Global Impact of Biglaw Raise Wave: Herbert Smith Freehills Ups the Ante on Associate Compensation

The Biglaw raise wave, that agitated the U.S business world recently, is now making its moves across the pond. Thanks to firms such as Milbank and Cravath, raise-mania is becoming a global sensation. Even professionals based outside the U.S are getting swept up in this wave. The most recent case is that of UK-based Herbert Smith Freehills. A law firm with a staggering revenue stream of $1,467,201,000 last year, Herbert Smith Freehills is currently issuing raises for associate salaries in its New York office.

The new compensation scale, including a bonus grid, at the firm details an increase in the base salary and bonus according to the class year of the associate:

  • Class of 2023 will now receive a base salary of $225,000 with a prorated year-end bonus of $15,000
  • Class of 2022 will get a base salary of $235,000 with a year-end bonus of $20,000
  • Class of 2021 shall be receiving a base salary of $260,000 with a year-end bonus of $30,000
  • Associates from the Class of 2020 will have their base salary increased to $310,000 and a year-end bonus of $57,500
  • Class of 2019 will now enjoy a base salary of $365,000 with a remarkable year-end bonus of $75,000
  • Associates belonging to Class of 2018 will now have a base salary of $390,000 with a year-end bonus of $90,000
  • Class of 2017 will have their base salary increased to $420,000 with a year-end bonus of $105,000
  • And finally, the most experienced, associates from the Class of 2016 will now have a base salary of $435,000 with a handsome year-end bonus of $115,000

A comprehensive memo regarding the change in compensation was also provided by the legal firm. The law world is a buzz as this compensation restructuring move seems to set a new standard for global competitors. It’s safe to say, the Biglaw raise wave is here, and it’s unavoidable.

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