Bonus season is in full swing in the legal world, and Baker Botts has officially joined the fray, announcing they will match the generous bonus scale set by Cravath. This move comes shortly after Cravath initiated the season’s high bonus benchmarks, which also included retroactive bonuses aligning with Milbank's summer payouts.

Baker Botts, a stalwart Houston-based law firm, is coming off a record-breaking year in 2024, boasting an 11.8 percent increase in revenue and a 17.6 percent rise in profits per equity partner. Their decision to reward associates with market-rate bonuses signals a strong start to 2025 and a commitment to sharing their financial success.

The structure of the year-end bonuses at Baker Botts necessitates that associates and special counsel be in good standing and employed by the firm on the payment date. These bonuses are calculated based on hours worked from December 1, 2024, to November 30, 2025, specifically focusing on productivity targets for client chargeable work. This stipulation recalls last year’s controversy when the firm redefined what constituted creditable hours, leaving some feeling sidelined by the new standards.

In a memo to the staff, Baker Botts underscored that "money is far from the sole measure of our commitment to our people" — a preamble to the announcement of the bonus figures. This statement reflects a broader intent to recognize and reward the hard work and dedication of their staff beyond mere financial compensation.

The legal community watches closely as major firms like Baker Botts set the tone for compensation trends in the industry. As each firm announces its bonus structures, they contribute to the evolving standards of how talent is rewarded in the competitive landscape of big law.

For those in the legal sector, staying updated on these developments is crucial. Baker Botts, among others, encourages anyone with information about other firms’ bonus announcements to share details via text or email, ensuring the legal community remains well-informed.

As the bonus season progresses, Baker Botts’ alignment with Cravath’s leading standard reinforces their position within the upper echelons of the legal market, highlighting their robust financial health and dedication to their team’s prosperity and morale. Congratulations to the team at Baker Botts on their well-earned bonuses!