Will other firms match Milibank special bonus? Dive into BigLaw compensation trends, 2024 salary updates, and bonus insights to stay ahead!
If you’ve been watching the legal industry lately, you’ve probably heard the buzz: Milbank has once again made waves with its special bonus announcement. Whether you’re a law student dreaming of BigLaw glory, an associate trying to keep up with industry trends, or an employee at a rival firm, the question on everyone’s mind is simple: Will other firms match Milibank special bonus?
Having spent years navigating the high-stakes world of BigLaw, I know quite well that bonuses can make or break morale. The annual bonus season is like a legal industry version of the Oscars: dramatic, speculative, and with a healthy dose of competition. This year, the move by Milbank to offer a special milbank summer bonus just added an extra layer to the intrigue.
So let’s dive into what is going on, why Milbank’s bonus is such a huge deal, and whether other firms will likely follow suit. Along the way, I’ll share some personal insights from my time as a BigLaw associate and break this down in an easy-to-follow manner if you’re just starting to learn about Big Law compensation.
Table of Contents
What is the Special Milbank Bonus?
Right, setting the scene: Milbank is one of those premiere global law firms, never really afraid to rock the boat. In 2021, they were one of the first firms to bump associate salaries, which paved the way for what became known as the Big Law salary wars.
Fast forward to 2024 and Milbank has done it again: earlier this year, the firm announced a special summer bonus ranging from $15,000 to $50,000 depending on seniority. This is on top of their already industry-leading year-end bonuses.
To give you a better understanding, this is how the Millibank bonus stacks up:
| Class Year | Special Summer Bonus |
|---|---|
| 2023 | $15,000 |
| 2022 | $20,000 |
| 2021 | $30,000 |
| 2020 | $40,000 |
| 2019+ | $50,000 |
Pretty sweet deal, right? But why did Milbank decide to offer this bonus in the first place?
The Context Behind Milbank’s Move
The legal world is always competitive, but the last couple of years have seen it turn the screws. Firms like Milbank reported record profits in both 2021 and 2022, and with that always comes associated pressure for them to share the wealth.
But here’s the kicker: BigLaw hasn’t been having that great of a year in 2024. Transactional work has slowed down, layoffs have loomed over some firms, and there’s a growing sense that this golden era of BigLaw salary 2024 might be losing its shine.
So, why the special bonus now?
Will Other Firms Match Milibank Special Bonus?
Ah, the million-dollar question-or rather, the $50,000 question.
If history is any guide, there’s a decent chance that several firms will match Milbank’s special bonus. Lest one forgets, however, not all firms are created equal, and their responses will depend upon a few key factors:
1. Peer Pressure
Peer pressure gets things done in BigLaw. When one firm makes a bold move, others feel compelled to follow suit. Such was the case back in 2021 when Milbank announced salary raises; soon after, announcements came pouring in from other firms.
Bonuses are trickier. Some firms will most definitely match Milbank’s bonus in order to stay competitive, while others may be more wait-and-see, especially if their financial performance has been rocky this year.
2. Firm Finances
Not every firm has the financial buffer to offer a special summer bonus. Firms like Milbank can afford to be so generous because these firms have been on a hot streak of late. For mid-tier or regional firms, matching may be out of the question.
3. Trends in the Market
If more firms announce special bonuses, it can snowball. Associates talk to each other, and no firm wants to be behind the eight ball in terms of compensation.
My Personal Experience with BigLaw Bonuses
Let me take a second to tell a quick story that’s pertinent, from my BigLaw journey.
Bonus season, when I was an associate, was like Christmas morning except way more stressful. I only remember one year my firm had this special bonus announcement. I was so hyped for, like, a second until the chatter started that another firm was giving a bonus of an even more giant size. And at that point, my excitement turned into full-on FOMO.
That’s what’s so great about BigLaw bonuses: It isn’t just about the cash. It’s about being desired and knowing your firm can hold its own. When a firm like Milbank ups the ante, what it’s saying to associates up and down the line is this: You’re worth it.
How does the Millibank bonus stack up against regular BigLaw compensation?
