Comments on: A&O Shearman follows Magic Circle rivals in upping NQ lawyer salaries to £150k

By: Anon

Anon — Sun, 30 Jun 2024 11:17:13 +0000

In reply to Anon. Source for Skadden at 175k? Last I heard they were still paying 165k…

By: UAE recruiter

UAE recruiter — Thu, 13 Jun 2024 07:52:47 +0000

In reply to Gareth Southgate. Appreciate the response and agree. However, 90% of UAE offices are staffed by expats who have moved from their home countries to work in the UAE. Of course tax means they are paid more, but a significant personal cost has often come from moving. Plus lots of the US firms still pay the same in the UAE as they do in London which means the market is very unbalanced. Would you move to another country for an extra £1,000 a month? The answer from most people would be no, which is why the MC will lose talent if they don't up pay.

By: Gareth Southgate

Gareth Southgate — Tue, 11 Jun 2024 12:45:02 +0000

In reply to UAE recruiter.

The elephant in the room you conveniently don’t mention is tax, which is one of the key reasons pay isn’t raised in the Middle East.

Most of the UAE has extremely low income tax rates (or none at all), which means that although MC UAE lawyers are paid less on paper than their MC London equivalent, they can keep essentially their entire paycheque. Anyone in a London is hit by a 45% income tax rate on 100K+.

If you’re earning 150K at the magic circle in London, post income tax/NI you’re left with a little under 92K.

If you’re earning 100K at (for example) Linklaters Dubai…you can keep it all. If you raised Dubai salaries to match London ones, Dubai lawyers would actually take home far more than their London equivalents!

By: UAE recruiter

UAE recruiter — Sat, 08 Jun 2024 11:38:42 +0000

It is important to note that the pay rise in London hasn’t been the case for offices outside of London. I spoke with a Managing Associate at Linklaters (UAE) who hasn’t received a pay rise and is now being paid the same as an NQ in London. They told me there has been no communication from the partners about pay and that this is causing major discontent in the office with lots of hostility growing as associates feel like they’re being ignored and undervalued.
Lots of US firms are hiring in the UAE at the moment and will no doubt be happy to take the talent from the MC firm’s. Just an insight.

By: Wow

Wow — Wed, 05 Jun 2024 10:44:02 +0000

Bonuses that are six figure? Really?? That’s crazy

By: Yhh boiii

Yhh boiii — Wed, 05 Jun 2024 10:43:04 +0000

Goodwin have recently raised their NQ salaries

By: Larry

Larry — Mon, 03 Jun 2024 14:53:51 +0000

In reply to Associate at proper big firm. This. Salaried partners in London would be on about £130-140k. SA £105-130k.

By: Anon

Anon — Mon, 03 Jun 2024 14:52:05 +0000

In reply to Dispassionate Observer. A lot of the US firms like Skadden, Weil and Goodwin are now 175k for NQ and 340k-350k for senior associates (plus bonuses that are six figures). It’s when you get to senior associate level that the magic circle really get left behind.

By: Anon

Anon — Mon, 03 Jun 2024 14:51:13 +0000

A lot of the US firms like Skadden, Weil and Goodwin are now 175k for NQ and 340k-350k for senior associates (plus bonuses that are six figures). It’s when you get to senior associate level that the magic circle really get left behind.

By: Jim

Jim — Mon, 03 Jun 2024 13:23:19 +0000

In reply to Shout out to. I always wondered how much of it is meant to be "reading between the lines" around all of the mixed messaging in these big firms. When on the one hand you're getting told to take care of your mental health blah blah and on the other if you don't bill 2200+ hours then you're sacked etc. Would it be sensible to suggest that all juniors simply be up front with their supervisors, not beat about the bush and just be like "is this what you want from me??"

By: AOS Associate

AOS Associate — Mon, 03 Jun 2024 13:07:45 +0000

In reply to Oli. As stated above, this just isn't how it works. The Shearman associates transfered over to A&O (now AOS) under TUPE. This means legally the Shearman associates can't and never did take a pay cut. It would have been the incoming Shearman NQs (aka those qualifying in September 2023) that would have been on the lower rate. Suggest you go away and do some research on TUPE

By: A&O Shearman Associate

A&O Shearman Associate — Mon, 03 Jun 2024 13:04:07 +0000

In reply to Dispassionate Observer. All you're saying is that you don't understand how TUPE works? Shearman associates didn't take a pay cut (not legal when employees transfer over). It is any incoming Shearman NQs (aka those qualifying in September 2023) that would have been on the lower rate, but who's to say they will have even been offered an NQ role?

By: Associate at proper big firm

Associate at proper big firm — Mon, 03 Jun 2024 10:50:59 +0000

In reply to Fingers crossed.

A 10 year pqe at those firms will be ecstatic to earn the same as an MC NQ – even some Partners wouldn’t be on that, and that’s including London.

By: Kirkland NQ

Kirkland NQ — Mon, 03 Jun 2024 06:05:56 +0000

In reply to NQ. They're always recruiting new car washers, yes.

By: Associate at proper big firm

Associate at proper big firm — Sun, 02 Jun 2024 17:13:54 +0000

That’s actually more than a DWF Equity Partner in London.

Mind you, an NQ at magic circle will being more money in…

Bantz!

By: Shout out to

Shout out to — Sun, 02 Jun 2024 06:39:33 +0000

Freshfields. The rest of the magic circle has been copying their comp package for ages but this latest move with the pay bumps being swept up the associate lockstep has made a genuine difference. The morale boost at my firm (MC) has been enormous. We should have done this years ago. These firms can afford it and a lot more. Everyone does 1800+ hours with many doing over 2000+ and a few smashing 2500+ in special years. Those that don’t are managed out. You’re not really allowed a quiet year. That means associates are billing millions and taking home a small fraction. Yes, there are bloated business service teams that need to be paid for plus some loss making international offices, but I think things will be slimmed down over the next few years such that it’s all a lot leaner and ever more mean. Looking forward to K&E punching through the £200k mark soon.

By: Slaughtered and Played

Slaughtered and Played — Fri, 31 May 2024 19:37:59 +0000

In reply to Future trainee at a small firm. You could have always applied to a MC there was nothing stopping...

By: Fingers crossed

Fingers crossed — Fri, 31 May 2024 19:34:41 +0000

Do you think this will trickle down to the insurance players? RPC, Clyde & Co, DWF, DACB, Keoghs? Surely an NQ at the MC can’t be earning more or same as a 10 year PQE are these firms?

By: Entitled Law Student

Entitled Law Student — Fri, 31 May 2024 17:32:34 +0000

In reply to Dispassionate Observer. Hardly 'desperation'? I don't think any of the other MC firms, bar Freshfields, wanted to make an increase, but market dynamics forced their hand.

By: Cx

Cx — Fri, 31 May 2024 17:27:30 +0000

Which firm non US/MC will rise again you reckon ?

My crystal ball says AG and the Shed especially as PM rose to 97k

By: where is my mommy

where is my mommy — Fri, 31 May 2024 16:32:59 +0000

I’m intrigued as to what US firms around that pay package are going to do. We’ve all discussed W&C and Shearman, but what do you do if you’re Dechert, Jones Day, Covington or Cooley in London (all around the £145k – £150k mark I believe)? Some of these firms have PEP that’s not much more than the MC but have historically paid 20-30% more than MC. However, I just don’t see them going wild and joining the most profitable firms like K&E and Latham at £180k.

Do they just stay put, or do they find a middling ground at £165k?