Milbank has once again moved first on associate compensation, raising salaries by $10,000–$20,000 across the scale and setting the stage for another wave of increases across the US legal market.
The new associate salary scale now ranges from $235,000 to $455,000, with McDermott quickly becoming the first major firm to match the revised rates. Several other leading US law firms are expected to follow in the coming days and weeks, continuing a trend that has shaped the top end of the legal market for nearly a decade.
Milbank Leads Another US Law Firm Salary Increase Cycle
Milbank has consistently acted as the market setter on associate salaries since helping ignite the modern salary wars in 2016. Each increase has historically placed pressure on competing firms to respond quickly in order to remain competitive in the fight for elite legal talent.
The latest round of increases also follows recent announcements of mid-year associate bonuses from two elite litigation boutiques, adding further momentum to compensation discussions across the market.
The Wider Recruitment Picture Behind Rising Associate Salaries
While salary increases always attract attention, they also reflect something broader happening across the legal recruitment market.
Despite a more selective hiring environment compared to the post-pandemic hiring boom, competition for genuinely standout associates remains extremely high. Leading US firms continue to invest aggressively in top-performing lawyers, particularly across private equity, leveraged finance, funds and other complex transactional practices tied to private capital.
The battle for elite talent has intensified alongside a busier M&A market and a record-breaking quarter for mega-deals. At the same time, continued growth across AI, technology and energy-related sectors is driving significant volumes of sophisticated legal work.
While firms remain measured against wider economic uncertainty, many partners are becoming increasingly optimistic about deal flow and hiring activity heading into the second half of the year.
Compensation remains one of the clearest indicators of that ongoing competition for talent.
US Law Firms Continue Investing in Top Talent
Across New York, London and other major financial centres, firms are continuing to prioritise strategic growth in high-revenue practice areas. Lawyers with strong technical ability, elite training backgrounds and experience advising on sophisticated transactions remain in particularly high demand.
Current hiring activity remains especially strong across private equity, fund formation, leveraged finance, structured finance, corporate M&A, project finance, capital markets and regulatory investigations, with additional momentum building in areas such as data protection, cybersecurity, intellectual property and energy.
For associates considering their next move, the latest salary increases are another reminder of how competitive the upper end of the legal market remains. While compensation is rarely the sole driver behind a lateral move, it continues to play a significant role in both recruitment and retention strategies among leading US law firms.
For more insight into current compensation trends, hiring activity and opportunities across leading firms globally, please get in touch with the Sonder Consultants team for a confidential discussion.
