Mahlab Report Private Practice. Australia International

Transcription

1 Mahlab Report 2015 Private Practice Australia International

2 Mahlab Report 2015 Private Practice Australia International Introduction...1 Partners...6 Private Practice Lawyers...8 International All artwork reproduced with the kind permission of the artist, Bill Sampson Figures contained within tables in this survey have been rounded to the nearest $500 and are quoted in local currency. Mahlab Recruitment (Vic) Pty Ltd 2015 Mahlab Recruitment (NSW) Pty Ltd

3 Mahlab Report 2015 For more than 40 years, the Mahlab Report has been a leading source of insight for employers and professionals in Australia s legal industry. The Mahlab Report 2015 provides in-depth information about the legal profession, employment experiences, trends and remuneration including remuneration tables. Unlike many such reports, the information we provide is based on salary reviews that apply from 1 July The Mahlab Report has always been informed by a unique mix of industry knowledge and qualitative research, with the aim of producing a useful, accessible guide for clients and candidates. In the past we primarily relied on surveying the profession for our information, but we found that the current proliferation of surveys make it a burden for many to engage in the online consultation process. In addition, survey responses were often constrained by the inflexible nature of the online investigation. At Mahlab we believe it s important to remain innovative and relevant. We aim to provide the most useful and accurate information and commentary to the market. We decided the best way to achieve this was through a greater degree of interaction with our readers. To this end, we interviewed clients and candidates and engaged in discussion groups, which enabled us to engage more widely with the legal profession about work conditions, remuneration and emerging employment trends. The Mahlab Roundtables, introduced in 2014, have been key to this strategy. The Roundtables have brought together a broad cross section of senior legal professionals to discuss the challenges they face as leaders in this highly competitive and dynamic industry. These discussions have helped forge the direction of our reports. We thank all contributors for their frank perspectives and the generosity with which they have shared their information and experiences. It is this firsthand information that has equipped us to produce industry relevant reports that not only inform but also challenge best practice. Throughout the year we will continue to provide reports based on Mahlab s Roundtables and look forward to your involvement in these. We invite you to join the social media conversation about #MahlabReport2015 by or connecting with us on LinkedIn. Key Findings The legal market this year has remained optimistic albeit cautious in what is a soft, hyper-competitive and changing economic environment. Hiring of lawyers in both private practice and in-house has steadily increased, with rigorous workforce planning focused on developing teams made up of permanent, fixed term and contract hires. Remuneration reviews this year have, as last year, remained conservative. 1

4 Mahlab Report 2015 Private Practice Salary reviews have been restrained, reflecting the continued need to reward employees while controlling costs. Nationally, the average increase in private practice salaries is 3.4% in contrast to last year s national average of 3.8%. Bonuses have been reserved for the very high performers who have exceeded budget. Performance based reward is now the means of recognising performance across all levels of a law firm. Corporate clients are maintaining pressure on firms to reduce fees. The Australian market now has a proliferation of smaller boutique firms and alternative service providers all offering to do their work faster, better and cheaper. Many major firms are continuing to de-leverage in response to the very competitive legal services market. The falling Australian dollar and the slowdown in China has placed particular pressure on partners who need to satisfy overseas masters. Some global players have had to make significant adjustments to deal with declining revenues, including the closure of offices. Nevertheless, global players continue to enter the market in strategic moves to win further work from their existing regional and global clients. Most interestingly, global accounting firms are re-emerging to take a share of the legal services market. This year the greatest demand for lawyers has been in mergers and acquisitions (M&A), private equity, corporate law, property, and construction and projects. These areas are consistent with demand in previous years. Mobility among private practitioners at all levels continues, with options this year in firms in Australia, overseas (particularly the UK, which has shown steady, solid improvement in opportunities for the second year running), in-house and in government. While most lawyers secured these opportunities in the open legal employment market, a number have secured secondments to the overseas offices of their own firms. Some lawyers have opted for quasi-legal roles and others have opted out of law altogether to apply for roles in other sectors. In the meantime, lawyers continue to work long hours and experience high levels of stress as the practice of law becomes increasingly more commercialised and competitive. More lawyers are seeking alternatives to law firm practice, many embracing a move into an in-house team and others seeking options in commercial roles. Sadly, the demands placed on the legal profession means it is losing some of its most talented lawyers who do not see the value in a traditional legal career. The de-equitisation of partners continues and equity is now harder to attain and retain. Salaried partner ranks are growing and this group is now being more aggressively managed. Business development skills and the ability to build and maintain a practice and a team in a hyper-competitive market are critical to partner success and longevity at a firm. Remuneration for many partners has declined, reflecting a drop in law firm profitability. Some partners reported their remuneration dropped by as much as 30% over a three year period with 25% the most common reported remuneration decline over a three year period. Notwithstanding this trend, there were stand out firms which outperformed their peers and were able to maintain and increase profitability. These firms are characterised by strong leadership and management and an emphasis on efficiencies. The legal market this year has remained optimistic albeit cautious in what is a soft, hyper-competitive and changing economic environment. 2

