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).

37 of 43 and 36 of 43

Freshfields and Slaughter and May have posted strong autumn trainee retention scores of 86% and 84% respectively.

This makes Freshfields the top performer within the Magic Circle so far, keeping on 37 of its 43 qualifying trainees. All rookies who were offered a role accepted it.

Slaughters comes in at a close second, retaining just one fewer with 36 out of 43 trainees. The firm confirmed to Legal Cheek that all NQ solicitors have been retained on permanent contracts.

Earlier this week Clifford Chance announced that it was keeping on 75% of its trainees (42 of 56), with A&O Shearman earlier recording a retention rate of 66% (37 of 56).

Linklaters is the only Magic Circle firm not to have released its retention figures so far.

Whilst Freshfields’ retention has stayed relatively level across this year, posting an 84% score for its spring qualifying cohort, Slaughters’ score had dropped slightly, falling from a very impressive 95% spring score.

Speaking on the latest retention figure, Craig Montgomery, partner and training principal at Freshfields, said:

“We are thrilled that many of our trainees are choosing to advance their careers at Freshfields and their exceptional skills and dedication during the Trainee Associate Programme have been impressive. Our commitment to their development reflects our belief in fostering a strong, diverse workforce for the future and is a vital part of our strategy to cultivate a dynamic and forward-thinking global firm.”

Earlier this year Freshfields raised NQ pay to a new high of £150,000, with Clifford Chance, Linklaters and A&O Shearman all swiftly following.

Slaughters is the only Magic Circle firm to have kept its NQ salary at £125,000 so far, although it has raised trainee pay in line with its Magic Circle rivals.

Hill Dickinson and CRS post strong numbers too

The trend of law firms posting positive financial results continues, as both Ashurst and Clyde & Co report an increase in partner profits.

Revenue at Ashurst climbed 9% to £961 million in the financial year 2023-24, marking its eighth consecutive year of growth. Profits per equity partner (PEP) increased by a robust 14% to £1.33 million, surpassing the previous record of £1.17 million.

The Silver Circe player reported strong performance across all regions, with the UK, US and Middle East achieving double-digit revenue growth of 13%, 18%, and 17%, respectively.

“These results reflect the focus and commitment of our people, the trust of our clients and the successful execution of our 2027 Strategy,” Ashurst global CEO Paul Jenkins said. “We are centred on our priority industries, practice areas and markets, combined with the delivery of integrated solutions that bring together teams across legal and consulting services with our NewLaw capability.”

“This is a trajectory that really works for our business and is bearing fruit for our clients,” Jenkins continued. “Pleasingly, we are budgeting to have our first year of revenue above £1 billion in our financial year ending 30 April 2025.”

Meanwhile, UK headquartered Clydes also recorded positive numbers, with revenue climbing 10% to £845 million, marking its 26th consecutive year of growth. Profits at the firm increased by 3% to £174.4 million, while PEP rose by a little over 4% to £739,000, up from £708,000 the previous year.

This marks the firm’s second set of financial results since swallowing up insurance law specialist BLM, in a move which added some 600 lawyers to its ranks.

“Our growth this year was driven in large part by our underlying business, which benefited from strong client demand for our services across our disciplines and geographies,” commented Matthew Kelsall, Clydes’ CEO. “In the past year we have continued to invest in modernisation and made several strategic hires in energy, renewables, regulatory, finance and commercial disputes, a trend that will continue as we seek to maintain a balance across our sectors and practices.”

Elsewhere, Hill Dickinson, a global law firm based in Liverpool, saw its revenues increase by 9%, reaching £141.3 million from £129.6 million. Net profits exceeded £50 million, pending an audit.

The shipping law specialist didn’t provide a PEP figure.

The firm reported that its three main practice areas — business services, healthcare and marine — met their targets last year, with business services emerging as the largest division, generating nearly £70 million in revenue.

Finally, Charles Russell Speechlys (CRS) reported a 13% increase in firmwide revenue, reaching £218.3 million. Of this total, £174.4 million was generated in the UK, representing a 12% increase from the previous year.

