Herbert Smith has released details of its associate salary review for 2010 - and announced sweeping changes to the way it will reward its associates from June next year.
For the moment, Herbies is (spookily enough) paying pretty much exactly the same as the everyone else:
However things will become considerably more murky from June 2011, when all associates above 5PQE will be paid on the basis of performance. An internal email from COO John Mullins attempted to explain the new calculations, with only limited success - as one associate commented, "I think I need a PhD in pure maths to figure out how this works". In essence, senior associates who want the top rise must bill seven solid chargeable hours a day. Which is either a reward for diligent hard work or a recipe for desperate padding... If they manage that, and are judged "outstanding" in their review, then it's a 7% rise. This falls if associates don't get the top grade or put in sufficient hours:
Associates who fail to hit 1,600 hours only get a 5% rise if they're graded "outstanding". They only get a 3% rise if they're graded "very good" and nothing if "good". Got that?
One insider was unimpressed, noting that there had not been a pay rise for two years and that his 7% increase therefore seemed a little stingy. Still, green shoots and all that. Although as he pointed out, "they keep moving the bonus and pay reviews out one month every year. 2008 March, 2009 April, 2010 May and now 2011 June. Sneaky buggers."
Tip Off ROF
For the moment, Herbies is (spookily enough) paying pretty much exactly the same as the everyone else:
| Salary (£,000) |
1st Seat |
NQ |
1PQE |
2PQE |
3PQE |
|---|---|---|---|---|---|
| Herbert Smith | 38.0 | 61.0 | 68.0 | 73.0 | 85.0 |
| Allen & Overy |
38.0 | 61.0 |
68.0 | 74.0 | 85.0 |
| Clifford Chance |
38.0 | 61.5 | 68.0 | 72.3 | 84.5 |
| Freshfields |
39.0 | 60.0 | 68.0 | 75.0 | 86.0 |
| Linklaters |
37.4 | 61.5 |
68.0 |
73.0 |
85.0 |
| Slaughter and May |
38.0 | 61.0 |
67.5 |
72.0 |
82.0 |
However things will become considerably more murky from June 2011, when all associates above 5PQE will be paid on the basis of performance. An internal email from COO John Mullins attempted to explain the new calculations, with only limited success - as one associate commented, "I think I need a PhD in pure maths to figure out how this works". In essence, senior associates who want the top rise must bill seven solid chargeable hours a day. Which is either a reward for diligent hard work or a recipe for desperate padding... If they manage that, and are judged "outstanding" in their review, then it's a 7% rise. This falls if associates don't get the top grade or put in sufficient hours:
| Performance |
Outstanding | Very good | Good |
Below 1,600 hours |
|---|---|---|---|---|
| Pay rise |
7% | 5% | 3% | 0% |
| Outcome | Corner office | Windowless office |
Basement office |
JobCentre Plus |
Associates who fail to hit 1,600 hours only get a 5% rise if they're graded "outstanding". They only get a 3% rise if they're graded "very good" and nothing if "good". Got that?
One insider was unimpressed, noting that there had not been a pay rise for two years and that his 7% increase therefore seemed a little stingy. Still, green shoots and all that. Although as he pointed out, "they keep moving the bonus and pay reviews out one month every year. 2008 March, 2009 April, 2010 May and now 2011 June. Sneaky buggers."