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Addleshaw Goddard has become the latest firm to increase the salaries of its newly-qualified associates, with those based in London now set to take home £100k a year.
Newly-qualified lawyers in Leeds and Manchester have seen their salaries bumped up to £65k, while those in Scotland will now earn £61k. That equates to a roughly 5% pay rise on all UK-based NQ rates. Newly-qualified lawyers in Dublin will see their salaries upped to €75k, a 7% jump on the previous rate.
An Addleshaws spokesperson said: “We review our NQ pay annually, examining a wide range of data to inform our decision-making process. Pay is just one component of our reward package, and our pay levels are competitive with market rates across various regions.”
The firm didn’t disclose if the pay increases extend to other associate levels.
The move is just the latest in an ongoing junior salary war that is raging on both sides of the Atlantic. Earlier this month, Slaughter and May became the final Magic Circle firm to lift the pay of its newly-qualified associates, with NQ pay now 20% higher at £150k, in line with Freshfields, Linklaters, Clifford Chance and A&O Shearman.
The Addleshaws NQ pay increase for its London-based lawyers puts it ahead of Bird & Bird (£98k) and Pinsent Masons (£97k) and on a par with HFW and Stephenson Harwood, but behind other firms including Macfarlanes (£140k), Herbert Smith Freehills (£135k) and DLA Piper (£110k), according to Legal Cheek data.
Those numbers are dwarfed by London NQ pay at some of their US rivals, with Quinn Emanuel, Paul Weiss and Gibson Dunn paying out a hefty £180k to its newly-qualified associates in the City. A number of US firms also pay NQ rates in London of £170k or more, including Goodwin, Sidley Austin and White & Case, who all pay NQ salaries of £175k, according to Legal Cheek.
A 2022 study by legal consultancy Byfield found that 95% of UK managing partners cited the war for talent as one of their top five concerns, noting ‘record-breaking NQ salaries’ as a significant pressure point.
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