UK PEP increased significantly by 27%, rising from £521,000 to £661,000. Meanwhile, the firmwide net profit saw an impressive 20.5% jump, reaching £45.9 million.

Managing partner Simon Ridpath said: “Performance and growth outside of the UK also remained strong, with a total international revenue growth of 15%. There were notable contributions from our European offices in Luxembourg, Paris and Switzerland, as well as 30 per cent revenue growth in Asia following numerous lateral hires and the launch of our Singapore office in July last year.”

42 of 56

Clifford Chance has posted an autumn trainee retention score of 75% with 42 of its 56 final-seat trainees staying on with the firm.

The Magic Circle firm said that 54 trainees applied for associate positions, and 44 offers were made. All but two of these offers were accepted.

CC confirmed to Legal Cheek that all 42 soon-to-be associates are on permanent contracts, with no fixed-term arrangements.

Earlier this year the CC posted spring score of 71% after 40 of its 56 spring trainees committing their futures to the firm.

The Legal Cheek Firms Most List 2024 shows that the new recruits will start on recently improved salary of £150,000.

Last week fellow MC player A&O Shearman posted its first post-merger retention score, with 37 of its 56 trainees (66%) staying put.

12 law firms recognised for D&I efforts

A raft of law firms have been recognised for their efforts in promoting diversity and inclusion in the workplace, with Linklaters taking the top spot in Stonewall’s latest rankings.

The top 100 list is created using the charity’s ‘Workplace Equality Index’, a voluntary benchmarking tool that assesses entrants on criteria such as training, staff engagement, policies, and leadership. It also helps organisations identify steps to build a more equitable workplace.

This year, Magic Circle law firm Linklaters secured number one spot, with De Montfort University and HSBC UK taking second and third places, respectively. Links has appeared in the top 100 for six years running and secured ninth position on lat year’s list.

“We’re thrilled to be recognised as the top employer in this year’s Stonewall Top 100 Employers list,” said Angela Ogilvie, Linklaters’ chief HR officer and executive committee LGBTQIA+ champion. “Our people are the key to our success, and this ranking really highlights the inclusive and supportive environment we’ve built.”

“Here, diversity is more than just supported—it’s celebrated, sparking innovation and helping us better serve our clients and our community,” Ogilvie added.

Other law firms on Stonewall’s list, in alphabetical order, are: Charles Russell Speechlys, Clifford Chance, Eversheds Sutherland, Gateley, Irwin Mitchell, Osborne Clarke, Penningtons Manches Cooper, RPC, Shepherd and Wedderburn, Slaughter and May and Womble Bond Dickinson.

The profession’s regulator, the SRA, also made this year’s list, which you can view in full here.

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.

Shoosmiths, WFW and Brabners

Another round of financial results have been released, with Shoosmiths, Watson Farley & Williams (WFW), and Brabners all posting positive figures.

Shoosmiths has seen a strong 2023-24 financial year with revenue climbing 6% to cross the £200 million threshold for the first time, the new figure clocking in at £206.7 million.

Profits have increased by 5% to £66 million, while profit per equity partner (PEP) has risen significantly by 16%, from £676,000 to £781,000.

Over at WFW the numbers are equally positive, with global income rising 11% to £238.4 million. The firm’s profit increased by 7.2%, reaching £66.8 million, while PEP rose by only 1.5% to £593,000. This slower growth in PEP could be attributed to the firm’s 5.7% increase in partnerships over the past year.

Commenting on her firm’s performance, WFW managing partner Lindsey Keeble said:

“We continue to build on the successes of previous years with double digit global income growth. With a majority equity partnership, we continue to invest in the firm to build a sustainable business with strength and depth at all levels.”

Elsewhere, Brabners’ revenues reached £55.6 million in the last financial year, subject to audit. This marks an 18% increase from £47.1 million. The firm didn’t publish a PEP figure.

