Law Firms Cut Junior-Lawyer Bonuses by as Much as 71 Percent

By Daniel Indiviglio

Law firms including Cravath, Swaine & Moore LLP and Skadden, Arps, Slate, Meagher & Flom LLP cut year-end bonuses for first-year lawyers by as much as 71 percent, part of a bid to keep client costs down and ride out a recession that has forced structural changes in the industry.

Bonuses dropped for first-year associates at many top-tier New York firms while staying the same or increasing for more experienced associates. Bonus reductions, along with overall pay cuts, signal a diminished role for junior lawyers at the larger U.S. firms, said consultant Bruce MacEwen.

This article available online at:

http://www.theatlantic.com/business/archive/2009/12/law-firms-cut-junior-lawyer-bonuses-by-as-much-as-71-percent/32415/