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Leading law firms are now offering junior staff almost £40,000 to recommend new talent as the war for lawyers continues.
Salaries for young lawyers have soared as US firms increase their presence in London, driving up wages and competition for top performers.
But now A&O Shearman is offering a £38,000 bonus to US associates who refer new faces to the firm.
Law firms hand out huge bonuses to junior staff for recommending new talent
The group introduced the policy shortly after a merger that saw British “magic circle” firm Allen & Overy join forces with US giant Shearman & Sterling.
Kirkland & Ellis is also understood to be offering a £38,000 referral bonus.
That incentive is far higher than the £10,000 firms typically pay lawyers who help recruit new talent.
Following Brexit and the pandemic, the workload of companies has multiplied, and the execution of corporate agreements and real estate transactions have made junior lawyers a highly sought-after asset.
This has pushed their salaries to new heights as companies struggle to hire new employees.
Almost all of the UK’s “magic circle” law firms have increased their salaries for newly qualified lawyers to £150,000 in a bid to compete with their US counterparts.
But this is still below major US firms such as Latham & Watkins, which pays its junior lawyers around £179,000 a year, while Davis Polk doles out £170,000.
Salary changes make lawyers at these firms some of the highest paid in the industry.
It usually takes at least six years to qualify as a solicitor in the UK if you study law at university.
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