News UK Business Leadership Careers Law firms beat banks on graduate pay By The Lawyer 8 July 2008 10:22 13 December 2015 23:21 Sign in or register to continue reading. It's FREE Sign in Email Password Keep me logged in Forgot your password? Not registered? It's FREE! Register now Register with The Lawyer Anonymous 8 July 2008 at 10:47 Enjoy it while it lasts Law firms operate on a different model to investment banks. My personal feeling therefore is that law firms haven’t yet felt the full impact of the credit crunch. I think we’re going to be in for a period where costs will become a real issue for law firms so I doubt there will be any great uplift in lawyer salaries for at least the next six to 18 months. Reply Link Associate 8 July 2008 at 13:00 Bonuses Investment Banking grads and upwards receive bonuses which are not encompassed within the survey. Clearly, IB grads will come out with more. Reply Link Anonymous 8 July 2008 at 14:09 Law school? This survey – as others have done – also ignores the fact that banking graduates generally start work straight out of university – i.e. one or two years before law trainees who must do the LPC and often GDL first. It would be better to average the first few years’ salaries/grants (including the year/s at law school) – this would reflect the experience of recent graduates much more accurately. Reply Link Anonymous 8 July 2008 at 16:29 comment so lawyers are the best paid graduates. However, for the reasons mentioned above, they are probably poorer than IB graduates. Does anyone else think this survey is a bit of a farce? Reply Link Anonymous 8 July 2008 at 17:05 Don’t be too defeatist True, but law firms are generally better prepared for an economic slowdown. Whilst the lack of M&A activity might cause corporate and banking departments to be less busy, other departments dealing with insolvencies/restructuring and litigation will be gearing up. Not all City law firms are dependent on buoyant financial markets. Reply Link Anonymous 9 July 2008 at 09:18 I wish….! So what about us trainees who don’t work in the magic circle firms, or even in london at all?! Unfortunately the grim reality for me after 4 years of hard work in uni and LPC is the minimum Law Society salary of just under £16,000. It’s all a bit of a joke really when some of my non-qualified friends working in sales/recruitment roles are taking home at least twice that much! I for one do not agree with this article…. Reply Link Croesus 9 July 2008 at 09:55 It’s an average Re the last post, the figure is an average, not incorrect (i.e. it’s a statement of fact, not an opinion with which you can agree or disagree). If you’re getting the bare minimum, that means that the top-paid NQs are getting even more than it might appear to still average out at such a high figure. Not that, er, that’s much consolation to you. Reply Link Anonymous 9 July 2008 at 10:31 Trainee Salaries Also if you work out the hourly rate of these salaries to the number of hours actually worked by trainees, it is not such a good deal. Obviously that is not how the pay deal is structured but it is how the law firms are charging overall and it does at a stroke reveal the ‘ real ‘ level of pay. Reply Link Anonymous 9 July 2008 at 12:31 Trainee Salary Not on that sort of money and have been qualified for 8 years in a small 2 partner firm in West Yorkshire Reply Link Anonymous 9 July 2008 at 20:05 An average isn’t a fact I think Croesos is being unnecessarily snide there. By the way, the article actually says “the median starting salary”. “Median” and “average” are two entirely separate things. Fact. Reply Link Anonymous 9 July 2008 at 22:01 Trainee Salaries Paying someone £40k to do photocopying and proof reading? They may put a lot of hours in but they are junk hours and certainly not worth the £150/hour or so clients are charged. I can’t think there are many clients who agree to pay that, and those that do will soon wise up. So watch out overpaid trainees! Reply Link Lionel Hutz 10 July 2008 at 09:42 Re last post(22.01) While you’re obviously right that that is an awful lot to pay someone if all you intend them to do is photocopy, the intention is obviously that you will be using them for greater things further down the line; and the good money early on is to make sure you retain them. Also, while they may not actually be DOING anything much more than photocopying, they may also be observing the process of deals etc, which is part of the learning process that will turn them into something more useful later. Reply Link Trainee 10 July 2008 at 10:23 Trainees prove their worth I’m a trainee on 39K and believe me, I do a lot more than photocopying. With supervision from partners I have run my own small deals with minimal partner involvement. In my current department there are 13 trainees who billed over 1/2 a million pounds in the last 6 months, easily making their own salaries back and providing plenty of profit too. Given that trainees are an investment for the future, the fact that they make a profit too must be rather nice. Reply Link Ex-lawyer 10 July 2008 at 15:25 Comparing apples and pears What a load of nonsense. The survey completely fails to compare like-for-like. Everyone knows bankers total comp is skewed heavily towards bonus, with most trainees like to get only a token bonus. If they compared total comp with total comp it would be a start. Better still if they discounted trainees comp to take some account for the additional training time. But bankers would argue some account should be taken for the risks. Still, it makes a good headline. Reply Link Anonymous 10 July 2008 at 17:28 trainee lawyers salaries This is simply not the case in Scotland, we are paid Law Society minimum 15k 1st yr, and 18k 2nd yr. Reply Link Kevin Minstrel 10 July 2008 at 19:52 Law firms beat banks on graduate pay This article is ridiculous for the reasons stated below. An unhelpful and misguided survey? ’twas ever thus Reply Link Anonymous 11 July 2008 at 09:56 Maths To the trainee who claims that some of his colleagues billed over £500k in the last 6 months, assuming a charge out rate of £150 per hour, they’re billing over 6,600 hours a year. I’m not suggesting you’re exaggerating, but rather just congratulating your comrades’ commitment. Reply Link PJ 11 July 2008 at 12:29 utter rubbish Median starting salary 36k!? Who writes this rubbish? Yeah, maybe in the big City firms, but outside this the median is probably around the 19k mark. I hate these sort of ‘surveys – I may as read a fairy tale. Reply Link LK 11 July 2008 at 13:39 Ridiculous I have just finished my first year and i don’t no one person that I graduated with that is on £36k, even those that went to big firms. The vast majority are on the law society min of £15k, for first year and £18k for second year. Reply Link Anonymous 13 July 2008 at 07:12 Hmm I think we deserve the extra £20k for learning to spell correctly, LK. Reply Link Name Email Cancel reply Threaded commenting powered by interconnect/it code.