Milbank was the first law firm to reveal its year-end associate bonuses
US firms have unveiled their associate and special bonuses for 2024, reported Reuters.
Milbank was the first to reveal its year-end associate bonuses, maintaining a US$15,000-US$115,000 scale that has been applied in recent years. This is in addition to special bonuses the firm paid out in August that ranged from US$6,000 to US$25,000.
According to Above the Law, Cravath, Swaine & Moore followed Milbank’s lead on its year-end and special bonus amounts last week. Meanwhile, Reuters saw a memo indicating that Paul Hastings had done the same.
A spokesperson for McDermott Will & Emery confirmed that the firm matched the bonus amounts for US-based associates. Fried Frank also revealed the same base amounts for its year-end and special bonuses.
Reuters was made privy to a memo indicating that the special bonus was available to associates and special counsel who were able to meet a certain threshold on number of hours worked. They also qualified for what was described by Fried Frank as a “premium” bonus in the range of US$3,000-US$34,500, exceeding the year-end bonus amount.
This bonus structure reflects a strong year for large law firms in the US. As per data from Wells Fargo's Legal Specialty Group, Q1-Q3 2024 saw an average increase of 12.8% in firm revenue. Moreover, the top 50 highest-grossing law firms saw revenue increase by an average of 14.6% compared to 2023.
In addition, average client demand ticked up by 3.7%, while billing rates rose by 9%. The Wells Fargo Legal Specialty Group’s information was based on a survey conducted with over 130 law firms.
To stay competitive, leading US firms generally tweak salaries and annual bonuses within a short timeframe, according to Reuters. At present, the base salary for associates at major US firms ranges from US$225,000 to US$435,000 before bonuses, in accordance with class year.