5 Mahlab Report 2015 Corporate In-house lawyers once again received modest salary increases with the national average being 3%. Bonuses were paid to only 55% of corporate lawyers, with some lawyers receiving no bonus for the second or third year in a row. Overall, it was a mildly positive result for in-house lawyers and it is anticipated that salaries will continue along these trends for the next 12 months. Corporate legal employers continue to grow, adding to their teams to gain cost efficiencies. Hiring activity this year has been on the up with an increase in opportunities for lawyers, particularly those with around 3 8 years experience. Much of the activity has been in the area of fast moving consumer goods, financial services, property, health care and infrastructure. Governance roles and compliance roles have also increased. General counsel reported that motivating and developing their team in an environment where financial rewards and promotions are elusive has been a particular challenge this year. The majority of in-house lawyers reported their companies have continued to aggressively manage costs and the pressure to contain and reduce external legal expenditure is a continuing trend. General counsel manage the pressures of needing to do more with less, a growing regulatory environment, and the drive for lower external fees. Alternative ways of delivering legal services to their companies has been high on general counsel agendas. Secondments are popular, followed by fixed term hires and offshoring of work. There is an increasing acceptance of contracts by job-seeking lawyers in the market place and employers who prefer the flexibility of contracts in workforce planning. In addition, general counsel are also using offshore centres of law firms for routine tasks such as document review, due diligence and basic drafting to increase efficiencies. Fixed fees are charged in these situations and in-house counsel usually obtain hybrid billing arrangements comprising a fixed fee for the routine work and an hourly rate for the more complex strategic work. While this sounds positive from a cost control perspective, many general counsel expressed concerns about the risks and quality of work as a means for law firms to increase margins between revenue and expenses. Company secretarial remuneration has remained steady, with the national average increase being 3.1% compared to 3.3% last year. The majority (72%) of company secretaries received bonuses. Hiring activity remained steady and while company secretaries have been required to do more with less, this additional work is absorbed within their teams and through better use of technology. Katherine Sampson Lisa Gazis 3

6 State of the market Private Practice Profits down in larger firms National average salary increase 3.4% Bonuses only for exceptional performers Higher job mobility Corporate Teams continue to grow National average salary increase 3% Bonuses only for 55% of lawyers Pressure to do more with less Hiring Activity Sydney Adelaide Perth Hiring in law firms is increasingly spread across permanent, fixed term and contract staff. Brisbane Melbourne 4

7 State of the market Areas in demand Global movements Global firms open their doors in Australia, creating local jobs and importing overseas talent. Mergers and acquisitions Banking and finance Construction/ Projects Property Lawyers in Australia pursue opportunities in overseas growth areas. 80% of General Counsel reported that their legal teams are under-resourced and require additional staff. UK London Middle East USA New York Asia 5

