The Definitive Market Guide for Private Practice Lawyers in the UK

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Salary Guide 2020 The definitive market guide for private practice lawyers in the UK In 2018, DMJ Recruitment Ltd won ‘Best Professional Services Recruitment Agency’ at About Us The Recruiter Awards. DMJ was formed in 2007 by 3 Directors, each with over 20 years’ In 2019, DMJ Recruitment was 2 recruitment experience. Our aim was shortlisted for ‘Recruitment Agency of to create a consultancy combining the Year’ at The Recruiter Awards. the knowledge of a specialist with the infrastructure of a global recruiter. With DMJ’s Legal Associate Private Practice over 25 specialist consultants and a team works with candidates at every distinguished track record throughout level from newly qualified up to senior the UK, that vision has been realised. associate. We pride ourselves on We now aspire to be acknowledged giving consultative advice ensuring as the most respected agency in our our candidates have the information markets. and support they need throughout their careers. DMJ specialise in legal and governance recruitment on a permanent, temporary and We have long-standing relationships with contract basis. We are selective about who a wide range of firms including US Firms, we partner with and honest when we cannot Magic Circle, National firms, City firms, West assist. Our consultants work on fewer roles End firms and boutiques. Our consultants than bulge bracket global recruiters, allowing work closely with our clients to ensure that us to invest a market leading depth of candidates we propose have both the right resource on each opportunity. This is where personality for the culture of the firm and the we truly make a difference. skills and expertise needed for the role. contents

About us 2 Advertorial 16-17 Contents 3 US Firms - Wall Street 18-19 Meet the Team 4 US Firms - Mid-Atlantic 20-21 Welcome from Marc Tobias 5 London Firms 22-23 Methodology 7 West End Firms 24-25 Our Clients 8-9 Notes 28 Magic Circle Law Firms 10-11 Silver Circle Law Firms 12-13

International Firms 14-15 3 Meet DMJ’s Private Practice Recruitment Team Led by Marc Tobias, one of the founders of DMJ, we place qualified lawyers from newly qualified to Partner level. The team works in the UK and internationally with a diverse range of law firms covering all practice areas.

Our Consultants are industry experts that work strategically with clients on sustainable hiring strategies and how to attract and retain top talent in a fast- changing market. Thinking long-term and offering an honest and straight forward approach is at the heart of what we do.

Whether you are a law firm looking to hire talent to meet growing demand, or a candidate looking for a new challenge, we are well placed to assist.

MARC TOBIAS ALICE TILLER Managing Director Researcher 020 3058 1441 020 3058 8007 [email protected] [email protected]

JOANNA YARDLEY HASEEB WAHEED 4 Managing Consultant Consultant 020 3058 1451 020 3058 1447 [email protected] [email protected]

JENNIFER SKRASTIN SOPHIE MURRAY Managing Consultant Senior Consultant 020 3058 8003 020 3058 8013 [email protected] [email protected]

ALEX RING CADELL HELLER Principal Consultant Senior Consultant 020 3058 1455 020 7523 3628 [email protected] [email protected] Welcome to DMJ’s first detailed annual salary survey for private practice lawyers

The team has collected detailed salary, package and team structure information from a comprehensive range of law firms to ensure a high degree of accuracy and data integrity that is worthy of the profession.

I am incredibly proud of the work that my team has put in to producing this salary survey and we plan to build on this strong foundation in the years 5 to come.

Thank you

Marc Tobias Founder & Managing Director 020 3058 1440 [email protected] law firms that make up the Magic Circle, methodology Silver Circle, US Firms and National and International Firms. Since 2007, DMJ has conducted regular surveys with clients and candidates Accompanying the data is general focusing on remuneration, bonuses and information that defines each category recruitment trends. of law firm including average number of fee earners, typical billable hours This report is based on the data expected and key hiring trends over received from our online surveys, our the past 12 months. extensive network and the expertise of our dedicated legal recruitment It is important to note that the salary consultants who collectively have 65 survey should be used as a useful guide years’ experience in the market. We only and does not account for the many surveyed lawyers working across various extraneous factors that may impact the Firm types and practice areas and salary or package of any given individual. have provided salary ranges and typical We welcome any feedback, and should benefits where we received satisfactory you wish to discuss any aspect of this data. report in further detail, please contact us directly at [email protected] The survey offers a breakdown of salary ranges and benefits packages offered at

