Elite Boutiques Outpace BigLaw with Swift Lateral Partner Moves
Elite boutiques gain ground with fast lateral partner hiring and market-driven pay.
Why it matters: BigLaw partners and recruiters must track these shifts as top talent opts for nimble boutiques, altering recruitment dynamics and firm growth strategies.
- Milbank raised first-year associate salaries to $235K and eighth-year to $455K on July 1, 2026; McDermott promptly matched this scale.
- In Q1 2026, BigLaw added 3,521 lateral attorneys, with partner moves up 9.4% to 979—the highest in six years.
- Dechert hired a 20-partner group from McDermott in January 2026, marking a major boutique lateral victory.
- Davis Polk added a notable partner from Cravath in February 2026 amid a more active elite partner market.
The legal market in 2026 is seeing boutiques leverage agility to attract top lateral partners faster than BigLaw firms. Following Milbank’s announcement on June 2, 2026, to increase associate salaries to $235,000 for first-years and $455,000 for eighth-years effective July 1, McDermott Will & Emery immediately matched the new pay scale, signaling a swiftly reactive BigLaw environment.Milbank Salary Scale 2026McDermott Matches Pay
However, lateral partner hiring data reveals a more dynamic landscape favoring elite boutiques. In Q1 2026, the 200 largest U.S. law firms added 3,521 lateral lawyers—a 5.5% increase year-over-year—with partner moves hitting 979, up 9.4% and the highest in six years.BigLaw Partner Hiring Q1 2026
New York also witnessed a three-year peak in lateral partner moves—186 partners shifting among Am Law 100 and top UK firms.NY Lateral Partner Hiring Elite boutiques like Dechert and Davis Polk have made significant moves. Dechert's acquisition of 20 partners from McDermott in January 2026 represented a strategic lateral coup.Dechert's 20-Partner Acquisition Meanwhile, Davis Polk strengthened its executive compensation practice by adding a leading partner from Cravath, signaling that even historically insular firms are not immune.Davis Polk Adds Cravath Partner
Experts note this trend underscores a changing marketplace. Jeffrey Lowe of CenterPeak said, "The lateral partner market has gotten more and more active, and we always felt it was a matter of time before it reached the very elite tier of firms." Similarly, Alisa Levin of Greene-Levin-Snyder observed, "Cravath is not immune to all the market forces affecting every other top firm."Cravath Loses Immunity to Partner Poaching This reflects broader talent dynamics causing law firm competition and growth models to evolve rapidly.
By the numbers:
- $235,000–$455,000 — Milbank's associate salary increase effective July 2026
- 3,521 — lateral attorneys hired by top 200 US firms in Q1 2026, up 5.5% YOY
- 979 — lateral partner moves in Q1 2026, highest in six years, up 9.4% YOY
- 20 — number of partners Dechert hired from McDermott in Jan 2026
Yes, but: While BigLaw responds with salary increases, boutique firms' quick lateral hiring suggests compensation alone won't secure top talent.
What's next: Watch for further boutique expansions through lateral partner acquisitions and BigLaw salary adjustments after Q2 2026.