Shearman freezes most associate pay bands but hikes NQ salaries by 6%
Firm raises basic junior rates and boosts trainee pay by up to 15.4% but associate salary will remain stagnant
May 27, 2015 at 08:57 AM
2 minute read
Shearman & Sterling has frozen the pay bands for most of its associates but increased the rate for newly qualified (NQ) lawyers by 6% and boosted trainee salaries by up to 15.4%.
The changes, which took effect on 1 May 2015, apply to UK lawyers and trainees across the firm.
As part of the freeze, the upper limit of the junior associate pay bracket will remain unchanged at £114,000, after rising 5.5% last year from £108,000.
Meanwhile, mid-level associates – those with between three-and-a-half and six years' post-qualification experience (PQE) – will also continue to earn £115,000 and £145,000, unchanged from last year. Although those levels are a 5.5% increase on 2013′s pay level.
Senior associates with six-and-a-half years' PQE will continue to earn £146,000 and above.
However, the firm did raise pay rates for trainees and its most junior lawyers.
Basic junior associate salaries rose by 6% from £83,000 to £88,000.
First-year trainees will now earn £45,000, a 15.4% increase from last year's rate of £39,000.
While second-year trainees will now receive £50,000, a 13.5% rise from last year's rate of £44,000.
London managing partner Nick Buckworth said: "This move, combined with our career development programme, is part of our strategy to ensure that we attract and retain the top talent in the market."
Earlier this month Linklaters boosted NQ pay by £3,500 to £68,500, while Slaughter and May confirmed in April that its NQ lawyers will see salaries rise by 7.7% to £70,000. In addition, lawyers with one-year PQE at Slaughters will now receive £75,500 – £1,500 more than the £74,000 at Linklaters.
Hogan Lovells has also recently boosted its trainee and NQ pay levels for 2014-15 by as much as 7.7%, with NQ lawyers gaining the steepest increase. The firm has yet to announce its associate pay.
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