Hudson Legal Salary Survey 2011

2011salaryguide

2011salaryguidecontentsintroductionforewordAbout Hudson legalSalary and market informationlondonPrivate Practice - Associatesin-houseOil & Gas, Power and InfrastructureFinancial ServicesFMCG/RetailIT&T/MediaLife SciencesContractEnglish RegionsPrivate Practice - Associatesin-housescotlandPrivate Practicein-housecontact us123468911141618202427303234

2011salaryguideintroductionWelcome to our Legal SalaryGuide for 2011.We hope you find this aninsightful report, not only intosalaries and benefits, but alsointo the broader recruitmenttrends we foresee in the legalmarketplace for the remainderof 2011.The Hudson Legal 2011 Salary Guidereflects how salaries have fluctuated acrossthe industry. It contains market overviews andsalary information for each major specialistarea and forecasts how these areas willdevelop in the coming months.Once again, we are pleased to include aforeword written by Martin Piers, our GlobalHead of Legal.The UK figures and reports have beencompiled by our legal recruitment experts,who have gained a depth of knowledgewhich can only be obtained first-hand fromworking within the market on a day-to-daybasis.We hope you find this report an informativeand interesting read. As such, this salaryand market report is indicative only – ourconsultants are available to provide bespokeinformation and advice, whatever your needsmay be.Regards,Hudson LegalLegal | Salary Guide 2011 1

2011salaryguideFOREWoRDBy Martin Piers, Global Head of Legal, Hudson Legal2011 has started positively in almost all legalmarkets worldwide. The cautious optimismexpressed at the latter end of 2010 hasdeveloped into a more expansive strategyat the majority of international and nationallaw firms. Only time will tell whether thischange in sentiment and approach proves tobe justified by the economic realities of thebusiness world which such firms serve.As one would expect the position differsfrom region to region.We have seen a new impetus to the marketin Singapore – both in terms of in-house(where Singapore is chosen as the regionalhead office) and Law firms (either expandingtheir Asian networks or using Singapore astheir hub). This trend is further emphasisedby the growing importance of the Dubaicorridor – stretching from the Middle Eastthrough India to Singapore.Not withstanding the rise of Singapore it isapparent that it has not detracted from thesolidity of the Hong Kong market. HongKong seems to be able to work seamlesslywith Shanghai and belting across most workfronts (i.e. not just the capital markets). Theresilience of the local economy underpinsthat strength.The Australian market has witnessed somefundamental restructuring. Having boasted ahost of top tier commercial law firms for quitesome time, the global financial crisis failed toinflict material damage – not least becauseof the inherent strength of the economyand the continuing boom in commodities.However, the major firms had failed toextend to the international stage (save forsome representation in Asia) – as they foundthe landscape already dominated by the UKand US global players. The move from bestfriend relationships to international mergerswas perhaps inevitable but nevertheless tookmany by surprise at this stage.In the Middle East not only did the salaryfreeze thaw, but the legal market expandedrapidly. Dubai has recovered some ofits strut, Abu Dhabi has consolidated itsstrong position and markets such as Saudi,Jordon, Kuwait, Qatar and Egypt have cometo prominence. Despite the unrest anduncertainty in the region, the Legal marketslook set to continue to prosper.So far as continental Europe is concerned,certain trends have continued – such as therise in importance of the German market(reflecting the countries status as aneconomic powerhouse), the relative isolationof Paris, the Spanish market bucking thedownwards spiral of the local economy (inpart because of the market going greatguns) and Moscow, despite its problems,consolidating its position as a crucialregional hub. Most of the CEE has beenseen to be treading water (at best) and manyinternational players have lost interest inbeing on the ground there.There has been a flood of activity in Brazil –mainly from the big American players. Therestrictions on the market are not dissimilarto those of India, a fellow BRIC member.US Law firms continue to post great profits –supported in part by the size and profitabilityof their dispute resolution practices. Manycontinue to flirt with the idea of transatlanticmergers whilst those already betrothedseek to integrate and consolidate – aconsequence of which has been a smallexodus of partners and associates on bothsides of the pond.As far as London is concerned the magiccircle continues to pull away. A number ofUS firms are making large inroads and manymid-sized firms are considering merger asa defensive play. Some UK stalwarts haveseen profits collapse whilst others arebenefiting from their prudent pruning andinvestment over the last two year. Finallythe willingness of partners and associatesin London to consider a move has probablynever been higher so the market will remainvolatile for some time to come.2 legal | Salary Guide 2011

