Goodwin: Associates Salary Raise Delayed Until 2027

• Goodwin, an Am Law 100 firm ranked #21, announced salary raises and bonuses for its associates.
• US base salaries for Goodwin associates will be increased to match the Milbank scale.
• The new salary structure for Goodwin associates will become effective on January 1, 2027.
• Both class-year and special bonuses are slated for distribution to associates.
• Goodwin's adoption of the Milbank scale follows Milbank's initial announcement by about six months.

However, the implementation of these higher base salaries will not be immediate; associates will see these changes reflected in their pay starting January 1, 2027.

Goodwin, an Am Law 100 firm ranked #21, recently communicated significant compensation adjustments to its associates. This announcement, delivered on a Tuesday prior to the Thanksgiving holiday, outlined plans for both increased base salaries and the distribution of bonuses. The firm confirmed its intention to pay out both class-year and special bonuses, signaling a comprehensive approach to associate remuneration.

A key component of this update involves a commitment to elevate US base salaries. These revised salary figures are designed to align with the Milbank scale, a widely recognized standard for associate compensation within the legal sector. However, the implementation of these higher base salaries will not be immediate; associates will see these changes reflected in their pay starting January 1, 2027. This delayed effective date means a considerable waiting period before the new pay structure becomes active for Goodwin associates.

The decision by Goodwin to adopt the Milbank salary scale represents a strategic move to maintain competitiveness in the highly sought-after legal talent market. This adjustment comes approximately six months after Milbank initially set the new benchmark for associate salaries in June 2026. Consequently, Goodwin associates will experience the benefits of this increased base pay later than their counterparts at firms that adopted the scale earlier or with immediate effect.

Despite the deferred implementation of the new salary structure, the firm's commitment to providing both class-year and special bonuses underscores its ongoing efforts to attract and retain top legal talent. Notably, this year's bonus announcement arrived earlier than in the previous year, when Goodwin typically informed associates about bonuses in mid-December. This earlier communication, despite the salary delay, might be seen as an attempt to provide clarity and reassurance to its workforce.

Goodwin is not an isolated case in its approach to matching new salary scales with a delayed effective date. Another prominent firm, Ice Miller, also announced its intention to align with the higher salary benchmarks but similarly postponed the actual implementation of these raises until January 1, 2027. This pattern suggests a cautious yet competitive strategy among some BigLaw firms, balancing the need to match industry standards with financial planning and operational considerations.

The broader landscape of BigLaw compensation has been significantly influenced by firms like Milbank, which have proactively established new salary benchmarks. While the specific timelines for adopting and implementing these new scales vary across the industry, the overall trend indicates a clear upward trajectory in associate compensation. Firms are navigating the complexities of these adjustments, with some opting for a phased introduction of higher salaries to manage the transition effectively. The January 1, 2027, effective date for Goodwin's salary raises positions the firm within this evolving compensation environment, aligning with the Milbank scale while managing the immediate financial impact.

This article discusses internal compensation adjustments for associates at a law firm. It does not present a direct practical implication for lawyers or compliance officers in terms of client advice, regulatory compliance, or legal strategy.

Source: Original reporting via goLateral.