Shearman freezes pay for UK-qualified lawyers

Shearman & Sterling has announced that it is to freeze salaries for all of its UK-qualified lawyers in London, Asia and the Middle East.

The measure means that associates will not move up the lockstep, and will continue to earn the same amount as they did during 2008. Lawyers with one year post-qualification experience (PQE) will continue to earn £80,000, while 2PQE associates will take home £84,000 and 3PQEs £92,000.

Trainees qualifying in September 2009 will earn £73,000 - a reduction of £7,000 on the current salary for newly-qualifieds.

Global HR director Marcus Franks commented: "We fully appreciate that this news will be disappointing for our people; however, like all other well-managed firms, we are continuing to take the necessary steps to manage our business sensibly in the current economic environment."

"Nevertheless, we are confident that we will remain highly competitive on compensation in the legal marketplace, both in the short and longer term."

Earlier this month the US firm kicked off a redundancy consultation in London that could see up to 18 secretarial and support staff lose their jobs. As yet, the firm has not laid off any fee earners. Firmwide, around 60 support staff roles are under threat.

The firm has also instituted a recruitment freeze and has taken steps to reduce its bonus pool since March last year.

Last week international firm Mayer Brown announced a pay freeze in its London office, with 23 associates and 32 support staff set to lose their jobs.

Click here to comment on this article.

More news, deals and comment on Shearman & Sterling

Shearman & Sterling on the Legal Week Wiki