Sheppard Mullin Raises Associate Base Salaries Starting January 2027

Sheppard Mullin will raise base salaries for its U.S. associates effective January 1, 2027, with first-year lawyers moving to $235,000 and the most senior class on the scale reaching $455,000. The firm announced the increases in a memo earlier this week, making it the latest large firm to match the pay raises Milbank unveiled in June 2026.

Lucantonio Salvi, the firm's chair, announced the move in a memo to associates. He wrote that the salary increase "reflects the importance of remaining competitive in attracting and retaining exceptional associate talent and recognizes the contributions our associates make…."

The timing is notable. The raises land just before bonus season, and the firm framed the move as both a retention tool and a reward for associate contributions.

What does the new salary scale look like?

Sheppard Mullin's memo sets out an eight-step scale by class level. Here is the full 2027 base salary grid:

• A1 (first-year associate): $235,000
• A2: $245,000
• A3: $270,000
• M1: $320,000
• M2: $385,000
• M3: $410,000
• C1: $440,000
• C2: $455,000

The structure follows the industry convention of splitting class years into associate (A), mid-level or senior associate (M), and counsel (C) tiers. Each step up the ladder brings a raise, but the jumps are not evenly spaced. The gap between A2 and A3 is $25,000; the gap between M1 and M2 is $65,000, the largest single step on the scale.

For context, a C2 lawyer at Sheppard Mullin will now earn roughly twice what an A1 earns — a spread that mirrors how Biglaw (the informal name for the largest, highest-paying U.S. law firms) structures compensation to push lawyers toward partnership or counsel tracks.

Why is this happening now?

The raises trace back to Milbank. That firm announced its own salary increases in June 2026, and those numbers have been working their way through the market firm by firm. Sheppard Mullin is simply the latest match in what has become a familiar pattern: when one top-paying firm moves, competitors follow within weeks or months.

This dynamic is known in the industry as salary compression from the top — a market leader sets a new scale, and peer firms match it to keep recruitment competitive. Firms that delay risk losing associates to shops that have already matched, which is why Salvi's memo leans on the language of "attracting and retaining exceptional associate talent."

What does it mean for the market?

For practitioners, the practical consequence is straightforward. U.S. associates at Sheppard Mullin will see larger paychecks beginning with the first payroll of 2027, on top of whatever year-end bonuses the firm announces in the coming weeks. For the wider market, the match adds another major firm to the column of shops at the new scale, increasing pressure on firms that have not yet moved.

Associates at firms still on the old scale now have a fresh data point for lateral negotiations. Recruiters will use the Sheppard grid — particularly the $235,000 first-year figure — as the benchmark in conversations over the next hiring cycle.

The pattern from June's Milbank announcement suggests more matches are likely. Each firm that matches narrows the pool of holdouts and raises the cost of standing still. As bonus season approaches, associates across Biglaw will be watching their inboxes for memos of their own.