Shearman & Sterling is the first firm in the City to announce annual pay increases for trainees and associates with newly-qualified lawyers now earning £80,000.
The US firm has announced a seven per cent increase for PQE salaries in its Abu Dhabi, London and Asia offices.
Shearman global head of HR, Marcus Franks, commented: “With strong levels of associate bonuses of up to £50,000 last January, we believe that our competitive base salaries and our potential total annual compensation for our UK associates is a highly attractive proposition.”
Newly qualified lawyers at the US firm have received a £5,000 increase from £75,000 up to £80,000. The new pay structure will see first year trainees receiving £39,000 up from £36,500, while second year trainee salaries have increased by £2,000 from £39,500 up to £41,500.
Senior associates will now receive a salary of £170,000.
A full list of the salaries paid by City and US firms is available on the Lawyer2B.com salary index.