Baker McKenzie Cuts London NQ Salaries, Sign-on Bonuses
The firm had only launched the sign-on bonus in 2019, when it unveiled a slew of generous measures for its junior lawyers.
June 30, 2020 at 08:51 AM
2 minute read
Baker McKenzie has cut its newly-qualified lawyers' salaries for the year.
Baker McKenzie has cut its London newly-qualified (NQ) lawyers' salaries in response to COVID-19 disruption, the firm said on Tuesday.
The firm has trimmed NQ rates by £2,500, and scrapped its sign-on bonus for the cohort. It had only introduced the sign-on bonus in 2019 as part of a generous new package for junior lawyers.
The firm's NQ rate was previously a minimum of £95,000 a year, made up of a £90,000 salary and the sign-on bonus worth £5,000, plus a possible performance related bonus.
NQs will now earn £87,500 a year with no sign-on bonus, but are still eligible for performance related bonuses.
A spokesperson for the firm said in a statement: "Each year, we undertake a review to ensure that our NQ package is competitive and aligned with the wider office reward strategy. Having completed this review we will be adjusting our NQ package in line with the market.
"These adjustments have no bearing on the salary of other London employees, which as previously disclosed, have been deferred and will take place later in the year once we have a better understanding of the economic environment and its impact on our business."
The firm will review salaries, including that of NQs, once more at the end of 2020. On Monday, Baker McKenzie announced the global partner promotions of 85 of its lawyers, the firm's largest cohort since 2016.
Baker McKenzie is the latest law firm to decide against raising NQ salaries this year, after a slew of others have sought to make cost savings.
On Monday, Bryan Cave Leighton Paisner (BCLP) announced it had cut its London NQ salaries by 2.5% to £78,000 a year, while Osborne Clarke cut theirs by 7% to £66,030 a year.
Some other firms, such as Linklaters, have decided to hold their NQ pay for the year.
Read More:
Norton Rose Cuts Five People As Osborne Clarke Lowers NQ Pay
Morgan Lewis Holds London NQ Pay as Norton Rose and Paul Hastings Mull Options
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