Cravath, Swaine & Moore LLP - The Inside View

Things move quickly in the world of BigLaw. “I haven’t heard anything about the firm wanting to go back to setting market rate for associate salaries,” one associate told us, just a couple of weeks before Cravath did exactly that: after Milbank and Davis Polk announced raises in early 2022, Cravath swooped in to give mid-level and senior associates their highest pay packets yet. The Cravath scale is well and truly back in business, which means that law firms all over the country are rallying around to match it; we like to think that Lana Del Ray was thinking about Cravath when she wrote Money, Power, Glory.

Cravath has a history for influencing the market: it devised the ‘Cravath System’ over a century ago, which has inspired many a BigLaw firm in the market. Cravath is also well known for its rotation system, which allows associates to keep switching between practices or supervisors every 18 months or so until they reach partnership (unlike other firms where the call to specialize is typically heard much earlier). This system was a big draw for those who joined the firm: “I wanted to do corporate work, but I had no idea what kind, so the rotation system was very appealing.”

“The most interesting and pressing issues are dealt with by the firm.”

Others were sold on the firm’s prestige. “The most interesting and pressing issues are dealt with by the firm,” said one source, “and it has a real hand in crafting the law as it moves forward.” Across the country, Chambers USA bestows top-notch praise on the firm’s antitrust; banking and finance; capital markets; corporate/M&A; securities; and tax expertise. In its home state of New York, the firm is applauded in these areas and practices like environment; general commercial litigation; and media and entertainment. If you’re curious to know more about Cravath’s esteemed history, head here to read all about the firm’s work since 1819, which includes enforcing Thomas Edison’s patents; protecting press freedom for the likes of The Washington Post and Time magazine; and creating foundational structures for the derivatives and private equity markets to grow. Cravath also proves that you don’t need a vast network of offices to make a big impact: the firm maintains just two bases in New York and London.

The Work

The junior associates on our list were mostly rotating through practices within either the corporate or litigation departments. Corporateassociates rotate through practices: M&A, capital markets, banking and credit are the largest, but there are many other groups under the corporate umbrella, including IP and financial restructuring and reorganization. On banking transactions, associates had done a lot of work with lenders to create revolving credit facilities: “90% of my practice is based on borrower-lender work.” Investment banks form the bulk of the lender client base, but sources were pleasantly surprised to discover that the banks’ borrowers operated in all sorts of sectors, from pharma to entertainment. 

On any given transaction, juniors are given responsibility for drafting, though the types of documents vary depending on the size of the deal: “If it’s a big transaction I’ll draft the ancillaries, exhibits and schedules, but if it’s a smaller matter that’s just staffed with me and a partner, I’ll draft every document from beginning to end.” Unsurprisingly, associates preferred the more leanly staffed matters: “Not only can I take a more substantive role, but there’s no micro-management either because nobody is waiting on me.”

“I could work with a solar company one time and an aluminum producer the next, which is really cool.”

Over in M&A, associates get “tons of client-facing responsibility. I work very closely with clients, partners, senior associates and counterparties to understand what needs to happen to get the deal done.” These deals usually concern public transactions, like carve-outs and sales of public companies. Day-to-day tasks primarily revolve around process management: “As you become more experienced you’ll draft definitive agreements and run the entire due diligence process.”

Corporate clients: Just Eat, National Grid, Viatris. Represented Amazon during its $8.45 billion acquisition of MGM Studios.

Litigation is home to different subgroups, including IP, securities and investigations, although “partners do everything from arbitration to antitrust.” Some litigators dabble in bankruptcy work, though corporate attorneys usually handle the meat of the matter. On the securities side, Cravath typically works on cases between companies and their investors. Sources were pleased that “the clients are always different, it’s not just banks. I could work with a solar company one time and an aluminum producer the next, which is really cool.”

"I’ve second-chaired five depositions and I’ve been here less than two years.”

