the salary structure, particularly within prestigious BigLaw firms, is crucial. The legal industry, especially in major markets, often adheres to a compensation benchmark known as the “Cravath scale.” This system, initially established in New York City by firms like Cravath, Swaine & Moore, has significantly shaped how corporate lawyer salaries are determined across the United States.
Historically, the Cravath scale was primarily associated with New York-based BigLaw firms. Salaries in other major legal markets such as Los Angeles, Chicago, or Houston, were often considered “secondary” and didn’t necessarily match the New York standard. However, over time, the Cravath scale’s influence has expanded. Today, most first-year corporate lawyers at large national firms can anticipate a base salary that aligns with their counterparts in New York, regardless of their office location within the United States. This standardization reflects the national competition for top legal talent and the desire of firms to attract the best graduates, regardless of geographic preference.
The most significant shifts in corporate lawyer salary structures in recent years have targeted mid-level and senior associates. Recognizing the critical need to retain experienced talent, firms have implemented more substantial salary increases for these positions compared to entry-level roles. This emphasis on retaining seasoned corporate lawyers highlights the value placed on experience and expertise in complex corporate transactions and client management.
Decoding the BigLaw Bonus System for Corporate Lawyers
Beyond the base salary, bonuses form a substantial part of a corporate lawyer’s compensation in BigLaw. Similar to the salary structure, a standardized bonus scale, also market-driven, exists within the industry. Corporate lawyers can generally expect to receive year-end and summer bonuses that are consistent with their peers at comparable firms, based on benchmarks set by leading firms. Bonus eligibility is usually contingent on meeting specific billable hour targets established by each firm, although some firms may not enforce strict minimum hour requirements.
Historical BigLaw bonus figures, reflecting past and present trends, are readily available for review. These figures provide valuable insights into the potential bonus income corporate lawyers can expect at different experience levels.
The Cravath Bonus Announcement: Setting the Pace for Corporate Lawyer Bonuses
Each year, the announcement of year-end bonuses by a leading BigLaw firm triggers “bonus season.” Typically, this announcement comes in late November or early December, communicated to associates via firm-wide memos. Cravath, Swaine & Moore often, but not always, initiates this process.
Cravath’s bonus announcement is frequently anticipated on Monday afternoons, following the firm’s weekly partner meeting held during lunchtime. Legal news outlets like Above the Law, the New York Law Journal, and American Lawyer promptly disseminate these bonus memos, making the information quickly accessible across the legal community.
The initial bonus announcement sets the stage for the market. There’s usually a period of suspense as other firms determine whether to match the announced scale or potentially exceed it. In instances where a firm announces bonuses before Cravath or proposes a higher scale, the market typically converges towards the higher benchmark, establishing the BigLaw bonus standard for that year.
It’s worth noting that some firms deviate from this standardized bonus model. Litigation boutiques, for example, particularly those experiencing exceptionally successful years, might offer significantly higher, even six-figure, bonuses to their corporate lawyer associates. These firms, however, represent outliers and operate outside the typical compensation structures of traditional Wall Street-aligned BigLaw firms.