2011salaryguideAbout Hudson LegalAt Hudson, we understand that successfulworking relationships are the key to thesuccess of both the organisation and theindividual.We understand this because we employnearly 2,000 professionals serving clientsand candidates in approximately 20 countriesglobally. Hudson Legal is one of the world’slargest legal recruiters, giving us thebroadest understanding of the ever-changingdynamics of the global legal marketplace.In this day and age, it is vital that a globalnetwork is combined with in-depth localmarket knowledge and capability. In theUK the majority of our legal recruitmentconsultants are legally trained or qualified.Our Private Practice team has vastexperience recruiting for all sizes and typesof firms, ranging from Magic Circle throughto niche boutique firms. Our in-house teamis segmented by sector so you can be sureyou get the depth of industry knowledgerequired to provide you with highly tailoredrecruitment or career advice.We work with our clients on a retained,contingent, temporary or contract basis;offering flexibile recruitment solutionsreflective of individual requirements andfluctuating economic environments. Ourtemporary and contract recruitment capabilityis fully integrated within both our PrivatePractice and our in-house teams, so that youcan be certain you get the most effectiveinterim solution should the need arise,whether you are a client or candidate.In conjunction with our talent managementoffering, we partner with our clients to selectthe right people, engage and retain talent,and develop and shape potential.Most importantly, we create long lastingmutually beneficial relationships, so that youcan be certain we have the future in mindwhen working with you.We think this is a refreshing approach ina time when too many people are focusedon short-term transactions instead of longstanding business relationships. That is whywe will never offer you a standard serviceand insist on a personal local service but witha truly global reach.We’re different because you are.Legal | Salary Guide 2011 3

2011salaryguideSalary and marketinformation

2011salaryguide

2011salaryguidelondonPrivate Practice - AssociatesAfter a volatile few years with a great dealof uncertainty, change and turbulencethe private practice associate marketis continuing to show signs of recovery.Needless to say we are not back to prerecessionhiring levels but the overall moodand trends are optimistic as we continue into2011.We have observed a diverse range of hiringlevels across the top 200 firms with a fewfirms continuing to have a complete freezeon non-critical hires. However, the majorityof city and US firms are sourcing talent at arelatively healthy level.There have been notable areas of highdemand as well as areas which haveremained weak. The drive has been a mixof replenishing numbers after the multiplerounds of redundancies of the previous 18months but, more encouragingly some hiresare part of planned growth strategies amongfirms.Areas where we have seen the sharpest risein demand are banking, finance and projectfinance lawyers which is in stark contrastto the pattern in 2009 and the early part of2010. This trend has been present acrossmost, if not all of the City firms. Additionalareas of intensified recruiting include capitalmarkets, corporate M&A Lawyers andspecialist practices including competition,employment, litigation and arbitration, energyand intellectual property.Part of this trend can be directly attributed tothe increase in M&A as well as an increasein initial public offerings and other listings.The market’s appetite for high yield has alsoreturned with a variety of US and City firmsbolstering their teams in this area. This hasseen a rise in competition for talent andfirms have to put more effort into creatingan attractive package and onboardingcandidates as they are often in a two or threefirm contest.There has still been little or no growth insome areas including property and realestate and general corporate positionshave remained relatively flat. One of the bigsurprises over the past year is the noncontentiousconstruction market. This wasnot an area we expected to grow at all butwe have had requests from a number ofCity firms looking for mid to senior levelassociates.From late 2010 onwards firms have againstarted looking at the international candidatepool as a resource which has been awelcome move. We have seen increasedflexibility from firms around both PQE rangeand candidates qualifying in an alternativejurisdiction. However, with constant changesto visa and migration restrictions this couldbe an inconsistent resource.Finally, there has been little change to salarylevels from 2009/2010 to 2010/2011. USfirms are still paying a premium to recruit thebest with the City firms remaining behindthe curve in contrast. Firms are now back tohaving either annual or six monthly salaryreviews after a period of consolidation andbonuses are being paid, albeit not at thesame level as they once were.6 legal | Salary Guide 2011

2011salaryguidePrivate Practice - AssociatesPermanentMinimum £ Maximum £ Average £Magic CircleNQ 58,000 62,000 61,0001 year's PQE 65,000 72,000 71,5002 years' PQE 71,000 82,000 80,0003 years' PQE 82,000 90,000 89,5004 years' PQE 95,000 100,000 98,0005 years' PQE 102,000 108,000 106,500Silver CircleNQ 57,000 62,000 61,0001 year's PQE 62,000 72,000 70,0002 years' PQE 72,000 78,000 76,0003 years' PQE 78,000 91,000 86,0004 years' PQE 90,000 98,000 94,0005 years' PQE 91,000 107,000 96,000BoutiqueNQ 42,000 61,000 50,0001 year's PQE 46,000 70,000 56,0002 years' PQE 50,000 80,000 67,5003 years' PQE 54,000 90,000 73,0004 years' PQE 60,000 96,000 78,0005 years' PQE 66,000 102,000 85,000LondonLegal | Salary Guide 2011 7