7 Our clients

Magic Circle ❱ ❱

Silver Circle ❱ ❱

8 International ❱ ❱ US - Wall Street ❱ ❱

London & West End ❱ ❱

The Magic Circle describes a city lifestyle. There are too many to group of London-headquartered name, but some of the most notable international law firms, including include Allen & Overy, Clifford Chance, Freshfields Bruckhaus Derringer, • In-house GPs and nurses, health Linklaters and Slaughter & May. assessments, etc. These firms were chosen as • Childcare vouchers they comprise those that have • Mortgage advice the largest revenues and most • In-house restaurants international out of London- • Social / sporting clubs headquartered practices, as well • Concierge services as consistently outperforming their • Time-off for pro bono work UK counterparts. • Discounted shopping • Drycleaners and beauticians These firms are regarded as the UK’s elite, focussing on transactional More often than not, bonuses are paid corporate and finance matters. on a discretionary basis and award However, since its inception, the levels are determined by the firm and composition of the Magic Circle has group’s performance. The purpose been open to great debate with many of these bonuses is to recognise and believing that these five firms no longer reward exceptional contribution which have the stronghold in the market they can be evidenced by indicators such once had. as business development, innovation and management. Lawyers at these practices are known for their involvement on top- As this may vary year-to-year, quality work, liaising with international bonuses are not set in stone, but you colleagues on most deals, and could expect to receive an average 10 probably a few late nights in the office! annual bonus of between 10-15% Rest assured, these firms will provide of base salary. This becomes much Magic Circle Law Firms you with everything you expect from a more variable as you rise the career high-flying international practice. ladder, with opportunity for far greater rewards. At the senior levels, the Magic Circle firms have moved away from a These firms may also decide to give ‘lockstep’ structure. This means that out bonuses at other times of the there is much more flexibility in what year, including at Christmas, where you can earn, and base salaries will associates can receive an additional be determined by several factors amount, typically in the range of which include seniority, management 5-20%. capabilities, business development and any work the individual can introduce Chargeable hours targets range from to the firm. 1700-1800 hours, and usually there is an allowance for pro bono work. In addition to all the standard benefits Interestingly, Slaughter & May do not you would expect, the Magic Circle have official chargeable hours targets. group offer extra advantages to ensure employee satisfaction and the ultimate Benefit Yes/No PQE SALARY 11 Pension contribution Yes NQ £92,000 - £100,000 Health insurance Yes 2-4PQE £105,000 - £125,000 Dental cover Yes 5PQE+ £125,000 + Cycle to work scheme Yes Counsel / Legal Director £160,000 + Subsidised gym membership Yes Salaried Partner Circa £200,000 + Season ticket loan Yes (highly dependent on individual) LPC fees Yes GDL fees Yes Flexible working Yes Holiday entitlement 25 days + Option to buy or sell holidays Yes Silver Circle firms, a phrase coined by The Lawyer in 2005, is a term Silver Circle firms, like a number of used to describe a group of elite other city practices, are moving away London-centred firms that were from the strict ratio of billable hours chasing the Magic Circle in terms directly correlating to bonus. Several of turnover. The silver circle post have eliminated target billables and higher profit per equity partner and replaced them with performance based revenue per lawyer averages than bonuses that are dependant on a most of the legal market. variety of factors.

Although not as tightly defined as Business development contributions, the Magic Circle; the Silver Circle introducing new work, involvement firms are broadly regarded as Travers in internal groups and reteams and Smith, Ashurst, Bryan Cave Leighton general ethos are all taken into account Paisner, Macfarlanes and Herbert when calculating bonuses. Smith Freehills. The extent to which this is still true today is debateable Bonuses tend to be paid annually due to the continued success of large and for associates, can range from international law firms such as DLA 10% - 20%. In addition to standard Piper, Hogan Lovells and Norton Rose benefits outlined above. One of the Fulbright. All practices that have high most notable benefits across the Silver PEP, comparable to the Magic and Circle are the parental leave packages Silver Circle although are not formally on offer. There has been a conscious characterised as such. shift to term this parental leave, and replace maternity and paternity leave, For Silver Circle firms we have removed with allocations for leave for ‘primary’ the section for ‘Salaried Partners’ and ‘secondary’ carers. and replaced it with Profit per Equity Silver Circle Law firms 12 Partner (PEP). This is because the All primary carers are entitled to take majority of Silver Circle law firms 52 weeks of leave with between have Partnership comprised entirely 18 – 26 weeks of the leave fully of Equity Partners that have made paid depending on the firm, whilst a capital contribution in order to join secondary carers are entitled to the Partnership structure. Rather than between 2 – 4 weeks of fully paid draw a salary, they will withdraw funds leave. proportional to the stake of their equity.

