Big Law firms are expected to follow Milbank’s lead, hiking salaries for associates. The firm’s unexpected decision to increase associate salaries by $10,000 is predicted to create a challenging environment for other major law firms as they contemplate whether to match or not.
Milbank LLP announced this raise on Tuesday in an unprecedented year for the industry which witnessed record rate increases for clients, associate layoffs, declines in lateral hiring, and a law firm collapse. Some firms have even resorted to pushing back start dates for new associates. One such example is Cooley LLP, a law firm that offered new associates an unusual proposition –
a $100,000 offer for agreeing to start their careers a year later than planned
.
Given these industry conditions, it’s said that the fundamentals do not support salary increases across a broad group of firms. However, the impact of Milbank’s bold move on the larger legal industry remains to be seen.
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