MILBANK ANNOUNCES BONUSES/SALARY INCREASES Forum

[Anonymous User]

Goldman Sachs and Cravath, Swaine & Moore LLP operate in different sectors of the financial and legal industries, respectively, each holding its own distinct prestige. Goldman Sachs, a global investment banking and financial services firm, is renowned for its influence in the world of finance. The firm's history, extensive client base, and involvement in major financial transactions contribute to its prestigious status. The name "Goldman Sachs" often resonates with expertise in investment banking, asset management, and securities.

On the legal front, Cravath, Swaine & Moore LLP stands as a prestigious law firm with a focus on corporate law and litigation. Established in 1819, Cravath has a rich legacy and is recognized for its involvement in high-profile legal matters. The firm's commitment to excellence, notable client list, and contributions to legal precedents have solidified its position among the elite law firms.

While Goldman Sachs and Cravath operate in different spheres, both entities command respect and recognition within their respective industries. Goldman Sachs is synonymous with financial prowess, while Cravath is esteemed for its legal acumen and longstanding presence in the legal landscape. Each institution's prestige is rooted in its history, accomplishments, and the caliber of professionals associated with it.

Cravath has way more prestige among law students than Goldman does among MBA students. GS is not viewed any differently than JPM or MS and none of the big banks is at the top of anyone’s list.

Hotshot Cravath lawyer currently beefing with a literal robot

Determining prestige can be subjective, as each bank has its strengths. Goldman Sachs, JP Morgan, and Morgan Stanley are all prestigious financial institutions, with different areas of expertise. Factors such as reputation, client base, and global presence contribute to their prestige.

I have to say, this whole thread within a thread about Cravath, GS, tech salaries, etc. is why I'm now trying to learn how to use FB for my updates on this topic (you know, the original one)...

There are no updates, that's the problem. We're all out here going crazy because there's nothing new.

[Anonymous User]

Take this with a grain of salt (maybe a bucket of salt) but was told by a Sidley lawyer that the firm plans to match sometime in late November/early December. We'll see if that holds up.

[Anonymous User]

Has anyone matched Milbank yet?

[TigerIsBack]

Has anyone matched Milbank yet?

Don't think so. I think the prevailing wisdom at this point is that most of the market setting firms (Cravath, DPW, STB, etc.) will have to send their bonus memos in the next few weeks anyway, so we would expect to hear about salaries at that time.

[TigerIsBack]

Sooooo... next Monday/Tuesday post-Thanksgiving?

Or are the betting odds that this ends up slipping until early December because everyone is waiting for DPW/Cravath to blink?

[Anonymous User]

Sooooo... next Monday/Tuesday post-Thanksgiving?

Or are the betting odds that this ends up slipping until early December because everyone is waiting for DPW/Cravath to blink?

Cravath will definitely move next Monday or Tuesday; but if they don't raise, might take DPW the following week to resolve this.

[Anonymous User]

Sooooo... next Monday/Tuesday post-Thanksgiving?

Or are the betting odds that this ends up slipping until early December because everyone is waiting for DPW/Cravath to blink?

Cravath will definitely move next Monday or Tuesday; but if they don't raise, might take DPW the following week to resolve this.

Is there any chance of 2023 going to $230k or is that a pipe dream?

[TLSposter1990]

Sooooo... next Monday/Tuesday post-Thanksgiving?

Or are the betting odds that this ends up slipping until early December because everyone is waiting for DPW/Cravath to blink?

Cravath will definitely move next Monday or Tuesday; but if they don't raise, might take DPW the following week to resolve this.

Is there any chance of 2023 going to $230k or is that a pipe dream?

That is highly unlikely. The raise, if any, is likely to be for more senior associates -- 4th/5th year and up. Firms are almost always facing a shortage of qualified seniors, which is why virtually all the re-raises over the last several years have targeted the midlevel/senior crowd. I think either Cravath or DPW will give a small bump for seniors-- either through the salary or bonus scale, but not both.

[Anonymous User]

Sooooo... next Monday/Tuesday post-Thanksgiving?

Or are the betting odds that this ends up slipping until early December because everyone is waiting for DPW/Cravath to blink?

Cravath will definitely move next Monday or Tuesday; but if they don't raise, might take DPW the following week to resolve this.

Is there any chance of 2023 going to $230k or is that a pipe dream?

