Reed Smith opts against associate salary hikes, holding rates steady in all offices
US firm decides against matching rivals after "considering interests of clients"
June 19, 2018 at 12:05 PM
2 minute read
The original version of this story was published on Law.com
Reed Smith has opted not to increase associate pay in any of its global offices, despite a host of US firms confirming salaries rises in response to moves by Milbank Tweed and Cravath Swaine & Moore.
Reed Smith partner and global head of legal personnel, Casey Ryan, confirmed in a statement that, while the firm will continue to monitor the market, it "has no current plans to increase associate starting salaries in any location".
Ryan said in her statement that the decision was based on "the interests of clients".
Reed Smith's announcement comes as Kirkland confirmed it would match Cravath's rates in the UK as well as the US, while Quinn matched the rates in the US but opted for a smaller rise in the UK.
Cravath, which normally kickstarts the associate salary race in the US, last week topped rates set earlier in June by first-mover Milbank Tweed Hadley & McCloy by matching its junior associate pay, but bettering Milbank's rates for mid-level and more senior associates by $5,000-$10,000.
In the US, other firms to have matched Cravath's payscale include Clifford Chance, Cleary Gottlieb Steen & Hamilton, Kirkland & Ellis, Ropes & Gray, Skadden Arps Slate Meagher & Flom, Willkie Farr & Gallagher, Davis Polk & Wardwell, Paul Weiss Rifkind Wharton & Garrison and Sullivan & Cromwell.
Meanwhile, Freshfields Bruckhaus Deringer confirmed on Monday (18 June) that it would match Cravath's rates across its US offices.
Reed Smith's decision to freeze salary rates at last year's level – but not halt associates' progression – follows its recent efforts to broaden opportunities for its associates. These include introducing a new app-based feedback process, as well as opportunities to temporarily work in different offices around the globe.
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