Linklaters increases NQ salary to £150,000

Well, that didn’t take Links long did it?

Just 10 BDs after Freshfields announce its game-changing salary hike, Links match them. A lot of commentators, including myself to be fair, were not totally sure if the other MC firms would match this big hike given its size – and certainly not within two weeks. Yet here we are. FBD and Links have now put themselves in the ‘US firm’ arena when it comes to comp, which in my view now will go a long way to stop them being ‘feeder firms’ for their US rivals.

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Something I’ve been thinking about over the last two weeks is whether the move from FBD – and now Links of course – is so good that in fact it may well start attracting talent back from the US firms. I have it on very good authority that the bonus structures at these two MC firms all but brings the earning potential / total comp packages in line with their US competitors, especially when viewed post tax, and the number that actually hits your bank account. Will the example factors below – beyond cash – now play a bigger role in moves to/from the MC firms:

• ‘better’ firm infrastructure with more trainees, support staff, and PSLs;
• bigger teams meaning (in theory) more consistent hours;
• bigger teams meaning better holiday cover (in theory);
• training, development, diversity, and promotion prospects; and
• Senior Associate paid sabbaticals (c.6 weeks of paid leave upon promotion).

The other group of people to consider too of course are those associates outside the MC at the moment, who want a step up in terms of work and comp, who previously might have looked to ‘skip’ the MC firms in favour of the US firms, will now very likely be bringing these MC firms back into consideration, meaning these MC firms have re-opened themselves up to an even wider lateral recruitment pool.

Is the question of whether A&O Shearman, CC and Slaughters match these raises purely academic now? Do they have a choice? Is it only a matter of time? Probably.

Make sure you have your friends at these firms buy the opening rounds this weekend