That is highly unlikely. The raise, if any, is likely to be for more senior associates -- 4th/5th year and up. Firms are almost always facing a shortage of qualified seniors, which is why virtually all the re-raises over the last several years have targeted the midlevel/senior crowd. I think either Cravath or DPW will give a small bump for seniors-- either through the salary or bonus scale, but not both.

I agree. However, when you say "virtually all" wdym. My understanding was that there has only been one re-raise in recent memory that solely raised mid-levels and seniors.

[TLSposter1990]

Sooooo... next Monday/Tuesday post-Thanksgiving?

Or are the betting odds that this ends up slipping until early December because everyone is waiting for DPW/Cravath to blink?

Cravath will definitely move next Monday or Tuesday; but if they don't raise, might take DPW the following week to resolve this.

Is there any chance of 2023 going to $230k or is that a pipe dream?

That is highly unlikely. The raise, if any, is likely to be for more senior associates -- 4th/5th year and up. Firms are almost always facing a shortage of qualified seniors, which is why virtually all the re-raises over the last several years have targeted the midlevel/senior crowd. I think either Cravath or DPW will give a small bump for seniors-- either through the salary or bonus scale, but not both.

I agree. However, when you say "virtually all" wdym. My understanding was that there has only been one re-raise in recent memory that solely raised mid-levels and seniors.

I am thinking further out (since 2016) and including re-raises to both salary and bonus scales throughout that time. Invariably, the re-raises have focused on midlevel and senior associates rather than provide an additional bump in the scale for juniors.

[Anonymous User]

Any final thoughts on what Cravath will do, now that the announcement is imminent today or tomorrow?

[TigerIsBack]

Any final thoughts on what Cravath will do, now that the announcement is imminent today or tomorrow?

~10k increase for 3rd year, ~$20k increase for 4th and 5th years, and ~$15k increase for 6th year and up.

Though for Cravath I don't think 8th years are on the scale, so the scale won't be touching $450k until someone that has 8th years on the scale says so. If Cravath bumps 7th years to $425-430k (over the current Milbank $410) then we have a chance at touching $450k on the top end

[PBRonTap]

Any final thoughts on what Cravath will do, now that the announcement is imminent today or tomorrow?

~10k increase for 3rd year, ~$20k increase for 4th and 5th years, and ~$15k increase for 6th year and up.

Though for Cravath I don't think 8th years are on the scale, so the scale won't be touching $450k until someone that has 8th years on the scale says so. If Cravath bumps 7th years to $425-430k (over the current Milbank $410) then we have a chance at touching $450k on the top end

Bigger increase for 4th and 5th years than 6th+? Lol, doubt that.

[TigerIsBack]

Any final thoughts on what Cravath will do, now that the announcement is imminent today or tomorrow?

~10k increase for 3rd year, ~$20k increase for 4th and 5th years, and ~$15k increase for 6th year and up.

Though for Cravath I don't think 8th years are on the scale, so the scale won't be touching $450k until someone that has 8th years on the scale says so. If Cravath bumps 7th years to $425-430k (over the current Milbank $410) then we have a chance at touching $450k on the top end

Bigger increase for 4th and 5th years than 6th+? Lol, doubt that.

Just thinking since they're the most likely to be the ones leaving - that's the sweet spot for going in-house and those are the people that are starting to really be your grinders running deals and managing the process, whereas more of your seniors are in it for the long haul already and trying to make partner, so additional money won't be what keeps them around.

This is just my opinion, but obviously I have no idea what will happen. Just basing this on the fact the the biggest jumps in comp are during the midlevel years.

[LittleRedCorvette]

Any final thoughts on what Cravath will do, now that the announcement is imminent today or tomorrow?

~10k increase for 3rd year, ~$20k increase for 4th and 5th years, and ~$15k increase for 6th year and up.

Though for Cravath I don't think 8th years are on the scale, so the scale won't be touching $450k until someone that has 8th years on the scale says so. If Cravath bumps 7th years to $425-430k (over the current Milbank $410) then we have a chance at touching $450k on the top end

Bigger increase for 4th and 5th years than 6th+? Lol, doubt that.

Just thinking since they're the most likely to be the ones leaving - that's the sweet spot for going in-house and those are the people that are starting to really be your grinders running deals and managing the process, whereas more of your seniors are in it for the long haul already and trying to make partner, so additional money won't be what keeps them around.

