McDermott hikes UK lawyers' pay by 12%
By Georgina Stanley
December 07, 2006 at 07:03 PM
2 minute read
McDermott Will & Emery has become the latest US firm to raise its rates for UK associates.
From 1 January newly-qualified solicitors will enjoy a 12.5% increase in base salary as pay for the office's most junior lawyers rises from £60,000 to £67,500.
Salary bands have been increased at all levels with the most senior associates set to pocket between £140,000 and £150,000.
It is thought that the office's assistants will also be enjoying increases in their annual bonus.
The salary hike follows the news revealed by Legal Week earlier this week (5 December) that Jones Day's London arm has unveiled a 17% increase in its newly-qualified salary (see story).
From January 2007, a newly-qualified solicitor at the US firm's City arm will receive £70,000, up from the present rate of £60,000.
The announcement from McDermott is the latest in a series of changes to remuneration for junior lawyers around the City as firms respond to the 15% pay hike handed out by Allen & Overy earlier this year
That increase saw pay for newly-qualified lawyers rise from £55,000 to £63,500, with a new bonus scheme tied to equity partner profits also introduced.
Last month (24 November) SJ Berwin also unveiled a new bonus scheme, giving associates a potential bonus of up to 75% of base salary – although the full sum is dependent on billing 2,500 hours per year in addition to other non-billable contributions
Slaughter and May lifted its newly-qualified salary from £54,000 to £60,000 and introduced a flat-rate bonus payment for junior lawyers of 15% of salary.
However, other magic circle firms have so far refused to match the rises and are expected to leave rates unchanged until May next year. US firms such as Weil Gotshal & Manges and Sidley Austin are expected to increase their associate bonuses at the year end in response to the UK pay rises.
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