Cravath Swaine & Moore has become the first US firm to pick up the gauntlet thrown down by Sullivan & Cromwell, Legal Week can reveal, with the Wall Street leader matching the $30,000 (£15,477) end-of-year bonus for first-year associates.

The move sees the firm increase its rates for first year associates by 70%, rising from $17,500 (£9,028) in 2003 to $30,000 (£15,477), with senior associates expected to get about $50,000 (£25,795).