Global Legal Salary Survey & Market Trend Report 2011/12

Transcription

1 Global Legal Salary Survey & Market Trend Report 2011/12

2 Contents Introduction...4 About Us...6 Methodology...7 Key Findings...9 Demographics...10 Location of Respondents...12 Job Title...14 Sector/Discipline...16 Current Employment...18 Bonus...24 Benefits...28 Career Progression...30 Outlook...36 UK...38 Private Practice...40 Banking & Finance...48 In-House Overview...50 In-House Life Sciences...51 In-House Energy...52 In-House FMCG & Retail...53 In-House Traditional Media...54 In-House TMT...55 In-House Compliance...56 IP Patent Attorney & Trademark Attorney...57 Ireland...58 In-House...60 Private Practice...61 France...62 In-House...64 Private Practice...65 Italy...66 Spain...70 Benelux...74 Netherlands...76 Belgium...77 Luxembourg...77 Germany...78 Switzerland...82 Russia...86 Private Practice...88 In-House...90 Middle East...92 In-House...94 Private Practice...95 Hong Kong & Mainland China...96 Private Practice...98 In-House...99 Singapore India North America Private Practice In-House Latin America São Paulo Private Practice In-House Banking & Finance Latin America Rio de Janeiro Private Practice In-House Banking & Finance Legal Recruitment Advertising Solutions Acknowledgements & Disclaimer General Counsel Dinners Contact Us...126

3 Laurence Simons Salary Survey 2011/12 Introduction As a recognised leader in the legal recruitment market for over 20 years, Laurence Simons has built up one of the most comprehensive networks of clients and candidates in the legal world. Towards the end of 2011 we used this network to carry out an extensive research project into the salaries and benefits received by lawyers in key markets around the globe. Introduction We received an overwhelming response from over 1,200 legal professionals and, together with our global database of lawyers, the material gathered provides the basis of this report, which we hope will be a valuable resource, whether you are looking for a new role or to strengthen your team. Generally speaking, across all locations and industries, recent times have been uncertain and challenging; this is reflected in some of the data and trends you will see in the survey. That being said, there are many reasons to be optimistic. Latin America, Russia, Africa, Asia and the Middle East continue to experience a steady increase in demand for legal talent and whilst North America and Europe have struggled to weather the rather unique economic storm, there has been a consistent demand for legal staff in industry sectors such as Life Sciences, Oil and Gas, Technology and Telecommunications, as well as within specific practice areas such as Corporate, Funds, Competition and Regulatory. There are presently mixed messages in the market and whilst most clients have adopted a cautionary approach to hiring in 2012, thankfully, only a small number of law firms, multinationals or financial institutions have installed blanket hiring freezes. Indeed, the vast majority who may have downsized during 2008 and 2009 appear to have restructured effectively and are noticeably better prepared for any further market deterioration; having diversified and streamlined their businesses and risk by focusing, for instance, on the emerging markets for their future growth.

4 Introduction As a means of introducing this report, we have picked out a few findings which we hope you will find interesting: 75% of those surveyed considered the role of a recruitment agency or headhunter the 'most important' factor when seeking a new role 36% of respondents work between 46 and 50 hours per week and 30% work more than 51 hours per week Laurence Simons Salary Survey 2011/12 Despite the uncertain economic climate, 72% of respondents received a bonus in 2011 and 54% received an increase in bonus from the previous year 86% of respondents considered their current roles to be secure or very secure despite 50% feeling pessimistic about the economic outlook Introduction 67% of respondents would consider a move overseas for their next role Some interesting highlights but, as always, we are keen to hear your feedback. If you have any questions or would like a confidential discussion regarding your career or recruitment plans, please do not hesitate to get in touch. Kind regards, Naveen Tuli Global Managing Director naveen.tuli@laurencesimons.com +44 (0)

5 Laurence Simons Salary Survey 2011/12 About Us About Us Founded in 1988, Laurence Simons is a specialist international legal recruitment consultancy. Our clearly stated vision is: To be the world s leading company in legal recruitment by quality of service, market reputation, calibre of employees and global coverage. Operating across Europe, Russia, the Middle East, Asia, North America and Latin America, Laurence Simons truly is an international recruiter. Our network of offices is unique in the field of legal recruitment and we have been pioneering in serving new markets, in particular across Europe and Latin America, the Middle East, Russia and India. We have effectively recruited in over 60 countries, as a result of our consultants working together, providing a seamless service across continents. We cover the entire spectrum of permanent and temporary legal positions in both the Private Practice and In-House markets, from Newly Qualified through to Partner and General Counsel level roles. To be the world s leading company in legal recruitment by quality of service, market reputation, calibre of employees and global coverage.

6 Methodology During 2011 Laurence Simons conducted a survey with clients and candidates focusing on remuneration, bonuses and recruitment trends. Over 1,200 legal professionals were surveyed across the globe from 10 industry sectors. The salary survey is based on the data received from the online survey, our global database of lawyers, as well as, expert estimations from experienced consultants. Whilst the survey embraced experienced legal professionals working across Private Practice, In-House and Banking and Finance, where we received sufficient data we have provided the salary range for each grouping. Unfortunately, this was not possible for all regions. We quote annual median salary ranges in local currencies. Laurence Simons Salary Survey 2011/12 Methodology It is important to note that the salary survey is a useful guide, however if you need any tailored or specific advice please do contact us directly. 7

7 Key Findings

8 Laurence Simons Salary Survey 2011/12 Demograhics 67% of those surveyed have nine years or more post qualification experience (PQE).

