In the competitive world of Biglaw, Milbank’s recent decision to issue generous summer bonuses to its associates and counsel has sparked a buzz across the industry. Ranging from $6,000 to $25,000 based on class year, these bonuses have set a new benchmark, yet other top firms remain cautious about following suit without a stronger market push.

According to Matt Schwartz, a recruiter with Garrison, the current corporate legal market is lukewarm, particularly outside of finance-related specialties. "Corporate, from a lateral associate standpoint, is so-so, unless you’re talking about anything related to finance," Schwartz explained. He noted that for other firms to commence similar bonus initiatives, a leading New York firm like Cravath or Sullivan & Cromwell would likely need to make the first move, suggesting that the industry is waiting for "a second shoe to drop."

While Milbank leads with its substantial bonus program, three other firms have ventured into the summer bonus territory, albeit with different scales. Vartabedian Hester & Haynes announced a $5,000 bonus, Otterbourg offered $15,000, and Hueston Hennigan went as far as to present $10,000 to $30,000, depending on the seniority of the associates. These numbers indicate a tentative testing of waters, yet none have fully matched Milbank’s scale, underscoring the industry’s cautious stance amid economic uncertainties.

This strategic hesitance highlights a broader trend in Biglaw where firms are meticulously evaluating market conditions and peer actions before implementing significant financial changes. The decision to issue hefty bonuses is often multifaceted, influenced by financial health, competitive positioning, and the desire to retain top talent.

As the legal community watches closely, the actions of industry giants like Cravath or Sullivan & Cromwell could potentially set off a chain reaction, prompting more firms to enhance their compensation packages to remain competitive. For now, the market watches and waits, anticipating the potential ripple effects of Milbank’s bold move on the Biglaw compensation landscape.