TBA Law Blog


Posted by: Paul Burch on Nov 30, 2023

An internal announcement on Tuesday by Cravath, Swaine & Moore of salary increases for associates has been matched by other U.S. firms, reports Reuters. National firms such as Paul, Weiss, Rifkind, Wharton & Garrison and Cleary Gottlieb Steen & Hamilton announced new salary scales for associates starting at $225,000 for first-year lawyers and ranging up to $435,000 to align with Cravath’s new base salary scale. "Once one or two name-brand firms make such a move ... 'the going rate’ means rationality and hard-core financial justification go out the window," said Bruce MacEwen of law firm consultancy Adam Smith Esq. According to a recent Wells Fargo report, gains in profitability were mainly among the very largest firms during the first three quarters of 2023.