The latest results continue the positive financial trend seen in both City and national law firms. Linklaters crossed the £2 billion revenue mark for the first time in its history, whilst the likes of Osborne Clarke, Weightmans, HFW, and Kennedys have all enjoyed double digit growth.

Advice needed

In the latest instalment of our Career Conundrums series a 30-something aspiring solicitor is seeking a career change from marketing to City law.

“I work in a marketing role in the finance sector, and whilst I once enjoyed my work I’ve recently turned 30 and looking to make the move into law — a move I’ve been considering for a couple of years now. I studied law at Oxford and fell into the world of marketing post-university. Would firms take me seriously? Are there some firms/types of firms that are more or less open to older applicants or those with previous careers? Please keep me anon. Thanks.”

If you have a career conundrum, email us at tips@legalcheek.com.

With MC outfit just two months before resigning

A former associate at Clifford Chance has been sanctioned by the regulator for allegedly engaging in “inappropriate” behaviour towards a colleague during a firm social event.

Jacobus Johannes Swart, who worked as an associate in the firm’s London office for two months between January and March 2022, “engaged in conduct towards a colleague that was inappropriate, unwanted, and/or sexually motivated,” according to a finding published by the Solicitors Regulation Authority (SRA).

CC launched an investigation and suspended Swart, but he resigned from the firm before a disciplinary hearing could take place. The firm subsequently reported the matter to the regulator.

The SRA report reveals that Swart is a South African lawyer who is not a qualified solicitor in England and Wales, nor a registered foreign lawyer. No current address is on record for him, and it’s believed that he may have moved back to South Africa.

The regulator has now made Swart subject to a section 43 order which prevents him from working for a law firm in England and Wales without its approval.

In reaching its decision, the regulator said: “Mr Swart’s conduct was serious because during a work event he touched a colleague in an inappropriate and/or unwanted and/or sexually motivated manner without consent, causing them distress. His behaviour had a long term impact on them.”

In a statement, Clifford Chance said: “We can confirm that Jacobus Johannes Swart was employed as an associate by Clifford Chance from January 2022 to March 2022, after which point he was no longer an employee.”

Rise of 19%

Partners at Allen & Overy enjoyed an uplift of 19% in their average earnings in the financial year before the tie-up with Shearman & Sterling.

A&O Shearman released new figures today regarding A&O’s financial performance prior to the mega-merger going live earlier this year.

They show that the average profit per equity partner (PEP) increased from £1.8 million to £2.2 million, thanks to a healthy 17.2% rise in pre-tax profits, reaching £1.05 billion.

Revenues increased a more modest 3.4% from just over £2.1 billion to £2.2 billion.

Commenting on the results, Hervé Ekué, global managing partner at A&O Shearman, said:

“In the year leading up to the completion of our merger, we’re pleased to report positive growth for the firm. This is testament to our strategic focus on diversification across regions, practices, and sectors.”

The results come after A&O Shearman initially set newly qualified (NQ) associate pay at £125,000, before upping this to £150,000 a month later following similar moves by its Magic Circle counterparts.

Earlier this week the newly-formed firm posted its combined retention score, with 37 its of 56 (66%) final-seat trainees staying on.

Fellow Magic Circle player Linklaters published its results this week, reporting a 10% increase in revenues, surpassing the £2 billion mark for the first time in its history. PEP also saw growth, climbing 8% up to £1.9 million.

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.

Handed two lawyers’ caseloads on second day

A trainee, who was frequently left “unsupervised” and asked to handle the caseloads of two qualified lawyers on her second day, has been awarded £36,000 in damages by an employment tribunal.

The tribunal found that the Mayfair firm Gillen De Alwis Solicitors, which has since entered into administration, “failed to fulfil the fundamental purpose of a training contract”.

It heard that R. Kaur joined the firm in the summer of 2021 and, two days in, was given the “caseload responsibility” of two temporarily employed qualified lawyers, following an email handover.

The tribunal noted that shortly before Kaur joined, the property department became short staffed due to the passing of the solicitor in charge.

