OPEN THREAD

It has been another summer of sizeable pay rises across the City for newly qualified (NQ) solicitors.

But the often unseen effect of these headline-grabbing uplifts is pay bands being squeezed further up the ladder, particularly for those between one and five years post qualification experience (PQE).

So while the vast majority of City firms will publicly disclose their NQ rates to attract top graduate talent, very few will reveal the earnings of junior lawyers at higher levels.

A number of City firms have boosted NQ rates by as much as 20% this summer to keep pace with rivals, but questions remain about how these increases have impacted the pay packets of more experienced juniors.

Our commenters speculate that the incremental salary increases between PQE levels are being compressed, with firms apparently reluctant to provide commensurate rises to associates higher up the ladder.

So in a bid to bring a bit of clarity to the salary situation, we’re calling on our junior lawyer readership to share their insider knowledge in the comments below. The aim is to provide an overview by firm, team, PQE, and salary (base plus bonus).

Rises for trainees too

Travers Smith has become the latest City law firm to increase the salaries of its newly qualified (NQ) associates, aiming to keep pace with similar raises implemented by many of its rivals.

The outfit has moved NQ base rates from £110,000 to £120,000, an uplift of 9% that sees it draw level with the likes of Norton Rose Fulbright and Mayer Brown.

The firm said that NQs have the potential to earn up to £20,000 as an additional bonus.

The base move falls short of the £125,000 now on offer at Ashurst and Reed Smith which both announced pay uplifts last week.

Travers also confirmed trainee pay has increased to £54,000 in year one and £59,000 in year two. These previously sat at £50,000 and £55,000, respectively.

The Legal Cheek Firms Most List shows Travers recruits around 40 trainees each year.

Healthy increases for firm’s rookie too

The London office of Baker McKenzie has confirmed sizeable salary increases for both its newly qualified (NQ) lawyers and trainees.

NQ rates now sit at £140,000, up a whopping 19% from £118,000. This brings the firm, which recruits around 40 trainees each year, in line with the likes of Macfarlanes and Orrick, and £5k above Herbert Smith Freehills, which boosted pay earlier this month.

The firm’s rookies have also been handed pay increases. Year one pay will move from £50,000 to £56,000, while year two salaries will increase from £55,000 to £61,000.

The NQ rise is effective from 1 July, while increases to trainee salaries will take effect on 1 September.

City salary rises continue

Reed Smith and Ashurst have raised the salaries for their newly qualified (NQ) lawyers to £125,000 as City firms continue to splash the cash to attract and retain top talent.

This represents a 16% increase for Reed Smith, raising from a previous salary of £107,500. For Ashurst the new figure is a 9% increase from its previous £115,000, which the firm raised to this time last year. Over the past two years, NQ pay at Ashurst has risen by £20,000, and over the last five years, it has increased by more than £40,000.

Prior to their improved NQ pay, Reed Smith’s can expect to earn £50,000 in their first year and £55,000 in their second. The firm takes on around 26 trainees each year.

It has also confirmed that all other associate level salaries will increase in line with the most recent change, and that associates will continue to be eligible for a bonus programme, subject to completing the set number of target hours

By comparison, new recruits at Ashurst’s London office earn £52,000 in their first year and £57,000 in their second. The Legal Cheek Firms Most List shows the firm takes on around 40 trainees each year, with the most recent retention rate seeing 82% (18 out of 22) of the spring qualifying cohort stay on.

Commenting on Reed Smith’s salary uplift London office managing partner Andrew Jenkinson said: “We are pleased to confirm the increase to associate salaries in London. It is a reflection of the market and our desire to retain and attract the best legal talent by providing a competitive and sustainable reward structure.”

He continued: “The new salary is an investment in our lawyers, which keeps us in line with other leading international law firms, and supports the firm’s strategic growth objectives enabling us to continue to deliver the highest quality, legal services that we are known for.”

This latest raise comes on the back of a spree of salary uplifts across the City.

Freshfields hit headlines when it increased NQ pay to £150,000, with three of its Magic Circle rivals, Linklaters, A&O Shearman, and Clifford Chance, quickly implementing the same increases. Slaughter and May has remained steadfast at £125,000 so far.

