[ by Melanie Gretchen ]

Cravath, Swaine & Moore's larger year-end bonuses may portend similar rewards by managing partners at rival firms.  On Monday, the New York-based law firm, which is known for announcing its bonuses first among NYC law firms, awarded its most junior lawyers a 33% increase in year-end bonuses.  As for the firm's senior associates, they will receive a 63% percent increase from 2011.

The Numbers. All told, its first-year associates will receive $10,000, compared to last year's $7,500, according to a memo obtained by Reuters.  The firm's most senior associates will earn $60,000.

[C-I Note: Is this to compensate for the Wall Street firm's recent performance?  Although the bonuses exceeds what the firm promised this time last year, Cravath did not pay associates a bonus this spring, when many Wall Street firms awarded their employees $2,500 to $20,000.]

Bonuses at Cravath have come a long way since the financial crisis.  In 2009, the firm's bonuses ranged from $7,500 to $30,000.  These numbers have gradually increased for senior associates of the firm, where profits remain high.  Junior associates have not been so lucky.  Prior to the crisis, Cravath paid $45,000 to first-year associates and $110,000 to senior associates in regular and special bonuses.

Silver Lining. Nevertheless, a recent survey by a unit of Wells Fargo found that among law firms with more than $2 million in profits per partner, revenues were up 4.9% through Q3 while net income was up 7.9% compared to the same period in 2011.  In addition, the job market for associates to land in-house jobs or positions at other law firms has also improved, according to Karin Greene, a recruiter at Greene-Levin-Snyder in Manhattan.

"As often is the case, when firms want to stave off attrition, it's usually reflected in the bonuses."

For further details, go to [Reuters, 11/26/12].