London lawyer hits record in fury of wage war

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A large number of senior lawyers have moved to London this year as the entry of US law firms into the capital is disrupting the market and fueling the pay wars for talent.

Law firms made 546 partnership hires in London in the year to December 23, according to data from legal recruiter Edward Gibson and shared with the Financial Times. The number surpassed last year’s record 514 partner moves as investment by US law firms in the UK shows no sign of abating.

London’s legal market has been hit hard in recent years as the booming private equity market has boosted profitability. American law firms in the city. US companies cheat more partners than their UK-headquartered rivals and US peers.

UK “Magic Circle” group of organizationsLinklaters, Freshfields, A&O Shearman and Clifford Chance lost a record 28 partners this year, surpassing the previous record of 19, the data showed.

The war for talent has led to changes in companies’ pay structures as they struggle to attract and retain rainmakers. Junior talent. Groups such as Clifford Chance and America’s Latham & Watkins have recently added more flexibility to their models to better reward high performers. Both companies declined to comment.

“Unprecedented investment by US law firms by private equity employers has pumped millions of dollars into the system,” said Scott Gibson, founder of Edwards Gibson.

US-based Kirkland & Ellis & Paul, Weiss, Rifkind, Wharton & Garrison were among the largest employers in 2024, the data showed, including 155 lawyers who moved from associate roles to partner.

Last year, Paul Weiss wanted Build quickly It has grown its London presence and 10-fold across Europe, including opening an office in Brussels to serve US private equity clients across the continent.

“Our private equity and corporate clients are focused on having elite legal counsel in New York and London,” said Neil Sachdev, co-head of Paul Weiss’ London office. “Many companies are looking to replicate growth in London as it is a key legal market and gateway to Europe for M&A and capital markets.”

Some UK-headquartered mid-tier firms have also benefited from arbitrage, as larger firms move away from less profitable practice areas, such as low-cost routine work for financial services firms.

Simmons & Simmons hired 16 new partners this year, according to the data, making it the second largest hire in 2024.

“The impact of US companies is very significant and you see some companies deciding that they are giving themselves a certain profit target. That is driving some of their strategies and they are no longer able to advise on certain markets,” said Jeremy Hoyland, Simons & Simons managing partner.

“Some of the partners we talk to don’t feel like they’re used to it,” he added.

Employment frustrations have led to strikes at several majors; Latham and Watkins and Linklaters saw some of the biggest starting numbers.

Latham has lost eight of his 13 partner trips this year, while Linklaters has seen several departures for fellow Americans. Latham’s London managing partner Ed Barnett said the capital had been a “strategic priority for decades” and the firm had “an incredibly strong year”. Linklaters declined to comment.

While not all exits were seen as bankruptcies, the eye-popping pay packages offered to partners were hard to compete with, said Charlie Harvey, founder of law firm Harvey & Partners.

“We’ve worked with law firm partners in the London market and they’ve doubled or tripled their compensation when they move,” Harvey said. Moving into 2025, we see no sign of lateral partner hiring slowing down.