my firms also use performance bonuses for associates. Exhibit 6.15 above shows 2021 pay structure at Cravath, typically the first large New York City firm each year announce its associate base salary and bonus plan, which other such firms such as llivan & Cromwell typically follow (or nearly so). Like other firms, bonuses provide por cost flexibility for law firms. When the economy is booming, especially when that anslates into lucrative legal work on mergers and acquisitions, stock and bond ferings, and intellectual property matters, bonuses are higher to recognize ontributions and to retain essential talent (and billable hours). (Note: A pandemic can reate other types of business, such as bankruptcy.) Exhibit 6.15 shows Cravath is ncluding not only a Year-End Bonus, which is typical, but also a Special Bonus, this year. 1. Think about the research evidence discussed in this book. Would you expect associates to feel their pay structure (Exhibit 6.15) is fair? What comparisons would they likely make? What work behaviors would you expect this pay structure to motivate? Explain.