9 Demographics Gender of respondents 37% 63% Laurence Simons Salary Survey 2011/12 Demograhics Current PQE level 4% 8-9 years 5% 7-8 years 5% 6-7 years 67% 6% 5-6% years 3% 4-5% years 5% 3-4% years 9 years+ 2% 2-3 years 2% 1-2 years 1% 0-1 year 11

10 Laurence Simons Salary Survey 2011/12 Location of Respondents Location of Respondents 7% North America 7% Latin America 6% Other

11 21% UK 4% Ireland 4% Germany 2% Spain 10% France 2% Belgium 1% Nordics Location of Respondents 12% Russia 5% Switzerland 1% China Laurence Simons Salary Survey 2011/12 Location of Respondents 2% Hong Kong 1% Luxembourg 2% Dubai 1% Australia 3% Netherlands 5% Italy 1% India 3% Singapore 13

12 Laurence Simons Salary Survey 2011/12 Job Title Job Title Private Practice Newly Newly Qualified 3% Associate Senior Senior Associate Partner Managing Partner Counsel Other 7% 7% 13% 15% 26% 29% 0% 0% 5% 5% 10% 15% 10% 20% 15% 25% 30% 20% 25% 30% Banking & Financial Services Analyst 2% Associate Legal Legal Counsel Assistant Vice Assistant President Vice Vice President Senior Senior Vice Vice President General General Counsel Other 1% 3% 7% 10% 17% 15% 45% 0% 0% 5% 10% 5% 10% 15% 20% 15% 25% 20% 30% 35% 25% 40% 30% 45% 35% 40% 45%

13 In-House Commerce & Industry l Counsel General & Company Counsel & Company Secretary General General Counsel Chief Legal Chief Legal Officer Head Head of of Legal Director Senior Legal Senior Legal Counsel Legal Legal Counsel Corporate Corporate Counsel Chief Chief Compliance Officer Compliance Officer Trade Mark Trade Mark Lawyer Patent Patent Attorney Other 3% 1% 1% 1% 1% 1% 7% 9% 9% 13% 13% 15% Job Title 26% Laurence Simons Salary Survey 2011/12 Job Title 0% 5% 10% 15% 10% 20% 25% 15% 30% 20% 25% 3 5% 15

14 Laurence Simons Salary Survey 2011/12 Sector/Discipline Sector/Discipline Private Practice Partner Energy, Energy, Oil Oil && Gas Corporate Financial Financial Services Commercial Litigation Aviation Aviation and and Shipping Intellectual Intellectual Property/Patent TMT Real Real Estate Other 4% 8% 7% 3% 7% 2% 5% 21% 17% 26% 0% 5% 10% 15% 20% 25% Banking & Financial Services Investment Investment Banking Retail Retail Banking General General Insurance Hedge Hedge Fund Assett Asset Management Custodian Custodian Bnaking Banking Brokerage Private Private equity Equity Other 27% 24% 2% 5% 14% 3% 1% 5% 19% 0% 5% 10% 15% 20% 25% 30

15 In-House Commerce & Industry Aerospace Aerospace & & Defence Chemicals Construction Construction & & Materials Electronic & Electronics Electrical & Electrical Equipment Food & Food & Beverages Health Care Equipment Healthcare Equipment & & Services House, Leisure House, & Personal Leisure & Personal Goods Goods Industrial Industrial Engineering Media Media New New Media Media Mining Mining Pharmaceutical Pharmaceutical & & Biotechnology Oil & Oil Gas & Gas Real Estate Real Estate Retailers Technology Telecommunications Telecoms Transportation Travel & Travel Leisure & Leisure Utilities Utilities Other Other 1% 1% 1% 2% 3% 3% 3% 3% 3% 2% 3% 4% 3% 3% 3% 5% 7% 8% 10% Sector/Discipline 15% 0% 5% 10% 15% 17% 17 Laurence Simons Salary Survey 2011/12 Sector/Discipline

16 Laurence Simons Salary Survey 2011/12 Current Employment Current Employment How are you currently employed? 95% Permanently 5% Interim/Contract How long have you been in your current role? 18% Less than a year 19% 1-2 years 13% 2-3 years 23% 3-5 years 19% 5-10 years 8% 15 years+

17 How long did it take you to find your current position? 35% Up to 1 month 29% 1-3 months 18% 4-6 months 4% 7-9 months 6% months 5% 1-2 years 3% Over 2 years Current Employment Laurence Simons Salary Survey 2011/12 Current Employment Many large organisations have implemented more efficient recruitment processes; this has led to 82% of respondents finding a new role within 6 months. 19

18 Laurence Simons Salary Survey 2011/12 Current Employment Current Employment How did you find your current position? 1% Social Media Network 11% Professional Network 16% Personal Contact 10% Internal Promotion 11% Direct Approach 30% Recruitment Consultancy/ Headhunter 4% Other 11% Advertising (online) 6% Advertising (print) It is no surprise that a third of respondents found their current position through a recruitment agency as this remains the most popular and effective method. Surprisingly, only 1% found a job through Social Media, such as LinkedIn.

