Paywars III – City elite caught between rock and hard place

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Paywars III – City elite caught between rock and hard place

The news last month that Freshfields Bruckhaus Deringer was to push through the highest real-terms pay rises by a major City firm for a decade is a significant moment for the London legal market.

The decision to hike its associate pay scale, raising its benchmark rate for newly-qualified solicitors from £85,000 to £100,000 is a bold and expensive step for the City giant. Back-of-the-envelope calculations suggest such a move, which will put Freshfields well ahead of its Magic Circle peers, comes at an annual cost in the region of £10m. Continue reading “Paywars III – City elite caught between rock and hard place”

CC follows Freshfields with £100k package for junior lawyers as pay war with US rivals intensifies

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CC follows Freshfields with £100k package for junior lawyers as pay war with US rivals intensifies

Clifford Chance (CC) has become the second Magic Circle law firm to raise the starting pay for its associates to £100,000, a month after City rival Freshfields Bruckhaus Deringer announced a similar increase.

In a move signalling the widening impact of the pressure for talent from US firms on the City elite, CC has raised its compensation for newly qualified (NQ) solicitors from £91,000 including bonuses. Continue reading “CC follows Freshfields with £100k package for junior lawyers as pay war with US rivals intensifies”

City paywars: a history lesson – Freshfields hikes hark back to era of Magic Circle domination

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City paywars: a history lesson – Freshfields hikes hark back to era of Magic Circle domination

The news this week that Freshfields Bruckhaus Deringer was to push through the highest real-terms pay rises by a major City firm for a decade is a significant moment for the London legal market.

The decision to hike its associate pay scale, raising its benchmark rate for newly-qualified solicitors from £85,000 to £100,000 is a bold and expensive step for the City giant. Back-of-the-envelope calculations suggest such a move, which will put Freshfields well ahead of its Magic Circle peers, comes at an annual cost of more than £10m. Continue reading “City paywars: a history lesson – Freshfields hikes hark back to era of Magic Circle domination”

Shades of 2007: Freshfields sends NQ salaries soaring above £100k to head off talent threat from US rivals

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Shades of 2007: Freshfields sends NQ salaries soaring above £100k to head off talent threat from US rivals

Freshfields Bruckhaus Deringer is fighting the war for talent by becoming the first Magic Circle firm to raise its pay for newly-qualified (NQ) solicitors to £100,000.

The £15,000 salary uptick is symbolic, given the pressures imposed on the City elite by US competitors in recent years. There will also be a discretionary bonus on top of the new NQ salary. Continue reading “Shades of 2007: Freshfields sends NQ salaries soaring above £100k to head off talent threat from US rivals”

Bar Council seeks further PC fee hike as new figures uncover the millionaire barristers

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In a move unlikely to inspire mirth from Middle Temple, the Bar Council is seeking to establish new top-tier pay grades for the practising certificate fee (PCF).

As set out in a recent consultation, the Bar Council wants to introduce two new payment bands: Band 7 and Band 8, for high-earning barristers. Continue reading “Bar Council seeks further PC fee hike as new figures uncover the millionaire barristers”

Linklaters sets sights on future talent as it raises trainee and NQ salaries for second time

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Linklaters sets sights on future talent as it raises trainee and NQ salaries for second time

Linklaters has announced the second increase in its trainee and newly qualified (NQ) salaries this year, with the latter now bringing home £83,000 in basic pay.

NQs have seen their basic pay increase by £2,000 since the firm last increased its rates in May, while trainees in year one have become the highest paid in the Magic Circle after remuneration rose by £3,000 to £47,000. Second-year trainees have seen salaries grow by £3,500 to £52,500. Continue reading “Linklaters sets sights on future talent as it raises trainee and NQ salaries for second time”

Different origins, same excuses: Kirkland, Bakers, Weil Gotshal and Mayer Brown reveal UK gender pay gap stats

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Different origins, same excuses: Kirkland, Bakers, Weil Gotshal and Mayer Brown reveal UK gender pay gap stats

US-based firms Kirkland & Ellis, Baker McKenzie, Weil Gotshal & Manges and Mayer Brown have revealed the gulf between male and female pay for their staff in the UK, with all four firms blaming fewer senior women employees for the significant disparity between genders.

As per previous disclosures from UK-based firms, all cite the preponderance of females in secretarial roles or fewer females in senior roles as the root cause of the disparity. But unlike some of the UK firms that have come under pressure for full disclosure lately, none of the firms disclosed gender pay gap for partner pay. Continue reading “Different origins, same excuses: Kirkland, Bakers, Weil Gotshal and Mayer Brown reveal UK gender pay gap stats”

Upping the ante: City Law feels pressure on transparency as Big Four includes partners in gender pay stats

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Upping the ante: City Law feels pressure on transparency as Big Four includes partners in gender pay stats

The Big Four accountancy firms have set a precedent for their legal counterparts by disclosing updated gender pay gap figures that include equity partners.

The result is a substantial increase in the pay gap between men and women, adding pressure on law  firms to follow suit and reveal the disparity in remuneration  at the top. Continue reading “Upping the ante: City Law feels pressure on transparency as Big Four includes partners in gender pay stats”

Progress but still work to do on Bunhill Row as Slaughter and May discloses gender pay disparity

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Slaughter and May has become the latest magic circle firm to reveal a difference in pay between its male and female fee-earners, placing it ahead of Linklaters but behind Allen & Overy for overall gender disparity on pay.

The firm today (14 March) published its statutory disclosures. The numbers reveal Slaughter and May pays male employees almost 55% more in bonuses compared to women. Men also earned 14% more than women on average, with the gap widening to 38.5% when the figures were considered on a median basis. Continue reading “Progress but still work to do on Bunhill Row as Slaughter and May discloses gender pay disparity”

LLP accounts: Clifford Chance leadership team pockets £16m following strong year

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The 13-strong executive leadership team at Clifford Chance (CC) took home £16m for the 2016/17 financial year, according to its latest LLP accounts filed with Companies House.

While the combined remuneration package is up 7% on the previous year, it represents only a slight per head increase on last year’s figure, where the 12-person executive received £15m. The firm’s 2014/15 accounts showed that leadership took home £14m, meaning the figure has increased in £1m increments for the past two years. Continue reading “LLP accounts: Clifford Chance leadership team pockets £16m following strong year”