Everyone assumed Biglaw was waiting for Labor Day to match Milbank’s raises. But what if we’re all watching the wrong deadline?
It has now been just over 12 weeks — 85 days — since Milbank announced that it would raise associate salaries by $10,000 to $20,000, depending on class year. The new scale, which took effect on July 1, ranges from $235,000 for first-year associates to $455,000 for the most senior associates.
Twelve weeks. An entire summer. And despite a handful of matches, most of Biglaw remains frozen in place, seemingly unwilling to act until Cravath gives everyone permission.
When we first started asking what Cravath was waiting for, the delay was unusual. Then it became ridiculous. Now, it may be time to consider whether the silence is actually part of the plan.
After all, Milbank didn’t stop with raises. On July 27, the firm announced special bonuses ranging from $6,000 to $25,000 for associates and special counsel. Those bonuses are supposed to be paid by August 31, meaning Milbank associates will soon have both their higher salaries and their extra cash in hand while many of their Biglaw peers are still waiting to hear whether their firms intend to do anything at all.
For weeks, the prevailing theory has been that Biglaw is simply waiting out the summer. Partners are on vacation. Management committees aren’t meeting. Everyone will return after Labor Day, refreshed and ready to approve raises that they have now spent three months thinking about.
Maybe. But does it really take an elite law firm 12 weeks to determine whether it can afford to pay the market rate?
The spreadsheets have been spreadsheeted. Associates know what Milbank is paying. Recruiters know what Milbank is paying. Partners certainly know what Milbank is paying. At this point, the silence feels less like administrative delay and more like a deliberate strategy.
So, what if Cravath is waiting until year-end bonus season to address everything at once?
There is precedent for that approach. Last summer, Milbank announced special bonuses in August, and Cravath waited until November to match them as part of its year-end bonus announcement. In fact, this has happened more than once: Milbank’s summer bonuses have gone unmatched by much of the market until Cravath rolled them into its year-end compensation package and, almost instantly, gave the rest of Biglaw the confidence to follow.
If Cravath could wait until bonus season to match Milbank’s summer bonuses, why couldn’t it wait until bonus season to match Milbank’s salary raises, too?
Under that theory, Cravath could announce its year-end bonuses, match Milbank’s special bonuses, and unveil the new salary scale all at once. The firm could even make the raises effective January 1, 2027, allowing it — and every firm waiting to follow its lead — to avoid months of increased salary expenses and retroactive pay. (In fact, two firms have already done this.)
Associates would lose out on six months of higher salaries, but firms would get to declare themselves full market matches once the calendar turned over. How convenient.
There’s also the possibility that Cravath wants to do more than match. By waiting until year-end, the firm could pair Milbank’s salary scale with generous bonuses or another compensation sweetener, reclaiming its traditional role as the market’s standard-setter after spending the entire summer on the sidelines. Milbank may have moved first, but Cravath could still try to get the last word.
Of course, this theory raises another question: If other firms begin to suspect that Cravath’s end game is to wait until bonus season, will anyone step forward and ruin the plan?
A sufficiently profitable firm could match Milbank now, win some goodwill from associates, and position itself as a compensation leader rather than one more member of the waiting crowd. There are plenty of firms with the money to do it. What remains unclear is whether any of them have the nerve.
That may be the most revealing part of this entire compensation cycle. Biglaw firms advise clients on billion-dollar transactions, bet-the-company litigation, and enormously consequential business decisions every day. Yet when it comes to paying their own associates, most apparently cannot make a move without Cravath’s blessing.
Perhaps the wait ends after Labor Day. But if September comes and goes without a meaningful response, associates may need to settle in for an even longer delay.
Milbank made its move in June. It doubled down with bonuses in July. Its associates will receive those bonuses before August ends. Unfortunately, the rest of Biglaw may still be waiting on Cravath until bonus season begins.
Staci Zaretsky is the managing editor of 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 Bluesky, X/Twitter, and Threads, or connect with her on LinkedIn.