Rookies’ roles depend on how far along the trial is: “If we’re in the discovery stage I’ll take the first pass at drafting. Juniors are there to help anyone and everyone, so people will often just pass you stuff to draft.” As the case progresses, juniors will prepare witnesses for trial and handle research tasks: “Even as a first-year, I was treated like everyone else on the case.” As associates enter their second year, they’ll manage first-years’ work product. While sources cited reams of client contact as a highlight of this work, “the best part is the awesome amount of responsibility. I’ve second-chaired five depositions and I’ve been here less than two years.”

Litigation clients: The Walt Disney Company, Boston Red Sox, Goldman Sachs. Defended Johnson & Johnson and its subsidiary Ethicon in litigation filed by the former stockholders of Auris Health, alleging that the defendants fraudulently induced Auris to merge with Ethicon.

Hours & Compensation

Billable hours: no requirement

Associates put a spin on the adage, ‘with great power comes great responsibility,’ informing us: “With great responsibility comes a great workload.” As is typically the case at the top-end of BigLaw, the hours at Cravath can be long. A corporate source told us that the hours “are influenced by the client – some are more hands-off while others have a lot of questions. We had a client in Australia, so while it was Monday over there it was Sunday here, so I would work at the weekend and late at night.” Interviewees did report working late into the night and being on call outside of normal working hours, but this was often accepted as coming with the territory: “Compared to other professions, yes the work/life balance is poor, but I don’t think my workload is too bad. I’m aiming for around 1,900 hours, which is manageable in my opinion. There’s no real billing target, so I’ve never had to stress about hours.” This source told us that they were working “ten-hour days on average, but people do respect boundaries, so if there’s somewhere I need to be, people are like ‘That’s fine, you can just get it to me later.’”

“Cravath has given us a number of bonuses over the past year...”

We spoke to juniors just before Cravath set the new market associate salary scale, but all the same their reflections on compensation were largely positive. Some flagged that the firm was still very much setting the benchmark when it came to bonuses: “Even though Milbank and Davis Polk have set the base salaries of late, Cravath has given us a number of bonuses over the past year – like three! – so the compensation is still very competitive and wouldn’t deter talent from coming here.” Bonuses at Cravath are lockstep and we heard that “as long as you’re in good standing, you’ll get a bonus!”

Pro Bono

Associates don’t have an annual minimum pro bono hours requirement, but our sources agreed that devoting time to pro bono was encouraged: “They push for us to do it and every week we receive an email about it. As long as you get your client work done they don’t care how much pro bono you do!” This interviewee added that “partners and associates treat it as billable work, so you don’t need to worry about prioritizing it.” There is a designated pro bono partner who “distributes matters, but sometimes other partners have independent matters that they picked up themselves, so they’ll ask for associates to volunteer as well.”

Sources spoke of handling visa extensions and asylum matters, but we also heard that there are plenty of corporate/transactional opportunities available. “You can file trademarks for nonprofits and review contracts for people trying to get into industries,” said one, while another added that “you can advise small to mid-sized businesses on how to structure their organization internally for tax-efficient purposes.” On the litigation side, this interviewee told us that “pro bono really gave me the confidence to do certain types of work – on one matter I did lots of discovery and got to take a deposition, which was really cool.” All survey respondents agreed that the pro bono work they’d taken on had been meaningful and engaging, while 89% agreed that they had autonomy over how much pro bono they could take on.

Pro bono hours

• For all (US) attorneys: 37,281
• Average per (US) attorney: 80

Culture

Given its premier credentials, it was hardly surprising to discover that the pursuit of excellence is a big thing at Cravath: “Producing excellent work is something that’s very pronounced here. It’s not an overt demand, but the fact that all work done by associates is reviewed in a very detailed manner means that you will focus on the small, mechanical elements that you don’t necessarily think of initially!” Sources didn’t feel that they were alone in this pursuit, however. “There’s a very collaborative culture,” said one interviewee. “I was nervous before I joined, but you’re honestly not competing here. It really is a team and people just want to make sure that everyone is successful.” This interviewee felt that “the rotation system breeds that, because every 18 months you can change and dive into an area that you have no substantive experience in – that creates a situation that we can all relate to. If you don’t know something, you can always find someone who does, and those people will sacrifice their time to get you up to speed.”

