Allen & Overy has confirmed it will match the recently hiked pay rates of the top New York firms.
NQs in the firm's New York office will now have a basic salary of $180,000, up from $160,000. There are rises all the way through the ranks, with the most senior associates now earning $315,000.
It's great news for associates in the States, of course. But there'll be no equivalent rise for associates in the UK. A newly qualified lawyer in London will earn around £45,000 less than his or her counterpart in New York. Kevin Muzilla, Head of A&O's U.S. law group in London, said “the UK and U.S. salary markets are different and compensation structures differ for UK and U.S. lawyers. Our global reward strategy principles aim to ensure that we pay competitively in whichever market we are operating in, ensuring that we attract and retain the best people.”
Sure, but over the last couple of weeks several top US firms have announced that they will be paying New York rates to their London associates - Kirkland, Skadden, Cravath, Cadwalader and Latham have all jumped on the bandwagon.
Expect pressure on salaries to continue**.
*Not really. By any standards A&O's UK lawyers are still paid a whacking amount.
**Assuming, by the time this is published, that the UK is still in the EU. Expect no end of mess if it isn't. RollOnFriday has been told that a major law firm has made job offers to associates with Brexit clauses - if the UK leaves, the offers are null and void.
Tip Off ROF
NQs in the firm's New York office will now have a basic salary of $180,000, up from $160,000. There are rises all the way through the ranks, with the most senior associates now earning $315,000.
|
Qualification Year |
Previous base salary |
New Base Salary |
UK salary (US$ equivalent) |
|
2016 |
$160,000 |
$180,000 |
$116,000 |
|
2015 |
$160,000 |
$180,000 |
$116,000 |
|
2014 |
$170,000 |
$190,000 |
$136,000 |
|
2013 |
$185,000 |
$210,000 |
$155,000 |
|
2012 |
$210,000 | $235,000 | $170,000 |
|
2011 |
$230,000 | $260,000 | NA |
|
2010 |
$250,000 | $280,000 | NA |
|
2009 |
$265,000 | $300,000 | NA |
|
2008 |
$280,000 | $315,000 | NA |
It's great news for associates in the States, of course. But there'll be no equivalent rise for associates in the UK. A newly qualified lawyer in London will earn around £45,000 less than his or her counterpart in New York. Kevin Muzilla, Head of A&O's U.S. law group in London, said “the UK and U.S. salary markets are different and compensation structures differ for UK and U.S. lawyers. Our global reward strategy principles aim to ensure that we pay competitively in whichever market we are operating in, ensuring that we attract and retain the best people.”
 |
An A&O NY associate helping out his London colleague* |
Sure, but over the last couple of weeks several top US firms have announced that they will be paying New York rates to their London associates - Kirkland, Skadden, Cravath, Cadwalader and Latham have all jumped on the bandwagon.
Expect pressure on salaries to continue**.
*Not really. By any standards A&O's UK lawyers are still paid a whacking amount.
**Assuming, by the time this is published, that the UK is still in the EU. Expect no end of mess if it isn't. RollOnFriday has been told that a major law firm has made job offers to associates with Brexit clauses - if the UK leaves, the offers are null and void.
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