BCG News - 12/09/08
Bonuses for Clifford Chance
In a move to copy their across-the-pond counterparts, London-based Clifford Chance has slashed the bonuses of their US associates in half. This means that instead of receiving last year's $32,000 to $65,000 employee reward, firm associates will receive $17,500 to $32,500. Other US firms that have cut their bonuses this year were have included:
Cravath Swaine & Moore set the precedent with its cuts last month, Simpson Thacher & Bartlett, Dewey & LeBoeuf, Cleary Gottlieb Steen & Hamilton.
The firm's been going through some rough times lately. Two huge partner defections last week (three partners moving to Skadden Arps Slate Meacher & Flom and one defecting to Morgan Lewis & Bockius) and the layoffs of 20 US employees in October have also challenged the firm.
Boies Schiller Associates Get Big Bonuses
Associates at at Boies, Schiller & Flexner will receive associate bonuses similar to the ones they received during last year's boom year. Partner Philip Korologos believes that some associates will exceed $100,000 (unlike many associates at other firms who will top out at $32,500). Why the difference? Korologos says that the firm did not change their bonus system to reflect the current economic situation. Instead of determining bonuses by class year, each associate bonus was calculated individually based on hour billed. Although many do not expect a number of other firms to follow Boies Schiller's example, bonus-waters eagerly await the reaction of ultra-competitive Quinn Emanuel.
Latham boosts litigation with US Government hire
After 18 years with the US Department of Justice, Bary Sabin will join Latham & Watkins' litigation department. Sabin, whose move follows the recent hire of former colleague Alice Fisher who stepped down from the DoJ in September, recently held the title of deputy assistant attorney general. Both Sabin and Fisher are expected to grow the practice due to US law enforcement's increasing focus on the international arena.
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