Bonuses And Pro Bono Work Down Somewhat At Big Firms

How bad is it getting for the legal-industrial complex?  The ripple effect of not enough jobs and clients balking at paying for new lawyer training now includes smaller end-of-year bonuses and a small decrease in pro bono hours.  The Wall Street Journal is reporting that major firm Cravath, Swaine & Moore LLP is keeping its bonuses at around 2010 levels, with the most senior associates taking around $37,500, and the most junior attorneys getting $7,500.  It’s shocking as the higher figure can only buy the entry level Lexus at best.  Seriously, though, that’s a drop of around 20% from 2007 figures when the markets collapsed.

Fortune is picking up on figures reported last June issued by the Pro Bono Institute and its Law Firm Pro Bono Challenge®, where major law firms contribute legal services to those who could not otherwise afford them.  The number of donated hours significantly increased between 2005 and 2009, ranging from 2.226 million hours to more than double at 4.868 million hours.  The number of reported pro bono hours in 2010 fell to 4.451 million.  Fortune cites a number of anecdotal reports from various large firms suggesting that while they still contribute significant hours, they need to concentrate on the paying customers.  The bright side, if one could call it that, is that new lawyers needing real world experience often find it in a firm’s pro bono work. [MG]