Am Law 100 Firm Announced Bonuses While U.S. Capitol Was Under Attack
And the firm didn't include special bonuses, to boot.
The perfect time to announce bonuses. (Photo by Tasos Katopodis/Getty Images)
Yesterday, while our very democracy was under siege by Trump acolytes and MAGA cultists at the U.S. Capitol, one Am Law 100 firm decided it was prime time to announce its year-end bonuses. Unfortunately, announcing bonuses during a violent coup attempt wasn’t enough to hide the fact that the firm wouldn’t be offering special bonuses to associates.
Which firm would do such a thing?
The Global Legal News You Need, When You Need It
The firm in question here is Cadwalader. If you recall, the firm was one of the first to institute COVID-19 austerity measures back in March, with partners going without pay and associates and staff facing 25 percent and 10 percent salary cuts, respectively. In July, the firm reversed course, announcing that everyone’s salaries would be restored to their pre-pandemic levels. Yesterday, amid the chaos that consumed the nation’s capital, the firm not only announced that it would reimburse employee salaries (in full for administrative staff without any billable requirements, and in full for legal staff who had billed 1400 or more client hours in 2020), but it also announced bonuses matching the Cravath year-end scale for associates and special counsel (who billed 1900 client hours):
While the firm is offering bonuses “equal to 120% of the amounts listed above” for those who billed 2200 client hours or more during the pandemic (which is quite generous), eagle-eyed attorneys were quick to notice that Cadwalader made no mention of special bonuses — and they’re pretty pissed. Granted, this is one of the least important things to be concerned about right now given what’s going on in America, but this is where they work, and they’re rightfully upset.
Here are some reactions we received from sources at the firm:
Sponsored
The Global Legal News You Need, When You Need It
Stuck Drafting A Tough Brief? This Tool Can Help.
What Do Millennials Think Of Law Firm Life?
The firm’s email ignores that “peer firms” are paying special bonuses this year. The firm didn’t even try to pretend it was matching by tying special bonuses to hours. Given how many times we’ve been told Litigation is having a blockbuster year and Corporate/Financial Services is doing better than expected, this feels like a major F you by the partners.
Associates in busy groups got slammed in 2020 and it’s pretty embarrassing that CWT isn’t paying them market comp like peer firms are. Already hearing from associates in those busy groups that they’re ready to leave if CWT doesn’t come through. I think CWT will see some very high attrition from high-billing associates who were shocked to learn today that they work at a below-market firm.
This is a major concession by CWT that it no longer even considers itself a top New York firm. I’ve been at the firm for many years, and this is the first time they’ve refused to pay NY market rates to associates across the board. That’s a surprising concession that Cadwalader is stepping out of the hotly competitive NY lateral market, settling instead for competing among sub-market firms. It’s also particularly insulting to associates after the firm heavily invested in expensive lateral partner recruiting in recent months and reported a profitable year for the partnership.
Perhaps Cadwalader’s leaders will change their minds and make haste with special bonus payouts, but attorneys at the firm won’t be holding their breath to find out.
(Flip to the next page to read the full Cadwalader memo.)
Sponsored
Legal Knowledge Management To Drive Dealmaking
Remember everyone, we depend on your tips to stay on top of important bonus updates, so when your firm matches, please text us (646-820-8477) or email us (subject line: “[Firm Name] Matches”). Please include the memo if available. You can take a photo of the memo and send it via text or email if you don’t want to forward the original PDF or Word file.
And if you’d like to sign up for ATL’s Bonus Alerts (which is the alert list we also use for salary announcements), please scroll down and enter your email address in the box below this post. If you previously signed up for the bonus alerts, you don’t need to do anything. You’ll receive an email notification within minutes of each bonus announcement that we publish. Thanks for all of your help!
Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.
