Milbank’s recent decision to raise each associate’s salary by $10,000 is causing a stir not only among its Big Law competitors, but also on the client side. Certain general counsels (GCs) are expressing apprehensions over potential future hikes in billing rates following these increases in associate pay. Fears revolve around the possibility of law firms, as some suggest, “digging their own graves” by initiating another salary and bonus war that might ultimately drive up billing rates.
Some corporate counsel and industry analysts suggest that clients, already wearied by increases in billing rates, may opt to retain more work in-house, distribute work more widely across firms, or simply brace themselves for additional costs. The overall sentiment towards Milbank’s announcement this week is marked by these concerns. However, the chair of Milbank has maintained that the salary raises are not likely to materially impact the firm’s future billing rate decisions.
For a detailed look at the full conversation and deeper insight into this issue, the original reporting can be found on The American Lawyer.