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Linklaters has raised pay for newly qualified lawyers to £150,000, becoming the latest elite law firm to wade into a renewed war for talent in the City of London.
The “magic circle” firm is handing its most junior London-based lawyers a 20 per cent increase in base pay effective from May 1, Linklaters said, in a statement first reported by the Financial Times. The firm, which turned over £1.9bn in its most recently reported financial year, is also increasing salaries for trainees and apprentices.
Linklaters’ decision comes after rival “magic circle” firm Freshfields Bruckhaus Deringer raised pay for its own newly qualified lawyers in the City to £150,000 earlier this month. A week later, US law firm Quinn Emanuel Urquhart & Sullivan said it was increasing base salaries for its most junior lawyers in London to £180,000.
The moves signal the renewal of a battle for junior legal talent among top UK law firms and their deep-pocketed US rivals, who have grown their presence in London in recent years. The rivalry has led to significant hikes in remuneration for junior lawyers, with pay increasing as much as 50 per cent in the past five years at firms like Freshfields.
“We are committed to rewarding our people competitively in our market,” said Paul Lewis, Linklaters’ managing partner. “Our salary changes reflect this and enable us to attract and retain exceptional lawyers.”
First and second-year trainees will also receive a bump of just over 10 per cent to £56,000 and £61,000 respectively, the firm said.
Linklaters’ peers Clifford Chance, Slaughter and May and A&O Shearman are yet to match Freshfields and Linklaters’ increases to newly qualified lawyer pay. Clifford Chance will next review its pay in the summer and Slaughter and May in November, the firms have said. A&O Shearman has not disclosed if its salary bands are under review.
Not everyone is comfortable with the latest moves in the junior lawyer pay wars. One longtime partner at a “magic circle” firm questioned the rush to increase salaries for lawyers with so little experience, adding that increases at the bottom end generally led to salary rises for more senior lawyers too, raising costs across the board.
Linklaters has also increased salaries for its solicitor apprentices from £25,000 to £28,000, the firm said.
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