Q4 Overview
As 2024 came to a close, the legal recruitment market in the EMEA region was marked by heightened activity and growing confidence. The year ended on a busy note, with law firms focused on getting deals over the line and showing no signs of the typical seasonal slowdown.
The US election was one of the most impactful events of Q4, influencing law firms globally, particularly those with significant exposure to US capital markets. Rather than the outcome itself, the clarity brought by a defined result enabled firms to strategise effectively for the future.
The merger between Herbert Smith Freehills (HSF) and Kramer Levin added to the quarter’s momentum. For HSF, this move represented a critical step toward establishing a stronger foothold in the US market. It mirrors a broader trend of transatlantic mergers as firms seek to compete with their American counterparts in a highly lucrative space.
Key Hiring Trends
Q4 saw a resurgence in transactional practice areas, including Private Equity, Mergers & Acquisitions, Capital Markets, and Structured Finance. This marked the return of activity in areas that had been relatively quiet over the past 18 months as firms positioned themselves for what is widely expected to be a landmark ‘deal year’ in 2025.
Demand for Business Development professionals and those with client-facing expertise was heightened. With law firms increasingly focused on expanding market share and securing new business, professionals capable of driving growth through client relationships have become critical hires.
Additionally, firms showed a growing appetite for candidates who can navigate complex business challenges, particularly in competitive sectors. The uptick in law firm mergers highlights the industry’s focus on growth and consolidation, with firms seeking innovative ways to expand their global reach and build stronger client networks.
Compensation Developments
Q4 brought the customary year-end bonus announcements, which play a critical role in the ongoing war for top-tier talent. As usual, this period saw a game of cat and mouse among firms, with no one wanting to be outcompensated by competitors. Milbank led the way, announcing its Cravath-style bonus structure, which included the following:
- Class of 2024: $15,000
- Class of 2023: $20,000
- Class of 2022: $30,000
- Class of 2021: $57,000
- Class of 2020: $75,000
- Class of 2019: $90,000
- Class of 2018: $105,000
- Class of 2017 and 2016: $115,000
This structure highlights the importance of associate retention and the fierce competition within the private practice legal world. Bonuses such as these not only reward hard work but also serve as a key differentiator for firms seeking to attract top-performing associates.
Firms also used compensation strategically, adjusting salary levels and bonus structures to remain competitive. This dynamic is particularly noticeable in transactional practices, where workloads are expected to increase significantly in 2025.
Key Takeaways
- Q4 2024 signalled a return to growth for law firms across the EMEA region, with transactional practices such as Private Equity, Mergers & Acquisitions, Capital Markets, and Investment Funds leading the charge.
- Competition for talent is expected to intensify. Firms will rely on competitive compensation and strategic differentiation to attract and retain top professionals.
- Candidates must remain agile and ready to capitalise on the expanding opportunities in this dynamic market.
- With confidence returning and key markets such as London, Brussels, and Paris driving activity, 2025 promises significant growth and stability for the legal sector.
Q4 Overview
As 2024 came to a close, the legal recruitment market in the EMEA region was marked by heightened activity and growing confidence. The year ended on a busy note, with law firms focused on getting deals over the line and showing no signs of the typical seasonal slowdown.
The US election was one of the most impactful events of Q4, influencing law firms globally, particularly those with significant exposure to US capital markets. Rather than the outcome itself, the clarity brought by a defined result enabled firms to strategise effectively for the future.
The merger between Herbert Smith Freehills (HSF) and Kramer Levin added to the quarter’s momentum. For HSF, this move represented a critical step toward establishing a stronger foothold in the US market. It mirrors a broader trend of transatlantic mergers as firms seek to compete with their American counterparts in a highly lucrative space.
Key Hiring Trends
Q4 saw a resurgence in transactional practice areas, including Private Equity, Mergers & Acquisitions, Capital Markets, and Structured Finance. This marked the return of activity in areas that had been relatively quiet over the past 18 months as firms positioned themselves for what is widely expected to be a landmark ‘deal year’ in 2025.
Demand for Business Development professionals and those with client-facing expertise was heightened. With law firms increasingly focused on expanding market share and securing new business, professionals capable of driving growth through client relationships have become critical hires.
Additionally, firms showed a growing appetite for candidates who can navigate complex business challenges, particularly in competitive sectors. The uptick in law firm mergers highlights the industry’s focus on growth and consolidation, with firms seeking innovative ways to expand their global reach and build stronger client networks.
Compensation Developments
Q4 brought the customary year-end bonus announcements, which play a critical role in the ongoing war for top-tier talent. As usual, this period saw a game of cat and mouse among firms, with no one wanting to be outcompensated by competitors. Milbank led the way, announcing its Cravath-style bonus structure, which included the following:
- Class of 2024: $15,000
- Class of 2023: $20,000
- Class of 2022: $30,000
- Class of 2021: $57,000
- Class of 2020: $75,000
- Class of 2019: $90,000
- Class of 2018: $105,000
- Class of 2017 and 2016: $115,000
This structure highlights the importance of associate retention and the fierce competition within the private practice legal world. Bonuses such as these not only reward hard work but also serve as a key differentiator for firms seeking to attract top-performing associates.
Firms also used compensation strategically, adjusting salary levels and bonus structures to remain competitive. This dynamic is particularly noticeable in transactional practices, where workloads are expected to increase significantly in 2025.
Key Takeaways
- Q4 2024 signalled a return to growth for law firms across the EMEA region, with transactional practices such as Private Equity, Mergers & Acquisitions, Capital Markets, and Investment Funds leading the charge.
- Competition for talent is expected to intensify. Firms will rely on competitive compensation and strategic differentiation to attract and retain top professionals.
- Candidates must remain agile and ready to capitalise on the expanding opportunities in this dynamic market.
- With confidence returning and key markets such as London, Brussels, and Paris driving activity, 2025 promises significant growth and stability for the legal sector.
Salaries
City / West End UK Firm Salary Per Annum £
| Role | |
|---|---|
| NQ | £75k – £110k |
| 1 yr PQE | £80k – £120k |
| 2 yrs’ PQE | £85k – £130k |
| 3 yrs’ PQE | £90k – £138k |
| 4 yrs’ PQE | £95k – £140k |
| 5 yrs’ PQE | £100k – £150k |
| 6 yrs’ PQE | £100k – £160k |
| 7 yrs’ PQE | £120k – £170k |
| 8 yrs’ PQE | £130k – £200k |
US Firms Based in London Salary Per Annum
| Class | Salary | Bonus | Total |
|---|---|---|---|
| 22/23 – 1st Year | $215k | $20k | $235k |
| 2021 – 2nd Year | $225k | $30k | $255k |
| 2020 – 3rd Year | $250k | $57.5k | $307k |
| 2019 – 4th Year | $295k | $75k | $370k |
| 2018 – 5th Year | $345k | $90k | $435k |
| 2017 – 6th Year | $470k | $105k | $475k |
| 2016 – 7th Year | $400k | $115k | $515k |
| 2015 – 8th Year | $415k | $115k | $530k |
| Class | Salary | Bonus | Total |
|---|---|---|---|
| 22/23 – 1st Year | £162k | £15k | £177k |
| 2021 – 2nd Year | £170k | £23k | £193k |
| 2020 – 3rd Year | £190k | £44.5k | £234k |
| 2019 – 4th Year | £222k | £58k | £280k |
| 2018 – 5th Year | £261k | £69k | £330k |
| 2017 – 6th Year | £280k | £81k | £361k |
| 2016 – 7th Year | £303k | £88k | £391k |
| 2015 – 8th Year | £315k | £88k | £403k |