Cravath’s Surpass Milbank Salary Increases

Cravath, Swaine & Moore trump Milbank's recent salary increases, raising associate pay to the $225,000 to $420,000 bracket, according to a report in AbovetheLaw. The salary hikes at Cravath surpass those made by rival firm Milbank three weeks earlier, which took the first year associate pay to $225,000. In addition to the raises, Cravath also disclosed year-end bonuses ranging from $15,000 to $105,000, dependent on the associate's class year, aligning with the bonuses Milbank had offered and which we reported on earlier this month. Following Cravath's announcement, Paul Hastings, confirmed that it would match Cravath's updated salary and year-end bonus structure. This pattern of salary adjustments and bonus allocations is common among leading U.S. law firms, lead often by Cravath, whose 'big law pay scale' has been the de facto guide for big law pay rates. Firms will often modify their compensation packages shortly after one another to maintain competitive positioning in the market, although to a large extent, the pay increases also reflect a degree of catch-up in the market to maintain pay levels in the face of inflationary and other costs. This trend has continued especially after significant holidays like Thanksgiving, with firms waiting to see if others would follow Milbank's lead in pay increases. According to Owen Burman, a senior consultant at Wells Fargo’s Legal Specialty Group, the recent salary hikes represent an unplanned expense for many firms. While highly profitable law firms may easily adapt to these changes, others might find it challenging. This year, large U.S. law firms have reported average mid-single-digit revenue growth, partly due to increased billing rates. Milbank had previously initiated a wave of pay increases for associates last year, which was then followed by a similar response from Cravath. >> Big Law Pay - Read More

Cravath’s Surpass Milbank Salary Increases

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