Freshfields becomes first UK firm to lift associate salary freeze
Freshfields Bruckhaus Deringer has lifted its associate salary freeze for the next financial year, becoming the first UK firm to do so.
The firm was the first to freeze its salaries, effectively reversing its salary bands in February last year and dropping newly qualified (NQ) salaries from £66,000 to £59,000 (9 February 2009).
The firm took the decision to lift the freeze following a partnership committee meeting last week. It means that from May associates will now move through the salary bands as before, but will not make up the difference by skipping a band.
That said, pay bands remain frozen at last year’s levels with associates receiving a salary rise by progressing to the next level on the associate lockstep. NQ pay will stay at £59,000 with a one-year PQE lawyer taking home £66,000.
In a statement the firm said: “While the outlook globally is still uncertain, our people have worked very hard to help our clients and the firm through the challenges of the last year or so, and we’re grateful for the contribution everyone has made.
“We don’t yet know what the next financial year will bring as the outlook remains uncertain for many of our clients and, as a consequence, for the firm.
“Globally, economies are likely to recover at different rates and opinion is divided about the possibility of a ’double dip’ and a possible return to recession for some.”
Clifford Chance, Lovells and Slaughter and May were among the other firms to freeze their associate salaries in 2009.
Earlier this year, Latham & Watkins became the first US firm to unfreeze its salaries (5 January 2010).
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Readers' comments (28)
Anonymous | 25-Feb-2010 1:15 pm
With inflation rising isn't this inevitable? If the freeze is now rescinded across the board, the weaker players will be hit hardest. Revenue falls combined with rising costs will lead to drops in profits.
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Goody3shoes | 25-Feb-2010 2:00 pm
Freshfields partners had a record year in profits last year while salaries were frozen -- looks like it's quid's for them this year if they can afford this
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Anonymous | 25-Feb-2010 2:01 pm
Lawyers are overpaid and this starts at the bottom. What a shame Freshfields didn't take the initiative to keep the freeze. It could've prevented salaries from spiraling out of control and stop more redundancies during the next recession.
It seems some of the bigger firms are failing to learn the lessons of the past.
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Jerome K Jerome | 25-Feb-2010 2:36 pm
Lawyers aren't the only ones who are overpaid and, as a result, not always familiar with the residents of the Real World.
But no law firm (or bank for that matter) can afford to be the first to make a unilateral stand over this.
In the inimitable words of Hugh Abbot: "We all love that ethical stuff, but if you're the first to put down your gun, then people tend to stomp on your head like a ripe watermelon"
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Snorter | 25-Feb-2010 2:50 pm
Lawyers spend years and thousands of pounds training for their work. They aren't overpaid - their salaries reflect the sacrifices made earlier in their careers.
At some firms they also reflect appalling hours worked.
Professionals deserve to be paid well across the board. It's insulting to suggest otherwise.
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Lemmy | 25-Feb-2010 3:02 pm
Snorter's quite right.
I hear at A&O they're forced to sacrifice a kitten on Jim Morrison's tomb at midnight just to secure a training contract...
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Snorter | 25-Feb-2010 3:20 pm
Oh shut up.
Also, try to remember that the legal profession doesn't begin and end with the "Magic" Circle. I am four years qualified at a large regional firm and don't make as much as an NQ at Freshfields.
I'm sick of hearing how "rolling in it" I'm supposed to be. A tiny bit of respect would be nice.
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Anonymous | 25-Feb-2010 4:01 pm
Calm down, Snorter. The profession doesn't end with the Magic Circle, but let's be honest it does begin with them.
Also, although you may not be paid as much as an NQ at Freshfields, your rent most likely isn't as high either. And you may even get to see your flat.
Just console yourself with the fact that Eversheds is now a Superbrand.
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Snorter | 25-Feb-2010 4:05 pm
I'm not complaining that they earn more - I'm complaining at the perception that lawyers are all "overpaid" when I think they are reasonably paid in the circumstances. What do you think they SHOULD be paid, bearing in mind they are more highly qualified than most other people?
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Anonymous | 25-Feb-2010 4:28 pm
Snorter, a lot of lawyers are overpaid. End of.
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