Mishcon de Reya is set to introduce a bonus scheme that will enable exceptional performers to earn up to 30% more than their base salary, GLP understands.
The bonus boost – set to take effect in July 2027 – will be on top of the City firm’s standard performance bonus and reward associates, managing associates and of counsel who record hours significantly above their billable-hour target.
GLP understands that Mishcon will not change its annual target hours for its junior lawyers, which currently stand at 1,000, according to Legal Cheek. Alongside financial contributions, other factors, including notably the use of AI, will be considered as criteria for the bonus.
News of the bonus comes as UK law firms compete to attract and retain junior talent with better-paying Big Law rivals, which benefit from being anchored in the lucrative US market.
Milbank announced a round of associate salary raises in New York earlier this week that took pay to $235k (£175k) for first-year associates and could set off a wave of similar hikes by rival firms. Milbank has developed a reputation as Big Law’s first mover when it comes to pay rises. The new pay scale has already been matched by McDermott Will & Schulte.
Mishcon, which grew revenue 9% to £330m in the 2024/25 financial year, raised pay for its most junior London associates to £100k last year, although it is still well behind major disputes rival Quinn Emanuel, which hands out a market-topping £180k.
Among UK firms, the top payers remain the Magic Circle, where starting salaries for newly qualified lawyers are £150k. Linklaters upped its pay scale in May 2024, following quickly in Freshfields’ footsteps. Clifford Chance, A&O Shearman and Slaughter and May soon matched these rates.
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