Allen & Overy Cuts NQ Pay by 10% in Response to Pandemic
The firm has followed Slaughter and May in reversing last year's London pay war rise.
June 22, 2020 at 05:01 AM
2 minute read
Photo: Diego M. Radzinschi/ALM
Allen & Overy has reduced its newly-qualified (NQ) lawyers' salaries by 10% in a bid to curb the impact of COVID-19, the firm said in a statement on Monday.
The decrease to £90,000 marks a reversal of the pay war among top U.K. firms in recent years.
Last year, A&O had bumped its NQ pay from £83,000 the previous year to £100,000 in a bid to retain young talent in the NQ pay war triggered by Freshfields Bruckhaus Deringer.
A spokesperson at the firm said in a statement: "Due to the ongoing Covid-19 pandemic, and in line with measures we have introduced across the firm in response to it, we have made the decision that lawyers qualifying in September 2020 will receive a minimum total cash of £90,000, comprised of salary and a sign-on bonus.
"We would like to take this opportunity to recognise that this is a time of great concern for students wondering what the future will hold for them and to state that we have not reduced recruitment levels for the next generation of Allen & Overy lawyers."
This is the latest COVID-19 preemptive measure the firm has put in place this year, after it decided to hold a cash call, freeze associate pay and cut partner pay-outs in March.
The move follows that of rival Slaughter and May, which also cut NQ salaries by £5,000 to £87,000 due to the coronavirus crisis last month.
Read more:
Lawyers Fear Billing Delays, Bonus Drops and Job Cuts Amid Virus Panic
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