#43 The Legal Profession This Week - Salary vs Culture​

By Dheepa​

Salary vs Culture

Last week, we discussed how most senior leaders in the legal profession believe that the salaries for junior lawyers are too high. Unsurprisingly, associates are now pushing back against those comments.

It’s easy to see why junior lawyers are disgruntled. Several firms have reached record profit per equity partner results in the same year that associates have struggled with unprecedented levels of work and burnout.

The comments of general counsel also seem unwarranted, particularly because some have admitted to considering a move back into private practice for a chance at the very same salaries they criticised. Indeed, there seems to be a trend of in-house lawyers moving back to law firms. In 2021, Blackstone’s EMEA head joined Simpson Thacher & Bartlett, HSBC’s M&A head moved to Norton Rose Fulbright, and the head of group litigation at Danske Bank is now at Slaughter and May (Law.com).

Some associates argue that the focus on salaries is a distraction from the real issue at hand, an unsustainable workplace culture. If partners want salaries to remain low, then they should push for change on other things junior lawyers look for, namely a better respect for work-life balance. One associate notes that “If you were to ask most lawyers whether they’d rather make an extra £10,000 or have their evenings and weekends free, most would choose the latter” (Law.com).

Even the Solicitors Regulation Authority (SRA) has stepped in to comment on the need for cultural changes at law firms. Earlier this month, the SRA released its first-ever guidance on workplace culture which includes examples of “bad practices” that may lead to regulatory consequences. The “imposition of wholly unreasonable workloads or targets” is among the bad practices highlighted. While the SRA typically focuses regulatory action on individuals, the guidance states that investigations will also be made into the firm for contributing to any bad practices through actions it has taken or failed to take.

‘Business as usual’ – the notable deals and cases which went ahead this week:

Clifford Chance and Kirkland & Ellis are advising on the sale of Pharma Intelligence to private equity firm Warburg Pincus. Clifford Chance advised the sellers Informa while Kirkland & Ellis is acting for Warburg Pincus.


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