Kirkland & Ellis has sent an internal memo round its London office this morning announcing massive pay rises across all grades.

Associates will now be paid New York rates. At the current exchange rate, this means that a Newly Qualified lawyer will jump from an already chunky £100,000 p.a. to an eye watering £125,000 p.a.. More senior associates will also see their salaries rise by 25%. A lawyer who qualified in September 2010 will now be paid $280,000 p.a., roughly £194,000. Plus bonus.

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In the memo London Managing Patner Stephen Lucas said that the firm "remains committed to paying top-of-market compensation to all our associates".

More to follow in tomorrow's edition.