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Milbank Responds to Market Dynamics
In a strategic move responding to recent developments in the legal industry, Milbank, a prominent U.S. law firm, announced on Tuesday that it would align its associate compensation scale with that of rival Cravath, Swaine & Moore. This decision comes on the heels of Cravath’s recent adjustment of salary structures, which had initially overshadowed Milbank’s earlier salary increases for its associate lawyers.
Revised Seniority-Based Compensation Scale
Under the updated compensation structure, associates at Milbank will now enjoy salaries ranging from $225,000 to $435,000, contingent on their seniority within the firm. This marks a notable adjustment from Milbank’s initial salary scale introduced in early November, which had capped senior associates’ raises at $425,000. The revised increases amount to $10,000 to $20,000, depending on the associate’s class year.
Uniform Year-End Bonuses
In addition to salary adjustments, both Milbank and Cravath disclosed identical year-end bonuses tied to associate class years. These bonuses range from $15,000, pro-rated, to an impressive $115,000.
Industry-Wide Trend
The legal landscape in the United States often witnesses a swift domino effect among significant law firms following notable compensation adjustments. On the same day, Cravath’s salary increases on November 28 triggered a cascade of matching announcements from various firms, including Paul Hastings and McDermott Will & Emery.
Ripple Effect Across Top-Tier Law Firms
Milbank joins a roster of prestigious law firms across the U.S. that have committed to matching Cravath’s elevated compensation scale. This includes notable names such as 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.
In a highly competitive legal landscape, the synchronized salary adjustments and year-end bonuses underscore the industry’s commitment to attracting and retaining top-tier legal talent. The move by Milbank demonstrates a proactive approach to maintaining competitiveness and responding to market dynamics in the legal sector.
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