19 How many hours per week do you work? 1% hours 2% hours 31% hours 36% hours 30% more than 51 hours Current Employment Laurence Simons Salary Survey 2011/12 Current Employment It is noteworthy that 58% of legal professionals working under 35 hours per week are female. 21

20 Laurence Simons Salary Survey 2011/12 Current Employment Current Employment How would you rate your current job security? 20% Very Secure 67% Secure 11% Insecure 2% Very Insecure Despite market conditions, over 80% of respondents feel Secure in their current role perhaps a reflection of the value of the legal function. Only 61% of HR, 56% of IT and 67% of Marketing professionals felt the same way.

21 Would you recommend your current employer to a friend? How has the number of staff in your department changed over the past 12 months? 40% Increased YES NO 78% 15% Decreased Current Employment 22% 43% Remained the same 2% Unsure Laurence Simons Salary Survey 2011/12 Current Employment A 40% increase in headcount is much greater than in previous years, perhaps this was due to the increased confidence we saw in the market at the beginning of

22 Laurence Simons Salary Survey 2011/12 Bonus Bonus Did you receive a bonus this year? How was your bonus paid? 3% Other 1% Fully Deferred YES NO 72% 28% 83% Cash 2% Shares/ Options 11% Part Cash/ Part Deferred Considering media coverage and the concomitant public outcry of the make-up of city bonuses, it is interesting to note that 83% of respondents were paid their bonus in cash.

23 How did this bonus differ from last year s bonus? 13% Significantly Increased 41% Increased 34% Remained the same 10% Decreased Bonus 2% Significantly Decreased Laurence Simons Salary Survey 2011/12 Bonus 41% received an increased bonus year on year; this is testimony to the strong belief in a market recovery earlier in the year, when most of these bonuses were paid. It is yet to be seen how many lawyers will receive a bonus in

24 Laurence Simons Salary Survey 2011/12 Bonus Bonus What bonus did you receive as a percentage of your annual salary? Less Less than than 10% 15% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% % More More than than 100% 6% 4% 3% 2% 1% 3% 5% 13% 22% 26% 0% 5% 5% 10% 15% 15% 20% 25% 10% 20% 25%

25 How would you assess your level of satisfaction with your bonus? 13% Highly Satisfied 5% Highly Dissatisfied 23% Dissatisfied Bonus 59% Satisfied Laurence Simons Salary Survey 2011/12 Bonus Whilst the majority of bonuses remained flat in 2011, 72% of respondents were Satisfied or Highly Satisfied with theirs. Perhaps this is a more realistic outlook after recent years. 27

26 Laurence Simons Salary Survey 2011/12 Benefits Which of the following benefits are included in your current package? 25 Days Holiday or more Annual Bonus Scheme 80% 81% Benefits Car/Car Allowance Flexible - Benefits 23% 41% Flexible Working 43% Company Pension Scheme 54% Insurance 74% Share Incentive/EMI Scheme/Option Scheme 34% N/A Other 4% 6%

27 Which benefits do you consider important? Not important Quite important Very important 50% 40% 30% Benefits Laurence Simons Salary Survey 2011/12 Vital 20% 10% Benefits 0% 25 Days Holiday or more Annual Bonus Scheme Share Incentive/ EMI Scheme/ Option Scheme Car/Car Allowance Flexible Working Flexible Benefits Company Pension Scheme Insurance 29

28 Laurence Simons Salary Survey 2011/12 Career Progression Career Progression What was the reason for leaving your last position? 24% CAREER CHANGE 23% MORE RESPONSIBILITY 13% IMPROVED BENEFITS PACKAGE 18% BETTER WORK/LIFE BALANCE 42% CONTRACT EXPIRED 9% REDUNDANCY 8% JOB SECURITY 5% BETTER TRAINING 11% IMPROVED BONUS POTENTIAL 44% NEW CHALLENGE/ MORE INTERESTING WORK 33% ENHANCED CAREER PROSPECTS 10% RELOCATION/ BETTER LOCATION/ EASIER COMMUTE 5% JOB TOO STRESSFUL 4% TRAVELLING 35% HIGHER SALARY

29 Which sources do you consider important when seeking a new role? National National Press The The Lawyer Legal Legal Week Law Society Law Society Gazette Lawyers Lawyers Weekly Hong Kong Hong Kong Lawyer Asian Asian Counsel The The Brief Other trade Other Trade press Press Other online Other job Online boards Job Boards Twitter LinkedIn Xing Facebook Other social Other networking Social Networking Recruitment Consultancies/ nsultancies/headhunters Word of Mouth/Personal Referrals/ l referrals/internal Internal contact Contact Other 1% 9% 10% 5% 2% 1% 2% 1% 3% 2% 2% 1% 9% 15% 19% 21% 23% 37% Career Progression 58% 74% 0% 8% 16% 24% 32% 40% 48% 56% 64% 72% 31 Laurence Simons Salary Survey 2011/12 Career Progression

30 Laurence Simons Salary Survey 2011/12 Career Progression Career Progression Where do you see your career progressing in law? 4% Other 5% Leaving law altogether 17% Moving into a different sector of law e.g. In-House banking, In-House Commerce & Industry or Private Practice 23% Changing Industry 51% Remaining in the same sector Over half of respondents see themselves remaining in the same sector in the future, highlighting the conservative nature of lawyers and possibly how tricky it is to migrate to another specialism.