This creates a large PEP spread with the numbers above representing an average. There is no guarantee that each equity Partner will be withdrawing the above amounts with some taking higher or lower drawings. Benefit Yes/No PQE SALARY 13 Pension contribution Yes NQ £76,000 - £96,000 Health insurance Yes 2-4PQE £97,000 - £127,000 Dental cover Yes 5PQE £135,000 - £150,000 Life assurance Yes Counsel or Legal Director £140,000 - £170,000 Cycle to work scheme Yes Profit Per Equity Partner* £630,000 - £1.7m Subsidised gym membership Yes Holiday entitlement 25 – 27 days Option to buy and sell Yes LPC grant Yes GDL grant Yes An international firm is defined Within chargeable hours bonuses, as a law firm that in addition to firms have recognised the importance their London office, has offices of incentivising associates to complete internationally, which could be one business development activities. Whilst or multiple across the globe, but chargeable hours targets remain an excludes US headquartered firms important indicator, hours based targets and the Magic and Silver circle. also take into account hours spent dedicated to business development, International firms are particularly networking, article writing and pro-bono well known for the infrastructure that activities. is in place and consequently, offer associates at varying levels genuine In addition, many firms offer a work support, training and development to origination bonus to associates at all aid in their progression. International law levels throughout the firm too. firms offer associates the opportunity to get involved in work over multiple Typically, the average bonus across jurisdictions, working closely with fellow international firms, can range from 15% firm members as well as local offices - 30% taking into account the multiple in specific regions. Due to these close bonuses above. relationships with other offices, there is a strong chance of international Alongside monetary benefits and secondments taking place. standard benefits listed above, these firms also offer a range of healthcare International Firms Target hours across international firms benefits including on site doctors, greatly varies depending on the firm physiotherapy, massages, together but typically falls between 1350hrs – with various fitness classes which have 1600hrs. This wide difference directly included yoga and fitness bootcamps. correlates to the salaries that are on offer 14 at each firm.

Associates at international firms are often eligible for multiple bonuses which can be based on chargeable hours and work introduction. Benefit Yes/No PQE SALARY 15 Pension contribution Yes NQ £65,000 - £79,000 Health insurance Yes 2-4PQE £72,000 – £100,000 Dental cover Yes 5PQE £85,000 - £130,000 Cycle to work scheme Yes Counsel or Legal Director £120,000 - £140,000 Subsidised gym membership Yes Salaried Partner £150,000 - £180,000 Child Care Vouchers Yes Holiday entitlement 25 days Option to buy additional holiday Yes Technology Allowance Yes Subsidised café No LPC grant Yes GDL grant Yes A mission to change the way law firms operate, everywhere and forever.

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gunnercooke llp @gunnercooke For the purposes of the salary guide, or international office secondment we have separated US firms into opportunities, particularly for those two sections – the first covering looking to relocate across the pond. Wall Street firms, and the second There are a number of reasons why the covering Mid-Atlantic firms. salaries and benefits on offer at Wall Street firms are significantly higher than Wall Street firms, or ‘white shoe’ the rest of the market. Due to the nature as they are often nick named, are of how these teams were originally those American firms that are largely formed, associates often find themselves headquartered in New York but with working as part of a much smaller team London offices. These firms are likely to than they would elsewhere. As such due have entered the UK market and grown to the high value, quality work on offer their London office from scratch (rather as a result of their clientele, associates than through a merger with another UK find themselves working longer hours to firm). White shoe, an old-fashioned term complete matters, with more significant used to describe the most prestigious levels of responsibility than their employers in elite professionals, also counterparts at UK firms. denotes the blue-chip clientele acquired by these firms. Whilst typically, many of these firms do not have set chargeable hours targets, American firms, Wall Street in particular, those that do tend to be between 1900- have had a disruptive effect on salaries 2000hrs. However, it is not uncommon in London in recent years. As the front for associates at these firms to regularly runners in the field, Wall Street firms carry out 2000+ chargeable hours in a offer, on average, the largest salaries for year. their associates and partners across the board, and whilst others such as Magic Bonuses here tend to range from 10%-

