The battle for legal talent in the United States has entered a new phase, with litigation powerhouse Susman Godfrey pushing associate salaries beyond the levels recently unveiled by some of the country’s largest law firms.
The Houston-based firm has introduced a revised compensation structure that places annual associate pay between $240,000 and $450,000. The move puts Susman ahead of the market scale unveiled by Milbank last week, adding an extra $5,000 to $10,000 across associate classes from first-year through seventh-year lawyers.
The revised salaries will take effect from July 1. Firm leaders said the decision reflects their belief that attracting and retaining elite legal talent requires compensation that matches the caliber of the lawyers they recruit.
The announcement intensifies a familiar cycle across the legal industry. Whenever a major firm raises associate compensation, rivals often face pressure to respond in order to remain competitive in the race for top graduates and experienced lateral hires.
Several firms have already aligned themselves with the compensation benchmark introduced by Milbank, including Katten Muchin Rosenman, McDermott Will & Schulte, and Quinn Emanuel Urquhart & Sullivan. A number of smaller litigation-focused firms have also adjusted their pay scales upward in recent days.
Yet many prominent firms have remained on the sidelines, at least for now. Their hesitation comes despite strong financial performances across much of the legal sector in 2025. Rising lawyer compensation and continued spending on artificial intelligence and other technology initiatives have simultaneously increased operational costs, creating a more complicated financial equation for firm leaders.
The current pay battle echoes events from 2023, when Milbank initiated an associate salary increase that eventually triggered a broader industry response. At that time, widespread adoption accelerated only after Cravath unveiled an even more generous compensation package several weeks later.
Beyond compensation headlines, Susman Godfrey has remained one of the most closely watched litigation firms in the country. The firm was among a small group of law firms that challenged executive actions issued by President Donald Trump that targeted major legal practices. Court rulings later invalidated those measures, although appeals remain ongoing.
Susman also gained national prominence through its representation of Dominion Voting Systems in litigation against Fox Corp. The dispute concluded with a $787.5 million settlement over allegations connected to false claims regarding the 2020 U.S. presidential election.
The firm’s success has translated into significant billing power. Earlier this year, veteran partners Neal Manne and Bill Carmody increased their hourly rates to $4,000. The firm has indicated, however, that much of its high-stakes litigation work continues to be handled through contingency arrangements or fixed-fee structures rather than traditional hourly billing.
With salary competition once again heating up across the legal industry, attention now turns to whether other elite firms will follow Susman’s lead—or wait for another market-moving announcement before opening their own wallets.