“This is a place where you’re expected to solve problems you’ve never seen before."

There can be a more hierarchical feel the higher up you go: “The more junior partners give great deference to the more senior partners. The senior partners can be less accessible in that it can take them a day or two to respond to a question, but it’s just a process thing.” What’s the upside of this? “It encourages you to figure out how to solve the problem!” We should also point out that taking initiative where applicable is also greatly valued, according to our interviewees. “This is a place where you’re expected to solve problems you’ve never seen before,” one associate noted, “and people won’t necessarily tell you how to solve them, so you have to leverage the resources available.” For example, if an associate is drafting a document, they may have to “figure out what’s usually in that type of document, what the market standard is and what idiosyncrasies there are. The answers to the ‘test,’ as it were, come when seniors review your work. You learn by seeing the different things different people say about your work.”

Career Development

Associates are typically assigned a partner mentor during their second year, who they meet with once a quarter: “I bounce ideas off mine, like what I should look for in my next rotation partner. It’s like having a thought buddy.” All associates get a secretary, who “knows the ins and outs of the firm. Most of them have been here for at least 15 years, so they can answer the most menial questions like ‘Does this partner prefer to have things printed double-sided?’” This interviewee also spoke highly of the more informal mentorship opportunities that are available at Cravath: “I can call my informal mentor anytime and they will explain things in detail. I’ve also had dinner with them and their spouse!”

“So many people look at your work – it’s a collaborative experience.”

On the more formal side of development, “we have really great CLEs on subjects like ‘How to take a deposition,’ which are helpful. You just log on to the database and watch the video, which you get CLE credit for.” Again, sources highlighted how a lot of learning stems from detailed reviews of their work: “So many people look at your work – it’s a collaborative experience.” With regard to making partner, there was a desire for the firm “to be more transparent about what is required earlier on, say when you’re a mid-level in your fourth or fifth year.” Another source did highlight that “Cravath generally promotes from within,” giving hope to those who might otherwise be concerned by competition posed by laterals.

Diversity, Equity & Inclusion

Many sources praised the firm’s approach and success in recruiting diverse attorneys, but retention was flagged as an ongoing challenge: “The firm does a great job of recruiting associates of color, but once they’re here, it would be helpful to have more guidance. The firm could continue to improve promoting associates of color, especially African American/Black attorneys.” However, another source commented that Cravath has “upped its efforts and the firm's also been providing avenues and budgets for affinity groups to get together.”

"... geared toward retaining African American/Black talent."

Sources told us that the various affinity groups “help with recruiting efforts. They also host monthly meetings, so you can meet people who are in a similar situation to you and can help you navigate your career.” This associate did speak positively of “the program geared toward retaining African American/Black talent – they partner each member of the affinity group with a partner at the firm for mentorship. There are quarterly or monthly meetings – depending on schedules – which provide the opportunity to have frank conversations. The mentors really give you different perspectives. The mentorship program lifts the veil on how you’re supposed to be developing, which helps with retention.” Members of the African American/Black affinity group are assigned a partner mentor upon joining the firm, alongside an associate adviser.

Strategy & Future

"We celebrated our 200th anniversary in 2019, and over the course of our history Cravath has helped define what it means to be a corporate law firm," says Kevin J. Orsini, partner and co-head of Cravath's litigation department. He adds that "we are a full-service firm with preeminent practices across our corporate, litigation and tax departments," and emphasizes how "Cravath’s goal has never been to measure itself based on its number of lawyers or offices, but instead by the impact we have on our clients, our profession and the development of the law." 