US firms - Wall Street US firms - and Silver circle can’t compete, their 30% of base salary, taking into account 18 presence has forced firms in London to billable hours, firm performance and increase their salaries quite significantly. team performance. Some firms also Of the Wall Street firms, some will peg offer bonuses on performance outside their salaries to the dollar rate of their US of billable hours including business counterparts. London salaries will differ development activity and pro-bono work. at these firms however, because firms will use different ‘spot’ rates to calculate the conversion to London salaries. Spot rates are either calculated annually or bi-annually and will not necessarily reflect the current market rate however, will be an average predicted, or pegged, spot rate.

In addition to standard benefits outlined above, other benefits have been known to include sign on bonuses, subsidised canteens, and free dinners and taxis home after 9pm in the evening. One of the most attractive additional perks tends to be the client secondment, Benefit Yes/No PQE SALARY 19 Pension contribution Yes NQ £130,000 - £150,000 Health insurance Yes 2-4PQE £135,000 - £200,000 Dental cover Yes 5PQE £160,000 + Cycle to work scheme Yes Counsel or Legal Director £200,000 + Subsidised gym membership Yes Salaried Partner £250,000 + LPC fees Yes GDL fees Yes Flexible working Yes Holiday entitlement 25 – 30 days Option to buy / sell holidays Yes Mid-Atlantic firms are headquartered Bonus schemes vary across the in the US but not necessarily New mid-Atlantic firms and some are York, with a London office. Whilst completely discretionary, but take into not exclusively, a number of mid- account business development, team Atlantic firms, have opened London performance and individual performance. offices as a result of mergers Some firms operate with a two-tiered with UK firms and there has been bonus scheme which is made up of a an increase in the number of chargeable hours bonus as well as a transatlantic mergers in recent discretionary bonus. Typically, bonuses years. tend to range from 20% – 35% and are paid annually. In keeping with their ‘US’ name, the front runners in this category tend to pay more Alongside substantial bonus schemes, than your average international practices mid-Atlantic firms have some additional but are some way from their Wall Street impressive perks. Some of the most counterparts. Hours targets here range notable include enhanced maternity massively and can be anywhere from policy to eighteen weeks at full pay, and 1575hrs to 1800hrs. This is arguably in paternity enhancement to four weeks. part due to the existence of a UK made To combat the working hours, all client base and city reputation, which associates have access to a well-being allows the culture of legacy English firms allowance and are also entitled to £15 to remain post-merger. Deliveroo credit and a free taxi home if they are in the office after 9pm. Similarly to Wall Street, the teams here Some mid-Atlantic firms also offer do tend to be smaller, which results in access to a mortgage advisor. associates getting more responsibility from the outset, but often have less in the way of a support structure than 20 you would in a UK/International firm. US firms - Mid-Atlantic Secondment opportunities to both international offices and clients are frequent in these firms, especially tapping into the vast US network. Benefit Yes/No PQE SALARY 21 Pension contribution Yes NQ £70,000 - £105,000 Health insurance Yes 2-4PQE £120,000 - £140,000 Dental cover Yes 5PQE £130,000 - £150,000 Cycle to work scheme Yes Counsel or Legal Director £110,000 - £180,000 Subsidised gym membership Yes Salaried Partner £150,000 + LPC Grant Yes GDL Grant Yes Holiday entitlement 25 – 30 days Option to buy/sell holidays Yes Flexible working Yes Technology Allowance Yes Subsidised Café Yes Childcare vouchers Yes For the purposes of the salary to be entitled to relates to chargeable survey, national firms are hours. Chargeable hours targets at defined as those firms that are these firms typically ranges from 1400- headquartered within the UK and 1500hrs. may have multiple national offices, but do not have any international The second bonus focuses on client offices. introduction. This applies to associates at any level throughout the firm and Due to their regional presence, and is not necessarily restricted based on as a result of their headquarters seniority. being located regionally too, they are known for offering a slightly better Firms like to recognise all business working hours culture in a smaller development and client introduction and more personable team in the city. even from a newly qualified level. There At the senior level, particularly senior is an active encouragement to get associate, or partner level, these firms involved in business development and often attract ex-city professionals these firms want to provide bonuses to