31 Career Progression Would you consider relocating internationally for a suitably attractive opportunity? YES NO MAYBE 13% 20% 67% 67% Laurence Simons Salary Survey 2011/12 Career Progression 2 in 3 lawyers are willing to consider relocation; global organisations need to consistently review their internal opportunities as part of their retention plans. 33

32 Laurence Simons Salary Survey 2011/12 Career Progression Permanent: If you were considering a new role (externally), what would you perceive to be an acceptable increase in basic salary? 14% 31% or more 9% 26-30% 4% 0-4% 14% 5-10% 22% 11-15% Career Progression 14% 21-25% 23% 16-20% Temporary: If you were considering a new role (externally), what would you perceive to be an acceptable increase in basic salary? 10% 31% or more 9% 26-30% 15% 21-25% 17% 0-4% 23% 5-10% 17% 16-20% 9% 11-15%

33 Career Progression How are you feeling about the future of the economy over the next 12 months? Extremely Optimistic Optimistic Indifferent Pessimistic Extremely Pessimistic Other 1% 24% 17% 51% 5% 2% Laurence Simons Salary Survey 2011/12 Career Progression 24% are optimistic about the future of the economy in 2012; this reflects a 30% decrease year on year. 35

34 Laurence Simons Salary Survey 2011/12 Outlook Outlook The final question from our survey asked respondents to comment on trends they have seen or foresee in the legal marketplace. As you can imagine, there were a wide variety of comments but I have highlighted two issues that arose most frequently. International Relocation From the survey results, 67% of respondents would consider an international relocation in their next career move. Perhaps fuelled by a tightening job market in the US and Europe, opportunities for lawyers to relocate to Latin America, the Middle East or Asia in particular are high on the agenda, as law firms and multinationals look to these regions to generate the growth they desire but are not able to secure in their home countries. As an international legal recruitment specialist, we are often approached by individuals looking to make such a move, however it is not always easy to achieve. Increasingly, employers are focussing on lawyers who are already on the ground or, at the very least, have extensive experience in covering the region, as well as, quite often, local language skills. The practicalities and expense involved in relocating lawyers from the US or Europe is often prohibitive. Indeed, most of these moves occur with the existing employer in the form of a fixed term secondment. In 2011, 9.5% of the respondents left their last position to relocate. Interestingly, 59% were male and 41% were female.

35 Diversity in the Legal Sector Outlook Women, ethnic minorities and LGBT (lesbian, gay, bisexual and transsexual) employees are well represented amongst In-House lawyers; the same cannot be said for Private Practice. Compare how many women General Counsel (or CEOs for that matter) you know against the number of female Managing Partners of law firms. A fundamentally different picture exists between In-House legal teams where the lawyers work directly for the business, and Private Practice lawyers. Indeed, a recent Laurence Simons poll looking at a cross-section of more than 1,900 In-House lawyers found that women accounted for 39% of UK In-House lawyers, ethnic minorities made up 35% and 7% were LGBT, which is 1% above government figures for the UK population as a whole. However, these groups find it more difficult to secure positions in the top law firms and are in effect channeled In-House. As a result, while the demographic make-up of In-House lawyers is changing for the better, Private Practice is not. If the legal profession is not to be left behind and seen as anachronistic, more efforts must be made to change this exclusive culture in law firms, so that they embrace diversity and reflect social demographic trends in the country as a whole. Laurence Simons Salary Survey 2011/12 Outlook Naveen Tuli Global Managing Director naveen.tuli@laurencesimons.com Fair representation is alive and well amongst In-House lawyers. 37

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38 Laurence Simons Salary Survey 2011/12 Private Practice Private Practice Overview Salaries have been the subject of much debate this year amongst all firms. With the economy seeming to make positive steps at the start of 2011 there was much anticipation as to how this perceived recovery was to impact Associate salaries throughout the market. The debate clearly continues in uncertain times once again. Many salaries were frozen in 2008 and have seen little movement. These findings are accurate and the ranges reflect those firms that have increased their Associate salaries as well as those that have remained static. There are positives to note throughout these findings and the market generally may have been a year of two halves; however, with many law firms posting increases in both revenues and PEP all is certainly not the doom and gloom experienced in previous years could tell another story with some areas recovering faster than others (e.g. Regulatory). Mainstream transactional areas at certain firms are also seen to be busy and getting busier.

39 There does seem to be a discretionary element when it comes to salary, with some firms paying more to attract and retain the best talent. 41 Laurence Simons Salary Survey 2011/12 Private Practice

40 Laurence Simons Salary Survey 2011/12 Private Practice Private Practice Magic & Silver Circle Firms Certain trends and facts need to be considered when analysing these salary ranges. Firstly, the biggest trend to emerge in 2011 is the merit-based pay system which has been entering the market slowly over the past few years. We are now seeing more and more firms implementing this remuneration structure. There can be a number of reasons as to why this is becoming more popular with law firms. Whilst it is unlikely to replace the traditional PQE based system, it gives law firms the advantage to effectively pay Associates what they are worth. This can be viewed as a double edged sword for Associates. It is possible to earn above your PQE band if you are both exceptionally technical and commercially minded, however if this is not thought to be the case, you are in danger of earning comparatively less than you were before the merit-based system was put in place. Similarly, there is no more hiding behind billable hours and an emphasis has been put on adding value, both to the client and to the firm. In addition, by switching to the merit-based system, law firms are seen to be catching up from the static salaries that were seen in 2008 and Private Practice Magic Circle PQE Median Salary Range NQ 61,000-61, ,000-69, ,000-77, ,000-88, ,000-97, , , ,000+ Private Practice Silver Circle PQE Median Salary Range NQ 60,000-64, ,000-70, ,000-78, ,000-86, ,000-90, ,000-95, ,000+

