Fried Frank and McDermott Join Cravath in Matching Milbank’s $140K Scale
By Jordan Hale, Legal Beat Reporter
November 20, 2025
The annual Big Law compensation ritual is in full swing, with Fried Frank and McDermott Will & Emery becoming the latest elite firms to align their associate bonuses with the benchmark set by Milbank and Cravath. Announced in rapid succession this week, the payouts—combining year-end and special bonuses up to $140,000—signal robust financial health across the sector despite economic headwinds. As associates eye December windfalls, the moves underscore a competitive talent war where matching scales is table stakes, though no base salary hikes for 2025 were flagged.
Milbank Sets the Stage with Unmatched Summer Specials
Milbank LLP ignited the 2025 bonus cycle back in August, becoming the lone firm to distribute mid-year “special” incentives without immediate peer copycats—a departure from the usual lockstep announcements. These ranged from $6,000 for first-years to $25,000 for eighth-years and beyond, tied to billable-hour thresholds but lauded for rewarding performance amid a banner year for transactional work.
The New York-based firm followed up on November 11 with year-end bonuses mirroring the 2024 scale: $15,000 prorated for 2025 class associates, scaling to $115,000 for seniors. Milbank’s memo emphasized eligibility for “virtually all” in good standing, no billables required, positioning it as the pacesetter in a market where profits per partner hit record highs—averaging $2.5 million across Am Law 100 firms, per Citi’s 2025 Private Practice report.
This one-two punch pressured rivals, as recruiters like Kate Reder Sheikh of Major Lindsey & Africa noted the “resounding silence” post-summer bonuses hinted at restraint. But with U.S. law firms projecting a profitable 2025 driven by M&A rebound and AI advisory deals, the dam broke swiftly.
Cravath Plays Kingmaker, Launching the Cascade
Enter Cravath, Swaine & Moore—the Wall Street stalwart long revered as Big Law’s compensation bellwether. On November 18, the firm confirmed it would match Milbank’s dual structure: year-end bonuses from $20,000 (first-years) to $115,000 (eighth-years+), plus identical special bonuses of $6,000-$25,000.
Cravath’s internal memo, first reported by Above the Law, stressed broad eligibility—”virtually all” associates qualify without billable mandates—and confirmed no 2025 base salary adjustments, holding first-year pay at $225,000 and scaling to $420,000 for eighth-years. Payouts hit U.S. accounts December 13, London on the 16th.
The announcement, as Reuters put it, “poised firms for a profitable 2025,” triggering the expected domino effect. Cravath’s move isn’t just symbolic; it’s a market signal, with its 2024 profits per partner topping $5 million, per American Lawyer data.
Fried Frank and McDermott Pile On, with Premium Twists
Hot on Cravath’s heels, Fried Frank Harris Shriver & Jacobson and McDermott Will & Emery unveiled matching scales on November 19, ensuring associates at these powerhouses pocket the full $140,000 max for seniors.
Fried Frank’s memo, viewed by Bloomberg Law, mirrors the structure but adds flair: Special bonuses require 1,850 billable hours, and high performers snag “premiums” above year-end amounts—$3,000 for juniors to $34,500 for seniors. Payouts land December 31 for eligible New York, D.C., and London staff. The firm, fresh off a banner private equity year, emphasized these extras reward “outstanding contributions,” per a spokesperson.
McDermott, the Chicago-rooted global player (recently merged with Schulte Roth & Zabel in August 2025), adopted the Cravath/Milbank template outright: Year-end from $20,000-$115,000 (merit-based) and specials up to $25,000 (class-year fixed). Legacy McDermott associates cash in December 27, Schulte alums January 16, 2026. Chairman Ira Coleman highlighted that “two-thirds of legacy MWE associates” will exceed the scale via merit bumps, underscoring the firm’s post-merger integration and tax-heavy revenue surge.
Both firms’ announcements, covered by Law.com and the ABA Journal, come amid Am Law 100 profitability climbs—McDermott’s PPP rose 12% to $2.1 million in 2024—affirming bonuses as retention tools in a lateral-heavy market.
- 2025 Big Law Bonus Scale (Year-End + Special):
- 1st Year: $20,000 + $6,000 = $26,000
- 2nd Year: $27,500 + $7,500 = $35,000
- 3rd Year: $37,500 + $9,000 = $46,500
- 4th Year: $52,500 + $11,000 = $63,500
- 5th Year: $65,000 + $13,500 = $78,500
- 6th Year: $76,500 + $16,000 = $92,500
- 7th Year: $90,000 + $19,000 = $109,000
- 8th Year+: $115,000 + $25,000 = $140,000
Prorated for partial years; eligibility varies by firm (e.g., hours thresholds at Fried Frank).
Paul Hastings and Others Join the Chorus, No Salary Surprises
Paul Hastings LLP rounded out the initial wave on November 19, matching the full scale with U.S. payouts February 14, 2025—delayed to align with fiscal calendars. The firm’s memo, per Reuters, omits billable requirements, focusing on “good standing.”
Ropes & Gray and Cleary Gottlieb Steen & Hamilton quickly followed, per Glassdoor forums and Law360 trackers, while Cadwalader Wickersham & Taft chimed in post-Cravat. No firms announced base hikes, with Cravath explicitly holding the line at 2024 levels—a pattern echoed industry-wide amid 3-5% inflation but tempered by hybrid work efficiencies.
Recruiters anticipate 80% of Am Law 100 will match by December, per Sheikh, though outliers like Skadden may layer “extra” seniors-only bonuses.
Implications: Retention Boost in a Booming Market
These announcements arrive as Big Law hums: Deal volume up 15% in Q3 2025 (Thomson Reuters), driven by private equity and antitrust windfalls. Bonuses, totaling $1.2 billion across top firms last year per NALP data, serve as “golden handcuffs,” curbing lateral moves—turnover dipped to 14% in 2024.
Yet, associates aren’t popping champagne unchecked. Glassdoor threads buzz with paternity leave optics and proration gripes for laterals, while partners eye long-term sustainability amid AI disruption forecasts. For juniors, the $140K max—on top of $400K+ all-in comp—cements Big Law’s allure, but burnout risks loom.
- Quick Firm Payout Timeline:
- Cravath: Dec. 13 (U.S.), Dec. 16 (London)
- McDermott: Dec. 27 (legacy MWE)
- Fried Frank: Dec. 31
- Paul Hastings: Feb. 14, 2025
As the bonus brigade swells, Fried Frank and McDermott’s entries affirm a unified front: In Big Law, matching Milbank via Cravath isn’t optional—it’s the price of playing at the top. With no salary escalations on the horizon, these cash infusions could sustain morale through 2026’s uncertainties, from election-year regs to tech upheavals. Associates, start budgeting for that holiday splurge; the rest of the vault line awaits its cue.