Marco Cillario assesses the City-wide implications of Freshfields’ decision to dramatically hike associate salaries
A decade after leading the way in resetting downwards the going rate for City associates, Freshfields Bruckhaus Deringer in May set a new standard for Magic Circle firms, raising its newly-qualified (NQ) salaries from £85,000 including bonuses to a symbolic £100,000, with bonuses on top. Continue reading “Associate pay war, anyone? Freshfields sets new Magic Circle standard by raising NQ pay to £100k”
The second season of gender pay gap reporting has again laid bare the stark disparities between men and women throughout the legal sector. However, with only two rounds of reporting to look at so far, the trajectory of pay equality in legal is still difficult to ascertain. Instead, conversations have turned to the value of reporting gender pay in of itself, particularly given the lack of common methodology in gauging the numbers.
These concerns are not new to the latest reporting round. In March 2018 Pinsent Masons senior partner Richard Foley (pictured) criticised the current regime’s lack of consistency in reporting benchmarks. The Law Society later in November 2018 called for uniformity in gender reporting, publishing guidelines on how firms could provide more clarity on the issue. Recommendations included firms distinguishing between equity and non-equity partners, publishing a full-time equivalent (FTE) compensation gap based on the full financial year and reporting on partner bonus schemes. Continue reading “Mind the gap(s) – more of the same old inequality and fudged statistics prevalent in Big Law”
Slaughter and May has increased its salary rates for newly qualified (NQ) associates by £3,000, with junior associates also seeing an increase alongside performance-related end-of-year bonuses.
All associates from NQ to 18 months post-qualification (PQE) will enjoy salary increases, with NQs seeing their pay increase to £83,000 from £80,000. Pay for associates 6 months after qualification will see their pay go up £2,000 to £86,000, while associates one year and 18 months post-qualification will see their pay go up by £1,000 to £89,000 and £93,750 respectively. Continue reading “Slaughters lifts associate salaries alongside performance-related bonuses”
Ashurst has become the latest City firm to review its trainee and newly qualified (NQ) salaries for the second time this year, upping the latter’s basic pay to £82,000.
The changes, which take effect on 1 November, give NQs a £6,000 salary hike from the £76,000 given during the last review in May, while a performance-related bonus could bolster compensation to £94,300. Continue reading “Ashurst seeks competitive edge with second new lawyer salary increase of 2018”
Allen & Overy has become the latest Magic Circle firm to announce pay increases for its trainees and newly qualified associates (NQs), alongside a slightly reduced September 2018 retention rate.
The salary for NQs has risen to £83,000 from £81,000, while second year trainees can now expect to take home £50,000, up from £49,000. First year trainees will earn £45,000, compared with the previous £44,000 salary. Continue reading “‘Strong pipeline’: pay bump for A&O trainees and associates amid 80% retention rate”
More details are emerging on associate pay at Magic Circle firms as Freshfields Bruckhaus Deringer has joined the list of firms to announce increased salaries for US associates, as competition to recruit top lawyers intensifies.
The move by Freshfields will see the firm match the rates set by Milbank Tweed Hadley & McCloy, which set the standard for raising the starting salary for new lawyers two weeks ago, with Freshfield’s US associates now starting on $190,000 and rising to $330,000 in their eighth year. Continue reading “Associate pay: Freshfields joins salary race as global firms jostle for talent in US”
Despite much talk of client pressure on fees the determination to recruit top associates continues to build with one leading New York firm this week jolting the industry by announcing a record pay scale for its US and City associates.
Milbank, Tweed, Hadley & McCloy on Monday (4 June) announced that its associates will earn between $190,000 and $330,000 from 1 July. Continue reading “Milbank bids up associate pay as surprise moves takes City associates to new $190k benchmark”
A fuller picture of the legal industry’s gender pay gap issue is emerging as Addleshaw Goddard, Mishcon de Reya and Gowling WLG become the latest firms to reveal big earnings disparities.
Gender pay brackets at Addleshaw – published Tuesday (13 March) ahead of the 4 April deadline required by legislation brought in last year – reveal the firm paid its male staff on average 43.2% more in bonuses than women for the year to 5 April 2017. The median bonus figure was 33.3%. Continue reading “Gender diversity: pay gaps revealed at Addleshaw Goddard, Mishcon de Reya and Gowling WLG”
Allen & Overy has become the latest magic circle firm to reveal the sizeable gulf between male and female employee earnings.
The firm on Monday (12 March) published its figures for gender pay brackets ahead of the 4 April deadline required by legislation brought in last year. Continue reading “Gender diversity: Allen & Overy faring better than rivals as it reveals 20% pay gap”
The UK’s top law firms have begun disclosing figures on gender pay gaps, with an initial round of numbers showing City giant Linklaters has the biggest gulf between male and female earnings.
The Magic Circle firm on Wednesday (7 February) published its figures for gender pay bands, as required under legislation introduced last year, which showed Linklaters paid its male staff members nearly 60% more in bonuses than women. The firm’s female employees were paid on average 23.2% less than male colleagues. The gap widened to 39.1% when the median figure was considered. Continue reading “For what they’re worth – Links, 2Birds and Pinsents among law firms disclosing chunky gender pay gaps”