Milbank LLP has announced special associate bonuses to differentiate its compensation packages from other major U.S. law firms [1].
This move disrupts the traditional hierarchy of legal pay, where firms typically wait for a market leader to set the baseline before adjusting their own scales. By acting first, Milbank is attempting to shift the competitive landscape for top legal talent [2].
For years, the Biglaw market has looked to Cravath, Swaine & Moore to signal the standard for associate pay. However, Cravath has not yet announced comparable increases for this period [1]. This delay has left other firms in a holding pattern, as they generally avoid overpaying relative to the eventual Cravath benchmark [2].
Milbank's strategy is a calculated effort to attract and retain the highest quality associates. The firm previously matched year-end bonus scales in November 2026 to maintain its standing [3]. This current push for special bonuses continues that trajectory of aggressive compensation.
"Milbank has become a leader in associate compensation, allowing it to compete for the best talent," Scott Edelman said in a July 29 report [2].
Edelman said that such compensation reflects the efforts of associates in supporting clients on a wide array of cutting-edge transactions, restructurings, and litigation [3].
The tension between Milbank's proactive approach and the broader market's reliance on Cravath creates a period of uncertainty for associates at other firms. While Milbank is currently ahead, the ultimate impact on the 2026 salary cycle depends on whether Cravath responds with a market-shifting increase or maintains its current pace [1, 2].
“Milbank has become a leader in associate compensation, allowing it to compete for the best talent.”
The shift in compensation leadership suggests a potential break in the 'Cravath Scale' dominance. If Milbank successfully attracts top talent without a corresponding move from Cravath, other firms may stop waiting for a single market leader and instead adopt more individualized, aggressive bidding wars for associates to remain competitive.
