Latham & Watkins has become the latest firm to raise salaries for its London lawyers to match the new market rates set by Cravath Swaine & Moore last week.
An internal memo revealed that Latham would follow Cravath in paying $180,000 to first year associates, equivalent to £124,000, adding that it would apply to all associates in “the US, London, the Middle East, Beijing, Shanghai and Hong Kong as well as US and UK qualified associates in Tokyo.”
Meanwhile, Clifford Chance has also matched the pay rises of its rivals in the US by hiking its New York associates’ salaries to Cravath levels.
The firm announced that the starting salary for first-year, or newly-qualified (NQ) US associates will increase to $180,000 (£124,000), in line with the rates set by other firms in the last week.
Pay will continue to rise each year up to $315,000 for associates in the class of 2008, or seven years post-qualification. More senior associates will receive $325,000.
Salaries for US summer interns will be increased to the semi-monthly rate of $7,500.
The news means Clifford Chance’s New York lawyers will earn far more than their London counterparts. Announcing a pay rise for UK associates last week, the firm said its NQs will receive a maximum £85,000, while 1PQEs will pick up £95,000.
|Level||New York pay scale|
|1st year associate / NQ||$180,000|
|2nd year associate / 1PQE||$190,000|
|3rd year associate / 2PQE||$210,000|
|4th year associate / 3PQE||$235,000|
|5th year associate / 4PQE||$260,000|
|6th year associate / 5PQE||$280,000|
|7th year associate / 6PQE||$300,000|
|8th year associate / 7PQE||$315,000|