This situation seems to have put the department under serious pressure, with Kaur explaining that she and an intern were left to their “own devices at times” and frequently “unsupervised”, often approving documents without them being checked.

It was also noted that less than two weeks into her TC, the trainee had still not received an induction, and evidence showed that one of the firm’s founding partners, Shehani De Alwis, had “made comments that her contract would be in jeopardy” if certain tasks weren’t completed immediately.

Kaur said it was “common place” for clients to complain about lack of progress on their files.

The tribunal noted that another director of the firm emailed the same founding partner, expressing concern about the “threats to terminate her contract” and describing the treatment of the new trainee as “unfair”.

The tribunal further found that De Alwis “bullied and harassed” Ms Kaur, criticising her for not completing tasks she had actually finished, which De Alwis hadn’t noticed due to not reading the emails, and at one point, screaming at her on the telephone. The trainee was also taken off tasks and then shortly put back on them, and she was moved into different departments without notice.

Kaur raised her concerns in meetings and emails about the way the firm was being run and how she was being treated on numerous occasions, but received no response.

The trainee eventually filed a written report to the Solicitors Regulation Authority (SRA), a move she mentioned to the firm she was considering but did not confirm she had done.

In April 2022, the firm summarily dismissed Kaur, less than halfway through her training contract.

On this, Judge Leonard-Johnston dismissed the firm’s argument that the trainee was fired for misconduct.

“I have already found that the claimant was not guilty of misconduct, and I place weight on the fact that the respondent, who was after all a firm of solicitors, carried out no investigation or disciplinary procedure at all from which I draw an inference that the respondent did not seriously consider this to be a misconduct case,” the judge said. “Nor did the respondent respond in any way to the claimant’s grievances. As per my findings above, particularly in relation to the timing of her dismissal, I find that the claimant has established it is more likely than not that the reason for her dismissal was the complaints she was making about the firm’s management.”

The judge awarded Kaur over £36,062 for unfair dismissal and an additional £362 for breach of contract after the firm dismissed her without notice.

‘Cockney Kit’ launch

Eversheds Sutherland‘s London office has appeared in a new launch video for West Ham United’s latest football kit.

The Hammers’ new away offering, dubbed the ‘Cockney Kit’, is inspired by the club’s East End roots and features a graphic representation of St Mary-le-Bow Church woven into the fabric.

Legend has it that to be a true Cockney, you must be born within earshot of the Church’s ‘Bow Bells’. The shirt features a motif of this East London icon on its neck.

Step forward Eversheds Sutherland’s London HQ, where the rooftop offers unobstructed skyline views of the historic church.

The launch video, released this week, features many of the club’s famous faces posing in the new kit on Eversheds Sutherland’s roof, and even the firm’s star man, co-CEO Lee Ranson, couldn’t resist getting in on the action.

Is a summer move on the cards?

66%

A&O Shearman has recorded its first post-merger retention score, with 37 of its 56 trainees staying put.

The new outfit confirmed it made 39 offers to the 48 trainees who applied for newly qualified roles. Thirty-seven offers were accepted, all on permanent deals.

Before the tie-up, Allen & Overy offered significantly more training contracts than Shearman, with 80 each year compared to Shearman’s 12.

Combining the trainee intakes of both firms has resulted in a larger-than-usual qualifying cohort, making the lower score — in this case 66% — somewhat expected.

Both outfits were typically strong retention performers prior to the merger, with A&O posting a result of 77% earlier this year and Shearman regularly chalking up results of over 80%.

The firms officially joined forces on May 1, creating a new global mega-firm with nearly 4,000 lawyers across 48 offices in 29 countries and combined annual revenues of approximately $3.5 billion (£2.9 billion).

James Partridge, early careers partner and training principal London, commented:

“This is the first qualifying cohort of A&O Shearman, and we are pleased that 37 trainees from both legacy firms have chosen to remain and progress their careers with us at this exciting time for the firm.”

