International firm Hogan Lovells has reversed salary reductions in the US and will reinstate pay reviews in the UK, in a display of confidence in the legal market.
Associates in the US, Mexico and Brazil had their pay cut by 10% in June, while the City firm suspended salary reviews for associates and counsel in the UK.
However, the firm has announced that the ‘prudent’ measures have now been reversed. UK solicitor pay reviews will be carried out this month, and apply retroactively to 1 May.
Meanwhile, in the US, pay reductions will be reversed retroactively to 1 June.
Equity partners will continue to see reduced draws and bonuses until at least the end of the year.
Chief executive Miguel Zaldivar said the firm had displayed ‘solid performance’ over the summer. ‘Now is the time to start a step-by-step approach to reverse some of the prudent measures we implemented earlier this year around compensation,’ he said.