2011salaryguideIn-houseThe in-house legal market has proved resilientto some of the greatest financial challengesin living memory. Business appetite for bothhighly commercial and technically specialisedlegal professionals remains undiminished,driven by the need to effectively manage legalbudgets and ensure best value legal support.Across all sectors, our contract & interimproduct has experienced increased activity.Clients continue to innovate their hiringstrategies to provide the legal advice theyneed with the flexibility demanded by theuncertain times in which we find ourselves.In 2010 and early 2011, the market hascontinued to yield a number of seniorpositions, including both General Counseland regional General Counsel roles, whichare contested more fiercely than ever withincreased fluidity at all levels in the candidatemarket.8 legal | Salary Guide 2011

2011salaryguideOil & Gas, Power and InfrastructureBoth domestically and internationally thereis continuing demand for oil and gas stockswhich is driving a number of IPOs on theAIM and main markets. After a few years oflimited corporate activity, 2010 was a muchimproved year for acquisition and mergeractivity both for exploration and productionplayers as well as infrastructure and oilfieldservices.Downstream transactional activity is dwarfedby its upstream cousin with two-thirds ofthe 92 oil and gas transactions in Europe(including the FSU) in 2010 being in theupstream sector. Notably, more oil tradinggroups are moving their operations fromLondon to Geneva, including Koch, Trafiguraand Arcadia Petroleum, who join longestablished players in the region.Transactional activity in the mining sectorwas frustrated by shareholder concerns onvalue although the much heralded Glencorefloat already looks to be the transactionof 2011. With this new found investmentimpetus they will be closely watched.There is good reason to believe thatwith improved funding opportunities thecompetition for material resources willcontinue to deliver large transactional valuesin the sector as a whole in 2011, as entitieslook towards inorganic growth as a strategicfocus.At the time of writing increasing oil priceshave hit the highest levels since 2008.However the volatility in the market causesissues for groups looking to make long-terminvestments in developing projects, as wellas the infrastructure and services groupssupporting these projects.Gas prices have not been as strong dueto robust supply impacting on the ability ofplayers such as Gazprom to export to the USmarket.We are seeing increased investment inunconventional gas assets (tight shale inparticular), particularly in CEE. Similarly, theoil sands business is also busy although it isa business strategy that depends on pricesstaying high.We have seen divergent strategies in termsof investment in the North Sea, however inlight of the Arab Spring the region seemslike an ever safer bet. There have beensome substantial discoveries in spite of thematurity of the region and the latest round oflicensing has generated much interest. Theemerging markets continue to be a focus,however aside from the BRIC economiesmany have underperformed.Integrated energy companies, utilities andpower developers continue to seek balancein their portfolios between traditionaland renewable sources. This has lead toincreased acquisitions of renewable groupsand development of renewable projects.Government legislation and investment in theUK is a major factor in the future growth ofthis sector.In light of developments in Fukushimathere is further scrutiny of nuclear as acornerstone of energy policy. With carbonemission targets still being high on theagenda this reappraisal looks unlikely to dentcontinued investment in this area in the shortto medium term.Utility groups are continuing in theirmigration into the upstream space withacquisitions from Centrica and Scottish andSouthern, who join EDF, E.ON, GDF Suezand RWE npower which made similar movesin years gone by.LondonLegal | Salary Guide 2011 9

2011salaryguideOil & Gas, Power and InfrastructurePermanentMinimum £ Maximum £ Average Bonus and/or benefits3-5 years pqeOil & Gas 60,000 90,000 75,00018% bonus, stock plans, pension,health and standard benefitsPower/Utilities 65,000 85,000 80,000 12% bonusInfrastructure Services 65,000 80,000 75,000 14% bonus5+ years pqeOil & Gas 65,000 115,000 116,00032% bonus, stock plans, pension,health and standard benefitsPower/Utilities 70,000 105,000 95,000 28% bonusInfrastructure Services 79,000 102,00 89,000 19% bonusLegal ManagerOil & Gas 90,000 145,000 115,000 36% bonusPower/Utilities 75,000 135,000 110,000 29% bonusInfrastructure Services 80,000 130,000 100,000 23% bonusHead of LegalOil & Gas 115,000 18,000 159,00045% bonus, stock plans, pension,health and standard benefitsPower/Utilities 112,000 175,000 145,000 35% bonusInfrastructure Services 118,000 165,000 135,000 37% bonusGlobal General CounselOil & Gas 110,000 220,000 205,00052% bonus, stock plans andenhanced pension structuresPower/Utilities 145,000 200,000 185,000 43% bonusInfrastructure Services 110,000 185,000 180,000 38% bonus10 legal | Salary Guide 2011

