New York, June 2, 2026 – Milbank LLP has raised the ceiling on associate compensation, setting a new base salary range of $235,000 to $455,000, effective immediately. The move, reported on Tuesday, quickly drew a matching response from McDermott Will & Schulte, signaling another wave of pay hikes across the upper echelons of the U.S. legal industry.
In the world of Big Law, salary adjustments typically occur in clusters. When a leading firm revises its pay scale, competitors often feel compelled to follow suit to remain competitive in attracting and retaining junior talent and lateral hires. This latest increase breaks a period of relative stagnation, where base salaries had been locked in a $225,000 to $435,000 band by class year, while bonus structures varied widely last year.
Associates, who are non-partner lawyers at top firms, are generally compensated under a lockstep system where pay rises automatically with each year of experience. This means that any upward adjustment to the salary scale triggers cost increases across the entire associate class, not just for individual hires. Milbank’s new scale, which includes raises of $10,000 to $20,000 depending on seniority, was first reported by Bloomberg Law and confirmed by Above the Law.
Milbank has a history of initiating salary cycles; it was the first to move in 2018 and again in 2021, according to Reuters. The firm also sparked the modern era of associate salary jumps in 2016. This time, the response from McDermott Will & Schulte carries particular weight, as the firm is now a different entity following its merger with Schulte Roth & Zabel in August 2025. The combined firm, with approximately 1,750 lawyers across more than 20 offices and $2.8 billion in 2024 revenue, is now a more formidable player in the New York market, where pay levels are a key signal of status.
Harvard Law School professor David Wilkins noted that New York remains the prize for law firms, and the merger has elevated McDermott’s standing. However, the spread of higher salaries may be uneven. The National Association for Law Placement (NALP) reported that as of January 1, 2025, the median first-year associate salary stood at $200,000, with only 32% of law firm offices offering $225,000. NALP Executive Director Nikia Gray observed that the talent wars have cooled, and the market is not moving as quickly as before. Firms outside the top profitability tier may opt for adjustable bonuses rather than locking in higher base salaries.
Rising operational costs are also weighing on law firms. While demand increased and billing rates rose in the first quarter of 2026, expenses and weaker productivity have dampened profit growth. Bryce Engelland of the Thomson Reuters Institute described the outlook as “still looking good” but advised firms to keep an umbrella handy, suggesting caution amid headwinds.
For associates, the message is clear: the top salary benchmark has moved upward again. But for law firms, the decision to match Milbank’s increase involves a strategic calculus—whether it is necessary for hiring, a signal to the market, or both. The coming weeks will likely see other top-paying firms, including Cravath, Swaine & Moore and Paul Hastings, respond as the industry adjusts to this new pay reality.