Flexibility is key for Cravath's future, as Orsini explains: "It is possible the emergence from two years of the pandemic will affect our clients’ needs, as could the evolving geopolitical situation or regulatory news out of Washington, so our goal will be to remain nimble in helping our clients navigate such shifts, while continuing to cultivate our internal talent and train the next generations of Cravath lawyers."

Get Hired 

The first stage: recruitment on and off campus  

OCI applicants interviewed: undisclosed  

Interviewees outside OCI: undisclosed  

Cravath sees close to 1,000 students at over 20 schools and job fairs for approximately 90-100summer positions every year, so competition is fierce. But even if Cravath isn’t coming to your campus, don’t disregard it: “We encourage any student with an interest in Cravath to apply,” recruitment sources at the firm tell us, “as we look seriously at every application we receive.” And Cravath also considers candidates “who spent time in other careers or took detours from what might be considered the ‘straight and narrow’ path.”  

The OCIs are conducted by partners, which is “consistent with the investment of time made by our partners throughout all phases of the recruiting process.” Questions focus on “the candidate’s experience in an effort to better understand their unique backgrounds and interests — it is very much a two-way, free-flowing conversation.” Recruitment sources add that they’re looking for “a breadth of skills and attributes in candidates at the OCI stage: a strong presence; evidence of good judgment and resilience in the face of challenges, often demonstrated in work experience; interests outside of law school; and a genuine commitment to learning and development.”  

Top tips for this stage:  

“The number one thing is to be knowledgeable about our rotation system – it’s something the partners are proud of.” – a first-year junior associate  

“We want to get to know you, and we want you to get to know us, so we encourage students to share their unique experiences.” – the firm 

Callbacks  

Applicants invited to second stage interview: undisclosed  

Cravath’s OCI process isn’t dissimilar to that of other firms, but the same can’t be said for its “unstructured” callback interviews. “Most of the callbacks I did with other firms were regimented 30-minute interviews and then I was out the door in three or four hours!” Cravath candidates should be prepared to set aside a full day because here, “there are no time limits – you meet with partners and talk for as long as the conversation goes, so you might be in a meeting for 30 minutes or you might be in it for two hours.”  

There’s no preset schedule for who conducts the interviews either, “which means that a candidate may meet with different interviewers for different amounts of time — whatever period allows for a full and open discussion,” sources say. The interviews are done on a one-to-one basis, and candidates are likely to meet with at least three partners, associates figured. Associates also told us that “you typically come in at 9am and leave around 3pm.” For those asking the most important question (when will I have time to eat?), a “long lunch” with associates is a staple part of the day.  

Our recruitment sources told us that one of the main reasons for having the full day is “to give students an opportunity to get a true sense of who we are as a firm.” It also means the interviewers “really get to know applicants and their unique qualities.” At this point, associates say, “you’ve already gotten past the stage where people are judging you based on merits and grades. You’re now here for us to see if you’d be a good fit for the firm.”  

Under the new remote way of working, the firm still organized a full day of interviews for candidates, but made modifications to suit the virtual setting. 

Top tips for this stage:  

“Don’t be stressed out because everybody that comes through these doors is in the same unstructured interview – go with the flow.” – a first-year junior associate  

“Candidates who communicate well and show hunger and intellectual curiosity stand out in an interview, so we encourage law students to use the discussions as a chance to learn about the firm, but also to demonstrate your unique attributes and a commitment to learning and development.” – the firm  

Summer program  

Offers: undisclosed  

Acceptances: undisclosed  

Summer associates are given the option of spending the program in one department or splitting it between two. They’re assigned to one partner in each chosen department. One sure thing to expect is that it’ll be challenging: “Partners view their summer associates much like first-year associates in collaborating on and assigning work.” Associates confirmed “you get a serious slice of what it’s like to work at Cravath” as a summer. It might be tough, but “one of the big benefits was that when I came back as a first year I was already very comfortable with the lifestyle working as a junior at a BigLaw firm.”  

