Milbank is once again setting the pace on associate compensation in Biglaw, this time announcing special bonuses of up to $25,000 for associates and special counsel globally.
The announcement came in an internal memo distributed by Scott A. Edelman, the firm’s chair, on Thursday morning, catching the wider legal industry’s attention.
Edelman wrote in the memo, “In recognition of your exceptional efforts, we are pleased to announce that we will be paying special bonuses to all associates and special counsel globally.”
The bonuses apply across the board to all associates and special counsel at the firm, regardless of their location around the world.
This latest move comes on top of a separate round of salary increases that Milbank had already announced back in June, a raise that the bulk of the Biglaw market has yet to match.
The combined effect of the salary hikes and now these special bonuses puts Milbank significantly ahead of the broader Biglaw market on associate pay.
All special bonuses are scheduled to be paid out before August 31, 2026, giving associates a clear and relatively near-term timeline for receiving the additional compensation.
The announcement immediately raised the question of which major firm will be the next to follow Milbank’s lead and match the new bonus structure.
Historically, many Biglaw firms have waited for Cravath to move first before adjusting their own associate compensation, a dynamic that could leave some lawyers waiting longer than necessary for a pay bump.
With Milbank now having moved twice in quick succession on associate pay, the pressure on competing firms to respond is mounting considerably across the industry.
The wider Biglaw market faces what appears to be a significant amount of catching up to do, both on the salary and bonus fronts, if it hopes to remain competitive in the war for top legal talent.