Tag: mcdermott will & emery

‘Setting ourselves up for the future’ – McDermott ups London trainee pay to £70k

McDermott Will & Emery has followed Davis Polk’s lead, raising its London trainee pay to match the highest market rates.

Effective from 1 January, the Chicago-headquartered firm will offer a salary of £65,000 in year one, rising to £70,000 in year two. The rates previously sat at £53,000 and £58,300 respectively.

Just last month, Davis Polk announced its updated pay scale for trainees, with recruiters at the time forecasting that other US firms would follow suit, establishing a new benchmark for entry-level salaries.

London managing partner Aymen Mahmoud (pictured) told LB: ‘It’s no secret that our focus has been on growth but that means lateral and organic growth.’

‘We are really setting ourselves up for the future here by ensuring that our existing offering of top tier culture and focus on our clients is also matched by our ability to attract the very best legal talent at all levels to ensure that long-term organic growth.’

Back in July, LB revealed that McDermott had increased pay for its newly-qualified (NQ) to $225,000 (a little over £170,000 at current exchange rates), matching the Cravath scale for associate compensation all the way to eight years PQE.

Cravath Swaine & Moore’s latest rates, announced in November 2023, set NQ pay at $225,000, with $235,000 for second-year associates and $260,000 for third years, rising to $420,000 and $435,000 for seventh and eighth years respectively.

McDermott will also match Cravath’s bonuses, but with adjustments that give associates the potential to earn even more.

The intense competition for top talent has driven ongoing pay increases for trainees and newly qualified lawyers, raising eyebrows across the broader market.

David von Dadelszen, director at Jameson Legal comments: ‘There must be a hint of an incoming upturn in work to spark a war for talent but doesn’t sound as imminent if firms are competing for trainees.’

McDermott’s London office has experienced a wave of change in recent months, prompting some market peers to question if the firm is moving too rapidly. Alongside Mahmoud’s promotion to managing partner, private equity veteran Graham White has assumed the role of London senior partner.

In the last eight months, on top of White, the firm has made nine partner hires, including debt finance heavyweight Chris Kandel from Morrison Foerster in May and private equity partner Fatema Orjela from Sidley in April. Earlier this week, LB revealed that the firm had hired CMS international private equity co-head Jason Zemmel – its third hire this autumn following Sebastien Bonneau from Eversheds and Candice Nichol from KPMG.

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This article first appeared on Legal Business.

‘At the top of UK associate compensation’ – McDermott hikes London NQ pay to $225k

McDermott Will & Emery has become the latest firm to increase pay for London associates, raising salaries for newly qualified (NQ) associates to $225,000 as competition for talent among firms in the City intensifies. 

Effective from 1 January, the Chicago-headquartered firm will raise London associate pay from the current rate of £147,500 ($190,000), matching the so-called ‘Cravath scale’ for associate compensation, named after the elite US firm known for establishing salary benchmarks. 

Cravath Swaine & Moore’s latest rates, announced in November 2023, set NQ pay at $225,000, with $235,000 for second-years and $260,000 for third-years, rising to $420,000 and $435,000 for seventh- and eighth-years respectively. 

London managing partner Aymen Mahmoud (pictured) told Legal Business: ‘Our focus is on being the very best, and to do that we need to recruit and retain the very best. With this change, we think we are now at the top of UK associate compensation.’ 

McDermott will also match Cravath’s bonuses, but with adjustments that give associates the potential to earn even more.  

Mahmoud continued: ‘We already know our culture to be a key differentiator; now we have yet another. We are very excited about the future for our talented group of associates and seeing the greatness that they can achieve.’ 

While the conversion rate into British pounds varies from firm to firm, McDermott will now stand alongside other leading US firms such as Milbank, which offers an NQ salary of $225,000. Paul Weiss, Gibson Dunn, and Quinn Emanuel are also in this salary bracket, with starting salaries for newly qualified associates at £180,000 in London. 

While competition for top talent is fierce, the sustained pay increases for NQ lawyers have prompted much eyebrow-raising among the wider market. Hannah Benger, business director at Montresor Legal told LB: ‘The continual upward trend of premium US firm salaries invites the inevitable question – how long is it until the first firm announces a £200,000 salary for NQs? One assumes it will be soon.’ 

‘It’s important for the mid-market to really differentiate themselves in what they can offer their lawyers,’ Benger adds. ‘Vastly improved working hours, less intense expectations and highly flexible working policies are just a few options that would make them genuinely attractive to a lot of lawyers who might otherwise be tempted by the “big money” option.’

Salaries at leading US-headquartered firms continue to outstrip those on offer at the top of the UK market, with the biggest four Magic Circle firms recently increasing NQ pay to £150,000. David von Dadelszen, director at James Legal comments: ‘Big US firms seem to be able to reflect high NQ salaries up the bandings, but most UK firms can’t.’

‘Associates aren’t mugs – they read the press and speak with each other/recruiters,’ he added. 

In recent months, McDermott’s London office has experienced a wave of change. Alongside Mahmoud’s promotion to managing partner, private equity veteran Graham White has stepped in as London senior partner. The firm has also bolstered its ranks with notable laterals including debt finance heavyweight Chris Kandel from MoFo and private equity partner Fatema Orjela from Sidley. 

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This article first appeared on Legal Business.