41 Private Practice City & West End/Niche Firms Another trend has been an increase in mergers during 2011, whereby US and UK counterparts have married to form transatlantic firms. In terms of salaries, Associates have either won or lost depending on which side of the Atlantic their employer sat pre-merger. Some firms have decided to keep the US salaries and amend the UK pay respectively, whilst others have found a medium ground between the two. Generally these firms have been seen to pay City rates. Despite seeing a slowdown in some recruitment activity during the second half of 2011, there appears to remain a need for the elusive mid-level Associate, as well as those that are able to effectively hit the ground running and in addition, are not expecting Partnership in the next three years. For this reason, there does seem to be a discretionary element when it comes to salary, with some firms paying more to attract and retain the best talent. Additionally bonuses, or lack thereof, have led some firms to compensate salaries by going above and beyond for top Associates within the market. Private Practice City PQE Median Salary Range NQ 56,000-62, ,000-67, ,000-70, ,000-77, ,000-80, ,000-86, ,000-95,000 Private Practice West End/Niche PQE Median Salary Range NQ 45,000-55, ,000-60, ,000-65, ,000-70, ,000-75, ,000-75, ,000+ Laurence Simons Salary Survey 2011/12 Private Practice The West End and Boutique firms have held their ground when it comes to salaries; attracting Associates as a result of their quality of clients, smaller teams (and therefore greater responsibility and potentially Partnership prospects) and work-life balance. 43

42 Laurence Simons Salary Survey 2011/12 Private Practice Private Practice NY Rates Our data shows that NY pay rates of elite US firms continue to soar above that of top UK payers. The most startling comparison comes when looking at the increasing number of US firms paying NQs starting salaries of 100,000. This high level of remuneration is only reached by Magic Circle Associates in their fifth year of post qualification experience. Commentaries in the media tend to cast criticism on the NY firms for what is deemed to be an overpayment of Associates at the junior end. However with continued growth and expansion (some firms have increased headcount by as much as 50%) in the past year, these firms seem well placed to justify the value that they put on Associates at all levels. Furthermore, following on from earlier observations regarding the transatlantic merger firms difficulties in unifying differing levels of pay between the US and UK based firms, it seems reasonable that NY firms should maintain a level of continuity between Associate salaries in the US and London (they are after all part of the same firm). PQE Median Salary Range NQ 88, , , , , , , , , , , , ,000+ Private Practice NY Rates A merit based pay system also provides a tool for attracting talented Associates.

43 Private Practice Mid-Atlantic Rates In the past 18 months a number of Mid-Atlantic firms have moved into a merit based pay structure. Whilst some have argued this is symptomatic of the fall out in pay from the recession, others have argued that it is a reflection of the firms more commercial outlook on remuneration. A merit-based pay system also provides a tool for attracting talented Associates who may also be considering firms paying NY rates. It is a system whereby the most ambitious and talented Associates can truly thrive and be recruited at higher levels than previously possible, when following strict PQE based pay bandings. Private Practice Mid-Atlantic Rates PQE Median Salary Range NQ 68,000-75, ,000-83, ,000-88, ,000-98, , , , , ,000+ Laurence Simons Salary Survey 2011/12 Private Practice 45

44 Laurence Simons Salary Survey 2011/12 Private Practice Private Practice Offshore Firms The Offshore market is increasingly becoming one of much activity and interest. Laurence Simons Offshore service extends throughout the region including: the Cayman Islands, BVI, Bermuda and the Channel Islands (please note that the Hong Kong and Dubai markets are covered by our local offices). With favourable tax regimes and a lifestyle a world away from the changeable and inevitably bad weather, long commutes and political quagmire, the offshore jurisdictions offer a different and exciting alternative. Salaries are generally very favourable, although there are a few factors to consider when looking at the various locations. The Cayman Islands offer generous starting salaries, for three years PQE (necessary for the visa requirements) salaries range anywhere from USD 130,000 upwards, depending on the firm and relocation package. Salaries in the BVI tend to be slightly less, however this is reflective of the overall living costs of the islands, which do tend to be less expensive. At the Senior Associate level salaries can be in excess of USD 200,000. Clearly due to the fact that many of the Offshore firms recruit from the UK, the London salary survey is a useful benchmark for these markets. It should however be noted that there is also quite a lot of movement between Offshore firms and jurisdictions, and this appears to be an increasingly positive trend moving into 2012.

