Magic circle PEP hikes, the associate pay conundrum and more #MeToo - the best of Legal Week last week
The best news interviews and analysis from Legal Week and ALM over the last week
July 10, 2018 at 05:50 AM
3 minute read
The numbers are (mainly) in, and so far they're looking, well, OK – albeit when compared to last year, when numbers were artificially uplifted by currency gains.
Linklaters is now the only magic circle firm still to confirm its 2017-18 results, after Allen & Overy (A&O), Clifford Chance and Freshfields Bruckhaus Deringer posted results that, with the exception of A&O, saw single-digit increases in revenue against double-digit rises in PEP. Results were similar at Ashurst, while HSF is so far the only UK top 20 firm not to see revenue climb year on year.
But, while many firms have seen PEP and profitability growth outpace revenue increases, the same is not true across the board – a factor firms need to take into account when weighing up associate salary rises.
So far all leading UK firms, bar HSF, have stayed silent on the subject of payrises for City associates, despite the fact the pay war is in full flow across the Atlantic, where many of the biggest UK firms have been forced to match Cravath Swaine & Moore's $190,000 benchmark for the most junior US associates.
That even US firms like White & Case have opted to match rates in the US but hold them steady in London is indicative of the more measured approach firms are taking to payrises this year.
Given the impact associate salaries are having on UK firm's profitability levels – according to Smith & Williamson's research – they are wise to be careful.
Other highlights during the past week:
- Magic circle associate alleges sexual assault by partner and slams firm's handling of investigation
- DWF dismisses debt concerns amid claims of bank influence over IPO plans
- Freshfields tops European deal value rankings as activity levels plummet to five-year low
- Top UK law firms rethink stance on relationships at work post #MeToo scrutiny
- Barclays puts hourly billing under spotlight as bank completes final formal panel review
- Allen & Overy launches new consulting business with JPMorgan hire; ups US associate salaries
- Slaughter and May files $2m unpaid fees claim against former client
- 'I am able to be me in the legal world' – a perspective on the 'safety bubble' of City law
- 'Clients now take a direct interest in diversity' – Clifford Chance's LGBTI+ network co-chair on changing attitudes in the City
- Gowling WLG aims to demystify blockchain with free coffee app
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