Most summers are made offers, and when associates start at the firm, they indicate their practice preference between corporate, litigation, tax, executive compensation and benefits, or trusts and estates. They are subsequently assigned a partner or partner group for their first rotation of 15 to 18 months.  

Top tips for this stage:  

“They need someone who’s going to work just like a first-year associate, because people aren’t going to treat you differently.” – a first-year junior associate  

“Summer associates stand out when they show commitment to the work and professional development, but also demonstrate that they genuinely enjoy the practice of law.” – the firm 

Interview with Kevin J. Orsini, partner and co-head of Cravath's litigation department

Chambers Associate: Have there been any developments at the firm over the past year that you would like our readers to know about?

Kevin J. Orsini: This was a banner year for Cravath. 2021 was our best year on record financially, and in recent years we’ve promoted some of our largest partner classes ever while bringing on a number of key lateral hires in 2021. These include former Treasury official David Portilla to continue building our financial regulatory practice, Dan Zach straight from the FTC to join our antitrust team, and Ron Creamer who brings tremendous experience on all manner of tax transactions.  

We are currently working on some of the highest profile litigation matters across the country, including representing Epic Games in two separate actions against Apple and Google alleging the companies engaged in anticompetitive behavior, and Meta (formerly Facebook) in putative class action and individual antitrust litigation. On the M&A side, we represented Amazon in its $8.45 billion acquisition of MGM; and Johnson & Johnson in the planned separation of its Consumer Health Business.

We also continue to prioritize and encourage our attorneys to engage in pro bono matters. This year saw one especially landmark matter for the firm come to a successful conclusion following nearly 40 years of litigation in Jefferson County, Alabama—a case in which we represented African American and female plaintiffs alleging discrimination by governmental employers. The case was brought by the NAACP in 1974 and, at the request of the national Lawyers’ Committee, Cravath took on the representation of the plaintiffs in 1983. At the conclusion of the case, we were able to donate $6 million in awarded attorneys’ fees to organizations supporting civil rights, legal services and education. The conclusion of this longstanding work, while special for us at the Firm given the generations of lawyers who contributed to this important case, represents not just Cravath’s commitment to these causes, but also the dedication Cravath brings to pursue cases that will have an impact, despite the complexity or long road they may require.  

CA: What is your firm's strategy and how do you expect the next year to unfold? 

KO: Cravath’s goal has never been to measure itself based on its number of lawyers or offices, but instead by the impact we have on our clients, our profession and the development of the law.  We have been thoughtful and deliberate about our growth—building and enhancing the areas of expertise that will best serve our clients. We have a pipeline of client work that we expect will make the next year both a busy and exciting period. It is possible the emergence from two years of the pandemic will affect our clients’ needs, as could the evolving geopolitical situation or regulatory news out of Washington, so our goal will be to remain nimble in helping our clients navigate such shifts, while continuing to cultivate our internal talent and train the next generations of Cravath lawyers.  

CA: What are your core practice areas and sector priorities?KO: We are a full-service firm with a focus on corporate, litigation and tax. Our generalist litigators are known for their work on antitrust, general commercial and securities litigation, as well as on intellectual property and white collar and investigations matters. Our corporate lawyers have been pioneers in M&A and all manner of capital markets transactions, as well as in providing top-level corporate and board advisory counsel. Our tax practice is also renowned in its ability to advise on large and complex transactions, including spin-offs, and we have partners specializing across a host of other areas, including data security and privacy, ESG, executive compensation and benefits and restructuring, to name a few. We work across industries and geographies, with clients coming to us for their most critical matters.  

CA: How has the global pandemic affected the firm? 