45 Laurence Simons Offshore service extends throughout the region including: the Cayman Islands, BVI, Bermuda & the Channel Islands. Laurence Simons Salary Survey 2011/12 Private Practice 47

46 Laurence Simons Salary Survey 2011/12 Banking & Finance Banking & Finance The first half of 2011 saw the Banking and Financial Services recruitment market remain active. During the second half of the year, the slow recovery stalled due to strain in the Eurozone which has led to a sharp drop in the level of vacancies as a whole, however key hires remain constant. In the Investment Banking arena dominant areas of recruitment during 2011 were: Derivatives, Prime Brokerage, Commodities, Funds and Regulatory. A number of institutions have started to take an initiative within the OTC clearing space as the pressure of increasing regulation within the area started to take its toll. This is expected to continue in 2012 with a higher demand for these skills. Unsurprisingly, with continued media attention and pressure, salaries have remained flat within Investment Banking. Expectations around bonuses remain pessimistic, although highly skilled and valued candidates are still receiving a good level of compensation and are expected to be rewarded suitably in the face of continued competition for their skills. Due to increased regulations (UCITS IV, AIM Directive and Dodd Frank Act) within the Funds sectors, there are more onerous requirements on Asset Managers than ever before. This certainly explains the demand throughout 2011 for Fund lawyers to advise on regulatory issues, in addition to products. As a sought after skill set in this sector, salaries have increased to reflect this. Demand is set to continue into In-House Banking Investment Banking PQE Median Salary Range ,000-60, ,000-84, ,000-98, , , , , , ,000 Head of Legal 150,000+ In-House Banking ISDA Negotiators/Lawyers PQE Median Salary Range ,000-54, ,000-64, ,000-84, ,000-92, , , , ,000 Head of Legal 145,000+ In-House Banking Asset Management/Funds PQE Median Salary Range ,000-61, ,000-74, ,000-83, ,000-94, , , , ,000 Head of Legal 125,000+

47 Banking & Finance With a relatively smaller number of major players operating in the UK Retail Banking sector, the battle for key talent remains fierce with firms prepared to pay higher salaries for exceptional lawyers who have worked extensively in this area. Furthermore, as the Regulatory environment continues to present new challenges, there remains a consistent demand for high quality Regulatory lawyers at all levels. The outlook for 2012, whilst cautious, looks positive with Retail Banks intending to make key strategic hires and those candidates with a proven, successful track record in Retail Banking remaining in high demand. The insurance recruitment market has been buoyant throughout The biggest volume of vacancies has been around the two to five PQE level as legal departments looked to bolster their Commercial and Regulatory expertise. Despite the relatively high levels of recruitment taking place, salaries remained stable as companies maintained a cautious approach throughout the year. This was reinforced as firms typically chose to recruit directly from Private Practice, rather than from their competitors where they can often expect to pay inflated salaries. The Banking and Financial Services market has historically always been a candidate short market and 2012 will be no different. Due to the diverse nature of most roles within this huge sector, transferrable skills are few and far between and hiring managers are willing to wait for candidates with the right skill sets and experience. Whilst the European bail out takes effect, the Banking market is likely to remain fairly stagnant for the first quarter PQE PQE Median Salary Range ,000-56, ,000-64, ,000-83, ,000-97, , , ,000+ Head of legal 122,000+ Median Salary Range ,000-57, ,000-64, ,000-82, ,000-94, ,000-99, ,000+ Head of legal 118,000+ of Apprehension will remain in the market thus affecting hiring and normal turnover. Hiring is expected to increase in the second quarter of 2012 and the demand for candidates within Derivatives, Prime Brokerage, Commodities, Funds and Regulatory will remain a key focus for those recruiting. In-House Banking Retail In-House Banking Insurance 49 Laurence Simons Salary Survey 2011/12 Banking & Finance

48 Laurence Simons Salary Survey 2011/12 In-House Overview In-House Overview 2011 began positively in almost all sectors across Commerce and Industry worldwide, including the UK. The cautious optimism of 2010 developed into a more expansive strategy in 2011 and saw healthy levels of recruitment, particularly in the first half of the year. Notable pockets of activity were seen in Technology, Media and Telecommunications (TMT), where the rapid pace of digitisation and general convergence continued also witnessed further consolidation of companies in the Life Sciences sector resulting in a review of existing resources; and despite a strong start to the year, 2011 saw a decline in activity in consumer facing corporates as consumer confidence was eroded and austerity policies in the Eurozone continued to be explored saw modest increases in basic salary at inflation levels or less for lawyers across most industry sectors. Basic salary levels remained highly dependant on location, skills, training and seniority. Companies increasingly sought candidates with strong international profiles, including fluency in one or more language and/ or multi-jurisdictional skills. Despite the size and complexity of In-House legal departments, basic salary levels remained behind that of Private Practice in most sectors; however the value of total compensation (including corporate benefits) was positively received in As a result of the turbulent economic climate in the UK and internationally, it is particularly difficult to anticipate what lies ahead in Lawyers with core skills in some areas, for example the Life Sciences sector, are expected to continue to command competitive remuneration as this sector remains largely unaffected by macroeconomic factors. Some disciplines remain more popular than others, for example, Compliance is a growing pervasive specialism and we expect to see increased demand for lawyers with knowledge and expertise in this area. PQE Median Salary Range ,000-50, ,000-60, ,000-73, ,000-83, ,000-94, , , , ,000+ Undoubtedly, as 2011 draws to a close we have begun to witness some slowdown. Going forward, we anticipate many In-House legal departments will reduce external legal spend rather than resorting to headcount reductions. It is anticipated that companies and candidates alike will tighten key criteria, preferring to be more exacting in their recruitment requirements. We envisage salaries remaining fairly static throughout 2012 however, even at the most senior levels. In-House Overview

