As the legal industry braces for another year, Biglaw associates might find themselves adjusting expectations regarding salary increases. Despite a previous upward trend, the current Cravath scale, which ranges from $225,000 to $435,000, might not see a significant shift upwards in 2025. Experts point to reduced competitive pressure among firms and a struggling M&A market as key reasons for this anticipated stagnation.

According to Bloomberg Law, the M&A sector, often seen as the backbone of Biglaw revenue, has not rebounded as expected under the Trump administration's business-friendly policies. Despite an initial 19% increase in deals early in the year, the overall activity has not met the optimistic forecasts set after the 2024 election. Michelle Fivel, a partner at Hatch Henderson Fivel, highlighted the subdued deal flow as a “disappointment” and a surprising turn of events given the political climate.

This lackluster performance in M&A is influencing hiring and salary decisions across practices, even extending to areas like litigation which are typically insulated from such fluctuations. As Ru Bhatt from Major Lindsey & Africa pointed out, this is likely not the year for salary raises. Even if one firm breaks from the pack to increase pay, not all firms are positioned to follow suit without risking their financial stability, as noted by Summer Eberhard of Lateral Link.

While the news on salary fronts seems grim, there is a silver lining potentially in the form of bonuses. Firms might not hike base pay, but they could opt to distribute higher bonuses as a gesture of goodwill and a means to maintain competitiveness in attracting top talent. However, the overall sentiment remains cautious due to the unpredictable market conditions.

As the year progresses, all eyes will be on Biglaw firms to see how they navigate these challenges. Associates are encouraged to stay tuned for any updates and share information about compensation changes within their firms. As always, Above the Law remains a critical resource for such insights, relying heavily on tips from within the legal community.

In conclusion, while base salaries for associates in Biglaw may not see the increases hoped for in 2025, the possibility of larger bonuses could still present a favorable outcome. However, with the current economic uncertainties, nothing is guaranteed, and associates may need to temper their expectations as the year unfolds.