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US outfit Cadwalader ups London NQ pay to coveted £124,000 level

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New York stalwart jumps aboard the “MoneyLaw” bandwagon

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Cadwalader, Wickersham & Taft is yet another US outfit to join the MoneyLaw movement, upping pay packets of its junior lawyers to an eye watering £124,000.

Established in 1792, making it one of the oldest law firms there, Cadwalader revealed yesterday that it would match what is now being dubbed the “Cravath pay scale”.

Last week, fellow New York law firm Cravath, Swaine & Moore hiked its new starter salary from $160,000 (£110,000) to $180,000 (£124,000), triggering a number of firms across the country to do the same. This resulted in the US media coining the expression “MoneyLaw”.

A handful of US firms with offices this side of the pond such as Akin Gump, Kirkland & Ellis, Latham & Watkins, Milbank Tweed Hadley & McCloy, Davis Polk and Simpson Thacher, have decided to share the wealth and chuck the same pay increase at their City-based newly qualified (NQ) lawyers.

Joining this list, Cadwalader lawyers received the good news via email overnight.

Above the Law
Above the Law

Interestingly, Cadwalader — who until recently offered around six London-based training contracts annually — gave the new salaries, unlike other firms, in both dollars and pound sterling. Are they concerned about an upcoming EU referendum and a fluctuating pound perhaps?

Even members of the magic circle have started flashing the cash.

Both Freshfields and Clifford Chance have matched the new Cravath pay scale, with lawyers in their US offices pocketing a cool £124,000 a year. Unfortunately for their newbies in London they will have to scrape by on their £85,000.

US MoneyLaw-mania is sweeping the City. How long before UK firms follow?

14 Comments

Anonymous

I need dollar, dollar, dollar is what I need…

(3)(0)

Anonymous

Very good – about time!

(1)(0)

Anonymous

Will UK firms follow ?

(3)(0)

Anonymous

No. The previous Magic Circle led rises was ‘the follow’ of the US firms this year. Other City firms will try to catch up with the Magic Circle.

(2)(0)

Dream on

Not chance. Most City firms have huge leverage ratios due to their disproportionately large trainee intakes (several times higher than at US firms). In some, this is even six or eight fee earners to partner.

How on earth do you think they could fit a massive raise across the board into their overheads? Those partners are way too greedy to part with their precious PEP dolla.

The only option to reach the NYC remuneration is to join such a firm. Good luck.

(12)(0)

Anonymous

“Interestingly, Cadwalader — who until recently offered around six London-based training contracts annually — gave the new salaries, unlike other firms, in both dollars and pound sterling. Are they concerned about an upcoming EU referendum and a fluctuating pound perhaps?”

No.

(6)(2)

Anonymous

Bored of these articles now.

(1)(4)

Anonymous

You mean jealous?

(5)(0)

Anonymous

How u mirin’ the Yankee dolla from the regions?

(1)(0)

Anonymous

Huh, didn’t know CWT actually offered TCs, interesting.

No doubt a very good firm to work for, they’re one of NYC’s most venerable shops.

(1)(3)

Anonymous

One does not follow the other.

(1)(1)

Mirin the remuneration

A bit chippy are we, mate?

Not to worry, rumours have it Irwin Mitchell will raise the NQ rate to £45k by 2025.

(11)(1)

Anonymouse

Haha. Addleshaws may increase too, not that it needs to – it’s one of the best law firms in the world I’ll have you know.

Haha.

(1)(1)

Banters & Lash

Heh, AG is a global powerhouse of a firm, no doubt.

Next up: Shoosmiths as the legal titan and top firm. I just lol whenever I even say their name, ‘Shoosmiths’.

What a name, what a firm.

Comments are closed.