Hogan Lovells bumps NQs to £140k

Hogan Lovells has bumped newly qualified (NQ) solicitor salaries in London to £140,000, a £5,000 rise that puts it level with Macfarlanes as the highest-paying UK firm outside the Magic Circle.

The uplift, effective from 1 May, edges Hogan Lovells ahead of Herbert Smith Freehills, which pays NQs £135,000, and leaves a sizeable gap over Ashurst, which pays £125,000.

See our City law firm salary table for where things stand.

In a statement, the firm said the increase followed its annual UK salary review and formed part of a "total compensation matrix" that also includes bonuses based on both billables and broader contributions.

There’s no equivalent raise for trainees. The firm said salaries were reviewed but will remain unchanged for now, adding that it "regularly reviews salaries to ensure these are competitive in the local markets in which we operate."

The move comes off the back of a period of standout financial performance for Hogan Lovells. The firm reported global revenue of $2.9 billion in March - closing in on the $3 billion mark - with profit per equity partner hitting $3 million (£2.4m). That figure has more than doubled since 2019, when PEP stood at £1.1m.

The move will no doubt put pressure on City rivals trying to balance rising costs with junior lawyer expectations. Earlier in May, Slaughters confirmed to the Financial Times it wouldn’t be raising NQ pay after its latest review - a decision that came around a year after US firms kicked off a pay war that eventually forced the entire Magic Circle up to £150,000.

Hogan Lovells' NQ pay rise was first reported by The Lawyer.