Vinson & Elkins , whose NQ rate matches the Cravath scale, has set its London NQ pay at £173,077 for 2024, a person at the firm said.
Similarly, a person with knowledge of the matter confirmed that Paul Hastings new NQ rate has hit similar heights of £173,000.
A person with knowledge of the matter confirmed that Akin Gump Strauss Hauer & Feld , which held the highest NQ salary in the city at £179,000, had also matched the Cravath scale in London, and that the firm reviewed conversion rates on a quarterly basis.
Milbank , which in November gave associates a $10,000 raise , has set U.K. rates at £170,500, according to a person with knowledge of the firm.
Similarly, NQ rates at Weil Gotshal & Manges have edged up 5% to break the £170,000 threshold.
Rates at Sidley Austin increased U.K. NQ pay by a similar amount, rising £7,000 to reach £166,500. A person at the firm said that this was to “match” the increase in U.S. associate pay.
Ropes & Gray has raised London NQ salaries to £165,000, excluding bonus, as has Cleary Gottlieb Steen & Hamilton , whose NQ rate now sits at £164,500, according to statements by the firms.
U.K.-founded law firms have struggled historically too keep apace with U.S. firm uplifts, and tend to offer lower salaries, with elite firms Allen & Overy, Linklaters , Clifford Chance and Slaughter and May all paying NQs £125,000. But the changes tend to be less frequent, with Clifford Chance and Freshfields Bruckhaus Deringer holding their rates steady since May 2022.
The latest round of pay bumps comes after firms in the U.S. announced changes to their pay models in November. Major Lindsay & Africa managing director and EMEA associate practice lead, Nathan Peart, said: “This is part and parcel of the U.S. lockstep model, which typically bumps up associate pay yearly in order to remain competitive in the PQE markets.
“The U.S. firms’ financial year runs from January to January, and after having announced uplifts to pay structure late last year, we are seeing the domino effect on associates in the U.K. trickle down.”
Cravath Swaine & Moore , traditionally seen as the market-setter of associate salaries, matched Milbank’s offer of $225,000 for first year associates.
Other U.S.-based rivals, including Kirkland & Ellis, Quinn Emanuel Urquhart & Sullivan and Wachtell Lipton, Rosen & Katz also lined up to equal the Cravath scale. Quinn lifted its U.K. rates to £152,000 in January 2023, but has yet to make a similar adjustment in 2024, a person close to the matter said.
Though the U.S.-powered pay rises are yet to transform into a full pay war of the kind seen pre-pandemic, high pay is a delicate issue at firms, and has drawn criticism from clients.
“There could be potential pushback from clients who may find it hard to justify the high fee-rates for junior associates, some of whom will be qualifying off the back of a virtual training contract, compared to more tenured/experienced mid levels,” Peart said. “Firms need to strike a balance between keeping client fee rates while remaining competitive.
“It will be interesting to see the impact of things come April-May time when we see the U.K. firms review their own pay structures,” he added.