The London Law Battle For Legal Talent
In a move that sent further ripples through the London law world, Slaughter and May has joined the fray in the ongoing salary war for junior lawyers, announcing a substantial 20 percent increase in newly-qualified (NQ) associate salaries, boosting the annual pay packet to £150,000, aligning the firm with the other Magic Circle firms.
The firm was to review its pay rates in November, but has brought the review forward, with the new rate effective from 1 September.
The dramatic raise wasn’t made in isolation. Although Slaughter & May have generally kept themselves apart from the Magic Circle firms like Freshfields Bruckhaus Deringer, Linklaters, Clifford Chance, and the newly merged Allen & Overy Shearman Sterling, they have obviously felt the need to keep pay parity with the big firm rivals.
The other big law firms had already upped the ante in May, putting pressure on Slaughter and May to follow suit or risk losing top talent in the ongoing pay wars in the London legal scene.
A spokesperson for Slaughter and May emphasized that the raise was part of a broader review of all associate salaries, reflecting the firm’s commitment to attracting and retaining the best legal minds while maintaining their culture of excellence and collegiality.
Beyond Magic Circle Pay Rises
But the salary arms race doesn’t stop at the Magic Circle. Other City stalwarts are also flexing their financial muscles.
Macfarlanes now offers NQs £140,000, making it the highest-paying UK firm outside the Magic Circle.
Not to be left behind, Herbert Smith Freehills, DLA Piper, and HFW have also boosted their NQ rates to £135,000, £110,000, and £100,000 respectively.
However, even these eye-watering sums pale in comparison to the offerings from major US law firms operating in London.
London law pay rates just continue to escalate.
At the apex of this legal salary pyramid sit Quinn Emanuel and Gibson Dunn, offering an astonishing £180,000 to their NQs. Then Linklaters lifted their pay rates.
Paul Weiss, a new entrant in the UK training contract market, plans to match this figure for its inaugural cohort upon qualification.
Just below this stratospheric level, a group of elite US firms including Akin, Fried Frank, and Milbank are offering £177,500, while Sidley Austin and Goodwin Procter have recently raised their offering to £175,000.
Not far behind, firms like Vinson & Elkins, Kirkland & Ellis, Latham & Watkins, Paul Hastings, Davis Polk, and Weil Gotshal & Manges are offering between £170,000 and £174,000.
This salary war underscores the fierce competition for top legal talent in London, with firms willing to dig deep into their pockets to attract and retain the brightest minds in the industry.
As the battle continues, it remains to be seen how sustainable these astronomical salaries are and what impact they will have on the broader legal market and client fees.
For now, it’s clear that for newly qualified lawyers in London, there’s never been a better time to be at the top of the class.
