Simpson Thacher cuts associate bonuses

Simpson Thacher cuts associate bonusesSimpson Thacher & Bartlett has joined the growing number of US firms that are cutting associate bonuses this year.

The firm has halved bonuses for the 2008 financial year and is understood to have abandoned special bonuses.

Last year junior lawyers received a bonus of $35,000 but this year the figure has dropped to $17,500. The largest payout being made this year, for the class of 2000 and 2001, is $32,500.

Last year Simpson Thacher associates received an additional special bonus of between $10,000 up to $50,000, but this year the firm has made no mention of special bonuses.

The move comes after The Lawyer reported that Cravath Swaine & Moore has ditched its annual special bonus for associates and offered half of last year’s bonuses due to volatile market conditions.

By contrast US firm Skadden Arps Slate Meagher & Flom matched last 2007 figures minus supplemental bonuses.