Biglaw associates in the United States are well familiar with thanking Cravath (and Milbank and Davis Polk) for doing the lord’s work in bumping up salaries, but U.K. attorneys are also learning that fact. New research reveals that U.K. firms that have their salaries pegged to the U.S. dollar are paying associates “almost 50% above” what Magic Circle firms are paying. Wow.
According to reporting by Legal Cheek, the difference all comes down to exchange rates:
This comes after favourable exchange rates saw Akin Gump‘s NQ salary rise in its GBP value to £179,000. At present, Clifford Chance and Freshfields offer £125k NQ rates, whilst Linklaters and Allen & Overy pay £107,500. Slaughter and May‘s NQ pay sits in between these duos at £115k.
Dan Harris, director at consulting firm Robert Walter that did the salary research, said, “It truly has been the perfect storm. A combination of Brexit, a delayed start in degrees, and a pause in junior hires in 2020 has left many law firms scrambling to fill the gaping hole in their talent pipeline.”
Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).