Clifford Chance‘s City associates are waiting on tenterhooks for news of the firm’s salary hikes after rates were capped in Italy.
They face an agonising wait until the end of May, with no indication of what their rises, if any, will be.
As reported on The Lawyer.com (30 April), the firm’s Italian offices have decided to cap aggregate associate pay rises at 5 per cent after a slowdown in banking and capital markets.
In Paris the firm will apply salary increases of around 12 per cent, while in Germany the average rise is 8 per cent.
Paris managing partner Yves Wehrli said: “Each office keeps autonomy to seek the lawyers’ increase depending on market trends. We’ve resisted the credit crunch extremely well.”
Frankfurt partner Joachim Shrey added: “Since we expect top performance from our associates, we also have to pay top salaries.”
In the UK Linklaters – the first of the magic circle firms to announce salary increases – will hike salaries by an average of 2.5 per cent. This is in stark contrast to last year’s salary boost, which averaged 15 per cent for associates. Herbert Smith went one step further and froze salaries.