The ‘M-For-Money’ Milbank Bonus Payout

Milbank is awarding seniority-based associate bonus payouts of up to $25,000 to its associates and counsel worldwide, which could lead to another ‘bonus bump’ for associates among big law firms.

According to an internal memo, bonuses for first-year associates will begin at $6,000 and increase with seniority, with payments scheduled by September 30.

Milbank kicked off the biglaw salary increases in November 2023, as we reported, and the example was followed by Cravath a short time later, including law firm salary increases for midlevel and senior associates.

Kirkland & Ellis have also kicked in with some major pay rate and bonus payouts, further lifting the financial position for associates.

The ongoing pay rate payouts continue to provide increased pay rates to retain and attract associates.

The pay rates for associates continues to improve with almost every month it seems.

Milbank Chairman Scott Edelman noted in the memo that the firm has experienced a very busy first seven months of the year, and the workload is expected to remain high throughout the summer and beyond.

In 2021, many U.S. law firms issued mid-year or discretionary bonuses amid a surge in mergers and acquisitions and fierce competition for associate talent.

Traditionally, law firms have only provided year-end bonuses, but initiatives by major firms often lead others to match them. Although the M&A market has cooled in recent years, demand for legal services in corporate transactions is rising, according to a Thomson Reuters Institute report on law firm performance in the second quarter of 2024.

While transactional practices have seen a resurgence, the main drivers of increased law firm demand have been counter-cyclical practices like litigation and bankruptcy.

Although it has yet to enter the LawFuel ‘Prestige Law Firm List, Milbank have been working aggressively with both transactional and recruitment moves. Last year, Milbank raised associate salaries to $225,000, prompting similar increases across the industry. It is the first major New York-founded corporate firm to announce bonuses this summer.

In June, the Dallas-based litigation boutique McKool Smith entered the big law salary scale (despite being a boutique) and also distributed bonuses ranging from $2,500 to $30,000, based on billing pace.

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