8 Partners Market The pressures on all law firms to achieve budget naturally affects partner satisfaction, promotion and retention. This has been particularly evident in the global firms, where a falling Australian Dollar (AUD) and economic conditions in Australia make for tougher times than when these alliances were formed. Some partners expressed frustration that decisions are taken by faceless, offshore committees who regard the Australian component of the merged firm as a drag on profitability and something of a disappointment after the heady days of the merger, when a high AUD prevailed and the mining boom seemed endless. Remuneration Some notable larger firms have seen a significant drop in partner profitability in the last 12 months. Whereas three years ago a full equity partner at such a firm could comfortably expect an income of $1.2m and upwards (sometimes significantly upwards), some firms have seen this dive to $750,000 to $800,000 with little prospect of reversion. As always there are stand-outs in the major firm category, with revenue and profits out-performing their peers. These tend to enjoy superior management, a single-mindedness about costcutting and tough decisions on under-performers and a ruthless pursuit of lucrative new clients and deals. Partners in mid sized firms earning circa $1.0m in recent years have tended to hold their income at similar levels. Lesser performers have seen their income fall by up to 25%. Small firms with a clear service offering to the market which differentiates them are growing steadily, although partner income is still lower than the level these partners enjoyed at their former, traditional firms. Recruitment Partners with practices continue to move. The Sydney and Melbourne markets have been particularly active in this area. Departures continue from major firms (both global and local) particularly in corporate advisory and usually to slightly smaller, more nimble firms. Finance partners have also been on the move, citing inflexible overseas control as the main reason for the change. Acquisitive firms are open to partners who offer synergies with their current practice and, of particular interest, particularly for the mid sized firms and large independent firms, has been government practices, although all firms have shown interest in partners with practices in infrastructure and construction projects. As a rule partners with portable practices above $1m remain in high demand across the market no matter what their specialisation. Mid sized firms remain the chief beneficiaries of most partner movement. While remuneration can be a driver it is not the only reason for moving. Common reasons for moves this year included unhappiness with the influence of overseas offices, lack of professional recognition and support, non-alignment with management values, and the need for a business model more compatible with the partner s and their clients needs. There has also been an interesting trend of partners returning to their former firms. While partners on the move usually take a client base with them, this year corporate clients, particularly global entities, were increasingly conscious of the value of a recognised brand as well as an individual s brand. The result is that the former firm may not lose all work from a key client when partners move. Retention Partner retention is highly variable across the type, size and culture of the firm. Those that remain loyal to the larger, global firms tend to accept that life as a partner is different now, with less active involvement in decision-making. Some feel relieved that others are now taking the mantle of leadership; others yearn for the old days of knowing every fellow partner and collective decision making. While partners with a sizeable practice can take their pick of welcoming firms, those with institutional clients and those tied to panel appointments face a much harder battle and are, in effect, retained by their current firm for lack of opportunity elsewhere. 6

9 Partners Remuneration Sydney Mode Major Firms $1,215,000 Mid Firms $874,000 Small Firms $455,000 Melbourne Mode Major Firms $1,150,000 Mid Firms $775,000 Small Firms $427,000 Brisbane Mode Major Firms $965,000 Mid Firms $617,000 Small Firms $345,000 Perth Mode Major Firms $1,045,000 Mid Firms $685,000 Small Firms $385,000 Adelaide Mode Major Firms $750,000 Mid Firms $450,000 Small Firms $250,000 The defining criteria of what is a major, mid and small commercial CBD firm includes: size, locations, reputation, quality of work, expectations of employer as well as pay, desirability of employment and training and development. 7 7

