New York’s elite firms have launched their annual pay reviews, with expectations that 2005 could see the first increases in the starting pay of US associates from the current $125,000 (£70,000) benchmark for four years.

All major firms are gearing up to scrutinise pay bands, including Sullivan & Cromwell, which in October 2004 shook the market by paying a minimum $10,000 ($5,660) in ‘special bonuses’, with a decision expected in early December.