Biglaw Firms Face Political Scrutiny and Internal Restructuring Post-Midterms
Major law firms navigate congressional subpoenas, talent poaching, and shifting compensation standards.
1Political Pressure on Firms
Following the midterm elections, nine major law firms that previously pledged nearly $1 billion in pro bono legal services to Trump-aligned causes face new scrutiny. With Democrats securing control of both congressional chambers, these firms expect their previously ignored correspondence to be replaced by formal subpoenas regarding their past legal support.
2Weil Gotshal Talent Exodus
Gibson Dunn is actively targeting approximately 120 lawyers from Weil, Gotshal & Manges, including over 20 partners specializing in private funds across New York and London. Simultaneously, ten former Weil partners have retained legal counsel to safeguard their equity stakes as the firm navigates potential instability and internal organizational restructuring efforts.
3Associate Bonus Expectations
Recent industry surveys indicate that two-thirds of associates anticipate firms will fully match Milbank’s latest salary raises and special bonus structures. Furthermore, nearly 40 percent of surveyed associates expect their year-end bonuses to exceed the figures recorded last year, signaling high pressure on firms to maintain competitive compensation packages despite volatility.
4From Sidley to Congress
Melat Kiros, who was terminated by Sidley Austin in 2023 after criticizing the firm’s open letter regarding law schools, has achieved a historic milestone. Kiros is set to become the first Gen Z woman to serve in Congress, marking a significant transition from corporate legal practice to federal legislative office.
5Transparency and Financial Reporting
Paul, Weiss has informed The American Lawyer that it will cease submitting financial data for the annual Am Law 200 rankings. This decision makes the firm the second major legal entity within a single month to opt out of public financial disclosure, reflecting a broader trend of firms choosing to remain private.
6Bar Exam Integrity Issues
Pass rates for the bar exam declined in 35 of the 42 reporting jurisdictions, with New York falling to 67 percent and California dropping to 48.3 percent. Meanwhile, former Arkansas bar exam director Nancie Givens faces 65 felony counts for allegedly tampering with test scores to artificially inflate candidate success rates.
7Sheppard Mullin Policy Shifts
Sheppard Mullin announced it will match Milbank’s salary raises effective January 1, 2027, increasing first-year associate compensation to $235,000. This financial adjustment coincides with the implementation of a mandatory four-day in-office work policy, illustrating the firm's attempt to balance increased pay with stricter physical attendance requirements for its legal staff.
8Legal Sector Instability
The legal industry currently faces a convergence of political investigations, internal partner disputes, and declining examination standards. As firms grapple with the loss of financial transparency and the threat of congressional oversight, the sector remains in a state of flux, forcing leaders to navigate both reputational risks and intense talent competition.