Shearman & Sterling has raised newly-qualified pay to £88,000.

It's a 6% rise for NQs, whose salaries had already been bumped up from £78k to £83k last year.

Meanwhile trainees get a major hike of £6k. An increase of over 15% means that first years fresh out of law school are now on £45,000. Second years will get £50,000. All the pay hikes took effect on 1 May.

The US firm's raises put those announced by Magic Circle firms in the shade. Slaughters leapt to the top of the UK elite for NQ pay a fortnight ago after increasing their pay to £70,000, but that is now £18,000 lower than peers at S&S. Meanwhile Linklaters just increased NQ pay to £68,500, an even larger gulf in pay packet heft.

The Magic Circle looks on as Shearman achieves 88k per NQ

Shearman and Sterling won the RollOnFriday Firm of the Year 2015 after staff voted themselves more satisfied at work than any other firm's staff in the UK. A large part of that was the pay, with which Shearman staff voted themselves 90% happy. It doesn't look like the firm's salary halo is going to slip anytime soon, with UK firms unwilling to match them.

Shearman London managing partner Nick Buckworth said, "this move, combined with our career development programme, is part of our strategy to ensure we attract and retain the top talent in the market.” Money isn't everything, but it might just work: read why US firms should spank the Magic Circle at grad rec.

And - check out what firms pay. (Let RoF know if your firm's raised salaries here or by email)