Extra £5k
Hogan Lovells has increased salaries for its newly qualified (NQ) associates in London ahead of its mega-merger with US law firm Cadwalader Wickersham & Taft.
The firm confirmed that pay for its most junior lawyers has risen by 3.5%, from £140,000 to £145,000.
The Legal Cheek Firms Most List shows trainees currently earn £56,000 in their first year, rising to £61,000 in the second.
The rise brings Hogan Lovells’ NQs in line with their counterparts at Baker McKenzie and Herbert Smith Freehills Kramer, and leaves them just £5k behind all five Magic Circle firms, which currently pay £150,000.
A firm spokesperson told Legal Cheek:
“Following our annual London salary review and after careful consideration, we have increased base salaries for our newly qualified lawyers in London from £140,000 to £145,000, with effect from 1 May 2026. Base salaries are only one component of lawyer remuneration. We operate a total compensation approach that includes a competitive bonus scheme that considers both chargeable work and other contributions to the firm and our values.”
The NQ rise comes amid reports that associates in Cadwalader’s London office have been told they will remain on their existing pay scales, which are higher than those at Hogan Lovells following the merger. Cadwalader’s pay bands follow the so-called “Cravath Scale,” the structure used by elite New York firms, under which first-year associate pay equates to roughly £170,000 — some £25,000 more than NQs at Hogan Lovells.
Commenting on the reports, the spokesperson added:
“Our associate pay structures are aligned in the U.S. markets. They differ in London as Cadwalader lawyers are compensated in line with New York pay scales and billable hours targets. After the combination, the combined firm will be focussed on ensuring we continue to reward all our lawyers with comparable contributions and performance fairly and competitively across the markets in which we operate.”
Once the two firms combine next month, Hogan Lovells Cadwalader will have around 3,100 lawyers and annual revenues of more than $3.6 billion (£2.7 billion). Hogan Lovells is the larger of the two, with 35 offices and a London trainee intake of about 50 a year, while Cadwalader—Wall Street’s oldest firm—has five offices and recruits a small number annually. By revenue and headcount, the combined firm will rank in the top ten in the City.
We are all thinking it so will go ahead and ask, can anyone with intel confirm Cadwalder associates are grandfathered in with their US salary?
Yes that’s right. They’ve been promised they’ll remain on cravath post merger
Was really hoping that Cravath Scale Bonuses would be a thing for the London Office too.