Thanks to Milbank and Davis Polk, compensation increases at large law firms have started to pick up speed in the race to match the next normal in this white-hot lateral market. We knew it was only a matter of time before one of the biggest names in Biglaw would take the plunge, and the time has now come.
Skadden, the No. 5 firm in the country, announced last night that it would be raising associate salaries to match the Davis Polk scale. After taking in $2,662,890,000 gross revenue in 2020, it would’ve been pure Skaddenfreude for the firm NOT to have increased salaries. This is what the new salary scale looks like:
- 2020: $205,000
- 2019: $215,000
- 2018: $240,000
- 2017: $275,000
- 2016: $305,000
- 2015: $330,000
- 2014: $350,000
- 2013+: $365,000
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After noting the salary bumps, the firm also reminded associates about their incoming special bonus payments, the first of which will hit bank accounts at the end of the month. Associates at the firm will be rolling in cash in just a few weeks.
The firm isn’t just bringing good news to associates in the form of higher pay checks. Skadden is also reducing the length of time it takes to be promoted to counsel, from 7.5 years out of law school to 6.5 years. “We are implementing these changes to underscore our appreciation for your tremendous efforts and as part of our ongoing commitment to your career development and advancement,” the memo states. That’s one way to convince associates to stick around.
Will promotion acceleration moves like this start trending among other Biglaw firms as a way to retain associate talent? Recall that Cahill recently announced a surprise second round of partnership elevations just last week.
Congratulations to everyone at Skadden!
(Flip to the next page to see the full memo from Skadden Arps.)
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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.