Thomas Hanlon, executive director of recruiting firm Buchanan Law, told The American Lawyer that he would not be surprised to see another firm exceed Milbank’s latest associate salary increases in the coming weeks. He said that attracting top talent is critical for leading firms and that being perceived as the firm driving compensation increases can be a significant advantage in the competition for associates.
“I wouldn’t be surprised if someone goes over the top [of Milbank’s increase] in the next few weeks. Attracting talent at the top end is so vital, and being seen as the firm who’s capable of boosting associate compensation across the board—the firm that’s moving the market—is just such a big notch on the belt when it comes to the talent fight.”
Hanlon framed the salary increases as a recruiting advantage and suggested that strong demand for associates in corporate and transactional practices across the Am Law 100 will likely prompt other firms to raise salaries as well.
He also addressed the possibility of summer bonuses, characterizing them as retention bonuses rather than simply additional compensation. Hanlon noted that intense competition for associates in the lateral market has helped drive up individual retention bonuses and led firms to make more aggressive counteroffers to associates considering lateral moves.