Clifford Chance (CC) has become the second Magic Circle firm to dish out competitive year-end bonuses to US associates, after Freshfields Bruckhaus Deringer matched US competitors’ rates last week.
Both firms will pay their junior lawyers a lump sum based on their year of qualification. At both CC and Freshfields, newly qualified (NQ) associates will receive a prorated bonus of $15,000, the 2021 class of associates will receive a $20,000 pay-out, while at the top-end, seven and eight-year associates will receive $105,000 and $115,000 respectively.
Freshfields first confirmed its bonus scheme in a memo sent on 1 December, while CC’s announcement also came in the form of a memo, sent by Americas managing partner Evan Cohen yesterday morning (6th December).
Baker McKenzie set the ball rolling earlier this year, announcing its bonus rates on 21 November. While Bakers’ NQs will miss out on a lump sum, its 2021 cohort will also receive $20,000 while those who qualified in 2015 will similarly pocket $115,000.
The Magic Circle firms’ new bonus schemes match the scales awarded by Wall Street stalwarts Cravath, Cleary Gottlieb, Davis Polk, Paul Weiss, Willkie Farr and Cadwalader, according to Above the Law.
The news comes as the Magic Circle firms continue their attempts to crack the US amidst a highly competitive market for talent. Both firms have made strides with high-profile US hires of late: Freshfields made the headline hire of former Cravath M&A partner Damien Zoubek in September 2021 and added private equity partner Allison Liff from Weil a month later. CC likewise hired Osler, Hoskin & Harcourt managing partner Paul Seraganian in New York in November 2021.