The Morning After - Post Cravath, McDermott, Paul Hastings Moves

 November 28th - what an evening as news broke about which law firms responded - finally - to the Milbank rates for raises and bonuses. 

However, here it is the morning after. And we know from history that none of those numbers have been cemented in. Cravath, McDermott and Paul Hastings can up them. Also, Milbank can do the same.

Meanwhile the world, especially associates, waits. What will all the other law firms come out with? There is special interest in those firms such as Kirkland and Ellis and Paul, Weiss which seemed to have had an excellent year, despite the slowdown in demand at other firms. The focus is on the symbolism of their eventual numbers. That is, the messages they are transmitting about their direction. 

The issue for large law firms is just that: their direction. So much has changed since pre-pandemic times. Those who could be most impacted by the mutations are junior lawyers. That's why they have to decode what the numbers are saying about their long-term value in Big Law. If those increases can't be sustained in budget, then the associates could be on short time. In addition, the pyramid structure of law firms can be retrofitted to diamond, with a need for many fewer associates and lots more midlevels.

UPDATE:

Paul, Weiss came in with its numbers. For now. In addition, there will be discretionary bonuses in 2024. Some will recall that in the past Paul, Weiss chair Brad Karp initiated off-season bonuses for the "committed." Here is what Abovethelaw reports:

Class of 2023	$225,000
Class of 2022	$235,000
Class of 2021	$260,000
Class of 2020	$310,000
Class of 2019	$365,000
Class of 2018	$390,000
Class of 2017	$420,000
Class of 2016	$435,000

Additionally, year-end bonuses were also announced, which match the prevailing market rate.

Class of 2023	$15,000
Class of 2022	$20,000
Class of 2021	$30,000
Class of 2020	$57,500
Class of 2019	$75,000
Class of 2018	$90,000
Class of 2017	$105,000
Class of 2016	$115,000

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