The latest round of associate salary increases will mean an annual cost increase of over eight figures for many Am Law 200 firms taking part in the latest skirmish in the salary wars.

Not only are top firms prepared to absorb the expense after a dynamic year, these pay raises—in the short term—will have less effect on profitability than the special bonuses announced by many earlier this year. The salary raises are also less costly than the special bonuses in late 2020.