10 Private Practice Lawyers Market 2014/15 was an eventful year for private law firms. Geography, firm composition, culture and leadership and the economic climate all served to differentiate firms and affect their ability to attract, motivate and retain top talent. Many major law firms, especially those allied to an overseas brand, are under more pressure than ever to improve partner profitability in Australia as the Australian Dollar falls and business activity remained subdued. Cost cutting (including some redundancies and even closure of offices), de-leveraging and pressure to exceed a high budget have all impacted satisfaction at these firms, with lawyers of all levels as well as marketing and human resources staff affected. Despite the economic deterrents to establishing in Australia, 2014/15 has seen a number of international firms set up small offices chiefly in Sydney and Perth and often staffed with an anchor partner brought from overseas assisted by local hires. Many of these firms offer specialised services in, for example, infrastructure, insurance, maritime, employment and litigation. Most interestingly, global accounting firms are also re-emerging to take a share of the legal services market. Smaller firms offering bespoke services such as a select range of expertise at a premium level (and sometimes at a premium price), have benefitted from the changes in the larger firms as partners and senior associates select their offering for its flexibility. These firms keep a low profile and often retain clients and staff through innovative employment practices, specialist expertise and excellent quality work. Several so-called NewLaw firms have sprouted this year, responding to partners desire for more autonomy, flexible fee regimes and better work/life balance than they saw at their (usually) larger former homes. Many remunerate their lawyers (including principals) based on a percentage of individual billings. These alternative providers are meeting client needs for easy to access, personal and cost effective services. In many instances, clients deal with a senior lawyer, there is no leveraging of junior teams and there is flexibility in fee constructs. These firms rely on technology to deliver their services and lawyers reportedly enjoy more control over the work they do, and can collaborate with others in the group to win work. Employment prospects for lawyers at all levels in this segment are positive. Traditional law firms are responding with a range of offerings. This year we have witnessed firms following the footsteps of some of the UK law firms in setting up their own contract service centres staffed by their own lawyers and contractors. Remuneration Lawyers report higher hourly rates, higher budgets, retention of work by partners and only modest salary increases, with bonuses used more and more to reward high performers who have exceeded budget. Often the bonus is discretionary. Employee remuneration has increased by 3 to 5% in the major centres, with Perth, Brisbane and Adelaide seeing CPI increases only. The national average increase is 3.4% (in contrast to last year s 3.8%), with bands moving only marginally (2.5%), if at all. This continues the downward trend on salary band movement (last year 44% of firms increased their bands, down from 90% in 2011). Bonuses are similar to last year s, with 5 to 10% paid to good performers and up to 20% for exceptional performers. Sign on bonuses are once again rare, having only briefly re-appeared in the last financial year. Lawyers in busy banking and finance, infrastructure and corporate M&A practices tend to be rewarded slightly more than their peers in less lucrative areas and benefit more at bonus time, having only briefly re-appeared in the last financial year. 8