2011salaryguideFinancial ServicesGenerally, there was a great improvementin hiring levels for 2010, when comparedto 2009. Hiring increased continually fromQ1 to Q3 as recruitment freezes from 2009were lifted and financial services businesseslooked to strengthen their legal teams. InQ4, firms focused more on business-criticalrecruitment in preparation for 2011.There is anticipated growth in jobs for legalprofessionals throughout 2011.This will undoubtedly increase competitionfor good candidates on both a permanentand contract basis. Once bonus payouts aresecured, we expect more legal professionalsto begin actively searching for new roles, andthe majority of candidates here are expectedto come from private practice.The higher basic salaries they enjoy willplace continued upward pressure onsalaries and pay rates.Financial services clients will be forcedto offer clear career progression andcompetitive compensation packages in orderto secure their first choice of candidate. On alarger scale, there is a general feeling in themarketplace that the financial services sectorwill strengthen and banks will continue tolend money. This will result in increasedtransactional activity, which will have a hugeimpact on recruitment levels across theboard.In addition, The UK Bribery Act coming intoeffect in 2011 is bound to have a significanteffect on the industry as a whole.LondonLegal | Salary Guide 2011 11

2011salaryguideFinancial ServicesPermanentMinimum £ Maximum £Asset Management/Funds/Investment Banking1yr PQE 50,000 80,0002 years' PQE 58,000 88,0003 years' PQE 65,000 100,0004 years' PQE 70,000 105,0005-6 years' PQE 75,000 130,0007-8 years' PQE 95,000 145,0009-10+ years' PQE 95,000 95,000+Investment Management/Private Wealth/General Banking1yr PQE 45,000 70,0002 years' PQE 55,000 80,0003 years' PQE 65,000 96,0004 years' PQE 70,000 100,0005-6 years' PQE 75,000 130,0007-8 years' PQE 95,000 145,0009-10+ years' PQE 95,000 95,000+For a full discussion of our ever changing landscape and financial services bonus and benefits, please contact us for our latest figures.12 legal | Salary Guide 2011

2011salaryguideFinancial ServicesPermanentMinimum £ Maximum £ISDA/Derivatives/Documentation1yr PQE 40,000 60,0002 years' PQE 55,000 70,0003 years' PQE 65,000 80,0004 years' PQE 75,000 85,0005-6 years' PQE 80,000 100,0007-8 years' PQE 90,000 120,0009-10+ years' PQE 100,000 100,000+Retail Banking & Insurance1yr PQE 45,000 65,0002 years' PQE 55,000 78,0003 years' PQE 62,000 90,0004 years' PQE 67,000 100,0005-6 years' PQE 70,000 120,0007-8 years' PQE 80,000 140,0009-10+ years' PQE 92,000 92,000+For a full discussion of our ever changing landscape and financial services bonus and benefits, please contact us for our latest figures.LondonLegal | Salary Guide 2011 13

2011salaryguideFMCG/RetailDespite a difficult few years, oscillatingrevenue forecasts and the recent VAT hike,the retail and FMCG sectors have beenrecovering well and point to a degree ofrenewed consumer confidence. Severalhigh profile collapses including Habitat,Jane Norman and Moben/Dolphin havethreatened to knock some confidencefrom the industry but this hasn’t yet filtereddown to recruitment levels. M&A activityis picking up generally in the market withmany businesses looking to increase theirpresence overseas and on-line to capitaliseon new business opportunities in theseareas.Although good general commercial and IPlawyers were still highly prized, we noticed anincreased requirement within the retail andFMCG sectors for more niche skill sets. Thisincludes IT/e-commerce, new/social media,data protection and marketing. We wouldexpect this to develop as we continue into2011/2012.We have noticed a trend for fixed termcontract lawyers in both sectors. We feelthis is a key indicator that most employersare continuing to approach recruitment withcaution in the short to medium term.As the year progresses and revenuesincrease, we expect to see the gap betweenfixed term contract recruitment andpermanent recruitment even out.There was a tendency in 2010 to shore upthe support in the junior end of the marketas budgets were tight and headcountsqueezed. However, we do envisage a shiftand increase at the senior management endof the spectrum as the market continues toimprove and confidence grows.14 legal | Salary Guide 2011

2011salaryguideFMCG/RetailPermanentMinimum £ Maximum £ Bonus and/or BenefitsFMCG/RETAILNQ - 2 years' PQE 45,000 55,0002 to 4 years' PQE 55,000 65,0004 to 6 years' PQE 65,000 80,0006 to 8 years' PQE 80,000 90,0008 to 10 years' PQE 90,000 100,000Head of Legal 90,000 120,000General Counsel/Company Secretary 100,000250,000 (Top end forFTSE 100)Standard benefits and a discretionarybonus of 5-15%Standard benefits, often include a car allowanceof up to £5,000. Discretionary bonus of 10-25%Standard benefits, often include a car allowanceof up to £10,000. Discretionary bonus of 15-25%Above average benefits, often include a carallowance of up to £10,000. Discretionary bonusof 20-30%Above average benefits, often include a carallowance of £10,000. Discretionary bonus of20-30%Above average benefits, often include a carallowance of £10,000 +. Discretionary bonus ofto 40%Above average benefits, often include a carallowance of £15,000 +. Discretionary bonus ofbetween 30%-100%LondonLegal | Salary Guide 2011 15

