Allen & Overy has increased trainee pay rates bringing to an end a three-year freeze and has promoted 24 lawyers to the role of counsel.
The Magic Circle firm is the first to raise the stakes amongst its peers this year, with second-year trainee rates increasing by £800 to £44,000 – £200 less than the previous increase in May 2010, where pay packets grew from £42,200 to £43,200.
First-year trainees will take home £39,000 – an increase of £1,000 from May 2008 when wages grew from £37,000 to £38,000. The changes will take effect from September this year.
Meanwhile, the firm also announced 24 promotions to its counsel role across seven practice areas, with the highest number of promotions within banking (nine) and corporate (six).
International capital markets and litigation received four and two promotions respectively with one each in the know-how, international arbitration and tax groups.
The promotions will see 13 of the firm’s global offices take in counsel from 1 May 2013, with former senior associate Diane Richardson being promoted in London, while Hong Kong and Luxembourg offices received six and three individuals respectively.
Managing partner Wim Dejonghe said: ‘The promotions cover a broad range of practice groups with the majority coming from outside London, reflecting the continuing growth of our global network.’
A spokesperson at the firm added: ‘The counsel role can be an alternative career path for those high-performing individuals who, for whatever reason, do not aspire to partnership but still aspire to a demanding and challenging role with opportunities for development, or can be a role taken before later being promoted to partner.’