49 In-House Life Sciences The Life Sciences market in the UK has experienced a consistent flow of opportunities at all levels during the course of This is despite the continuous trend of large mergers, and the knock-on effect of integration and re-organisation. Client feedback indicates that headcount has not been adversely affected by turbulent market conditions however; it is worth countering this with the fact that a large majority of the roles Laurence Simons have recruited for within this sector have been replacement hires rather than new positions being created. It is anticipated that this trend will continue into Candidate supply within the Life Sciences industry is especially short at the junior to mid-level, with only a few having the niche market experience required by so many clients. There has been an increase of specialist skills in demand from an early stage, a contrast to more generalist roles less than five years ago. In-House Life Sciences PQE Median Salary Range ,000-47, ,000-60, ,000-75, ,000-82, ,000-89, , , , , ,000+ Head of Legal 93, ,000 General Counsel 195,000+ Laurence Simons Salary Survey 2011/12 In-House Life Sciences As a consequence mid-level lawyers are currently warranting a premium, as demand at this level continues to outweigh supply. 51

50 Laurence Simons Salary Survey 2011/12 In-House Energy In-House Energy Although the current economic situation has weighed heavily on all sectors, the Energy industry as a whole has held up relatively well in High oil prices underpinned by strong fundamentals have ensured that opportunities remain within Oil and Gas, notwithstanding recent political and regulatory setbacks such as the Chancellor s windfall tax imposed on North Sea exploration. Turnover in the wider Energy sector, and particularly UK Utilities companies, tends to be lower due to job stability and the geographical disparity between competitors. This in turn has a knock-on effect on the number of roles available within the UK, as well as on salary levels which have remained largely static for another year. Although there can be no denying that this is an uncertain time for the Energy sector with a variety of complex issues including the Eurozone debt crisis and the Arab Spring expected to continue to impact on the market in 2012, the Energy sector is likely to remain resilient. Salaries are generally higher than in other industries and demand for lawyers is expected to remain, albeit that some areas within the sector are likely to fare better than others. PQE Median Salary Range ,000-55, ,000-64,000 In-House Energy Whilst Renewable and Alternative Energy companies are seen as being the big hope for the future, we are not currently seeing this translating into substantial legal hiring but, by contrast, recruitment activity in Energy Trading appears to be relatively buoyant with a consistent demand for lawyers to support this area ,000-78, ,000-94, , , , ,000 Head of Legal 135, ,000 General Counsel 250,000+

51 In-House FMCG & Retail FMCG and Retail companies are heavily reliant on consumer confidence which typically lags economic recovery. Accordingly, 2011 has been a year of two halves as early optimism has subsequently given way to a renewed recognition of the economic difficulties we are currently facing, as evidenced by the Consumer Confidence Index which has fallen for the fifth month in a row. As is always the case, some companies have fared substantially better than others with multinationals exposed to emerging markets, luxury brands and companies providing consumer staples tending to come out ahead. Recruitment has continued although has mostly been limited to replacement rather than growth and as a consequence, salaries and benefits have remained largely static. Looking ahead, it is clear that a wholesale change in the overall fortune of the FMCG and Retail sector will really only come about following a substantial shift in consumer spending, which in turn is only likely following sustained economic recovery. In-House FMCG & Retail PQE Median Salary Range ,000-48, ,000-60, ,000-72, ,000-85, ,000-97, , ,000 Head of Legal 110, ,000 General Counsel 148,000+ Laurence Simons Salary Survey 2011/12 In-House FMCG & Retail 53

52 Laurence Simons Salary Survey 2011/12 In-House Traditional Media In-House Traditional Media As a whole, the Media sector continued to go through substantial changes in 2011 with Traditional Media losing momentum and continuing to shrink whilst advertising companies lost revenues. The strongest growth was evident in the digital arena, the most positive trend likely to continue into Nonetheless, Media continues to be a popular choice from a candidate perspective. A large number of Media companies are located in Central London, making it more appealing, however entrance into this sector continues to be something of a closed shop, and competition for roles remains fierce. Economic uncertainty has definitely had an impact on the Media sector in recent times and in particular in late Appointments in this area were found to be replacement roles, rather than new hires. Recently we have seen an increase in demand for interim appointments as companies struggle to gain approval for permanent headcount. It is envisaged that this trend will follow through in 2012, although exactly how much remains unclear. Salaries have remained at the lower end of market rate with nominal or no pay increases in recent years and few anticipated in The gap between Private Practice and In-House remuneration remains most significant in the Traditional Media sectors. In-House Traditional Media PQE Median Salary Range ,000-48, ,000-61, ,000-71, ,000-82, ,000-91, , , , , ,000+ Head of Legal 90, ,000 General Counsel 150,000+

53 In-House Technology, Media & Telecommunications (TMT) Whilst the TMT sector is by no means recession proof, it is generally regarded as a pervasive discipline and 2011 demonstrated this with reasonably high levels of positive recruitment activity throughout the course of the year. Notably, IT consultancies and multinational service companies increased their demand for IT/Outsourcing lawyers outsourcing skills remaining a priority as a means of improving business efficiencies. As a result, high calibre mid-level candidates were frequently sought, though not easily found and those that were successful sometimes received a salary premium as a result. In 2011 developments in the cloud computing, mobile applications and competitive devices arena saw multinational companies compete to attract suitably qualified candidates from a relatively small talent pool. Candidates with skills in these areas were very much in demand and able to be selective, at times, with their career choices. Digital and e-commerce lawyers continued to be desirable at all levels, attributed to the continued expansion of online businesses, payment technologies and social media companies. In 2011 we saw a number of first time appointments, particularly in the latter sector and expect to see more in the future. Advancements in the Technology and Telecommunications sectors saw increased EU regulation in 2011 which in turn, led to a boost for Regulatory lawyers and Compliance professionals. Another trend we expect to see more of in PQE Overall, appetite for highly commercial and technically specialised lawyers in 2011 remained relatively high, however besides the exceptions outlined, basic salaries and corporate benefit packages remained fairly constant throughout the year. It is anticipated that recruitment practices, including compensation discussions in 2012 are likely to be approached with some caution, with companies preferring to protect and retain existing teams and restricting recruitment to replacement appointments rather than growth. Median Salary Range ,000-52, ,000-65, ,000-73, ,000-85, ,000-93, , , , , ,000+ Head of Legal 110, ,000 General Counsel 180,000+ In-House TMT 55 Laurence Simons Salary Survey 2011/12 In-House Technology, Media & Telecommunications (TMT)