11 Private Practice Lawyers Many lawyers have reported they have not been satisfied with their reviews given they are working harder with limited support. While lawyers have received salary increases, bonuses have been tightly controlled. Lawyers who have not been working to capacity due to a lack of flow in their sections have been particularly affected, receiving an increase at the bottom of the range (if at all) and no bonus. Recruitment As firms evolve, their legal workforce is changing. Hiring in law firms is increasingly spread across permanent staff, fixed term and contract staff to enable firms to flex to meet constant change. Gains were made in Sydney and Melbourne, where 80% of the larger and 60% of mid sized firms renewed their hiring activity at mid level solicitor and senior associate level. This reflects a lift in business activity in these centres as well as a gap in staffing occasioned by the GFC, when few trainees were employed. Many firms are confident of increased hiring and further steady market improvement. Some 24% of firms have also seen a number of staff at these levels depart for overseas (where some markets are again rising) and in house opportunities (also exhibiting strong demand) with lifestyle choices dictating other departures: lawyers taking a step back to a less demanding role or pursuing part time arrangements with other employers. In contrast to Melbourne and Sydney, Mahlab has observed a 60% slowing in demand for lawyers in Perth and Brisbane, as the mining boom peters out and law firms tighten their belts. Adelaide has been stable. The independent Australian firms in the major and mid sized market have enjoyed a solid year. Some have netted partners and staff disgruntled with the global construct and looking to recreate the reason they joined a partnership in the first place: a common goal, control over one s own destiny and autonomy. They have attracted new clients seeking the personal touch of an Australian partner, on the ground, in their city, sometimes at a lower price than their global competitors. The mid tiers continue to grow by hiring partners with practices and lawyers who believe these firms will give them the best prospects for advancement. Remuneration at the mid tiers remains competitive and there is a perception that they offer greater work/ life balance. Areas of demand for lawyers at solicitor and senior associate level are M&A, banking and finance, construction, projects and property. At the entry level of the profession, employment prospects for graduates are bleak. With even more law schools coming on stream in 2015 the number of law students continues to increase as firms employ fewer trainees. A prior career or qualifications outside law in a highly marketable field (such as construction) places selected Juris Doctor graduates in a stronger position, but many graduates are turning to fields outside legal practice to make their career start. The good news for graduates and junior lawyers is that there is an expectation among employers that business activity will increase in the coming year. This will result in more opportunities for junior and mid-level lawyers in the top and mid tiers, but the supply of junior lawyers will continue to exceed demand for some years. Retention A number of lawyers indicated dissatisfaction with their recent salary reviews. This combined with the long work hours in their current roles has led to the decision to seek an alternative career move in the coming year. Across the board in private practice, the hurdles to achieve partnership (or even to be considered as partner material ) have been set higher. Some firms have introduced new promotion opportunities along the way to inspire and retain star performers. Unfortunately lawyers report that this is often more discouraging than motivating. They see the path to partnership as very long and very rocky. Many choose an alternative career path in-house, in government law or outside the law altogether. Other retention strategies have come to the fore, chiefly better organised, concerted and meaningful efforts to retain part-time talent, including partners, and to instill a culture of genuine workplace flexibility in what is still an essentially conservative profession. 9

12 Private Practice Lawyers Salaries Major firms Sydney Year Level Range Mode 1 $75,000 $92,000 $85,000 2 $83,00 $105,000 $92,000 3 $87,000 $120,000 $100,000 4 $95,000 $135,000 $118,500 5 $110,000 $160,000 $130,000 SA 1 $135,000 $180,000 $147,000 SA 2 $145,000 $215,000 $165,500 SA 3 $162,000 $222,000 $185,000 SA 4 $165,000 $240,000 $210,000 SA 5/SC $196,000 $340,000 $250,000 Melbourne Year Level Range Mode 1 $68,000 $90,000 $76,000 2 $69,000 $98,000 $82,000 3 $80,500 $115,000 $88,000 4 $90,000 $134,000 $107,500 5 $97,000 $147,500 $119,500 SA 1 $115,000 $160,000 $135,000 SA 2 $125,000 $180,000 $150,000 SA 3 $130,000 $190,000 $162,000 SA 4 $155,000 $220,000 $180,000 SA 5/SC $160,000 $305,000 $218,500 The defining criteria of what is a major, mid and small commercial CBD firm includes: size, locations, reputation, quality of work, expectations of employer as well as pay, desirability of employment and training and development. Figures include superannuation but do not include bonuses or other benefits. Given that firms take into account a range of factors when determining remuneration, an individual s position within a band will vary based on their background, experience and performance. Lawyers paid at the higher end of the bands are usually top performers and/or employees who bring with them an additional skill that is over and above the general requirements of the role. For tailored advice please contact our consultants

