Milbank, known for leading the industry in associate compensation, announced on Monday year-end bonuses ranging from $15,000 to $115,000. The firm revealed its plans in an internal memo, marking another bold move to set the tone for the legal industry.
Milbank chair Scott Edelman highlighted the firm’s success, stating, “The firm is having a record year, and we expect to remain very busy through the end of the year.” He praised the lawyers for their efforts, noting their work on “some of the most cutting-edge transactions, restructurings, and litigations in the market.”
The bonus scale follows a seniority-based structure Milbank and its competitors have adopted in recent years. First-year associates will receive $15,000 on a pro-rated basis, while the most senior associates will earn $115,000.
Milbank frequently influences its competitors by acting first on compensation decisions. Major U.S. law firms often adjust their salaries and bonuses soon after Milbank’s announcements to stay competitive.
However, not all firms always match Milbank’s lead. In early November 2023, Milbank announced annual bonuses along with an increase in base pay. Cravath, Swaine & Moore later raised the stakes by increasing base salaries for senior associates, prompting Milbank to match the higher scale. Today, associates at top firms earn between $225,000 and $435,000 based on seniority.
Earlier this year, Milbank also introduced “special” summer bonuses in August, starting at $6,000 and reaching $25,000. Despite Milbank’s move, other firms chose not to publicly match the summer bonuses, which remain less common than year-end payouts.
Law firms have capitalized on a strong financial year. In the third quarter of 2024, they reported an 11.2% profit increase compared to the same period in 2023, according to the Thomson Reuters Institute’s Law Firm Financial Index.
Milbank’s decision to reward its associates reflects not only its record-breaking performance but also its commitment to maintaining its leadership position in associate compensation.
