1 Legal in-house financial services salary guide 2011
2 Introduction Our legal financial services division specialises in recruiting permanent and temporary legal professionals at all levels from paralegals up to General Counsel and across several different sectors within the financial services market including funds, insurance, brokers, clearing houses, trading platforms, regulatory bodies, private equity and other miscellaneous financial services organisations. Our financial services team works closely with the banking team who recruit for the major investment banks. Permanent market review the wider FS market (ie: excluding investment banking) and have not been dramatically impacted. Our overall conclusion is that the market is definitely improving. However, there is a noticeably cautious approach to new hires and hence a degree of uncertainty as to what the rest of 2011 holds. The financial services market saw a substantial increase in recruitment activity at all levels throughout 2010 which has continued in to Regulation has certainly been the area that has seen and will continue to see the most activity, but there has also been notable demand for lawyers with commercial/corporate insurance, financial services, general commercial and funds experience. Whilst the market has noticeably improved and stabilised, it is important to note that there is still more of a conservative approach to hiring as for many in-house departments obtaining the budget and headcount to recruit tends to be harder to achieve than in the days of 2006/2007. This has also resulted in recruitment processes on the whole being significantly longer due to clients wanting to ensure that they have fully explored the market and as a result are recruiting the best person available for the position. On the flip side and as the market has improved over the last months, there has also been a noticeable change of mindset across the candidate population an increased demand for their skills has led to candidates exercising the option to be more selective than they were (or indeed could afford to be) during the leaner times. This change in the market does put an increased premium on ensuring the recruitment process is as efficient, expeditious, and professional as possible, ensuring a favourable opinion of the client is maintained. Salaries in the wider financial services sector have in the main been relatively unaffected by the recent economic difficulties and have steadily (although not significantly) risen in recent months. One possible exception to this trend is in the smaller and mid-sized institutions where in some cases there has been a slight decrease in salaries. On the bonus front, whilst obviously bonuses throughout the banking and financial services world are under pressure at the moment (especially within organisations that have been hit hard by recent events), generally speaking they remain fairly stable within
3 Interim Market The interim financial services market saw a significant increase in contract and temporary roles at all levels in This was largely due to the conservative approach which many clients have tended to take in light of the economic climate in 2008/09. It has been difficult for clients to obtain additional permanent headcount due to budget constraints and therefore taking someone on board as a contractor or temporary worker has been an excellent alternative. Clients have been viewing it as a good way of seeing how the candidate works and fits into the team before committing to something more long term. They have also identified it as an opportunity to secure high calibre candidates who through no fault of their own have been made redundant by magic and silver circle firms. Unlike previous years, clients have considered NQ-1 PQE lawyers for interim roles in areas such as funds and commercial where there is consistently a shortage of candidates. This can be partly explained by the fact that the temporary to permanent route has been particularly favoured by clients. As mentioned above, clients are viewing interim candidates as more of a long term option and are therefore willing to put in the investment usually required with a less experienced candidate. It is a very positive sign that over 50% of our contract roles which began at the end of 2009 or the beginning of 2010 have now been made permanent. Whilst the recruitment of paralegals has been steady in the financial services market, the ISDA market was as buoyant as ever in 2010 and is showing no signs of slowing down in There is an ongoing shortage of experienced ISDA negotiators with a number of these very keen to make a move into a smaller team or institution such as an asset management organisation. Salaries in 2010/2011 have been relatively stable within the financial services sector, both on the qualified and nonqualified front. Unlike the permanent qualified market, we have not seen an increase in hourly/daily rates. In a good market contractors and temporary workers tend to receive a premium to make up for the bonus and benefits which they do not receive. Therefore, we believe that the lack of increase is largely due to there being a significant drop in bonuses as a consequence of the economic downturn. It looks like the interim and non-qualified market will continue to stay strong as the cautious approach to new hires continues throughout the rest of Asha Morzaria Senior Consultant
