Bigger bonus pool too
Addleshaw Goddard has opted to hold newly qualified (NQ) lawyer salaries at £100,000 this year, diverting extra funds into a £19 million bonus pool and boosting pay for more experienced associates.
The decision, which the firm said was taken “after careful consideration”, is aimed at addressing what managing partner Andrew Johnston described as salary “compression” — the shrinking gap between junior and senior pay caused by rapid NQ salary hikes across the sector.
“After careful consideration we have decided to hold our NQ rates this year. This allows us to unwind compression between NQ pay and that of more experienced lawyers,” Johnston told The Lawyer. “Whilst we recognise this is a different position to the one others are taking, we believe that we are doing what is right for our people and business, and aligning with the interests of our clients.”
The move redirects £1 million originally earmarked for a junior pay rise into the expanded bonus pool, which Johnston said would ensure “lawyers who have contributed significantly are meaningfully rewarded”.
He added: “We continue to incentivise contributions which deliver strong outcomes for our clients. In line with firm performance, our bonus pot has grown to £19m, which means lawyers who have contributed significantly are meaningfully rewarded.”
AG stressed that trainee development and retention remain priorities, pointing to its 88% retention rate which saw it offer roles to 50 of its 58 qualifying trainees.
The Legal Cheek Firms Most List 2025 shows that AG’s £100k rate matches firms like Mishcon de Reya and is just behind Bird & Bird and Watson Farley & Williams (£102,000).
Addleshaws isn’t the first major law firm to tackle salary bunching. Shoosmiths recently acknowledged that its NQ salary increases had created “understandable concerns around pay compression” when it raised rates from £97,000 to £105,000.
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