13 Private Practice Lawyers Salaries Major firms Brisbane Year Level Range Mode 1 $67,500 $80,000 $75,000 2 $69,000 $95,000 $82,000 3 $80,000 $105,500 $88,000 4 $90,000 $120,000 $96,500 5 $96,000 $145,000 $115,000 SA 1 $115,000 $160,000 $130,000 SA 2 $130,000 $180,000 $155,000 Perth Year Level Range Mode 1 $75,000 $90,000 $78,000 2 $79,500 $100,000 $89,000 3 $83,000 $117,000 $98,500 4 $95,000 $135,000 $110,000 5 $108,000 $150,000 $123,500 SA 1 $125,000 $170,000 $138,000 SA 2 $130,000 $187,000 $160,000 Adelaide Year Level Range Mode 1 $50,000 $68,000 $59,000 2 $60,000 $78,000 $66,000 3 $66,000 $85,000 $72,500 4 $75,000 $110,000 $85,000 5 $80,000 $125,000 $90,000 SA 1 $90,000 $155,000 $115,000 SA 2 $96,000 $175,000 $127,500 The defining criteria of what is a major, mid and small commercial CBD firm includes: size, locations, reputation, quality of work, expectations of employer as well as pay, desirability of employment and training and development. Figures include superannuation but do not include bonuses or other benefits. Given that firms take into account a range of factors when determining remuneration, an individual s position within a band will vary based on their background, experience and performance. Lawyers paid at the higher end of the bands are usually top performers and/or employees who bring with them an additional skill that is over and above the general requirements of the role. For tailored advice please contact our consultants. Mahlab 11 Report Mahlab 2015 Private Report 2015 Practice Private Practice 11

14 Private Practice Lawyers Salaries Mid firms Sydney Year Level Range Mode 1 $65,000 $82,000 $75,000 2 $76,000 $98,000 $84,000 3 $86,000 $116,000 $93,000 4 $90,000 $130,000 $105,500 5 $95,000 $143,000 $120,000 SA 1 $115,000 $160,000 $135,000 SA 2 $125,000 $177,000 $140,000 SA 3 $135,000 $185,000 $157,000 SA 4 $146,000 $205,000 $173,000 SA 5/SC $155,000 $275,000 $208,500 Melbourne Year Level Range Mode 1 $60,000 $82,000 $73,000 2 $65,000 $93,000 $76,000 3 $73,000 $115,000 $85,000 4 $78,000 $122,500 $98,000 5 $85,000 $135,000 $115,000 SA 1 $102,000 $150,500 $120,000 SA 2 $110,000 $160,500 $133,000 SA 3 $125,000 $170,000 $148,000 SA 4 $138,000 $205,000 $160,000 SA 5/SC $150,000 $270,000 $185,000 The defining criteria of what is a major, mid and small commercial CBD firm includes: size, locations, reputation, quality of work, expectations of employer as well as pay, desirability of employment and training and development. Figures include superannuation but do not include bonuses or other benefits. Given that firms take into account a range of factors when determining remuneration, an individual s position within a band will vary based on their background, experience and performance. Lawyers paid at the higher end of the bands are usually top performers and/or employees who bring with them an additional skill that is over and above the general requirements of the role. For tailored advice please contact our consultants. 12

15 Private Practice Lawyers Salaries Small commercial CBD firms Sydney Year Level Range Mode 1 $50,000 $75,000 $55,000 2 $62,000 $87,500 $67,000 3 $68,000 $94,500 $79,500 4 $76,000 $115,000 $87,500 5 $87,000 $130,000 $100,000 SA 1 $95,000 $151,000 $118,000 SA 2 $115,000 $165,000 $124,500 SA 3 $125,000 $180,000 $138,000 SA 4 $135,000 $185,000 $150,000 SA 5/SC $155,000 $205,000 $168,000 Melbourne Year Level Range Mode 1 $50,000 $75,000 $50,000 2 $53,000 $85,000 $60,000 3 $57,000 $92,000 $69,500 4 $60,000 $112,000 $78,000 5 $73,500 $125,000 $98,000 SA 1 $78,500 $145,000 $105,500 SA 2 $105,000 $148,000 $115,000 SA 3 $110,000 $150,000 $125,000 SA 4 $120,000 $180,000 $135,500 SA 5/SC $135,500 $205,000 $165,000 The defining criteria of what is a major, mid and small commercial CBD firm includes: size, locations, reputation, quality of work, expectations of employer as well as pay, desirability of employment and training and development. Figures include superannuation but do not include bonuses or other benefits. Given that firms take into account a range of factors when determining remuneration, an individual s position within a band will vary based on their background, experience and performance. Lawyers paid at the higher end of the bands are usually top performers and/or employees who bring with them an additional skill that is over and above the general requirements of the role. For tailored advice please contact our consultants. 13