2011salaryguideIT&T/MediaLegal recruitment into the IT&T sectorspicked up momentum as the yearprogressed. In particular the demand fortechnology lawyers is very strong.Most notably, IT consultancies haveincreased their need to hire IT/outsourcinglawyers. This is because business processoutsourcing is high on the agenda for manycompanies across all sectors as a means ofimproving efficiency. As a further responseto global market conditions, financialtechnology companies have been given anew lease of life as the volume of financialdata being processed rapidly expands.Technology lawyers with the ability to handlefinancial regulation are in high demandas compliance becomes stricter and riskmanagement more closely monitored.Software-as-a-Service (SaaS) has nowreally come into its own. Whether hosted, inthe cloud or managed within a customer’sIT infrastructure, every software vendorneeds to have a SaaS offering or at least acompetitive response. This has helped fuelthe need for technology lawyers with IP(relating to the development and generalmanagement of solutions including withoutlimitation open source software, licensingetc).At the same time convergence is stilldominating the market. Digital media lawyersare in high demand following the publicationof the “Digital Britain” white paper in 2009.On-line businesses and social media tie-upshave delivered strong growth and are anincreasingly attractive option for lawyers withstrong e-commerce experience.Meanwhile, the mobile sector was dominatedlast year with the “Everything Everywhere”joint venture between Orange and T Mobile.We can expect to see a continued steadyincrease in the volume of lawyers hiredacross all skill sets in 2011 as the othermobile phone operator’s ramp up their legalcapability to compete.With increases in EU legislation and thecontinued front and centre presence ofcompliance globally, the appetite for seniorregulatory lawyers in the telecommunicationssector remains strong.The media sector has proved buoyant in thelast year. We are seeing a particular increasein fixed term contract positions as opposedto permanent positions. Again the lion’sshare of the recruitment activity has been atthe junior to mid level with fewer senior rolesabove the £80,000 level. There has alsobeen an increased focus on candidates withEMEA expertise in media.16 legal | Salary Guide 2011

2011salaryguideIT&T/MediaPermanentMinimum £ Maximum £ Bonus and/or BenefitsIT&T/MediaNQ 40,000 45,0001 to 2 years' PQE 45,000 57,0002 to 4 years' PQE 57,000 65,0004 to 6 years' PQE 65,000 75,0006+ years' PQE 75,000 95,000Head of Legal 95,000 130,000Standard benefits and a discretionary bonus of5-15%Standard benefits, often include a car allowanceof up to £5,000. Discretionary bonus of 10-25%Standard benefits, often include a car allowanceof up to £10,000. Discretionary bonus of 15-25%Above average benefits, often include a carallowance of up to £10,000. Discretionary bonusof 20-30%Above average benefits, often include a carallowance of £10,000+. Discretionary bonus of20-30%Above average benefits, often include a carallowance of £15,000 +. Discretionary bonus ofbetween 30%-100%LondonLegal | Salary Guide 2011 17

2011salaryguideLife SciencesThe life sciences industry has continuedto grow and develop with an increaseddemand for talent in some areas. M&Aactivity has remained prevalent with someof the smaller biotech players becomingtargets. This has led to some consolidationin the industry with teams taking stock oftheir existing resources. Some of the largerpharmaceutical players have had their hiringfreezes lifted and are now recruiting againconservatively. Overall, recruitment levels aresteady and increasing but at a slower ratethan in previous years.Competition is ever-present in the industryas large patents come up for expiry andthe generics identify targets. Companiesare increasingly looking for innovations tobolster their product pipeline. As a resultaccomplished R&D and regulatory lawyersremain highly sought after. Additionally,several US owned organisations haveinvested in IP specialists and PatentAttorneys to lead on European IP strategyworking in collaboration with their colleaguesin the states. There has also been anoticeable increase in demand for lawyersto take on global compliance positionswhich has been impacted by the BriberyAct coming into force. 2010 saw a trendin NQ – 2 PQE lawyers being sought afterwith companies looking to layer their teams.During 2011 there has been a moderateincrease in movement at the senior end ofthe market after a fairly stagnant period.This has resulted in a domino effect andopportunities arising in the market forlawyers with over 7 years’ PQE.As competition for candidates has increasedemployers are being increasingly flexiblewhen hiring whether this is looking atdifferent skill sets, allowing increased flexibleworking or considering part time options.The flow of candidates within the industryis good and in most cases candidatesare open to looking at alternative optionswhen being approached. There is a greaterdegree of flexibility from individuals andmore candidates are now willing to relocatefor the right role. This has been a welcomechange, especially with hiring in Switzerlandremaining strong.The expectation is that recruitment willremain steady for 2011 and move into agrowth phase again in the early part of 2012.18 legal | Salary Guide 2011