“At A&O Shearman we remain committed to investing and developing our people and extend our congratulations to our first combined intake of qualifying solicitors,” Partridge continued.

The Legal Cheek Firms Most List shows the new recruits will start on a recently-improved salary £150,000.

Chloe Hayes, a trainee solicitor in BPP’s Social Impact Team, discusses her pioneering QWE route to becoming a solicitor

“I’m originally from South Africa and began my law degree there. After about three months, I realised I wanted to move countries, so I started again at Durham University, pursuing an LLB,” explains Chloe Hayes. Having successfully completed the SQE1 and SQE2 exams last year, she is now three and a half months into her role as a trainee solicitor at the housing clinic in BPP’s Social Impact Team—and loving it.

“Two months in, my supervisor told me we had a case in the county court and that I should represent the client — submissions, cross-examinations, the works,” she tells Legal Cheek Careers. She enjoys this fast-paced, hit-the-ground-running aspect of the clinic. “There is so much demand for our work, representing clients from lower socio-economic backgrounds who would otherwise be unable to access justice. Being thrown into the deep end has its advantages,” Hayes says. She notes that her supervising solicitor is incredibly supportive, but having to handle things independently after the initial guidance has been instrumental in demystifying the court process. “It’s not as scary as I once thought, and I now love litigation!” she says.

Hayes is one of five BPP alumni who are employed each year in paid six-month QWE placements in the university’s Social Impact Team. Recounting how she came to spend time in the housing clinic, Hayes explains that she initially volunteered at BPP’s Legal Advice Clinic while studying for the SQE, always being drawn to social welfare law and closing the access to justice gap that so many people, but especially women, face. Her current work perfectly complements these aspirations. “We only advise tenants, usually against councils — never landlords. Our clients are usually from low socio-economic backgrounds, who do not qualify for legal aid mostly due to government cuts so they come to us to close that gap, and our services are completely free,” explains Hayes. In addition to the housing clinic, there are also a family clinic, an enterprise clinic, a consumer clinic, and a welfare clinic.

“As for a typical day, it varies a lot,” Hayes tells us. A client interview, followed by research on the issue and sending out an advice letter, are typical tasks. She also assists clients in litigation, sometimes representing them before the county court and tribunals. “This involves a lot of statements of case, submissions, replies, witness statements, and evidence collection—it’s brilliant experience,” she notes enthusiastically.

Hayes also flags a pro bono project called Streetlaw, where BPP’s trainee lawyers visit schools, women’s refuge centres, homeless shelters, and many other community groups to educate on certain aspects of the law. They also visit prisons to educate prison communities on matters such as probation and how a criminal record might legally affect their lives after prison. . “Just last week, we did a ‘Goldilocks session’ with a class of 10-year-olds, teaching them about the criminal justice system by putting Goldilocks on trial for burglary and criminal damage — it was fabulous,” she recounts, smiling.

We then asked Hayes what the most rewarding aspect of her time in the housing clinic has been so far. “Representing a client for the first time in the county court, definitely.  Naturally, it’s very daunting, but the judge was so nice, and you realise that it’s not about having a fight. Rather, the end goal is to find an equitable solution while still advocating for your client’s needs,” Hayes points out.

On the flip side, the most challenging aspect of her time at the clinic has been time management. “The clinic is so oversubscribed because there are so many people who need the help we offer. Initially, I tried to do as much work as possible, and it took me a  few weeks to figure out how to communicate well with my supervisor.   At first, I struggled to let him know when I was snowed under. But once I communicated that, he was very understanding and worked with me to plan out upcoming deadlines,” she says. Hayes notes that as trainees, there is often an eagerness to please supervisors by taking everything on, but stepping back and communicating when you’re overwhelmed is crucial and very normal.