Other firms to increase rates include Herbert Smith Freehills and Hogan Lovells, both of which have raised NQ pay to £135,000, while Macfarlanes has gone further, increasing NQ salaries to £140,000.

Elsewhere, HFW boosted its NQ pay to £100k, with Bird & Bird climbing to £98,000 and DLA Piper rising to £110,000.

Regional salaries receive boost to £75k

International firm DLA Piper has raised the salaries of its newly qualified lawyers, taking City recruits up to £110,000 with their regional counterparts rising to £75,000.

The new figures represent a 10% increase across the board for the firm’s newest associates, with the previous figures sitting at £100,000 and £68,500.

With trainee pay remaining the same, rookies in the City office will continue to receive £50,000 in year one, and £55,000 in year two, with regional trainees on £34,000 and £37,500 respectively.

The firm has also announced its PGDL and SQE grants. Students in London will receive £12,500 for their conversion courses, with graduates taking online courses or those in the regions awarded £8,750.

For the SQE students can then expect a London grant of £17,000, with those elsewhere handed £12,000.

The Legal Cheek Firms Most List shows that the outfit takes on around 65 trainees each year.

This pay boost is the latest in a string of rises that have hit firms across the UK in recent months. Fellow international firms Herbert Smith Freehills and Hogan Lovells both increased their NQ salaries to £135,000 in recent weeks, with Macfarlanes going further to hit £140,000.

HFW has also boosted its NQ pay up to £100k, with Bird & Bird climbing to £98,000.

These more recent changes follow a significant shift in the Magic Circle, with Freshfields, Linklaters, A&O Shearman, and Clifford Chance all boosting rates to £150,000 earlier this year. Slaughter and May has so far stood firm, keeping junior lawyer pay at £125,000.

Boosts for trainees too

Herbert Smith Freehills (HSF) has increased salaries for its newly qualified (NQ) associates from £120,000 to £135,000, joining the growing list of City firms making similar moves.

The firm also confirmed a £6,000 increase in rookie salaries, with first year trainees earning £56,000 and second year trainees earning £61,000. The increases are effective from 1 September.

The Legal Cheek Firms Most List shows HSF recruits around 65 trainees each year. The salary increase means the firm now matches Hogan Lovells, which raised its NQ rates to £135k last month.

Commenting on the firm’s salaries, Alison Brown, executive partner at HSF, said:

“We are investing in our people — including our trainees and associates across all levels of experience — in a way that ensures a balanced and competitive reward structure in a dynamic market. This approach keeps us in the leading pack of international law firms and supports sustainable growth: good for our people, our clients and our business.”

Also confirms 84% retention score

City law firm Macfarlanes has increased the salaries of its newly qualified (NQ) lawyers by 22%, raising them from £115,000 to £140,000.

The outfit has also upped trainee pay from £50,000 to £56,000 in year one and £55,000 to £61,000 in year two.

The Legal Cheek Firms Most List shows that the NQ rise brings Macs in line with US firm Orrick and £5,000 ahead of Hogan Lovells, which increased its rates from £120,000 to £135,000 earlier this month.

Separately, Macfarlanes confirmed a retention rate of 84%, with 27 out of 32 final-seat trainees staying on. All of them are joining on permanent contracts.

Jat Bains, early legal careers partner, said: “We are excited to welcome our September qualifiers across a range of practice areas and congratulations to this talented cohort. We are proud to invest in our trainees so that their careers can thrive at Macfarlanes.”

Catherine Morgan-Guest, early legal careers senior manager, added: “We are committed to providing exceptional training and support to further the careers of the diverse group of talent we recruit. They are intrinsic to what we do and the future of our firm.”

Magic Circle rivals all increased to £150k

Slaughter and May has confirmed salary increases for its trainees but is still “carefully considering” pay boosts for newly qualified (NQ) associates, after all its Magic Circle rivals raised their rates to £150,000 in recent weeks.

Slaughters announced that rookie pay will increase from £50,000 to £56,000 in year one and from £56,000 to £61,000 in year two, aligning the firm with the rest of the Magic Circle.

But no decision has been made yet on NQ rates. While its Magic Circle rivals have all recently increased salaries from £125,000 to £150,000, Slaughters says it is still “carefully considering” its position and will inform lawyers as soon as a decision has been reached. The Legal Cheek Firms Most List shows it currently offers an NQ rate of £125,000.

In an internal memo to associates, published by the website RollOnFriday, the firm says it has been “closely monitoring the decisions by a number of firms to increase headline NQ salaries” and that it takes matters relating to pay “very seriously”.

“[I]t is important that our approach to associate pay reflects and reinforces our values, allows us to attract and retain the best talent and ensures that we maintain our culture of excellence and collegiality in all parts of the firm,” the memo continues.

Earlier this week, Legal Cheek reported that Hogan Lovells had increased NQ salaries to £135,000 in London, leapfrogging Slaughters on the pay table.

Rises for rookies too

US law firm Sidley Austin has raised the salaries of its newly qualified associates in London from an already impressive £166,500 to £175,000.

The rise will take effect on 1 July and equates to an extra £8,500 or 5%.

The firm’s trainees have also received pay increases, with first-year salaries rising from £55,000 to £60,000 and second-year salaries from £60,000 to £65,000.

The Legal Cheek Firms Most List 2024 shows that Sidley’s NQs now earn the same salaries as their counterparts at Goodwin Procter and are understood to be ahead of those at firms like Vinson & Elkins and Kirkland & Ellis.

This latest increase follows a wave of salary raises among Magic Circle firms, elevating A&O Shearman, Clifford Chance, Freshfields, and Linklaters to an NQ figure of £150,000. Trainees have also seen a boost, with their first-year pay rising to £56,000 and second-year to £61,000.

Earlier this week, Legal Cheek reported that Hogan Lovells had increased NQ salaries to £135,000 in London, while those in the Birmingham office will now earn £85,000.

More rises

Hogan Lovells has become the latest major law firm to increase the salaries of its new associates, raising rates in London to £135,000.

The pay boost equates to an extra £15,000 or 12% with salaries previous sitting at £120,000.

The Legal Cheek Firms Most List shows that Hogan Lovells recruits around 50 trainees each year, with first-year trainees also seeing their pay increase; £50,000 to £56,000 in year one and from £55,000 to £61,000 in year two.

Newly qualified associates in the firm’s Birmingham office will also see their pay increase, from £75,000 to £85,000. Trainee salaries have also increased from £35,000 to £37,500 in year one and from £38,500 to £41,000 in year two.

The increases are effective from 1 May.

“Base salaries are only one component of lawyer remuneration,” a spokesperson for the firm said. “We operate a total compensation matrix that includes a competitive bonus scheme, taking into account both chargeable work and other contributions to the firm and our values.”

The salary increases follow a series of rises across the Magic Circle, with Freshfields, Linklaters, A&O Shearman, and Clifford Chance all boosting rates to £150,000. Slaughter and May has so far stood firm, keeping junior lawyer pay at £125,000.

Pay war intensifies

Goodwin Procter has become the latest US law firm to increase the salaries of its London-based newly qualified (NQ) lawyers, now offering £175,000.

This boost, an increase of £15,000, takes Goodwin close to the new market topping figure of £180,000 at Gibson Dunn and Quinn Emanuel, with both firms increasing earlier this year.

The Legal Cheek Firms Most List shows that the firm typically hires around 14 trainees each year. They have also been handed salary increases, going from £52,000 to £55,000 in the first year, and from £57,000 to £60,000 in the second year.

This recent increase follows a wave of salary raises among Magic Circle firms, elevating A&O Shearman, Clifford Chance, Freshfields, and Linklaters to an NQ figure of £150,000. Trainees have also seen a boost, with their first-year pay rising to £56,000 and second-year to £61,000.

Slaughter and May is the only Magic Circle outfit yet to announce a raise.

Just Slaughters left to increase

A&O Shearman has become the fourth Magic Circle law firm to boost pay for newly qualified lawyers (NQs), taking its starting salary up to £150,000.

This is an increase of £25,000, or 20%, from the outfit’s previous salary of £125,000, and comes within weeks of identical raises at Freshfields, Linklaters, and Clifford Chance.

Having officially merged just this month, the new A&O Shearman NQ salary marks an increase from both pre-merger figures, including the former Shearman & Sterling pay of £145,000.

This latest increase is effective of 1 May.

