EJ Legal Salaries & Market Information
In House: Financial Services
Another difficult year for recruiters and clients alike! Difficult because it has been almost impossible to second guess a still fragile economy which seems to delight in making a sharp about-turn every time things are looking more positive. Twelve months ago we were all thinking about the ‘light at the end of the tunnel’ and In-House legal departments were echoing the private practice trend for consolidating their teams through steady growth and internal reorganisation. This trend continued into the Spring and we saw healthy growth both in Commerce and Industry and the Financial Services sectors as the markets stabilised and confidence began to return.
As Summer arrived however, the buzzword became ‘Double-Dip’ as the Eurozone debt crisis appeared to slam the brakes on the initial signs of growth. This turmoil coincided with the now traditional Summer period of quiet and, coupled with the renewed uncertainty surrounding the economy, meant that in-house teams became much more cautious in their recruiting and increasingly found themselves fighting with the ‘powers that be’ to both keep and expand their headcount. This has led to a hiring trend which can best be described as steady, but not spectacular. An unexpected bonus of this approach is that, as private practice lawyers find that their salaries are no longer going up exponentially, they are increasingly looking for that work-life balance and more business orientated challenge offered by in-house roles. This has led to a strong talent pool from which to recruit.
It is impossible to predict accurately how the market will fare going forward but it is, we think, fair to say that the talent is out there for those with the confidence and headcount to go out and get it. All of this adds up to it being an excellent time for in-house employers to bring in the missing link to their team. If the economy takes a turn for the better moving into 2012, those in-house employers who have been biding their time may just miss the boat!
Trends & Observations
- Across the market as a whole the number of roles remained high notwithstanding certain rare head count freezes
- Despite the instability in the market, banks, asset managers and hedge funds are still hiring increasingly
- The necessity to reduce the cost of external lawyers is driving lateral hires
- Steady market for general commercial lawyers across litigation, employment and IT/IP
- Strong market for funds (e.g. UCITS), derivatives, commodities, prime brokerage and clearing lawyers
- Lawyers in leading investment banks can expect close to similar salaries to their peers in private practice
- Steady contract market throughout 2011 although the prolonged holiday period in April/May and August were quiet
- Areas of demand included derivatives (across all asset classes), funds, prime brokerage, general commercial, corporate/M&A, and general banking
- On the documentation side ISDA negotiators with a solid 2-3+ years’ experience behind them were in demand as usual, as well as an increased need for futures and clearing specialists
- Daily/hourly rates have remained stable
- The first half of the year saw less demand for contract lawyers than permanent recruits; however that trend may reverse again with increased caution from banks concerning the Eurozone crisis
- Whilst throughout 2009/2010 were many high quality candidates from magic circle / top city backgrounds willing to consider contract opportunities, that number certainly decreased over 2011 as the market improved
- The volume of lawyers available for contract opportunities in general has dropped, as many of those recruited as temporary hires have been taken on permanently as headcount freed up
- With the recent change in immigration laws, the number of Antipodean lawyers, possessing general financial services experience and available immediately, arriving in the UK has dropped dramatically
October 2011 Salaries - Investment Banking / Asset Management
| Level | Permanent annual salary | Daily hourly rate |
| 10+ | £115,000+ | £500 |
| 8-10 | £100,000 - £130,000 |
£450 - £600 |
| 6-8 | £90,000 - £120,000 | £400 - £550 |
| 4-6 | £80,000 - £95,000 | £300 - £450 |
| 2-4 | £60,000 - £80,000 | £250 - £350 |
| NQ - 2 |
£55,000 - £70,000 | £150 - £600 |
| Documentation / ISDA | £30,000 - £110,000 | £150 - £600 |
| Paralegal | £25,000 - £45,000 | £120 - £260 |
To discuss this update or your personal recruitment requirements in detail please contact the legal team at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call on +44 (0) 207 400 2000
