THE CHEETAH BRIEF – 39th EDITION
Several major firms—including Ropes & Gray, Dechert, McDermott Will & Schulte, and Fried Frank—have matched Cravath’s year-end and special bonus scale, with some offering even higher payouts for associates who exceed billable-hour thresholds. Special bonuses now range from $6,000 to $25,000, and firms like McDermott and Fried Frank have introduced additional incentives tied to hours or tenure. Paul Hastings and Cadwalader have also joined the wave, as industry growth prompts more firms to follow. Midsize firms such as McKool Smith are participating as well, issuing their own appreciation or mid-year bonuses. Overall, the momentum reflects a highly competitive compensation landscape. More bonus announcements are expected as firms look to stay aligned with the top of the market.
MARKET MOVEMENTS
Proskauer sports practice head, Jon Oram, jumps to Davis Polk
Former SEC investment management director, Natasha Vij Greiner, to chair Wilmer Practice
Paul Weiss taps Kirkland London for corporate rising star, Francesca Storey Harris
Akin adds veteran DOJ lawyer, Sara McLean, with Deep False Claims Act experience
FIRM SPOTLIGHT - MORGAN, LEWIS & BROCKIUS, LLP
Morgan Lewis, founded in Philadelphia in 1873, has grown from its local roots into a prominent global law firm with over 30 offices spanning from Boston to Singapore and San Francisco to Dubai. Its broad expertise spans litigation, labor and employment, corporate, finance, energy, intellectual property, and numerous regulatory areas, with particular strength in labor and employment, where nearly 400 attorneys provide counsel on a wide range of global workforce issues. Morgan Lewis also has a highly regarded energy practice covering all aspects of transactions and regulatory matters across oil, gas, nuclear, and renewable sectors. Beyond legal work, the firm is strongly committed to pro bono and community service, contributing over 120,000 pro bono hours in FY 2024 and engaging more than 1,500 lawyers and staff in its annual Community Impact Week.
INDUSTRY INSIGHTS
According to a Law.com Pro report on real estate this fall, the average amount of square feet occupied by Am Law 200 firms was 644,815 last year—a 3% increase from the previous year.
According to the report, “The Role of Generative AI in Proving Corporate Law Department Value," which surveyed 284 legal operations professionals and chief legal officers, 83% of legal departments are tracking financial metrics like outside counsel spend, 54% are tracking billing rates and fee structures, and 52% are tracking internal legal spend.
Revenue for the top 200 firms grew by 11.7%, outpacing expenses, which grew by 9.9% during the first three quarters of the year, with most of the expense growth coming from rising lawyer compensation. While both demand and billing rates rose, rate increases were especially strong, especially among the top 50 firms by revenue.
Overall, in the past week, there were eight announced deals valued at more than $1 billion, six new SPACs, three new IPOs and one new SPAC merger. There were 13 new debt issuances over $500 million.
Cadwalader Faces a Turning Point
Cadwalader, Wickersham & Taft—one of the oldest Wall Street firms—is at a crossroads in 2025 as it faces merger talks, over 100 attorney departures, and pressure from larger competitors with greater scale. Despite these challenges, the firm continues to report strong financials, steady client demand, and ongoing lateral hiring, projecting more than $600 million in revenue this year. Its smaller footprint and slower headcount growth, shaped by post–Great Recession shifts and multiple office closures, contrast with peers that have expanded aggressively. While leadership maintains confidence in a standalone strategy, industry observers note that evolving market expectations may push the firm toward modernization—or consolidation—to stay competitive.
X Corp. Drops $70M Wachtell Suit
X Corp.’s (formerly Twitter) two-year legal battle against Wachtell, Lipton, Rosen & Katz over a $70 million success fee has ended with the lawsuit’s dismissal, without a settlement. The suit, filed under Elon Musk’s direction after he took control of Twitter in 2022, alleged that Wachtell secured an excessive fee in the final moments before Musk’s takeover, taking advantage of the outgoing leadership. The firm had previously represented X in enforcing Musk’s $44 billion acquisition and successfully compelled arbitration to handle the claims. While the court docket shows the case was dismissed following X's request, the reasoning was not specified. Other law firms were involved on both sides of Musk’s acquisition, but only Wachtell was targeted in this suit.
