This presentation by Laurence Simons shows that in the UK, 4 years’ PQE and 5 years’ PQE salary bands have increased most since 2004 while 9 years’ PQE and 10 years’ PQE salaries have fallen furthest.

1. UK 4 years’ PQE & 5 years’ PQE SALARIES
OUTPERFORM MORE SENIOR IN-HOUSE SALARIES

2. In the UK, 4 years’ PQE and 5 years’ PQE salary bands have increased
most since 2004 while 9 years’ PQE and 10 years’ PQE salaries have
fallen furthest
- Russian lawyers see greatest increases in salaries over last 6 years
- Salaries fall most in Spain & Belgium – but Poland still has worst pay
in EU

3. Over the last six years, 4 years’ PQE and 5 years’ PQE salary bands in
the UK have increased more than others, according to international
legal recruiter Laurence Simons. Salaries of 5 years’ PQE in–house
lawyers have risen 7% over the last six years while those of 4 years’
PQE lawyers have risen 14%. In 2004, a 4 years’ PQE salary was worth
£57,000. That has now risen to £65,000. 5 years’ PQE salaries have
risen from £65,750 in 2004 to £70,500 today.

4. The research shows the big losers of the downturn have been the 10
years’ PQE and 9 years’ PQE salary bands. In 2004, the average 9
years’ PQE salary was worth £89,000. But by 2010, average salaries at
that level had fallen to £84,750 – down 5%. Average salaries at the 10
years’ PQE level have been hit even harder. They fell from £95,500 in
2004 to £89,000 (down 7%) in 2010.

6. Naveen Tuli, managing director of Laurence Simons said, “Many
people assume senior lawyers suffered the least during the downturn
but as far as in–house roles go, that’s wrong. Our research shows that
4 years’ PQE and 5 years’ PQE salary bands performed
proportionately much better than 9 years’ PQE and 10 years’
PQE - perhaps reflecting the ‘sweet spot’ at which most legal
departments look to hire in lawyers to their teams. Over the last 18
months or so, those companies that have been in the fortunate
position to be hiring in-house staff have tended to
focus on those with slightly less experience as such 4 years’ PQE and 5
year’s PQE lawyers have been in demand and that has driven up
salaries.”

7. Rachael North, director of Laurence Simons adds, “This has been
particularly
noticeable in the technology and telecoms sectors. The increasingly
rapid pace of
digitization and the widespread adoption of mobile broadband have
meant the
telecoms and technology sectors have ridden out the global downturn
relatively
well. Although 2009 saw some salary freezes and non payment of
bonuses, in
2010 the market has shown slow, but steady signs of improvement.”

9. INTERNATIONAL WINNERS & LOSERS
The research, which was gathered over the course of six years and
collated data
from over 14,000 in–house lawyers throughout the world, also showed
salaries in
Russia had performed better than any other country in the world. Pay
at the 2
years’ PQE level has increased 81% from 2004, up from €25,000 to
€45,250 in
2010 (UK: +15%).

10. Meeta Dutt, manager for Russia, Central & Eastern Europe at
Laurence Simons said, “By 2004, the concept of an internationally
staffed in–house legal department had become accepted by local
Russian companies keen to float on international stock exchanges.
The
result
of
that,
alongside
the
boom
in
the
energy, metals, consumer, and technology sectors, was intense
competition both for the best local lawyers and those trained in the
UK or US, who could demonstrate good cross–border corporate
finance and M&A transactional experience. In the last five years
business focused lawyers with generalist commercial skills in both
multinational and domestic companies have become increasingly
more sought–after.”

11. GLOBAL SALARY DECREASES – SPAIN & BELGIUM
The story was very different in Belgium and Spain. In Belgium, 2
years’ PQE salaries have fallen 29% over the same period while
salaries in the 4 years’ PQE band have fallen 26% (UK: +14%).
Tanja Albers, european in-house manager at Laurence Simons
said, “The Spanish in–house market remains something of a ‘closed
shop’ with few if any organisations recruiting outside the country.
Salaries have been hit by this and the substantial damage done to the
Spanish economy by the recession. There’s little sign of early recovery
there.”

12. POST BOOM RECOVERY
Although the downturn didn’t hit Russia particularly hard – with the
worst affected salary band (10 years’ PQE) still rising 5% from 2008
(€89,750) to 2010
(€94,250) – the real winner post the 2008
watershed has been the Middle East. The largest increases across
salary bands from 5 years’ PQE to 10 years’ PQE have all been recorded
in the Middle East, with the 5 years’ PQE band rising 41% from
€123,000 to €173,000. Since the boom, the worst cuts at a more junior
level have occurred in Spain. More senior salary bands, have been hit
hardest in Germany. The average 10 years’ PQE salary in Germany has
fallen 31% – from €135,000 in 2008 to €93,750 in 2010.

13. Tanja Albers said: “We do not expect to see much improvement in
senior pay levels in Germany until well into the second half of the year.”
Mark Anderson, Middle East manager at Laurence Simons added, “The
situation is better in the Middle East. Despite Dubai’s well–documented
economic woes, the Gulf region as a whole has held up relatively well
through the downturn. But even here, the boom time for lawyers is
most definitely over. Over the last twelve months, pay levels have
remained flat with little sign of any early rise.” Meeta Dutt adds,
“Russia’s going through something similar, too. Candidates with good
international experience are still demanding high salaries. But looking
to the future, the expectations of huge pay increases so common in the
boom years have been consigned to history.”

14. EUROZONE SALARIES – A SNAPSHOT COMPARISON
Within the Eurozone, at all levels, the highest salaries are to be found
in Ireland. The worst paid in–house lawyers with less than 3 years’
experience are to be found in Spain. The worst paid in–house lawyers
with more than 3 years’ experience are to be found in Poland.
Naveen Tuli said, “The market for in–house lawyers in Poland is a
relatively new one but is being fuelled by a growing desire to keep the
cost of legal services down to an acceptable level. Despite the
increasing number of in–house lawyers in the country basic pay still
tends to be lower than that on offer in law firms. The average in–house
lawyer with 10 years’ qualified experience can earn €113,000 a year in
Ireland but only €63,750 in Poland.”

16. GLOBAL FORECASTS – HEADCOUNT, THE ECONOMY, & BRAZIL
82% of lawyers interviewed said they thought headcounts at their
current employer would either increase or remain static over the
course of the next 12 months. While 56% expect them to remain
unchanged, 26% of in–house lawyers predict their office numbers are
going to rise over the course of the next year. And when asked about
the future of the global economy over the next twelve months, 66% of
respondents described themselves as “optimistic” or “extremely
optimistic”. Only 24% said they were either “pessimistic” or “extremely
pessimistic”.

17. Laurence Simons said Latin America, and specifically Brazil would drive
international growth in in-house legal jobs over the coming year.
Pedro Amaral Dinkhuysen, Latin American managing partner at
Laurence Simons said, “While the boom times are over for the Middle
East, certainly for the short term, the market in Brazil – where we are
seeing a huge influx of law firms into Sao Paulo and Rio – is very strong.
This has caused a noticeable upward pressure on pay – in some cases
by as much as 20% for in–house lawyers and 30% for law firm
practitioners.
Lawyers
with
solid
experience
in
corporate, banking, compliance and tax are most in demand and able
to command a
premium to move in the current climate.”

19. Company Name – Laurence Simons
Website - http://www.laurencesimons.com/
Address - 322 High Holborn, London, WC1V 7PB
Telephone - +44 (0)20 7645 8500