54 Laurence Simons Salary Survey 2011/12 In-House Compliance In-House Compliance Recruitment within the Compliance area has continued to grow over the last year. Many companies have made significant structural changes to develop a standalone Compliance function and this trend is likely to continue into Many multinational organisations view this move as best practice, with the ever increasing spotlight on Compliance functions following recent investigations and in some cases prosecutions, across most sectors within Commerce and Industry. Growth has however been steadier than predicted, with the anticipated spike following the UK Bribery Act being balanced by the cautious approach to the market by many clients. The demand for first time European Head of Compliance roles continues and we do not anticipate this to drop in Many roles have been recruited at more junior levels (typically from two to five years PQE), however many more roles are being recruited from within, as organisations are keen to develop from a diversity of backgrounds who already have strong commercial awareness of the organisation. As this area develops, the number of suitably qualified candidates based in Europe has also continued to rise but the available pool of talent at the more junior to mid-level remains a challenge. Remuneration for those working within Compliance will continue to rise in-line with the increasing importance and elevation of the discipline and the demand for talent. This can typically be from 10% to 30%. For more senior and strategic roles, candidates, whether from legal backgrounds or not, are being paid in-line with, or in some cases, more than, commensurate In-House Counsel roles. In-House Compliance PQE Median Salary Range ,000-45, ,000-55, ,000-75, ,000-82, ,000-90, , , , , ,000+ EMEA Compliance Director 75, ,000 Chief Compliance Officer 200,000+

55 IP Patent Attorney & Trade Mark Attorney Patent attorneys are still very much in demand particularly at the level of newly qualified to five years PQE where skills are at a shortage across all sectors. The number passing EQEs to become European Patent Attorneys (EPAs) has grown in 2011 but not enough to satisfy the increasing demand. We continued to see multinationals appointing their first European Patent Attorneys, seeking out the expertise from those previously in more established teams. The market for Trade Mark Attorneys especially at the mid to senior level continued to be tight, as relevant industry experience also comes at a premium. The salary bandings only reflect an indication of salaries for candidates in the intellectual property arena and can vary considerably. Much will depend on each candidate s specific experience, technical background, industry sector and geographic remit. Patent Attorneys are required to have a technical degree and therefore their deeper level of technical expertise goes some way in explaining why they are able to command higher salaries than their Trade Mark counterparts. Typically in industry the years of actual practical relevant experience may be considered alongside the actual exam qualification dates. Positions in industry include benefit packages which tend to become more generous at the more senior level and will commonly include some, or all of the following: discretionary bonus scheme, car allowance, healthcare plan, life insurance, pension and share option scheme. Sign on bonuses may sometimes be considered as an incentive. Benefits have remained relatively static over the past three years. Level of Experience Median Salary Range Trainee Patent Attorney 20,000-29,000 PQ Patent Attorney 27,000-41,000 Finalist Patent Attorney 39,000-53,000 Patent Attorney >5 years 51,000-75,000 Patent Attorney years 68,000-91,000+ Head of Department 89, ,000 Level of Experience Median Salary Range Trainee Trade Mark Attorney 20,000-26,000 PQ Trade Mark Attorney 23,000-34,000 NQ Trade Mark Attorney 33,000-45,000 Trade Mark Attorney >5 years 44,000-66,000 Trade Mark Attorney years 61,000+ Head of Department 73, ,000+ Patent Attorney Trade Mark Attorney 57 Laurence Simons Salary Survey 2011/12 IP Patent Attorney & Trade Mark Attorney

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58 Laurence Simons Salary Survey 2011/12 Ireland Ireland In-House 2011 saw several strong pockets of recruitment activity in the Irish market, particularly within Financial Services, Aviation Finance and the Funds arena. Candidates have tended to earn higher salaries due to a short supply of talent within these areas and it is likely that this trend will continue into There has been an influx of hiring within General Banking as a result of NAMA related work. The Energy and Insurance sectors remain steady. Commerce and Industry has seen a smaller degree of growth and this is largely due to the lack of movement in this area as a result of the reduced number of new roles. Opportunities across the board have tended to be at a mid to senior level. Candidates at the more junior end saw fewer opportunities available in 2011 and therefore there was less movement at this level. In-House Ireland PQE Median Salary Range ,000-50, ,000-70, ,000-80, ,000-90, , ,000+ Head of Legal 120, ,000 General Counsel 150, ,000 There has been an increase in the number of Compliance roles which has resulted in a number of lawyers undertaking diplomas in this area to enhance their skill set.