The question on many minds within the legal industry today: will elite Biglaw firms match Milbank’s recent salary increase or could there be a firm raising the stakes even higher?
As per comments given by law firm management consultant
Kent Zimmermann to the
American Lawyer, if all other firms chose not to enact salary raises, technically, only Milbank need to increase their associate pay scale. Zimmermann acknowledges, however, that it seems every bit as likely that at least one more firm might match Milbank, creating a domino effect across the sector.
Zimmermann, who hails from the Zeughauser Group, opines that given the current market conditions, most firms do not feel the pressure to augment compensation packages unless they observe other firms doing so. That notwithstanding, industry analysts generally predict that, given the new salary architecture, at least the top 25 Am Law firms could match the scale. Furthermore, a few bold players might aim to exceed Milbank’s scale.
The average associate compensation is a hot button issue within the legal industry. As the financial landscape of legal services continues to evolve, it’s clear that elite firms are under pressure to match or exceed their competitors’ salary structures. Attentive eyes will be on Biglaw to see if a domino effect is, in fact, in play, and if this competitive environment will incentivise firms to raise the bar in attracting and retaining talent.