2011salaryguideLife SciencesPermanentMinimum £ Maximum £ Bonus and/or BenefitsLife SciencesNQ - 2 years' PQE 45,000 55,0002 to 4 years' PQE 60,000 70,0004 to 6 years' PQE 70,000 90,0006 to 8 years' PQE 80,000 100,000Standard benefits and a discretionary bonus of10-15%Standard benefits, often include a car allowanceof up to £5,000. Discretionary bonus of 15-25%Standard benefits, often include a car allowanceof up to £10,000. Discretionary bonus of 15-25%Standard benefits, often include a car allowanceof up to £10,000. Discretionary bonus of 15-25%8 to 10 years' PQE 90,000 120,000Above average benefits, often include a carallowance of £10,000 +. Discretionary bonus of20-30%General Counsel/Company Secretary 120,000 250,000Above average benefits, often include a carallowance of £15,000 +. Discretionary bonus ofbetween 30%-100%N.B. Generally, the higher the level of lawyer the more weighted their salary is on the cash package made up of basic, bonus, LTIP etc. GC’s should really earn a company ‘executive’package.LondonLegal | Salary Guide 2011 19

2011salaryguideCONTRACTThis year has seen a tangible increase indemand for interim lawyers withinin-house. Budget constraints and pressuressurrounding head count have providedincreased opportunities for temporary andcontract lawyers. Traditionally in-houseorganisations recruit on a fixed term basiswhich we have seen turn into permanentpositions once the initial contract expires.Interestingly, as the market continues toimprove and confidence is restored, in-houseorganisations have shown themselves tobe extremely business savvy and creative inrelation to their recruitment requirements.Many have started to instruct us to recruit“interim project teams” for large litigation/M&A matters that they are involved with.This is due to the uncertainty of the durationof the project, thus cutting out the ratherexpensive cost of instructing a privatepractice firm in relation to the same.In a market constantly influenced by externalfactors, the need for interim lawyers withthe flexibility and fluidity that this providesremains strong.This year has seen a tangible increase indemand for interim lawyers withinin-house. Budget constraints and pressuressurrounding head count have providedincreased opportunities for temporary andcontract lawyers. Traditionally in-houseorganisations recruit on a fixed term basiswhich we have seen turn into permanentpositions once the initial contract expires.In a market constantly influenced by externalfactors, the need for interim lawyers withthe flexibility and fluidity that this providesremains strong. Interestingly, as the marketcontinues to improve and confidence isrestored, in-house organisations have shownthemselves to be extremely business savvyand creative in relation to their recruitmentrequirements.With the imminent regulation changes to theAgency Workers Directive coming into forcein October 2011 this may have an impact onthe way employers recruit. Please click herefor further information.20 legal | Salary Guide 2011

2011salaryguideCONTRACTMinimum £ Maximum £EnergyNQ 48,000 55,0001-2 years' PQE 55,000 68,0002-4 years' PQE 68,000 80,0004-6 years' PQE 80,000 94,0006 years' PQE 94,000 125,000Head of Department 125,000+ 125,000+FMCG/Retail0-2 years' PQE 50,000 60,0002-4 years' PQE 60,000 70,0004-6 years' PQE 70,000 85,0006-8 years' PQE 85,000 95,0008-10 years' PQE 95,000 110,000Head of Department 110,000+ 110,000+Financial Services1 years' PQE 53,000 82,0002 years' PQE 61,000 92,0003 years' PQE 67,000 105,0004 years' PQE 74,000 110,0005-6 years' PQE 78,000 135,0007-8 years' PQE 98,000 150,0009-10 years' PQE 100,000+ 100,000+LondonLegal | Salary Guide 2011 21

2011salaryguideCONTRACTMinimum £ Maximum £IT&TNQ 48,000 55,0001-2 years' PQE 55,000 63,0002-4 years' PQE 63,000 80,0004-6 years' PQE 80,000 93,0006 years' PQE 93,000 125,000Head of Department 125,000+ 125,000+Life Sciences0-2 years' PQE 48,000 58,0002-4 years' PQE 58,000 74,0004-6 years' PQE 74,000 95,0006-8 years' PQE 74,000 105,0008-10 years' PQE 105,000 128,000General Counsel 128,000+ 128,000+mediaNQ 42,000 46,0001-2 years' PQE 46,000 57,0002-4 years' PQE 57,000 64,0004-6 years' PQE 64,000 70,0006 years' PQE 70,000 90,000Head of Department 90,000+ 90,000+22 legal | Salary Guide 2011

