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Legal Industry Reflections

Pay for newly qualified lawyers

By May 14, 2024October 2nd, 2024No Comments

My defence of the London NQ pay scale

£200,000 for an NQ? I mean, we’re already past this when you factor in bonuses and consider total comp anyway, but this isn’t what I think rustles the feathers.

Base salaries for NQs at US firms in London do seem to be heading towards the £200k mark, but these salaries are a reflection of what these firms pay their first year associates in the US. As such, it really is only a matter of time that the Wall St giants pay their first years $250k, and therefore, their London based associates £200k. As an FYI, three years ago the pay for first years in the US was $200k and it’s now $225k, so we’re potentially only a few years away from the $250k mark assuming the pay scale follows a linear progression.

What I find most interesting are the sometimes visceral reactions these numbers have on some people. “How can an NQ be worth over £200k?!”, “NQs don’t know anything!”, “How can firms justify paying juniors this much?!”. The following two words do away with all of these ‘points’ in my view: Market. Forces. This is about the fight for the top talent, and just like any other industry, more often than not, the highest payers get (what they view as) the top talent and secure their firms’ future. And that’s it.

I know it frustrates, and often amazes (or even angers) some people that 23/24 year old NQs are getting paid more than a lot of Partners in the UK (genuinely) – and I understand where these feelings can come from, but unfortunately those people need to get over these feelings, because, like it or not (more often not of course), that’s the market these 23/24 year olds opted to enter. And can you honestly blame them…?!

Furthermore, it’s my view that UK NQs are better and provide better value than first year associates in the US. First year associates in the US are fresh out of Uni (/law school), and the first day they walk into a law firm having passed the Bar, they’re an associate. Whereas UK NQ associates have two years of work and training under their belts, developing technical skills and soft skills throughout this time, therefore hitting the associate ground running compared to first year US associates – despite their extra few years of education in the States.

So, to be honest, the only things I have to say to to all the 23/24 year old NQs earning over £200,000 are: congratulations, kudos, and all the best