To put things into perspective, we’ll take a closer look at Big Law compensation in 2024.
This is what the standard associate salary scale-the so-called “Cravath scale”-commonly looks like:
| Class Year | Base Salary | Regular Bonus |
|---|---|---|
| 2023 | $215,000 | $15,000 |
| 2022 | $225,000 | $20,000 |
| 2021 | $250,000 | $30,000 |
| 2020 | $295,000 | $40,000 |
| 2019+ | $345,000+ | $50,000+ |
In other words, with this Milbank summer bonus, associates get an increase in their all-in compensations. For example, if an associate perhaps falls into the middle level of an associate class earning an annual compensation of $250,000, that additional $30,000 bumps them up 12%.
What Should Associates Do Now?
If you are an associate trying to figure out what Milbank’s announcement might mean for you, here are a few helpful hints:
FAQs
1. Why did Milbank declare a special bonus in 2024?
Milbank doled out the special summer bonus in 2024 as part of its continuous efforts to retain talent, boost morale, and keep it competitive in the legal industry. Although transactional work has slowed and economic conditions have been erratic, strong financial performances by Milbank over the last few years have allowed the company to make sure associates are taken care of, with bonuses ranging from $15,000 to $50,000. In addition, this move reinforces Milbank’s reputation as a market leader in Big Law compensation.
2. Will other firms match Milibank special bonus in 2024?
So far, several peer firms have started their reaction to the special bonus announcement by Milbank. Reactions have been varied, though, and are likely limited to elite firms that can afford such bonuses, like Davis Polk, Kirkland & Ellis, or Simpson Thacher. Mid-tier or regional firms may easily pass on matching, citing financial constraints or lack of necessity to be competitive at Milbank’s level. That said, it’s best to keep an eye on Above the Law for a real-time listing of which firms are matching.
3. How does Milbank’s special bonus compare to typical BigLaw bonuses?
The Milbank special summer bonus is in addition to regular year-end bonuses doled out by most BigLaw firms.
Bonuses, for example, on the Cravath scale, range from $15,000 to $50,000, based on associate seniority. Milbank’s summer bonus roughly doubles those figures in 2024-a significant boost to total compensation. Consider a mid-level associate already receiving a base salary of $250,000 plus another $30,000 as a year-end bonus. He would add another $30,000 as a summer bonus to yield a total compensation well above the stated $280,000 figure.
4. What should associates do if your firm doesn’t match Milbank bonus?
If your firm doesn’t match Milbank’s special bonus, there are steps you can take.
First, be consistent with current market trends; keep tabs through jurisdictions or other news platforms like Above the Law, or forums like r/LawFirm on Reddit.
If you feel undervalued, consider having a conversation with your firm’s leadership or seek out opportunities at firms that better align more strongly with your compensation expectations. At the end of the day, bonuses account for only part of job satisfaction, so it is important to weigh compensation against firm culture, workload, and long-term career goals.
Final Thoughts: After the Millibank Bonus Ripple
So, will other firms match Milibank special bonus? The answer is as always: It depends.
Some firms will vie for competitiveness and jump on the bandwagon. Others might hang back, pointing to financial constraints or strategic priorities. But one thing’s for sure: Milbank has once again set the tone for BigLaw compensation in 2024.
And let me tell you this from a foot soldier: bonuses are not about the money; they are about recognition, appreciation, and a sense of belonging. May this bonus season bring your rewards, whether you are with Milbank or with some other firm. And if your firm doesn’t match? Not to worry. The world of law is ever-evolving, and you never know what the next big announcement may be.
Bonus Tip:
Okay, I get it: If you’re frustrated with your firm’s response to bonuses, I always found a little self-care-a weekend getaway, a fancy dinner, or even a Netflix binge-can go a long way. Remember, you are more than your paycheck.
Additional Resources
Explore more about Big Law compensation and bonuses with these resources:
Disclaimer
This article offers information, not legal or financial advice. Bonuses and compensation depend on circumstances and firm policies. Research or consult a professional before making decisions. The authors and publishers are not responsible for errors or changes after publication.