2011salaryguide

2011salaryguideEnglish RegionsPrivate Practice - AssociatesThe salaries for the English Regionsherein reflect earnings for solicitors withincommercial firms as well as information forsmaller, regional practices.Following a challenging 2010, theregional legal market has began to regainconfidence. Most firms in the first halfof 2011 have reviewed, or will reviewtheir structures, budgets, headcount, andrecruitment strategy. We expect an increasein the number of new vacancies beingreleased. The NQ market is showing signsof a recovery in terms of retention, andopportunities for assistant solicitors andassociates are increasing at an optimisticrate as the market continues its recovery.Partners with quantifiable followings as everhave remained in demand, as firms lookto beef up their key offerings and protectrevenue.Whilst we cannot say with any certaintythat the market has fully turned the corner,we are seeing signs of optimism andconfidence returning. Over the course of theearly part of 2011, there was an increaseddemand for solicitors in almost every areaof law, including commercial, IP/IT, as wellas corporate and real estate which weretypically the hardest hit during the recession.Other areas which have remained fairlyconstant in terms of candidate demandand client confidence include private client,employment, insurance and niche areas oflitigation.The regional market has also seen a rise inmerger activity as firms look to expand, growand in some cases simply survive throughtakeover, bolt-ons or selling practices. Wesee this trend continuing particularly givenchanges to the SRA and the up-coming shiftin alternative business structures.24 legal | Salary Guide 2011

2011salaryguideCommercial FirmspermanentMinimum £ Maximum £MidlandsNQ 30,000 38,0001 year's PQE 32,000 39,0002 years' PQE 35,000 43,0003 years' PQE 40,000 47,0004 years' PQE 43,000 52,0005 years' PQE 47,000 60,0006 years' PQE 50,000 65,0007 years' PQE 54,000 70,000+Home Counties/Thames Valley1 year's PQE 30,000 37,0002 years' PQE 35,000 45,0003 years' PQE 42,000 50,0004 years' PQE 47,000 60,0005 years' PQE 52,000 65,0006 years' PQE 55,000 70,0007 years' PQE 62,000 75,000+South WestNQ 30,000 41,0001 year's PQE 31,000 42,0002 years' PQE 34,000 44,0003 years' PQE 38,000 48,0004 years' PQE 43,000 54,0005 years' PQE 48,000 60,0006 years' PQE 52,000 65,0007 years' PQE 55,000 70,000+English RegionsLegal | Salary Guide 2011 25

2011salaryguideCommercial FirmspermanentMinimum £ Maximum £North/North WestNQ 27,000 38,0001 year's PQE 28,000 40,0002 years' PQE 30,000 43,0003 years' PQE 32,000 47,0004 years' PQE 35,000 52,0005 years' PQE 37,000 60,0006 years' PQE 40,000 65,0007 years' PQE 42,000 70,000+Regional/High-Street FirmspermanentMinimum £ Maximum £Regional/High-Street FirmsNQ 23,000 29,0001 year's PQE 24,000 33,0002 years' PQE 26,000 35,0003 years' PQE 27,000 38,0004 years' PQE 29,000 40,0005 years' PQE 32,000 44,0006 years' PQE 34,000 47,0007 years' PQE 35,000 50,00026 legal | Salary Guide 2011

2011salaryguideIn-houseSalaries predominantly remained the samein 2010 for regional in-house lawyers andthe pay freeze was certainly a reason for theincreased candidate activity towards the endof the year. Due to lack of career progressionand increased work demands, candidateslooked to re-enter the job market for betteropportunities.The current economic cautious optimismwill hopefully lead to further growth in theregional in-house legal market which inturn will lead to more client and candidateconfidence. Regional in-house heads oflegal along with central HR teams will beginto look, once again at talent retention andtherefore more creative benefit schemes tocompensate their lawyers.The first quarter of 2011 has seen a notableincrease in in-house vacancies. This reflectsa significant upsurge in senior in-houselegal hires in London where the first signsof significant economic recovery typicallyoccur, boding well for the regions. While thisis the case, businesses remain risk adverseto some degree, with fixed term contractsoften being considered over a permanentarrangement.The positive trends in hiring activity areespecially present in heavily regulatedsectors; the financial services businessesin the South West have demonstrated this,along with energy and utilities businessesacross the Midlands, East Anglia and theSouth West.English RegionsLegal | Salary Guide 2011 27

2011salaryguideIn-housepermanentMinimum £ Maximum £In-house1 year's PQE 28,000 35,0002 years' PQE 35,000 43,0003 years' PQE 40,000 48,0004 years' PQE 45,000 55,0005 years' PQE 52,000 63,0006 years' PQE 55,000 68,0007 years' PQE 60,000 75,000Head of Legal 75,000+28 legal | Salary Guide 2011