KO: The pandemic’s biggest practical effect was leveling up our ability to work anywhere, anytime, on any matter, even when our lawyers are dispersed. The vast majority of our lawyers are in our New York office, yet the scope of our client work is truly global.  As a result, we are no strangers to travel and virtual communication.  Even with a proven track record of serving client needs from afar, I was struck by how easily we shifted to a virtual world.  We have truly demonstrated our ability to handle any problems, at any time from any place.  Our litigation teams handled multiple trials during the pandemic, ranging from fully remote trials to hybrid trials to socially distanced trials subject to rigorous safety protocols. 

Across the firm, we adapted to the new challenges and opportunities our clients faced. Some industries faced difficulties brought on by behavioral shifts initiated by the pandemic, while the M&A and securities markets were red hot. When it became clear COVID-19 would have a major effect on all of our lives for a sustained period, there was legitimate concern from across the corporate spectrum about the short-term and long-term impact on businesses, and a lot of assumptions and well-laid plans had to be thrown aside so that businesses and the communities in which they operated could survive. That’s the kind of scenario in which Cravath thrives, standing at our clients’ sides and advising them on their options when new thinking or a complete reorientation of priorities might be necessary, or when a decision is truly pivotal for a company’s future. Helping our clients navigate through the pandemic, and the complexity and uncertainty they faced in the depths of this period, has been an important reminder of the important role we play as lawyers in supporting our society through hardship and in pursuit of a better future—whether that be in business or, through pro bono work, society at large.  

CA: How would you define your firm's place in the legal market? 

KO: We celebrated our 200th anniversary in 2019, and over the course of our history Cravath has helped define what it means to be a corporate law firm. Paradoxically, we’ve done so by being laser-focused on change and evolution, as our clients’ needs and the business landscape evolve in tandem. One quality that has remained a constant is our deep commitment to associate training and collaboration across the firm. Our lawyers are trained as generalists, not narrow specialists, and we constantly seek advice from one another, sharing perspective and insight. Another constant is that, when a client hires Cravath, they get access to the expertise of the full firm, not just to one lawyer or practice. We’re a close partnership, with lawyers at all levels who love taking on responsibility and learning. Those elements are at the core of why Cravath has remained a go-to firm for clients’ most important matters for two centuries.  

CA: What are the most significant trends in the legal market that you feel students should know about? 

KO: In terms of legal practice, this is a very dynamic moment in the regulatory space as activity is increasing across agencies and sectors, from financial and market regulation to more active antitrust intervention. It is critical to be engaged in all of those spaces, as they are likely to be at the center of the most exciting work in years to come.  

Thinking about the types of clients young lawyers may come across in their careers, it is important to understand the business need to serve clients that are bedrocks of traditional sectors (such as finance, manufacturing and transportation), while also developing relationships with new clients in emerging industries. The technology industry, for example, continues to explode into new spaces, from social media, to gaming, to the metaverse and blockchain-related industries—all of these raise new legal questions and challenges across practices.  Embracing this scope of work and the relationship-building opportunities that come with it will be important for young lawyers as they begin their careers and explore opportunities with various clients.  

After two years of a pandemic, we are also seeing law firms, lawyers and clients work toward the right balance of flexibility and in-person collaboration and training.  I know how valuable working with partners and  colleagues in-person was to my development and career growth as a young lawyer, and there is an industry shift happening as each firm determines how best to ensure our young lawyers are afforded that same training ground and the important nexus of a workplace along with the benefits and efficiencies that remote work allows us today.  

CA: What advice do you have for students and junior associates who are just about to embark/have just embarked on their legal career? 

KO: Embrace responsibility and try to think like the first chair lawyer from day one of your legal career. The start of your legal career is a time to learn, and at Cravath we believe the most effective lawyer is a generalist whose legal understanding goes beyond any narrow specialty or industry focus, and extends to being able to provide clients with fundamental legal and business advice. That requires individual study, mentorship and action – working hard to get everything you can out of each task that comes your way.  Do not simply focus on completing the narrow task in front of you; always think about how it fits into the bigger picture and how you can help the client achieve its goals.