Trainee salaries have also increased from £50,000 to £56,000 in year one and £55,000 to £61,000 in year two.

Denise Gibson, London managing partner, A&O Shearman said:

“With A&O Shearman we have created a unique law firm and our ambition is to be the firm of choice for the best, most diverse talent. Our compensation structure gives us flexibility to reward expertise, performance and wider contribution and is designed to be highly competitive to reflect the markets in which we operate. Trainees and NQs are a key part of the firm’s future and A&O Shearman provides unmatched opportunities for them to build successful careers. Our people are fundamental to our success and, in addition to offering a competitive remuneration and excellent benefits package, we are committed to nurturing a rewarding and supportive culture, which includes important elements such as a focus on wellbeing and engendering an environment where people can be themselves and excel.”

The Legal Cheek Firms Most List 2024 shows that Slaughter and May is the only Magic Circle firm not to increase the salaries of its junior lawyers, currently remaining at the previous standard of £125,000.

Follows Freshfields and Linklaters

Clifford Chance has become the latest Magic Circle law firm to increase the salaries of its most junior lawyers to £150,000.

This move, equivalent to an additional £25,000 or 20%, follows hot on the heels of identical increases by Freshfields and Linklaters.

Clifford Chance confirmed the increase to newly qualified pay is effective of 1 May.

The firm, which recruits around 110 trainees each year, the highest intake of any City outfit, has also boosted the salaries of its rookie lawyers.

From 1 September, trainee pay moves from £50,000 to £56,000 in year one and £55,000 to £61,000 in year two. These also match the rises dished out by Freshfields and Linklaters.

The Legal Cheek Firms Most List 2024 shows that A&O Shearman and Slaughter and May are the only remaining two members of the Magic Circle not to increase the salaries of its junior lawyers. They both currently offer an NQ salary of £125,000.

Serious money for 20-somethings

US law firm Quinn Emanuel has increased salaries in its London office, with newly qualified (NQ) associates now earning a staggering £180,000.

The business litigation specialist confirmed today that NQ rates will increase by 18%, soaring from an already impressive £152,000 to an eye-watering £180,000.

The hefty uplift comes just a week after Magic Circle law firm Freshfields seemingly triggered yet another City pay war by raising its NQ salary to £150,000.

It’s worth noting, however, that Quinn Emanuel currently does not offer UK training contracts, meaning today’s rise could be seen as a tactic to lure top qualifying talent from rivals through its doors.

Quinn Emanuel confirmed rises further up the ladder as well. 1PQE associates will now earn £195,000, up from £160,000, while those with 2PQE will receive £220,000. The rises take effect on 1 June.

You can view the increases in full below:

Alex Gerbi, Quinn Emanuel’s London co-managing partner, said:

“We are very pleased to be able to reward our outstanding lawyers for the contribution they make daily to the success of our practice in London, and we are also committed to continuing to attract the very best new talent as we pursue our strategy for further growth. With that in mind, we have decided to implement material increases to our associate salaries with effect from 1 June, taking our starting salary at the NQ level to £180,000 and stepping up substantially from there as seniority increases. We believe there is no better home than our firm for the brightest and best disputes lawyers, and this decision aligns our salaries with the opportunities we offer them.”

The Legal Cheek Firms Most List shows that Quinn Emanuel’s salary increase sees it draw level with fellow US outfit Gibson Dunn, which upped NQ pay to £180,000 back in February.

£165k for 5PQE

US law firm Katten Muchin Rosenman has raised pay for its London newly qualified (NQ) lawyers to £115,000.

A 6.5% increase from the previous figure of £108,000, the outfit now moves ahead of Travers Smith and K&L Gates on £110,000 to draw level with Ashurst and Macfarlanes.

The firm has also confirmed raises for those further up the ladder. Lawyers with one, two and three years post qualification experience (PQE) will now earn £125,000, £135,000 and £145,000 respectively, while those with four will receive £155,000. Those at 5PQE are now on £165,000.

Each year the outfit offer its three trainees £50,000 in year one of their training contract, rising to £55,000 in year two. The most recent qualifying cohort were all retained by the firm

Earlier this month Norton Rose Fulbright raised its NQ pay up to £120,000, with US outfit Gibson Dunn also increasing its pay to take the crown for highest NQ salary with a whopping £180,000.