Having figured out how communication and time management go hand-in-hand, what’s been Hayes’ biggest takeaway from the clinic during her first three months? “This is going to sound so cheesy,” she cautions, laughing, “but it’s that I’ve realised that I was born to do this job!” She explains that a key worry she had was starting to train as a solicitor and realising that the role wasn’t quite what she expected or enjoyed, after having invested significant amounts of time, money and effort into completing a degree and the SQE. “Luckily for me, that hasn’t been the case. Even on the bad days, I really do feel that I love this job,” she says.

Hayes is now just over halfway through her six-month period of Qualifying Work Experience (QWE) in BPP’s Social Impact Team. Under the Solicitors Qualifying Examination (SQE) regime, aspiring lawyers are able to qualify by accruing two years’ worth of QWE in up to four different organisations. This introduces greater flexibility into the qualification process by opening up additional avenues alongside the traditional training contract route. Hayes plans to seek further opportunities in a range of practice areas following completion of her QWE in the housing clinic, to stay on track to qualify in 2026.

To finish up our conversation, Hayes offers some practical tips to stay on top of recording QWE. “Keep a weekly record of what you do – you’ll need two years’ worth of records when you apply to be admitted to the roll of solicitors. Even on a weekly basis it can sometimes be difficult to remember every task you’ve worked on if you haven’t actually written it down, and you will be working on a lot– so really make sure you’re diligent about recording, because if not, you’d be shooting yourself in the foot when it comes to getting the QWE signed off at the end of the two-year period,” she advises.

Chloe Hayes will be speaking at ‘How to get Qualifying Work Experience — with BPP University Law School’, a virtual student event taking place this Thursday (11 July). Apply now to attend.

About Legal Cheek Careers posts.

Better but still not great

BCLP has released the retention rate for its September 2024 qualifiers, with 11 of the 19 trainees staying on.

This equates to 58% of the most recent UK cohort, with the global retention marginally lower at 57% (12 out of 21).

Whilst this isn’t a particularly strong figure, it is a significant increase from the 29% (4 out of 14) retained in the spring. The firm expects this trajectory to continue, with a spokesperson stating: “We remain committed to making further progress with our retention efforts and acknowledge there is still more work to do here.”

BCLP has faced challenging market conditions in recent years with the commercial real estate sector, one of its key specialisms, suffering. The firm has also lost a number of Russian clients since sanctions were applied after the invasion Ukraine.

A spokesperson for the firm added:

“We are pleased that one of our qualifiers is our first Solicitor Apprentice to qualify through the apprenticeship route for the firm. We are actively supporting our remaining trainees to find alternative roles, with many in the final stages of that process. We wish all our qualifiers all the best in their future legal careers.”

The Legal Cheek Firms Most List shows that BCLP take on around 35 trainees each year, with London recruits receiving £50,000 in year one, £55,000 in year two, and £105,000 upon qualification.

Those joining the Manchester office can expect a first year salary of £33,000, rising to £37,000 in their second year and £67,000 upon qualification.

5% across the board

International firm Osborne Clarke has handed bonuses out across the firm after a bumper financial performance.

The profit share, which hands all UK members 5% of their annual salary, follows financial results that saw UK net profits increase by 14% to £84.8m, with Profit per equity partner (PEP) increasing 11% to £771,000.

The bonus was paid out to staff in June, with a pro-rata adjustment for new starters. The minimum payment was fixed at £2,000.

The payout notably includes all trainees, newly qualified and junior lawyers. Whilst the firm’s newest batch of trainees will, subject to start dates, have taken home anywhere from £2,000 up towards £2,750, NQ lawyers at the firm’s London office will have bagged as much as £4,500 for their contributions.

Those further up the ladder will also be pleased to hear that the firm had its biggest round of partner promotions in the last decade, with 11 new UK partners. This comes alongside a bonus scheme which will see “high performers” receive bonuses of up to 40%, paid over three years.

This year’s financial results season is off to a strong start across the board. Weightmans has reported its most successful year to date, taking income up 12% to above £140 million, with HFW pushing its turnover over £250 million, an 11% boost.

International firm Kennedys has also reported a record year of growth, clocking a revenue of £384 million, a 17% increase on last year.

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.