Biglaw Firms Better Match The New Salary Scale ASAP If They Want To Retain Their Talent

The lateral hiring market is white-hot right now, so firms better give associates 200K+ reasons to stay.

onJune 10, 2021 at 3:17 PMJune 10, 2021 at 3:12 PM

Firms have been busier than ever and this is one way to demonstrate an appreciation for their associates, but also to show more broadly the long-term financial strength of the firm. Compensation increases are a permanent change and I expect that the firms that see long-term financial growth will increase their salaries as well.

On the other side of the coin, the competition for talent is fierce. The firms that are aggressively hiring will likely match so that they will be able to retain and attract talent. Associates take into consideration whether a firm matches salaries and/or bonuses when they are deciding to stay or leave their firm, as it speaks volumes of their long-term financial outlook and how these firms value their associates given the number of hours they have been putting in.

— Summer Eberhard, West Coast-based managing director in the associate practice group at legal recruiter Major Lindsey & Africa, commenting on Milbank’s move on associate compensation that will bring first-year salaries to $200,000 and eighth-year salaries to $355,000. Two firms have already matched the new scale, but they’re not usually so quick so do so. What are peer firms waiting for? “Based on past precedent, I think that firms will wait for a response from some of the usual suspects that have been known to lead the charge,” Eberhard said. “They may come over the top or match. Once these firms respond, other firms will follow.”

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From Pilot and Above The Law

Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.