Up 10%

US law firm Fried Frank has entered the London pay war with an improved salary of £175,000 for its newly qualified (NQ) associates.

The New York headquartered outfit has moved the already hefty pay packets of its NQs to a dollar-pegged £175,000, a rise of nearly 10% or £15,000 from £160,000.

The Legal Cheek Firms Most 2024 shows this fresh increase puts Fried Frank near the very top of the NQ pay table, with only Akin and Milbank offering slightly more (roughly £177,500).

Fried Frank recruits just four UK trainees each year on a starting salary of £55,000, rising to £60,000 in year two.

A raft of firms have increased pay for their juniors lawyers in recent weeks. As reported by Legal Cheek, Paul Hastings and Ropes & Gray moved to £173,000 and £165,000 respectively, while fellow US player Weil raised to £170,000. Elsewhere, White & Case, which offers 50 training contracts each year, confirmed increases for both trainees and NQs with the latter now earning salaries of £150,000.

Up 7%

The London office of White & Case has increased the salaries of its most junior lawyers.

The firm has upped pay for newly qualified (NQ) associates by 7%, from £140,000 to £150,000. It has also bumped trainee pay to £56,000 in year one (previously £52,000) and £61,000 in year two (previously £57,000).

The Legal Cheek Firms Most List 2024 shows White & Case offers around 50 training contracts each year.

Those further up the ladder have also seen their salaries increase. Associates with one year’s post qualification experience (PQE) will move from £147,500 to £158,500, while those at 2PQE now earn £171,000, up from £160,000.

A spokesperson for White & Case told Legal Cheek:

“White & Case is established as an elite global firm offering highly attractive careers to ambitious and talented lawyers. Our teams in London advise leading global clients on their most important, complex, cross-border deals and disputes, and our people enjoy promotion opportunities and the benefits of the wide range of strong practices we have built in the City. Following discussions with partners, we are increasing legal salaries in London, including for trainees. The salary increases, effective from 1 January 2024, are another demonstration of our position as a leading law firm globally and in the City.”

Elsewhere, Sidley has moved rates for newly qualified (NQ) associates from £159,500 to £166,500. The firm recruits around 15 trainees each year on a starting salary of £55,000, which rises to £60,000 in year two.

A number of US headquartered outfits have upped pay in recent weeks.

Juniors at Paul Hastings will now earn a hefty £173,000 thanks to an adjustment to its $ to £ exchange rate, while Willkie Farr increased to £165,000 and Weil Gotshal move to £170,000. Other firms to bump salaries in recent weeks include Davis Polk and Cleary Gottlieb, jumping to £170,000 and £164,500, respectively.

More money moves

Paul Hastings and Ropes & Gray has raised the salaries of their newly qualified (NQ) lawyers in London to £173,000 and £165,000 respectively.

For Paul Hastings, this marks a 5% increase from the previous pay packet of £164,000, and results from a change in conversion rate from £1 = US$1.31 to £1 = $1.3.

The Legal Cheek Firms Most List shows that Paul Hastings take on 12 trainees each year, offering a healthy £55,000 in year one, and £60,000 in year two.

Meanwhile, Ropes’ increase equates to an extra 12% with rates previously sitting at £147,000. The new £165,000 salary excludes bonus and is effective of 1 January.

The firm has also raised its London trainee salaries to £60,000 in year one (up from £57,500) and £65,000 in year two (up from £62,500). It offers around 12 training contracts each year.

This is the latest raise in a new pay war ignited by top US player Cravath Swaine & Moore last year, which has seen fellow US outfits Milbank and Akin up their London NQ rates to $225,000 (approximately £177,500).

Latest City rise

US outfit Weil Gotshal & Manges has raised the salaries for newly qualified (NQ) lawyers in its London office.

The firm, which bumped pay last year to from £160,000 to £165,000, has upped their compensation again to £170,000.

This puts it amongst the highest paying firms in the City, matching a recent raise made by Davis Polk (£170,000) and overtaking increases made by fellow US players Willkie Farr (£165,000) and Cleary Gottlieb (£164,500).

The Legal Cheek Firms Most List 2024 shows that the firm takes on 15 trainees per year, and hands out a healthy salary of £60,000 and £65,000 during the training contract.