New Magic Circle mega-firm opts for Allen & Overy-level salaries
Newly qualified solicitors at the soon-to-be A&O Shearman will start on a salary of £125,000, Legal Cheek can reveal.
At the same time, first-year trainees will earn £50,000, while second-year trainees will receive £55,000.
While these rates mirror those already on offer at Allen & Overy, newcomers joining the new firm via Shearman will find themselves earning less than they had initially expected.
The Legal Cheek Firms Most List 2024 shows that Shearman & Sterling trainees receive £55,000 in their first year of the training, £60,000 in the second, and £145,000 on qualification.
This means that the salary bands at the new global firm are £5,000 lower than those at Shearman’s at each stage of the TC, and £20,000 less at NQ level.
While it remains to be seen how these shortfalls will be dealt with, some may look beyond the money and see the broader career benefits of joining a new Magic Circle mega-firm.
The new firm adopting A&O’s rates is perhaps unsurprising, considering its significantly larger size compared to Shearman, with 80 trainees each year as opposed to Shearman’s 12.
While the firms will officially join forces on 1 May, the new salaries don’t come into effect until September. Legal Cheek understands there will be performance-related bonuses on top of base salaries.
In a join statement, Allen & Overy and Shearman & Sterling told Legal Cheek:
“In light of our merger to create A&O Shearman, we will be aligning our trainees and newly-qualified (NQ) compensation models from September 2024. Attracting and retaining the best talent at all levels will be a priority for A&O Shearman. Trainees and NQs are a key part of the firm’s future, and we are determined to develop their talents and help them realise their full potential at A&O Shearman, and to reward them competitively while doing so.”
The prospect of a merger between the duo first hit headlines in May 2023, with 99% of partners confirming their approval of the tie-up later that year in October.