4 Salaries & compensation - Permanent Legal in-house financial services salary guide 2011 Head of legal and compliance As the compliance market becomes increasingly prominent, we have noticed an increased demand for Heads of Legal and Compliance in small to mid-sized organisations, either as their first in-house counsel or to head up a small team. 8-9 yrs 90, ,000 20% - 35% 9-10 yrs 110, ,000 20% - 35% yrs 120, ,000 25% - 50% yrs 125, ,000 30% - 60% 15 yrs + 135, ,000 30% - 100% Financial services/regulatory 2010 and the beginning of 2011 has seen a significant demand for lawyers with regulatory experience and due to the increasing presence and importance of the regulatory bodies, we do not see this changing. 0-2 yrs 42,000-65,000 10% - 15% 2 4 yrs 63,000-80,000 10% - 15% 4 6 yrs 70,000-95,000 10% - 20% 6 8 yrs 82, ,000 15% - 20% 8 10 yrs* 90, ,000 15% - 35% 10 12yrs +* 100, ,000 20% - 50% Commercial/Technology General commercial lawyers are always highly sought after. The challenge that the financial services sector faces is that lawyers with this background tend to be attracted to the commerce and industry roles hence the need for financial services to pay higher salaries to attract candidates to their roles. 0-2 yrs 57,000-69,000 10% - 15% 2-4 yrs 65,000-82,000 10% - 15% 4-6 yrs 73,000-97,000 10% - 20% 6-8 yrs 85, ,000 15% - 20% 8-10 yrs* 90, ,000 15% - 35% yrs* 100, ,000 15% - 50% Corporate finance/m&a/private equity For obvious reasons there were very few if any corporate roles in 2009/beginning of 2010, however the second half of 2010 and the beginning of 2011 has seen a noticeable but not significant increase in in-house corporate positions which we expect to see continue throughout the rest of yrs 55,000-72,000 10% - 15% 2-4 yrs 68,000-85,000 10% - 15% 4-6 yrs 75,000-97,000 15% - 20% 6-8 yrs 88, ,000 15% - 20% 8-10 yrs* 95, ,000 20% - 40% yrs* 110, ,000 20% - 55%
5 Insurance Insurance as a sector has maintained a steady flow of recruitment, and in 2010 we noticed an increased demand for insurance litigators and commercial / corporate insurance lawyers of varying levels, which has continued into Insurance litigation 0-2 yrs 42,000-60,000 10% - 15% 2-4 yrs 55,000-76,000 10% - 15% 4-6 yrs 72,000-85,000 10% - 20% 6-8 yrs 80,000-95,000 15% - 30% 8-10 yrs* 90, ,000 20% - 40% yrs* 100, ,000 25% - 50% Corporate / Commercial Insurance 0-2 yrs 45,000-62,000 10% - 15% 2-4 yrs 60,000-78,000 10% - 20% 4-6 yrs 74,000-90,000 15% - 25% 6-8 yrs 80,000-98,000 15% - 35% 8-10 yrs* 95, ,000 20% - 40% yrs* 120, ,000 25% - 55% Nikki Newton Associate Director
6 Funds/Asset management The funds market at the beginning of 2010 was noticeably slower in terms of recruitment; however the second half of 2010 and the beginning of 2011 has seen an increased demand for funds lawyers. It is important to note that lawyers with funds experience, especially regulatory funds experience, are in high demand and reasonably difficult to source due to competition in the market for their experience. 0-2 yrs 50,000-73,000 10% - 20% 2-4 yrs 60,000-85,000 15% - 25% 4-6 yrs 73, ,000 15% - 30% 6-8 yrs 90, ,000 20% - 50% 8-10* yrs 100, ,000 25% - 60% yrs* 120, ,000 30% - 100% Retail banking (Consumer finance) Retail banking roles have remained consistent (although not that frequent) over the last few years. It is important to note that sourcing lawyers with this area of specialism is always quite difficult due to a relatively small candidate pool with this skill set. 0-2 yrs 40,000-62,000 5% - 10% 2-4 yrs 58,000-75,000 10% - 20% 4-6 yrs 65,000-80,000 15% - 25% 6-8 yrs 72,000-95,000 15% - 30% 8-10 yrs* 88, ,000 20% - 35% yrs* 105, ,000 20% - 40% Employment Employment roles do not come up that often in-house and when they do they are quite highly sought after. 0-2 yrs 42,000-60,000 5% - 10% 2-4 yrs 68,000-80,000 10% - 20% 4-6 yrs 75,000-88,000 15% - 25% 6-8 yrs 85,000-95,000 15% - 30% 8-10 yrs* 90, ,000 20% - 35% yrs* 100, ,000 20% - 40% Notes: We have formulated the tables above on the basis of extensive research across our database of clients and candidates, combined with our collective experience of recruiting lawyers for the majority of the leading UK, European and global financial services institutions. Please note that these are averages and inevitably there will be occasional exceptions. Where applicable: base salary figures quoted include any additional fixed payments, car allowance, cost of living adjustments etc. * At the more senior levels where the salary ranges are broader, one of the key factors that will influence where someone would fall within that range will be whether or not they have people management responsibilities (and if so, how significant those responsibilities are).
