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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