2011salaryguide

2011salaryguideScotlandPrivate PracticeThe recession that manifested itself in theScottish market in 2009 continued into2010. This led to many firms reportingunder-utilisation amongst teams across alldepartments and a consequential need tocontrol costs and headcount.The private practice market continued to bereactionary to the wider commercial market.This resulted in further redundancies andrationalisations which subsequently ledto departments becoming leaner in theirstructures. Many department heads lackedconfidence in their business pipeline, aposition which led to uncertainty in strategicplanning and restricted the rebuild of theirpractice groups.The outlook was more positive towardsthe end of 2010. Many were reporting animprovement in the utilisation of fee earners,as well as forecasted improvements andpotential growth for 2011.Within practice, while litigious practiceareas continued to perform steadily,the transaction-based areas were moreuncertain. With a few exceptions, it is in theseareas, which included commercial property,corporate and banking where the timing to areturn to full utilisation is much more difficultto predict. This is also the area where thereare a number of high calibre individualslooking to return to practice.We have seen for many, that the salariesin practice remained relatively stagnantover the period, while a number of firmshave further reduced salaries for the newlyqualified solicitors.The focus for this year for a number offirms is to look at how they can add valuein the future and central to this strategy isthe consideration of the contribution fromappointments at various levels. Whilst therecontinue to be concerns over the impact theausterity measures will have on the Scottishmarket, many firms have stopped lookingover their shoulders, and are now looking tothe future, albeit cautiously.30 legal | Salary Guide 2011

2011salaryguidePRIVATE PRACTICEpermanentMinimum £ Maximum £PRIVATE PRACTICE1 year's PQE 29,000 35,0002 years' PQE 32,000 40,0003 years' PQE 34,000 44,0004 years' PQE 39,000 49,0005 years' PQE 44,000 55,0006 years' PQE 48,000 60,0007 years' PQE 52,000 70,000Partner 72,000+SCOTLANDLegal | Salary Guide 2011 31

2011salaryguideIn-houseThe in-house market demonstratedconsiderable stability despite cost-cuttingmeasures and tight financial restrictions incommerce and industry. Headcount in thisarea was maintained and activity was stable.Notably, in-house opportunities continued toattract high calibre candidates from practice.Candidate attraction to moving in-house wasobserved to be based upon several factors.These ranged from work interest; the desireto be integrated into a business setting;the security associated with the in-houseenvironment; and the attractiveness of thesalary and benefits package offered. Thelatter was viewed as particularly attractive,considering the pay freezes experiencedby many in practices following successiveannual reviews.32 legal | Salary Guide 2011

2011salaryguideIn-housePermanentMinimum £ Maximum £ Bonus and/or BenefitsIn-house1 year's PQE 31,000 35,000 Bonus + Benefits2 years' PQE 33,000 39,000 Bonus + Benefits3 years' PQE 36,000 44,000 Bonus + Benefits4 years' PQE 39,000 49,000 Bonus + Benefits5 years' PQE 44,000 55,000 Bonus + Benefits6 years' PQE 48,000 60,000 Bonus + Benefits7 years' PQE 52,000 70,000 Bonus + BenefitsHead of Legal 80,000+ Bonus + BenefitsSCOTLANDLegal | Salary Guide 2011 33

2011salaryguide2011salaryguidecontact usAberdeeN4-5 Golden SquareAberdeenAB10 1RDTel: +44 (0) 1224 620 262Fax: +44 (0) 1224 620 362glasgow130 St Vincent StreetGlasgowG2 5HFTel: +44 (0) 141 221 8182Fax: +44 (0) 141 248 6008milton keynes500 Avebury BoulevardMilton KeynesMK9 2BETel: +44 (0) 1908 547 995Fax: +44 (0) 1908 547 987BirminghamVictoria Square HouseVictoria SquareBirminghamB2 4AJTel: +44 (0) 121 633 0010Fax: +44 (0) 121 633 0862dublin10 Lower Mount StreetDublin 2Tel: +353 (0) 1676 5000Fax +353 (0) 1676 5111leeds1 City SquareLeedsLS1 2ESTel: +44 (0) 113 366 3267Fax: +44 (0) 113 297 9547londonChancery House53-64 Chancery LaneLondonWC2A 1QSTel: +44 (0) 20 7187 6000Fax: +44 (0) 20 7187 6001readingGreyfriars Gate5 - 7 Greyfriars RoadReadingBerkshireRG1 1NUTel: +44 (0) 118 939 1003Fax: +44 (0) 118 939 3331edinburghCaledonian Exchange19a Canning StreetEdinburghEH3 8EGTel: +44 (0) 131 555 4321Fax: +44 (0) 131 555 4224manchesterFifth FloorThe Chancery58 Spring GardensManchesterM2 1EWTel: +44 (0) 161 832 7728Fax: +44 (0) 161 839 137534 legal | Salary Guide 2011hudson.comjobs.hudson.com

2011salaryguide