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CC wades in to New York bonus war

Author: James Illman

Published: 08/11/2007 05:35

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Clifford Chance (CC) has come out as the first UK firm to hand out a one-off bonus of up to $50,000 (£24,000) to US associates, as the New York pay war gathers pace.

Craig Medwick, CC’s regional managing partner for the Americas, told the firm’s New York-based associates today (7 November) they would receive a special bonus ranging from $10,000 (£4,800) for first-years to $50,000 for senior associates.

The bonus will be paid out in January along with the standard year-end bonuses, which will see newly-qualified associates trouser up to $30,000 (£15,200) with senior associates in line for as much as $65,000 (£31,220).

The move comes after Cravath Swaine & Moore announced last month that it would pay a special bonus to its associates.

Manhattan rivals including Cleary Gottlieb Steen & Hamilton, Simpson Thacher & Bartlett and Shearman & Sterling have since followed Cravath’s lead.

In January, Simpson Thacher kicked off a salary war when it raised its associate base salaries 10% to a new benchmark of $160,000 (£81,000) – a move followed quickly by rivals.

At CC, however, the news follows the magic circle firm axing a six-lawyer structured finance team from its New York office earlier this week (5 November), as law firms continue to feel the repercussions of the sub-prime mortgage crisis.

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