7 Salaries & compensation - ISDA negotiators & Paralegals ISDA Negotiators PQE Average base salary range Average daily rate yrs 35,000-40, yrs 40,000-50, yrs 45,000-60, yrs 55,000-70, yrs 65,000-80, yrs 75,000-90, yrs 80, , Management 90, , Daily rate figures are exclusive of holidays which the candidate would be entitled to. Qualified lawyers will be paid up to 15-20% more than non-qualified negotiators. In addition, please note that the number of years experience as well as the number of ISDAs negotiated will also determine where a candidate falls within the above rates.. Paralegals 2 PQE Average base salary range Average daily rate 0 yrs 22,000-25, yrs 22,000-30, yrs 25,000-40, yrs 28,000-45, yrs 30,000-48, yrs 40,000-55, yrs 42,000-65, yrs 45,000-80, yrs 60, The term paralegal covers unqualified legal professionals and can sometimes be broadened to include foreign qualified lawyers. Individuals with substantial experience tend not to be referred to as paralegals. Such individuals will receive good quality work and will often be treated as the equivalent of a qualified lawyer. However, in view of the fact they are not qualified, they will invariably be paid less than their qualified peers. Richard Hanks Group Manager
8 Our financial services team is comprised of 6 specialist consultants with over 35 years recruitment experience between them in this sector. For more information on renumeration and career options or for help with your recruitment drive please contact a member of the team on : Julian Stone Partner In-house team Asha Morzaria Senior Consultant Interim recruitment Richard Hanks Group Manager Permanent recruitment James Penn Consultant Interim recruitment Nikki Newton Associate Director Permanent recruitment Ann Marie Martakis Consultant Permanent recruitment Established in the 1980s, Taylor Root is now widely recognised as being one of the world s leading legal recruiters. Operating out of offices in the UK, Dubai, Asia and Australia, we are ideally placed to assist law firms, banks and companies with their legal recruitment on an international basis. Taylor Root has a strong track record in the recruitment of: Heads of Legal and legal advisers; law firm associates and partners; contract/locum lawyers; paralegals; company secretaries and compliance professionals. Taylor Root is a member of The SR Group. The SR Group is a specialist recruitment consultancy dedicated to raising standards in the business environments that we serve. The sectors we cover include tax, legal, human resources, marketing, professional support and executive search, dealing with a substantial number of the world s leading professional partnerships, multi-national corporations and international banking groups as well as small to medium sized developing organisations. London 95 Queen Victoria Street London EC4V 4HN T: +44 (0) Singapore Level 21 Prudential Tower 30 Cecil Street Singapore T: Dubai Suite 614, Liberty House DIFC PO Box T: Melbourne Level 2, Rialto North Tower 525 Collins Street Melbourne, VIC 3000 T: +61 (0) Hong Kong 1918 Hutchinson House 10 Harcourt Road, Central, Hong Kong T: Sydney Level 12, 25 Bligh Street Sydney NSW 2000 T: +61 (0) Taylor Root is a member of The SR Group