SENIOR associates at Allen & Overy (A&O) could earn up to £200,000 as part of a complete overhaul of the magic circle firm’s career structure.
As first reported on www.thelawyer.com (12 October), A&O has abolished its current bonus system and will raise associate pay for London trainees and associates by 15 per cent, effective 1 November 2006.
Associates with a minimum of two years’ PQE will be eligible for a bonus. The bonuses will now be linked to the value of partner profit points. Under the new structure, associates with five to seven years’ PQE will qualify for zero to 200 per cent of one partner profit point (a maximum of £48,016 based on last year’s profit) and a base salary of up to £150,000.
Meanwhile, associates with two years’ PQE will be entitled for a bonus equivalent to zero to 100 per cent of one partner profit point and a base salary of £80,5000.
Newly qualifieds and trainees will receive a flat payment, which will be paid out once they are eligible for their first discretionary bonus.
There is a 15-month vestingperiod, meaning bonuses will not be paid out until July 2008.