In a strategic move responding to the domino effect set off by Cravath, Swaine & Moore’s recent pay adjustments, Milbank, a prominent U.S. law firm, has announced its decision to match Cravath’s elevated compensation structure for senior associates. This development comes hot on the heels of Cravath’s salary hike, which initially outshone Milbank’s own efforts to boost remuneration for its associate lawyers.
The revised compensation scale at Milbank will now place associates in the salary range of $225,000 to $435,000, contingent on their seniority. In comparison, the salary structure initially disclosed by Milbank in early November featured more conservative raises for senior associates, capping at $425,000.
The salary increments, varying between $10,000 and $20,000 based on class year, are complemented by year-end bonuses that align with those announced by Cravath. These bonuses, spanning associate class years, range from $15,000 pro-rated to a substantial $115,000.
In the intricate dance of competition among the United States’ largest law firms, adjustments in salaries and year-end bonuses are commonplace, often occurring within days or weeks of each other. Cravath’s November 28 salary adjustments acted as the catalyst, triggering a series of matching announcements from other major law firms, including Paul Hastings and McDermott Will & Emery, on the very same day.
The ripple effect extended to several other prestigious law firms, all vying to align their compensation scales with Cravath’s benchmark. Notable names in this wave of matching announcements include Baker McKenzie, Boies Schiller Flexner, Cleary Gottlieb Steen & Hamilton, Davis Polk & Wardwell, Dechert, Kirkland & Ellis, Paul, Weiss, Rifkind, Wharton & Garrison, Quinn Emanuel Urquhart & Sullivan, and Skadden, Arps, Slate, Meagher & Flom.
This synchronized surge in salary adjustments marks a trend in the legal industry, echoing a similar pattern observed in the previous year. The developments underscore the competitive landscape within the legal sector as firms strive to attract and retain top legal talent in a highly dynamic environment.
For more insights into the evolving landscape of legal compensation, stay tuned for updates.
