Shearman slashes NQ salaries by 8 per cent
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Shearman & Sterling is slashing newly qualified (NQ) solicitor salaries by more than 8 per cent and is freezing trainee and associate pay in the UK, Asia and Middle East.
Shearman & Sterling is slashing newly qualified (NQ) solicitor salaries by more than 8 per cent and is freezing trainee and associate pay in the UK, Asia and Middle East.
Shearman, the first major US firm to announce associate pay freezes outside its home jurisdiction, is cutting its NQ rates from £80,000 to £73,000, meaning lawyers with one year’s post qualification experience will not move up to the next pay band in September 2009.
Second year trainee solicitors, meanwhile, will see their remuneration remain static at the first year rate of £39,000.
The firm’s global HR director Marcus Franks said in a statement: “We fully appreciate that this news will be disappointing for our people, however, like all other well-managed firms, we’re continuing to take the necessary steps to manage our business sensibly in the current economic environment.
“Nevertheless, we’re confident that we’ll remain highly competitive on compensation in the legal marketplace, both in the short and longer term.”
Freshfields Bruckhaus Deringer was the first major City firm to reverse its associate salary bands with all associates set to receive the same level of pay from May, despite gaining a year in post qualification experience (9 February).
The magic circle firm also cut its NQ rate, down from £66,000 to £59,000.
Readers' comments (3)
Hilary | 26-Mar-2009 8:59 am
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Of all people employment lawyers should have expected that contract changes would involve TUPE! The solutions are the same they have been advising cleaning and security companies for years. Physician heal thyself.
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Anonymous | 26-Mar-2009 9:45 am
Salary cut
Big deal,quite petty in relation to the firms earnings and on going wages.Is this site just about the wages paid to City solicitors?
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Anonymous | 26-Mar-2009 9:45 am
Credit where it's due
Thanks to The Lawyer for accurately reporting this. I am sick of Legal Week and others characterising this action by firms as a simple "pay freeze". It is not - it is a reversal of salary bands, and an effective pay cut for everyone concerned.
One can debate the merits of this course of action, but at least the terms of that debate are clear in your magazine. Thanks for not swallowing the spin.
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