West Coast technology firm Brobeck Phleger & Harrison has raised its first-year associate pay by $10,000 (£6,770) to $135,000 (£91,390) for 2001 in the latest salvo in the US salary war.

The move will be watched closely by City firms, which are concerned at having to match soaring salaries in their US offices. They are also worried about the impact on London rates in the run-up to this year’s pay round. The raise means that with the firm’s current bonus for billing 2,400 hours, a first-year associate would receive $170,000 (£115,089).