London Firms looking to work in a different culture. reflect this. For junior associates in the team, this ultimately means they are rarely Finally, some firms also offer firm wide compromising on work quality. bonuses, which is based on the profit of the firm or team, and awarded It is worth noting that many firms annually. within this category have moved away from strict PQE bandings for salary In addition to the benefits above, other purposes, which allows the focus to be notable benefits include additional on the individual, their experience and days of annual leave for birthdays, “key capabilities, insisted of salaries being lifestyle milestones” such as moving 22 limited to the year of qualification. house, or engagements, flexible working and discounts at retailers. Bonuses on offer vary from firm to firm, but across the board it seems that most firms tend to have at least two, if not three of the incentives on offer. The first bonus that associates tend Benefit Yes/No PQE SALARY 23 Pension contribution Yes NQ £60,000 - £65,000 Health insurance Yes 2-4PQE £60,000 - £75,000 Dental cover Yes 5PQE £75,000 - £90,000 Cycle to work scheme Yes Counsel or Legal Director £90,000 - £100,000 Subsidised gym membership Yes Salaried Partner £100,000 + LPC grant Yes GDL grant Yes Flexible working Depends on firm Holiday entitlement 25 days Option to buy or sell holidays Depends on firm Originally termed ‘West End’ firms be nominal and discretionary in nature, due to their predominant and working here comes with a number traditional location in areas of of positive ‘trade offs’. In addition to London such as Mayfair, it is safe working within smaller teams, gaining to say that now, location isn’t the exposure to partners and client best indicator of West End firms as responsibility, associates at these there are many that have spread to firms are compensated in other ways, mid-town as well. It may be best particularly in relation to working hours to term these smaller commercial and culture. firms. Whilst not all firms have rigid chargeable West End, or smaller commercial firms, hours targets in place, those firms that tend to have been founded in one of do tend to range from 1100 – 1300 hrs, two ways and are either long standing, and consequently offer their associates a traditional practices, or have been better ‘work-life’ balance than their larger formed from teams that moved from counterparts. city firms to set up on their own offices. Whilst the majority are full service and are In addition to the benefits listed above, traditionally recognised for their strengths West End firms tend to offer a range in particular areas, such as real estate, of other benefits too. Health and well

West End Firms West private client and family – there has being is a prominent topic throughout arguably been the spread of others over these firms and many offer weekly the years that specialise in developing complimentary yoga and pilates sectors such as music, media, sport and sessions. Others provide free fruit, and technology. birthday rewards including lottery tickets and a day of holiday on your birthday. Whilst in comparison to their city and American counterparts, those at West 24 End and smaller firms are paid more modest salaries, and bonuses tend to Benefit Yes/No PQE SALARY 25 Pension contribution Yes NQ £50,000 - £65,000 Health insurance Yes 2-4PQE £60,000 - £75,000 Dental cover Yes 5PQE £75,000 - £85,000 Cycle to work scheme Yes Senior Associate* £85,000 - £95,000 Subsidised gym membership Yes Salaried Partner £110,000 + LPC grant Depends on the firm GDL grant Depends on the firm * Traditionally, West End and smaller commercial firms tend to see fewer Counsels, or Legal Directors, if any. The progression Flexible working Depends on the firm path tends to be from associate to senior associate, followed by Holiday entitlement 25 days partner. Those not seeking partnership are likely to be deemed senior associates. Option to buy or Dependant on the firm sell holidays Notes

DMJ Supporting lawyers since 2007

The unprecedented events of colleagues during these challenging recent weeks have understandably times. If there is anything you need been of genuine personal and assistance with do not hesitate to professional concern to everyone. call us on 020 3058 1444. Whether you are working from home or self-isolating, we are all having to The legal profession remains robust find alternative ways to work under and resilient and it is my belief extraordinary circumstances. that if we pull together company secretaries will emerge stronger and The Team at DMJ are committed more valued than ever before. to sharing our insights and views on LinkedIn as well as offering practical tips on how best to support your business and your

67 Clerkenwell Road, London, EC1R 5BL 020 3058 1444 I www.dmjrecruitment.com 28

67 Clerkenwell Road, London, EC1R 5BL 020 3058 1444 I www.dmjrecruitment.com