Latham & Watkins is handing out bigger pay packets to its London associates than those in New York, with the US firm emerging as one of the highest-paying outfits in the City.

The top five US giant confirmed that its newly-qualified solicitors are now paid around £96,000 before bonuses, with the firm converting its standard US starting salary of $160,000 (£81,000) according to an exchange rate set two years ago.