Biglaw Bonuses 2024: Recognizing Excellence and Retaining Top Talent
As the year draws to a close, the legal industry is abuzz with year-end bonus announcements. Major law firms and elite boutiques alike are rewarding associates generously, reflecting a highly competitive market for top-tier talent. Anchored by the Milbank bonus scale, recently endorsed by Cravath, firms are signaling their commitment to recognizing hard work and retaining key talent. Two firms making headlines for their standout approaches this year are Holwell Shuster & Goldberg (HSG) and Skadden, Arps, Slate, Meagher & Flom.
The Milbank Scale: Setting the Industry Standard
The Milbank scale continues to shape bonus benchmarks across the legal world, with firms matching or even exceeding its structure. Bonuses this year not only recognize individual contributions but also aim to bolster morale and loyalty within firms. As announcements pour in, one theme is clear: associate satisfaction and retention remain top priorities in Biglaw.
Holwell Shuster & Goldberg: Early Bonuses and a Strong Commitment
Holwell Shuster & Goldberg (HSG), a prominent commercial litigation boutique, has earned its place as a trailblazer in both litigation and compensation. Since its founding in 2012 by former Judge Richard Holwell and colleagues from White & Case, the firm has cultivated a reputation for excellence, making it a sought-after destination for litigators.
Matching the Milbank Scale — and Leading the Way
This year, HSG stood out by being among the first firms to match the Milbank year-end and special bonus scale. The firm wasted no time in communicating its appreciation to associates through a heartfelt internal memo that highlighted their indispensable role in the firm’s success:
“We are proud of our continued delivery of top-notch legal services and impressive victories on behalf of our clients. You are all a big part of what makes the firm’s successes possible and why HSG remains a very special place to practice law.”
Bonuses at HSG will be distributed to associates by December 31, ensuring a festive close to the year. This early recognition reinforces the firm's dedication to fostering a supportive and rewarding work environment.
Skadden, Arps: Pioneering Bonus Structures with Extra Incentives
Skadden Arps, one of the most prominent global law firms, has once again proven its leadership in the industry. Ranked fifth on the Am Law 100 with $3.27 billion in gross revenue for 2023, the firm is using its financial strength to reward associates generously — with a few extra perks for senior team members.
A Tailored Approach to Bonuses
Skadden matched the Milbank scale but differentiated itself by offering additional bonuses for senior associates, recognizing their critical role in mentoring and leadership. Here’s a look at Skadden’s 2024 bonus structure:
| Class Year | Bonus | December Special Bonus |
|---|---|---|
| 2017 & Senior | $115,000–$125,000 | $25,000 |
| 2018 | $105,000–$115,000 | $25,000 |
| 2019 | $90,000 | $25,000 |
| 2020 | $75,000 | $20,000 |
| 2021 | $57,500 | $15,000 |
| 2022 | $30,000 | $10,000 |
| 2023 | $20,000 | $6,000 |
| 2024 | $15,000 | $6,000 |
By going beyond the standard bonus scale, Skadden underscores the importance of recognizing experience and fostering retention in a highly competitive talent market.
Bonus Season’s Ripple Effect Across the Legal Industry
For associates, year-end bonuses serve as more than just financial rewards; they are a validation of long hours and significant contributions. The competitive bonus announcements this season reflect broader trends in the legal sector:
- Increased Competition for Talent: As firms compete to retain top associates, the market is experiencing upward pressure on compensation.
- Elite Boutiques’ Rising Influence: Smaller firms like HSG are proving they can go toe-to-toe with Biglaw heavyweights, offering not only competitive bonuses but also a more intimate and rewarding professional environment.
- Recognition Beyond Dollars: Firms are coupling financial rewards with public acknowledgment of their associates’ hard work, fostering a sense of pride and belonging.
Looking Ahead: A High Note for 2024
As announcements from other firms continue to roll in, one thing is clear: the trend of generous year-end bonuses is here to stay. Firms like Holwell Shuster & Goldberg and Skadden Arps are leading by example, setting a high bar for associate recognition.
For associates, the year-end bonus season is more than just a financial boost — it’s a celebration of their contributions and a reminder of their value to the firm. Congratulations to all attorneys enjoying the fruits of their labor this season!
