Milbank’s ‘Bold’ Salary Increases Set Stage for Tough Decisions

Milbank LLP’s surprise decision to give its associates $10,000 raises is likely to put some major law firms in a difficult position as they consider whether to match.

The move, announced Tuesday, comes in a down year for the industry that saw record rate increases for clients, associate layoffs, lateral hiring declines, and a law firm collapse. At least a handful of firms have pushed back start dates for new associates, with one—Cooley LLP—offering $100,000 to those who agree to begin their careers a full year late.

“The fundamentals don’t support salary increases across a broad group of firms,” ...