US law firm Quinn Emanuel has announced a 5 percent increase in base salaries for its most junior lawyers in London, raising the pay to £189,000 starting next month. This adjustment signals a potential new wave of competition among leading law firms over associate compensation in the City of London.

Quinn Emanuel, known for its strong litigation practice, has been a key player in setting high salary benchmarks for junior lawyers in London. Earlier in 2024, several UK "magic circle" firms boosted newly qualified lawyer salaries by 20 percent to £150,000, prompting Quinn to increase its offer to £180,000. With the latest raise, associates at Quinn with seven or more years of experience can now expect base pay of up to £373,000.

Richard East, Quinn Emanuel’s London senior partner, stated that the firm’s objective is to retain top litigation talent in London by maintaining competitive compensation at or above market levels.

The move also coincides with salary increases across several prominent US law firms’ offices. Firms including Quinn Emanuel, Milbank, and McDermott Will & Schulte have announced that newly qualified associates in the US will see their pay rise by $10,000 to $235,000. According to Aymen Mahmoud, McDermott’s London managing partner, similar increases are planned for their London associates. Mahmoud emphasized the firm’s commitment to investing in and supporting their people amid a strong period of growth in the London market.

While some American firms are increasing pay, some of the UK’s leading firms are opting to hold rates steady. Slaughter and May, which conducts biannual associate salary reviews, reportedly chose not to raise the £150,000 base salary for newly qualified lawyers in its recent spring review. Several industry insiders have noted that while previous large pay hikes caused discomfort among senior law firm partners, competitive pressures led to those increases.

Additionally, changes are expected following the upcoming merger between New York law firms Cadwalader, Wickersham & Taft and Hogan Lovells. Post-merger, London associates at Cadwalader will reportedly be paid more than their Hogan Lovells counterparts. The firm indicated this is because Cadwalader’s London pay structure aligns with New York compensation scales and billable hour targets, differing from Hogan Lovells’ approach.

The latest developments highlight a period of intense competition and adjustment in associate pay within London's legal market, reflecting both transatlantic influences and firms’ efforts to attract and retain talent amid growing demand.