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Shearman & Sterling Hikes London Associates' Pay by 7 Percent
Legal Week
April 30, 2008
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Shearman & Sterling has announced an increase of 7 percent in its London associate salaries, putting the firm's rates well ahead of those at top City firms.
The rises mean a newly qualified solicitor based at the firm's London office will get paid 80,000 pounds ($157,976), up from a figure of 75,000 pounds last year.
Senior associates will receive salary increases on a discretionary basis, with the base salary level moving up to 170,000 pounds ($335,699) a year.
Trainee solicitors will also get a bump-up from the review, with first-years now pocketing 39,000 pounds ($77,013) -- up from 36,500 pounds -- and second-years in line for 41,500 pounds ($81,950). The increases will make them among the highest-earning trainees in the City.
Commenting on the move, new Shearman London Chief Anthony Ward said: "These healthy increases reflect not only our strong market position on U.K. compensation but also the increasingly robust financial position of the firm, as demonstrated by a record year on revenue and profits in 2007.
He added: "Furthermore, it is indicative of the value which we attribute to the ongoing contribution, commitment and engagement of our associates and trainees."
Shearman becomes the first major firm to announce salary increases this year, with a raft of U.K. and U.S. rivals set to announce adjustments of their own in coming weeks.
However, few firms are expected to make major increases as advisers continue to feel the impact of the credit crunch. London giants Clifford Chance and Linklaters are among those to have already indicated to Legal Week that substantial raises for their junior lawyers are unlikely.
