Vinson hikes pay for London NQs by 20% to £120,000

US firm Vinson & Elkins is boosting salaries for its newly qualified (NQ) London associates to £120,000.

The pay hike represents a 20% increase on the previous rate of £100,000.

Associates with one year of post-qualification experience (PQE) will see an increase of 15% from £110,000 to £127,000, while pay for those with two years’ PQE will rise 17% from £120,000 to £140,000.

The firm is also increasing first-year trainee pay by 11% from £45,000 to £50,000, with second-year trainee salaries up 13% from £48,500 to £55,000.

The associate salary increases are effective from July, while the trainee pay hike will come into effect from September.

Vinson London managing partner Alex Msimang said: “It is very important that we attract and retain top talent at every level. This is a highly competitive market and we believe these compensation adjustments exemplify our appreciation for the hard work and excellent service that our associates and trainees provide.”

This March Vinson posted record revenue, net income, revenue per lawyer and profits per partner (PEP) for 2016, after the Houston-based firm’s best year ever. Revenue hit $654m, while PEP rose by 7.4% to reach $2.025m.

Chairman Mark Kelly put the record results down to the firm’s strength in complex commercial litigation, a range of transactional practices and rising oil prices, which led to a recovery in energy work.

A number of US firms have confirmed their 2017-18 pay rates in recent weeks. White & Case is increasing London NQ pay from £90,000 to £105,000, while Shearman & Sterling revealed in March that it is increasing NQ salaries by 11% from £95,0000 to £105,000.