Stick or twist? City firms battle it out in NQ salary brinkmanship after Allen & Overy freezes rates

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Stick or twist? City firms battle it out in NQ salary brinkmanship after Allen & Overy freezes rates

The war for junior talent at the top end of London’s legal market entered a new phase of brinkmanship this year, as firms jostled for position after Allen & Overy (A&O)’s decision to freeze its associate rates.

A&O froze its newly-qualified (NQ) salaries in late June, citing a ‘more challenging business environment’. The firm typically reviews pay later in the year, but A&O decided to bring the decision forward. Continue reading “Stick or twist? City firms battle it out in NQ salary brinkmanship after Allen & Overy freezes rates”

City talent tussle continues as CC matches Freshfields with £125k NQ salary

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City talent tussle continues as CC matches Freshfields with £125k NQ salary

Clifford Chance’s (CC) next cohort of newly qualified associates will take home £125,000 per year, after the firm bumped its starting salary by 16% to match that of Magic Circle rival Freshfields.

It is the first pay rise at the firm since November 2021, when a 7.5% increase brought salaries up to £107,500. Trainee rates have not been similarly altered however, with the first-year package staying at £50,000, rising to £55,000 in the second year. Continue reading “City talent tussle continues as CC matches Freshfields with £125k NQ salary”

Linklaters ushers in lockstep shake-up to attract and promote top talent

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Linklaters ushers in lockstep shake-up to attract and promote top talent

The latest strategic move in the war for junior talent, Linklaters has introduced a significant overhaul of its lockstep pay model in order to attract and fast-track high performers.

The firm’s partners last week backed a wave of measures that bring Linklaters’ remuneration policy in line with the majority of the Magic Circle. The three key changes are: an extension at the top of its lockstep for partners who make ‘an exceptional contribution’, the ability to accelerate partners up the ladder who also make outstanding contributions, and more flexibility to elect ‘top talent’ to the partnership earlier. Continue reading “Linklaters ushers in lockstep shake-up to attract and promote top talent”

HSF shrugs off Covid concerns to reward staff with bonus as new senior partner is unveiled

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HSF shrugs off Covid concerns to reward staff with bonus as new senior partner is unveiled

After posting resilient financial results  in the wake of the pandemic, Herbert Smith Freehills (HSF) has recognised the efforts of staff worldwide by gifting everyone a 5% bonus at the same time as announcing its new senior partner, Rebecca Maslen-Stannage.

In a statement, HSF chief executive Justin D’Agostino said: ‘The firm is performing well so far this year. In recognition of that, we will be paying all staff globally a one-off financial payment of 5 per cent of salary, payable in March. I am delighted that all our people will be sharing in our good performance. This is an acknowledgement of their dedication and hard work, in the face of the tremendous disruption and challenges experienced in the last year. This special payment is made in addition to our usual 2021 bonus round.’ Continue reading “HSF shrugs off Covid concerns to reward staff with bonus as new senior partner is unveiled”

Resetting associate comp – Better to bend than break but a rethink is still overdue

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Resetting associate comp – Better to bend than break but a rethink is still overdue

While it’s surprising in some regards that it took this long, Allen & Overy has done the UK legal market a favour by substantially re-setting compensation bands for its junior lawyers. The move, confirmed on Monday (22 June), will see starting salaries and bonuses for newly-qualified lawyers in London fall from the current benchmark of £100,000 to £90,000 for the intake starting in September.

Clifford Chance later that week announced more modest cuts from £100,000 to £94,500 for salary and bonus, while Slaughter and May had already pushed down its starting base salary to £87,000 for autumn starters, from £92,000. Continue reading “Resetting associate comp – Better to bend than break but a rethink is still overdue”

Ropes ups the ante in the City talent war with £130k NQ pay package

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Ropes ups the ante in the City talent war with £130k NQ pay package

In a bold play for the Boston-bred firm, Ropes & Gray has increased its London NQ salary by 8% to £130k plus bonus.

The move means a notable uptick on the previous City NQ rate of £120k and present a boon for Ropes’ appeal to young lawyers at a time of internal transition and increasing competition in the market. Continue reading “Ropes ups the ante in the City talent war with £130k NQ pay package”

Slaughters ups the ante on associate pay with PQE salary boost

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Slaughters ups the ante on associate pay with PQE salary boost

City blueblood Slaughter and May has increased its salary for associates with 2.5 years post-qualified experience (PQE) or more, after putting newly-qualified (NQ) solicitors in line for a £100,000 pay package last summer.

The move means associates in the 2.5 PQE salary scale and above will now receive an increase of between 2.2% and 8.2%, effective this month. Last year’s pay hike only applied to those with up to 2.5 years PQE. Continue reading “Slaughters ups the ante on associate pay with PQE salary boost”

Norton Rose enters associate pay war putting NQs in line for £114k paycheque

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Norton Rose enters associate pay war putting NQs in line for £114k paycheque

Top-performing newly qualified (NQ) solicitors at Norton Rose Fulbright (NRF) will be in line to take home up to £114,000 as the firm becomes the latest to increase its starting rates amid an escalating war for associate talent in the City.

NRF confirmed today (9 October) a 9% rise to its NQ basic salary to £87,500 effective in January 2020, with bonuses of up to 30% on top of that. Continue reading “Norton Rose enters associate pay war putting NQs in line for £114k paycheque”

Baker McKenzie steps up to associate pay war with 20% NQ salary uplift

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Baker McKenzie steps up to associate pay war with 20% NQ salary uplift

Baker McKenzie has become the latest law firm to put its newly-qualified (NQ) solicitors in line for a six-digit pay package with an eye-catching 23% increase to its starting rates.

The firm announced today (17 July) it is raising its basic NQ package from £77,000 to a minimum of £95,000, with performance-related bonuses bringing earnings to over £100,000. Continue reading “Baker McKenzie steps up to associate pay war with 20% NQ salary uplift”

Change was necessary: Ashurst joins the war for talent with 9% NQ pay raise

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Change was necessary: Ashurst joins the war for talent with 9% NQ pay raise

City stalwart Ashurst has followed suit with peers in the Square Mile to raise the salary for newly-qualified solicitors (NQs), upping the ante to £105,000 including bonuses.

The move will mean a 9% pay increase for NQs, who were previously in line for maximum remuneration of £96,600, effective from the 2020 financial year. Continue reading “Change was necessary: Ashurst joins the war for talent with 9% NQ pay raise”