As the salary war in the legal market battles on, magic circle law firm Freshfields has just increased its newly qualified (NQ) lawyers’ salaries to £150,000.
Last November every magic circle law firm (including legacy A&O) was paying their (NQ) lawyers a £125,000 salary a year.
However, in the same week as magic circle firm Allen & Overy (A&O) and US firm Shearman & Sterling formally merged with A&O Shearman, Freshfield revealed its new figure on Friday.
The £150,000 salary a year for NQ now surpasses the rest of the magic circle. However, it is not the highest in the market as US firm Gibson Dunn leads as it pays its London NQ £180,000 a year.
It’s not just its NQs seeing a rise in their pay packet, Freshfields trainee salaries (first year) will increase from £50,000 to £56,000 and second-year trainees’ salaries will increase from £55,000 to £61,000.
Commenting on the new pay packets, Mark Sansom, London managing partner said: “We’re committed to embedding a culture that supports our people to deliver their best, knowing their contribution is valued and rewarded.”
He noted that being “part of Freshfields means working alongside the best lawyers in the market and being fairly recognised for excellent client service on the most complex and high-profile legal work”.
He added: “This move follows a year of strong growth for the London business, thanks to the dedication of all our people.
“It also reflects our confidence in the firm’s continued market leadership across all our London practices, further boosted by the success of the material investments in the US and other markets.”
The firm reported last July that its revenue increased eight per cent to £1.84bn over the 2022/23 financial year, crediting “global client demand” for its growth.
A recent report stated that the hiring activity in the legal market has slumped, falling back in line with pre-pandemic figures while demand for in-house roles has also plunged.