Some of the New York law firms see no need to broaden their client base outside the US when they have such a lucrative home market. The top British firms take the opposite view and are consolidating their dominance in Europe with mergers with German firms. This is a costly strategy, and for the short term is holding profits back at the British firms.
But the pay gap is one reason why American law firms are having no trouble poaching top partners from City firms.Earlier this year, an American firm advertised the first £1m pay packet. Top lawyers in Britain are being paid £1.5m less than their American counterparts, according to new figures.

Top lawyers in Britain are being paid £1.5m less than their American counterparts, according to new figures.

While the highest-paid English solicitor earns £700,000 a year, the top earners in America are on £2.2m and can expect more generous bonuses.
The study, compiled by the magazine Legal Business, shows that although UK solicitors’ practices hold their own in terms of international presence, the most profitable UK firm, Slaughter and May, is ranked only ninth in the world in terms of profits per partner. We are confident that at a diplomatic and political level it will be possible to find a solution.”
But Mr Levy added: “It is clear that, should this not end up with success, then the Commissioner will stand up to his responsibilities.”
This afternoon Mr Prodi was due to discuss the beef crisis in a telephone call to Prime Minister Tony Blair.
Then Mr Prodi goes to Paris for talks with Prime Minister Lionel Jospin and President Chirac.
The long-scheduled meeting was due to discuss future reforms of the European Union – but that has been shoved aside by the continuing beef crisis.. The European Commission today agreed to fresh French demands for yet another round of “technical” talks in a bid to settle the beef crisis.

Officials from Britain, France and the Commission will gather in Brussels once more tomorrow as Brussels insists that a diplomatic solution is still the best outcome.
However the Commission statement today warned that food safety commissioner David Byrne would launch “the first steps” of legal proceedings next Tuesday if France has not agreed by then to lift the ban on British beef imports.
The demand from Paris for more talks came on the day Mr Byrne had hoped to be hearing from the French that they were now satisfied that UK health and safety measures to safeguard against mad cow disease were considered sufficient.
But now France wants to look once more at some of the details of British cattle monitoring which were fully explained at the last round of talks a week ago.
Mr Byrne discussed the issue in private with Commission president Romano Prodi at Commission headquarters in Brussels this morning.
They both agreed that the search for a diplomatic outcome should continue despite growing pressure to launch legal action immediately in the fact of a continued blatant breach of EU rules.
“The line is clearly that the Commission favours a diplomatic solution,” said Mr Prodi’s personal spokesman Ricardo Levy.
“We believe that the scientists have already laid down the foundations for a good solution. The European Commission today agreed to fresh French demands for yet another round of “technical” talks in a bid to settle the beef crisis. “I’m prepared to accept that Ms Mowlam’s failure to register Greg Dyke’s donation was an oversight, although it was a pity she did not take the opportunity to put matters right during the previous Mirror investigation,” he said.
A BBC spokesman said Mr Dyke had disclosed details of the payments to the corporation before his appointment “It was a matter of record and of public debate It was completely open and up front.”. Dr Mowlam told the present Commissioner that that had been an oversight on her part,” its report said.
In the January 1995 Register, Ms Mowlam inserted an entry which read: “Researcher paid for partly out of office expenses and partly out of donations to the Marjorie Mowlam Research Fund.”
Peter Ainsworth, the shadow Culture Secretary, complained to Ms Filkin after donations by Mr Dyke were revealed during the BBC selection process through which he was chosen to succeed Sir John Birt.
A parallel complaint about Mr Cunningham was rejected because he received his gift via a blind trust and did not know the identity of the donor until much later.
Mr Ainsworth said he was glad the matter had now been cleared up. He is believed to have told the BBC’S board before he was selected that he had paid £55,000, including a donation of £25,000 for the 1997 election campaign, £5,000 for Tony Blair’s 1994 leadership campaign and £5,000 each for Ms Mowlam and Jack Cunningham when they were shadow heritage secretaries.
Ms Filkin said she agreed with a ruling by her predecessor, Sir Gordon Downey, who said in 1996 that Ms Mowlam should have registered a £21,000 donation from Mirror Group Newspapers.
The Committee on Standards and Privileges added that she should have mentioned her donation from Mr Dyke to Sir Gordon when he investigated the first complaint.
“We are concerned that Dr Mowlam gave inaccurate information to Sir Gordon Downey when he investigated a previous complaint about her.

The Government faced fresh embarrassment over party funding last night as Mo Mowlam received an official rebuke for failing to declare a £5,000 donation from Greg Dyke, the new director-general of the BBC.

Ms Mowlam, who is Minister for the Cabinet Office, oversees the Government’s code of conduct for ministers.
She used the 1994 gift to fund her office when she was shadow secretary of state for national heritage but failed to name Mr Dyke in the Register of Members’ Interests even after she was investigated in 1996 for another, similar offence.
The Parliamentary Commissioner for Standards, Elizabeth Filkin, ruled that Ms Mowlam breached the spirit of the registration rules when she declared that she had received the money from the Marjorie Mowlam Research Fund.
The Committee on Standards and Privileges decided to take no further action after Ms Mowlam apologised for the oversight.
The donation was one of several Mr Dyke made to Labour before the general election. The Government faced fresh embarrassment over party funding last night as Mo Mowlam received an official rebuke for failing to declare a £5,000 donation from Greg Dyke, the new director-general of the BBC. People do understand that in preference to big or excessive or inflationary wage increases, which could put inflation up, it’s better to invest in your firm’s success and be a stakeholder in the future.”
Michael Ancram, the Tory chairman, last night accused the BBC of becoming the “Blair Broadcasting Corporation” over its coverage of the pre-Budget statement. He expressed “grave concern” that the “pro-Government bias” came a week after Greg Dyke, the former Labour Party donor appointed BBC director general, started work..