City salary rises continue
Reed Smith and Ashurst have raised the salaries for their newly qualified (NQ) lawyers to £125,000 as City firms continue to splash the cash to attract and retain top talent.
This represents a 16% increase for Reed Smith, raising from a previous salary of £107,500. For Ashurst the new figure is a 9% increase from its previous £115,000, which the firm raised to this time last year. Over the past two years, NQ pay at Ashurst has risen by £20,000, and over the last five years, it has increased by more than £40,000.
Prior to their improved NQ pay, Reed Smith’s can expect to earn £50,000 in their first year and £55,000 in their second. The firm takes on around 26 trainees each year.
It has also confirmed that all other associate level salaries will increase in line with the most recent change, and that associates will continue to be eligible for a bonus programme, subject to completing the set number of target hours
By comparison, new recruits at Ashurst’s London office earn £52,000 in their first year and £57,000 in their second. The Legal Cheek Firms Most List shows the firm takes on around 40 trainees each year, with the most recent retention rate seeing 82% (18 out of 22) of the spring qualifying cohort stay on.
Commenting on Reed Smith’s salary uplift London office managing partner Andrew Jenkinson said: “We are pleased to confirm the increase to associate salaries in London. It is a reflection of the market and our desire to retain and attract the best legal talent by providing a competitive and sustainable reward structure.”
He continued: “The new salary is an investment in our lawyers, which keeps us in line with other leading international law firms, and supports the firm’s strategic growth objectives enabling us to continue to deliver the highest quality, legal services that we are known for.”
This latest raise comes on the back of a spree of salary uplifts across the City.
Freshfields hit headlines when it increased NQ pay to £150,000, with three of its Magic Circle rivals, Linklaters, A&O Shearman, and Clifford Chance, quickly implementing the same increases. Slaughter and May has remained steadfast at £125,000 so far.
Other firms to increase rates include Herbert Smith Freehills and Hogan Lovells, both of which have raised NQ pay to £135,000, while Macfarlanes has gone further, increasing NQ salaries to £140,000.
Elsewhere, HFW boosted its NQ pay to £100k, with Bird & Bird climbing to £98,000 and DLA Piper rising to £110,000.