This is just my opinion, but obviously I have no idea what will happen. Just basing this on the fact the the biggest jumps in comp are during the midlevel years.

I'm expecting quiet matching (sadly), but do think your guess ($10k for 3, $20k for 4/5, $15k for 6+) makes sense.

[TigerIsBack]

[Unsubstantiated] rumors on FB of a Cravath raise to the tune of $10k for certain class years (not first years apparently).

[Anonymous User]

Juniors are getting shafted, hopefully DPW goes over the top (for all classes, but especially juniors). The jumps from 3-4 and 4-5 in salary have become crazy.

[PBRonTap]

Any final thoughts on what Cravath will do, now that the announcement is imminent today or tomorrow?

~10k increase for 3rd year, ~$20k increase for 4th and 5th years, and ~$15k increase for 6th year and up.

Though for Cravath I don't think 8th years are on the scale, so the scale won't be touching $450k until someone that has 8th years on the scale says so. If Cravath bumps 7th years to $425-430k (over the current Milbank $410) then we have a chance at touching $450k on the top end

Bigger increase for 4th and 5th years than 6th+? Lol, doubt that.

Just thinking since they're the most likely to be the ones leaving - that's the sweet spot for going in-house and those are the people that are starting to really be your grinders running deals and managing the process, whereas more of your seniors are in it for the long haul already and trying to make partner, so additional money won't be what keeps them around.

This is just my opinion, but obviously I have no idea what will happen. Just basing this on the fact the the biggest jumps in comp are during the midlevel years.

I'm expecting quiet matching (sadly), but do think your guess ($10k for 3, $20k for 4/5, $15k for 6+) makes sense.

The raises for 4th and 5th years might be larger as a % of their salary, but I doubt they will be higher in total dollars than 6th+. Yes, 4th and 5th year is when associates become substantively competent and start adding real value (or don't and wash out), but it's 6th+ year associates that actually take material work off the partners' plates. Plus, most 6th+ year associates aren't actually making partner in the next few years. At a lot of biglaw firms, including V10-50, they're lucky to get partner by 9th/10th year.

[PBRonTap]

Juniors are getting shafted, hopefully DPW goes over the top (for all classes, but especially juniors). The jumps from 3-4 and 4-5 in salary have become crazy.

That's because 95% of junior associates are useless. It is astonishing that junior associate salaries are as high they are right now. Lots of clients won't even pay for first years because they know they're n00bs. 1st and 2nd year associates add frustration, not value.

[Anonymous User]

Juniors are getting shafted, hopefully DPW goes over the top (for all classes, but especially juniors). The jumps from 3-4 and 4-5 in salary have become crazy.

No chance DPW re-re-raises from here. Isn’t DPW particularly weighed towards capital markets work (i.e., the slowest major practice group)? It makes sense why they’d be comp leaders in ‘21-‘22, but not any longer.

[Anonymous User]

Juniors are getting shafted, hopefully DPW goes over the top (for all classes, but especially juniors). The jumps from 3-4 and 4-5 in salary have become crazy.

No chance DPW re-re-raises from here. Isn’t DPW particularly weighed towards capital markets work (i.e., the slowest major practice group)? It makes sense why they’d be comp leaders in ‘21-‘22, but not any longer.

could see DPW doing a slight bump on the EOY bonuses though just to reclaim the spot from cravath

[TigerIsBack]

Juniors are getting shafted, hopefully DPW goes over the top (for all classes, but especially juniors). The jumps from 3-4 and 4-5 in salary have become crazy.

No chance DPW re-re-raises from here. Isn’t DPW particularly weighed towards capital markets work (i.e., the slowest major practice group)? It makes sense why they’d be comp leaders in ‘21-‘22, but not any longer.

I'm calling a DPW re-raise, most likely a small additional amount (another $5k for juniors and maybe $10k for mid levels and seniors, to be announced this Friday, so they can claim compensation kings.

The reason I think they're more likely to raise salaries than bonus is that raising bonus means people who are planning to lateral/go in-house this January anyway would collect all of the additional bonus money, whereas a salary increase has to be earned over the course of 12 more months of billing hours.

[Anonymous User]

P,W just matched Cravath, and announced additional discretionary bonuses for "outsized contributions to the firm," which will apparently be distributed in early 2024.

[Anonymous User]

Hogan matched

[Anonymous User]

Hogan matched

Was not expecting a DC firm to move so quickly on matching