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Weil Gotshal Cuts Starting Salaries in London
Legal Week
July 07, 2009
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Weil, Gotshal & Manges has dropped the starting salary of newly-qualified lawyers in its London arm by 5.5 percent to 85,000 pounds ($137,500).
The move sees the firm become the latest practice to halt associate lockstep in response to the current recession, with its incoming U.K. lawyer salaries slipping from the previous rate of 90,000 pounds ($145,600).
Salaries for all associates will be frozen, meaning a one-year qualified lawyer will remain at 90,000 pounds while second-year lawyers will be paid between 90,000 pounds and 98,000 pounds ($158,600).
Despite the drop, Weil remains one of the most generous firms in the London market, offering its newly-qualified lawyers 25,000 pounds ($40,400) more than the current benchmark rate for top London firms of around 60,000 pounds ($97,000).
A number of major U.K. practices, including Freshfields Bruckhaus Deringer, Allen & Overy, Clifford Chance and Lovells, have already announced a temporary halt to associate lockstep this year and corresponding cuts to starting salaries.
Freshfields led the market for U.K. firms at the beginning of February by announcing a total freeze of associate salaries meaning starting salaries for NQs would have to drop.
Several major U.S. firms, including White & Case and Shearman & Sterling, have also this year frozen London salaries.
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