As summer bonus season unfolds in Big Law, Milbank LLP has once again taken the lead—prompting a ripple effect across the industry. Here’s how this year’s move is shaping up, and why competing firms feel compelled to keep pace.
Milbank Sets the Pace with Mid-Year Bonuses
On August 7, 2025, Milbank issued a memo announcing special summer bonuses for associates and special counsel, ranging from $6,000 to $25,000 depending on class year, to be paid by September 30
Milbank has been a consistent first mover in associate compensation trends—last year, they similarly surprised the market with mid-year bonus payouts Reuters+2sonderconsultants.com+2. The firm’s chair, Scott Edelman, emphasized that robust deal flow and sustained activity levels justify the early bonuses Financial Times+15Reuters+15Financial Times+15.
Competitors: Delay or Double-Down?
Historically, when Milbank announces bonuses, other firms often wait before responding. Many choose to match the bonus scale later in the year, typically adding these payouts to their year-end bonus structure Financial Times+15Reuters+15sonderconsultants.com+15.
This summer appears similar: as of now, most BigLaw firms have not matched Milbank’s mid-year payouts yet. Still, outlets like Above the Law relay that for some firms, not matching would be a PR risk—they “can’t afford” to appear behind the curve Reuters+15Above the Law+15Above the Law+15.
Why Matching Matters
- Talent retention: BigLaw firms don’t want their associates to feel undervalued or tempted by rivals.
- Market perception: In a field where signaling matters, failing to match Milbank can undermine prestige and recruitment.
- Competitive dynamics: Once a trailblazer like Milbank raises the bar, others follow—often using bonus season as a strategic tool Reuters+2Reuters+2The Times.
Broader Context: Sky-High Compensation Continues
Beyond mid-year bonuses, the broader landscape remains one of escalating compensation:
- Year-end bonuses in the range of $15,000 to $115,000 were standard among top New York firms like Milbank and Cravath in 2024. In some cases, special bonuses up to $25,000 supplemented them sonderconsultants.com+1Reuters+4Financial Times+4The Times+4.
- Boutique firms are also pushing limits: Elsberg Baker & Maruri reportedly handed out bonuses up to $226,250
What This Means for Associates and Law Firms
- Associates benefit by seeing potentially two bonus rounds in one year—summer and year-end.
- Firms feel pressure: both to stay competitive for top law school recruits and to manage perceptions in the hiring pipeline.
- Clients and profitability: All of this comes amid rising billing rates and strong deal activity, positioning firms to afford these bonuses despite hefty payouts
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