A carve-out before Christmas – HSF agrees compromise to (largely) unite post-merger partner pay

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It was a long time coming but Herbert Smith Freehills (HSF) has finally agreed a compromise to unite equity partner pay just over a year after the union of Herbert Smith and Australian leader Freehills.

The deal will see the two firms combine their partnerships under a ‘global managed lockstep’, a break from previous attempts to usher in more radical performance-based rewards for the combined partnership.

As Legal Business reported three weeks ago, the firm has decided to allow legacy Freehills some latitude when it comes to how they pay their partners.

Continue reading “A carve-out before Christmas – HSF agrees compromise to (largely) unite post-merger partner pay”

More for most or less for some? Links is latest top firm to sidle towards merit pay

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Even at the top of the market, the slow march towards performance-driven pay for associates continues with Linklaters this week becoming the second top City player to unveil changes to its associate remuneration.

Linklaters is to introduce a performance-based element to salaries for its London-based associates with two years or more post-qualification experience (PQE) as part of what it dubs its ‘Our Deal’ strategy.

The City firm issued a somewhat obtuse statement over the move but the new model, which kicks in from 1 May 2014, is expected to see roughly 10% of pay handed out on the basis of individual merit past the two-year PQE point. An existing bonus scheme remains unchanged.

Continue reading “More for most or less for some? Links is latest top firm to sidle towards merit pay”

RPC abolishes flat-rate salary for newly-qualified solicitors

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City firm to move junior lawyers to structure based on merit and market rates.

RPC has taken the final steps to adopting an entirely merit-driven pay model as it last month announced that it will abolish the traditional flat-rate salary for newly-qualified solicitors (NQs) in the UK and move to a system linked to merit and market rates from September 2014.

In a move said to take into account what is happening in other sectors and the pressures that clients are under to achieve value, the firm will operate a variable pay scale where the strongest NQs entering their careers ‘in the most competitive areas of the profession’, will be eligible to earn salaries above those currently offered by major City firms, a firm statement said. Continue reading “RPC abolishes flat-rate salary for newly-qualified solicitors”

US bonus season: Cravath kicks off by holding bonuses at 2012 levels

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The US bonus season has kick-started with elite New York firm Cravath, Swaine & Moore setting the tone by revealing it will pay its associates the same end-of-year bonuses as 2012, ranging from $10,000 to $60,000.

Lawyers who joined Cravath in September this year will receive a $10,000 bonus on Friday 20 December, identical to last year’s sum. First-year associates will also receive $10,000 while the most senior associates will receive $60,000. Continue reading “US bonus season: Cravath kicks off by holding bonuses at 2012 levels”

On your merit: RPC abolishes flat rate salary for NQs

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City law firm RPC has taken the final steps to adopting an entirely merit driven pay model as it today (19 November) announced that from September 2014 it will abolish the traditional flat rate salary for newly-qualified solicitors (NQs) in the UK, and subsequently move to a system linked to merit and market rates.

In a move said to take into account what is happening in other sectors and the pressures that clients are under to achieve value, the firm will operate a variable pay scale where the strongest NQs entering their careers ‘in the most competitive areas of the profession,’ will be eligible to earn salaries above those currently offered by major City firms, a firm statement said today. Continue reading “On your merit: RPC abolishes flat rate salary for NQs”

NQ retention and pay: Good news for NRF and Bird & Bird but FFW puts 5 trainees on extended contract

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If you see a rabble of trainees at the pub this lunchtime they may well be from Norton Rose Fulbright (NRF), which today (13 August) announced it has increased its newly-qualified (NQ) salary by £1,500 and offered in excess of 90% of its trainees a permanent position.

The newly merged, 3,800-lawyer firm has announced a trainee retention rate of 92% after offering 24 of its 26 trainees a NQ role, up from 89% in its last round in May. It has also increased its NQ salary from £61,500 to £63,000, effective 1 July (and backdated to 1 May this year). First and second year trainees will remain constant at £38,000 and £43,000 respectively. Continue reading “NQ retention and pay: Good news for NRF and Bird & Bird but FFW puts 5 trainees on extended contract”

Travers senior lawyers to be paid for interruptions to family life as firm adopts more merit-based model

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Travers Smith has become the latest City firm to overhaul its lockstep for senior associates in a bid to incentivise and reward lawyers for their hard work and interruptions to family life as they approach partnership.

Led by managing partner Andrew Lilley and pensions partner Paul Stannard, a 10-month review has concluded that Travers should continue to operate a strict lockstep for junior and mid-level associates, under which they receive an annual bonus at the end of the year. However, a new, more merit-based system will now be introduced for senior lawyers, including an additional one-off payment for those that have experienced disruption in their personal lives and increased flexibility from the lockstep structure for associates with six years’ post qualification experience (PQE). Continue reading “Travers senior lawyers to be paid for interruptions to family life as firm adopts more merit-based model”

Nabarro points to bonus and high performance uplift as it freezes junior lawyers pay

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Nabarro has defended its decision to freeze the salaries of its trainees, newly-qualified (NQ) lawyers and those with one to two years post-qualification experience (PQE), promising that those who shine at any level will receive a 5% increase on their salary and benefit from the firm’s generous bonus scheme. Continue reading “Nabarro points to bonus and high performance uplift as it freezes junior lawyers pay”

CC bumps starting pay to £63,500 with bonuses giving junior associates chance to earn over £100,000

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Despite generally gloomy market conditions there were renewed signs of underlying confidence at top London firms with Clifford Chance (CC) joining its peers today (4 June) in announcing rises in associate and trainee pay and bonuses for the year ahead.

The firm is the last of the Magic Circle to announce pay changes across the board, adding an extra £2,000 to newly-qualified (NQ) lawyers’ pay packets, up to £63,500 from last year’s £61,500, a rise of 3%. Continue reading “CC bumps starting pay to £63,500 with bonuses giving junior associates chance to earn over £100,000”

Magic Circle unveils new pay levels

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Four of the five Magic Circle firms have now revealed their decisions on newly qualified (NQ) and trainee salaries, with decisions pending from the remainder of the top ten City firms.

Freshfields Bruckhaus Deringer so far tops the table for NQs, despite its decision to freeze pay for its career milestone foundation. Junior-banded associates – equivalent to NQ to one-year PQE – will earn between £65,000 and £72,500. The firm’s trainee pay has also been frozen at £39,000 for first-year trainees and £44,000 for second-year trainees.

Continue reading “Magic Circle unveils new pay levels”