Allen & Overy’s junior associates have something to smile about this week as the firm has just increased their pay by over 25%. They were once near the bottom of the heap for junior associate pay, but now A&O pay them the most amongst the magic circle law firms. They were the last magic circle firm to release their figures and evidently leered as Linklaters, Freshfields, Clifford Change and Slaughter and May released their marginal increases in junior associate pay.
|Allen & Overy||£66,500||£72,500||£82,500||£93,500|
|Allen & Overy||£78,500||£92,000||£104,500||£115,00|
|Freshfields||£67,500 – £77,500||£87,500 – £100,000|
|Slaughter & May||£70,000||£75,500||£87,000||£96,500|
The pay rises come with the decision that bonuses are going to be dissolved into salaries due to the fact that associates are more likely to value a greater salary rather than the thought of an annual bonus, which may vary in consistency.
The salaries of A&O junior associates now challenge some of the US firms. Three-year post-qualified experience associates will be paid £115,000, which is a 23% increase on their previous salary. This is more than 3PQE at top US firms Weil and Shearman and Skadden. It puts enormous pressure on other magic circle firms to increase their junior associate pay, who best get spending if they are to keep up with A&O.