Slaughter and May has raised unveiled its new pay bands for associates, bringing the elite City firm into line with magic circle rivals Allen & Overy (A&O) and Freshfields Bruckhaus Deringer.
Newly-qualified (NQ) lawyers at the firm will now earn £65,000, an increase of £1,500 on the previous rate, climbing to £67,000 six months after qualification. Lawyers with one year post-qualification experience (PQE) will take home £71,500, progressing to £76,000 at 18 months’ PQE and £84,000 after two years with the firm.
The new pay bands took effect from 1 November.
The news means Slaughters’ salaries now match those of A&O and Freshfields – the City’s top payers – at NQ level and for the first two years after qualification. Clifford Chance and Linklaters – which pay NQ rates of £63,500 and £64,000 respectively – are now slightly behind their rivals.
Meanwhile, first-year trainees at Slaughters have seen their pay lifted to £38,000, with second-year trainees in line to get £43,000.
Although most UK firms review their salaries in April, Slaughters reviews its salaries twice yearly, in April and November. Last year’s review say the firm up NQ pay by 15% from £54,000 to £60,000. Further, smaller, rises were implemented in the April round, bringing NQ rates to £63,500.
Last year Slaughters also introduced a new bonus system based on the firm’s overall performance, which saw lawyers given a 15% pay-out last Christmas.
The latest move will be closely watched by leading City firms as they attempt to attract top talent in an increasingly competitive recruitment market.
The pay hikes are most likely to damage the bottom line of mid-tier City firms and national firms in London, many of which now pay out more than £60,000 to their NQs.
In the US, elite Manhattan firm Cravath Swaine & Moore this week fired the starting gun on a new round of bonuses by announcing it will be paying a one-off bonus of between $10,000 (£4,800) and $50,000 (£24,100) in addition to a year-end award ranging from $35,000 (£16,900) to $60,000 (£29,000).
For a full breakdown of top firms’ salaries, click here.