Many law firms make a clear decision not to pay bonuses to junior lawyers. However, those businesses instead compensate them with large fixed salaries.
Using statistics from Emolument, which benchmarked the salaries of associates to compare earnings across the UK’s top firms, we unveil the legal companies in the nation that offer great pay packages.
(1) Latham & Watkins
Median salary: 107,000
Lawyers at Latham earn far more than those at “magic circle” firms the five most prestigious legal practices in the UK and even more than the basic salaries of associate bankers at the UK’s top banks. As a case in point, 2015 saw associates at JP Morgan earning an average salary of 93,000, which was the highest of any bank in Britain.
This is largely due to the fact that in terms of revenues, the firm is the largest in the world.
However,Emolument suggested that while the best compensated bankers get an average bonus of 83,000, for many lawyers including those at Latham & Watkins there’s no bonus of any kind.
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(2) Allen & Overy
Median salary: 79,000?
In 2015, global law firmAllen & Overy issued a message to magic circle rivals that it would be giving its junior lawyers pay rises of up to 25 per cent.
Along with being handed their practising certificates, freshly minted solicitors at the 1.23bn revenue firm now bag salaries of 78,500 and more, an increase of 12,000. And associates in the year above actually saw salaries rise from 72,500 to 92,000, while those at two years post-qualification experience (PQE) went from 82,500 to 104,500 and three-year PQEers jumped from 93,500 to 115,000.
Allen & Overy is the second largest firm by revenue out of those mentioned in the list and it offers the most competitive total compensation at 84,000.
Read on to find information about three other legal practices giving magic circle pay packages a run for their money.