16 International Salaries have remained highly competitive at the magic circle, silver circle, US firms and major international practices. UK London The London market has picked up considerably in 2014/15. We are seeing more opportunities for suitably qualified lawyers with expertise in banking and finance, mergers and acquisitions, capital markets, financial services and funds management. There are also openings for construction and projects lawyers. Competition will remain fierce as Australian lawyers compete head on with a growing supply of local lawyers. Salaries have remained highly competitive at the magic circle, silver circle, US firms and major international practices. Firms have continued to offer bonuses primarily to retain and reward their exceptional performers. Australian and New Zealand lawyers looking to secure a role in the UK will have their experience discounted by up to two years. Depending on the firm, a newly qualified lawyer can earn between 59,000 and 95,000. Salaries at the higher end of this range reflect the remuneration on offer at US firms. Law firms will continue to critically assess their needs before commencing the hiring process. Long term forecasting and financial planning will force firms to concentrate on recruiting for profitable areas of growth. Asia Recruitment in Asia has gradually increased this financial year. The areas in greatest demand were banking and finance, mergers and acquisitions, capital markets, funds and financial services/ regulatory litigation. Lawyers with Chinese language skills are strongly preferred, particularly in Hong Kong and China. Lawyers with both Mandarin and Cantonese language skills were highly desired. More opportunities have arisen in Singapore and this has proven a popular choice, as language skills were not a major barrier for candidates. Salaries remained competitive, with the lawyers area of specialisation, cost of living, location of the role and the demand for quality lawyers all taken into consideration when devising an attractive package. 14

17 International Middle East More opportunities have arisen in Dubai, Abu Dhabi and Doha this year. Activity remains fairly consistent in Riyadh and Tripoli. Foreign lawyers are attracted to these destinations because of the tax benefits on offer and the quality of work available. There continues to be strong demand for suitably qualified lawyers in the areas of banking and finance, corporate mergers and acquisitions and dispute resolution. We also saw increased demand for lawyers with construction and property experience towards the second half of the financial year. This is still a competitive market and given the transient nature of the location, the quality of lawyers sought is consistent with that of the UK. Therefore, large firm training, strong academics and superior technical skills are highly sought after. The increase in corporate and finance transactions has resulted in demand for lawyers with Islamic finance experience. Overall, it is important that lawyers possess Arabic language skills and some regional experience to compete for opportunities. Due to the strong presence of UK firms in the Middle East, Australian and New Zealand lawyers with a minimum of two years post admission experience are treated as newly qualified lawyers. Salaries for newly qualified lawyers at UK firms based in the Middle East start at AUD $100,000. US New York Recruitment in New York remains very tight although firms are still hiring. There is a preference for lawyers who have completed their degrees or have studied an LLM at a top US law school. Australian and New Zealand lawyers from top practices with impeccable academics are still able to secure roles. The starting salary for a graduate in New York is USD $160,000 across all the major firms. Generous bonuses for high-performing lawyers ranged from 15% (for first year lawyers) to 22% for senior lawyers. We are unlikely to see a substantial increase in salaries and bonuses next year. Australian and New Zealand lawyers generally have their experience discounted by up to 2 3 years. US firms recognise that foreign lawyers need to retrain and undertake additional studies to obtain admission in the US. Depending on the firm, a newly qualified lawyer can earn between 59,000 and 95,

18 Melbourne Level 1, 535 Bourke Street, Melbourne 3000 T: (03) E: Sydney Level 9, 6 O Connell Street, Sydney 2000 T: (02) E: