Salary wars: Allen & Overy latest to pay $180,000 to New York juniors
Allen & Overy has raised its salaries for New York associates to match the Cravath pay scale.
Cravath raised its salaries for first year associates to $180,000 earlier this month, prompting a host of firms to follow suit.
Among the magic circle, Clifford Chance has already hiked its salaries in New York to match Cravath.
The news means Allen & Overy’s New York lawyers will earn far more than their London counterparts. The firm brought in external help to review its salaries last year. Newly-qualifieds in London are paid £78,500. Associates with one year of post-qualification experience (1PQEs) receive £92,000 while 2PQE associates currently take home £104,500. The firm’s London pay rises for 2016 have not yet been announced, however.
Firms that have increased pay for London newly qualified solicitors to £124,000, equivalent to the US $180,000 pay scale, include Cadwalader Wickersham & Taft, Latham & Watkins, Milbank Tweed and Kirkland & Ellis.
| A&O Class Year | Base Salary |
| 2016 | $180,000 |
| 2015 | $180,000 |
| 2014 | $190,000 |
| 2013 | $210,000 |
| 2012 | $235,000 |
| 2011 | $260,000 |
| 2010 | $280,000 |
| 2009 | $300,000 |
| 2008 | $315,000 |
