THOMSON LEGAL RECRUITMENT COMPANY

LONDONLEGAL MARKET OVERVIEW

& SALARY SURVEY 2020

RISE IN JUNIOR/ MID LEVEL IN-HOUSE ROLESThe in-house market in London remained fairly buoyant in 2019 in terms of activity, although with well-documented modest increases in terms of remuneration. Clearly if money is the most important factor when considering a move in or to the City, then the private practice market currently offers better financial options. One development we expect to continue in 2020 is an increase in the number of junior/ mid level in-house roles- some of which are starting at NQ level. Notable sectors have included: financial services, energy and technology.

Law firms in London are continuing on an upward tra jectory in terms of recruitment strategy in 2020. Despite general apprehension about the economy, this activity has been across nearly all legal disciplines in the last 12 months but in particular: banking, funds, corporate, financial regulatory, projects/ PPP, energy and technology. Unquestionably, candidates at the junior-mid associate level (2-5 PQE) are in high-demand and will more than likely have multiple options should they choose to explore the private practice market in London. City law firms continue to seek innovative methods (aside from remuneration) to attract the best talent from around the globe. This now includes more transparent promotion processes and an increase in agile/ flexible-working arrangements.

LONDON RELATIONSHIP- SCOTLAND & IRELANDCity law firms continue look favourably on Scottish and Irish qualified lawyers and many have been adopting a more strategic approach to attracting talent. For many lawyers the financial reward and quality of work in the City is too good to say no to, with many lawyers now remaining long-term. Conversely, Brexit is accelerating the thinking of those who may be considering a return in the short-medium term and with comparable growth both in Scotland and Ireland, opportunities for London returners remains plentiful.

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SIGNIFICANT LAW FIRM GROWTH BREXITThe possible implications and timescales of Brexit on the legal sector remains unclear with all law firms and in-house legal teams preparing for all eventualities. The majority of the City law firms continue to fear that Brexit may create a substantial loss of revenue in the short-term. However, it is expected that it will mean more long-term opportunities for law firms, specifically in areas such as regulatory advice. The majority of the top-tier London law firms now have dedicated Brexit teams advising clients on commercial risk, regulation and potential changes in legislation.

2020 LONDON MARKET OVERVIEW

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PRIVATE PRACTICE

In 2020, competition for the best Associates remains to be of the upmost importance to all the major law firms in London. The ‘magic circle’ firms have increased their NQ rates to £100k+ in response to high US law firm packages and this is now having a ‘knock on’ effect on the rest of the pack. However, the gap between the top-tier/ US firms and the ‘silver circle’/ national firms continues to widen. With the inevitable long-hours culture within most firms in the City, many set their sights on the top-tier that offer the greatest financial reward.

NQ retention in London has also been impressive in the last 12 months with many firms retaining the majority of trainees and still requiring to make additional lateral hires, primarily into transactional areas to meet demand-many of these hires are coming from Scotland and Ireland.

Associates with strong academics and experience in the following areas will find themselves with lots of options in the current private practice market in London: corporate, banking, construction/ projects, investment funds, regulatory, financial services, real estate and technology.

If you are a lawyer from Scotland or Ireland considering a move to London, the diversity of your experience and level of client interaction will often be what appeals to the City firms. Scottish and Irish lawyers with interests in more niche areas such as media, sports, derivatives and capital markets will find these types of positions will be more readily available in London.

There has also been a rise in lateral hiring at Senior Associate and Partner level, notably within the larger national law firms as they seek to hit ambitious growth plans. However, it is increasingly the case at Partner level that a portable book of business is essential.

The expectation levels on lawyers working London is no secret- you can expect a highly competitive environment and in most cases, a long-hours culture. However, the experience you will gain working with experts in their field, often working on ‘cutting edge’, challenging transactions is hard to replicate. Additionally you will benefit from a ‘City’ level salary, allowing you to enjoy all that the capital has to offer.

CORPORATE/ M&A BANKING & FINANCE

CONSTRUCTION & PROJECTS EU/ COMPETITION

CURRENT AREAS IN DEMAND

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IN-HOUSE

The London in-house market remains positive in 2020 but competition for roles in popular sectors, such as technology & media, energy and financial services remain very high. While we are seeing a rise in junior to mid-level in-house opportunities and predict this to continue, there are fewer General Counsel, Head of Legal or Senior Legal Counsel level positions across the majority of sectors, This is mostly due to economic factors and also with fewer roles available, there has been less natural movement within the senior level market.

Demand for lawyers with regulatory experience is on the rise within the banking and financial services sectors. Lawyers with experience in: regulatory, commercial contracts, renewable energy, funds, outsourcing, data protection and financial services are of particular interest. Roles within asset management, trading, pensions, shipping and energy often remain difficult for companies to source, due to the requirement of very specific skillsets, which are often an essential pre-requisite.

In 2019, we saw substantial opportunities for Scottish lawyers with experience from the oil & gas market in Aberdeen and the highly respected financial services sector in Edinburgh.

Equally so, Irish lawyers with exposure to IT/IP, outsourcing, telecoms and social/ digital media will find this can be an excellent route to making a direct move in-house in London.

Additionally, we would anticipate the ongoing developments of Brexit to continue to increase demand for in-house lawyers with competition, compliance and procurement experience.

While the benefits of working in-house are self-evident, many relocating lawyers from Scotland and Ireland find an initial move to private practice in London can be the easier approach, especially at the more junior end of the market. However, in-house roles from NQ level upwards are on the rise and if your skill set is in demand, a lateral move in-house in 2020 can now be a more achievable option than in previous years.

COMMERCIAL CONTRACTS ENERGY/ OIL & GAS

CONSTRUCTION & PROJECTS TECHNOLOGY & DATA PRIVACY

CURRENT AREAS IN DEMAND

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“ London remains a location of choice for Scottish and Irish lawyers.

If you have transactional experience in the following areas:

banking, regulatory corporate, finance, competition or technology-

you will find your options in the City, both in private practice and in-house,

will be plentiful. ”

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Please note our salary survey figures are indicative and are intended to be used for guidance only. Salary figures are based on our existing specialist market knowledge gained in the London market. The above figures are based on salary only and do not include bonus or benefits. For the purpose of this salary, figures are based on positions within commercial law firms and large commercial organisations. Regional salaries and those within smaller law firms and companies will differ. Market commentary is based on discussions with our client and candidate population. Should you wish to have a private and confidential discussion on salaries, packages and market conditions please contact us at info@thomsonlrc.com

SALARY FIGURES- LONDON 2020

PQE LEVEL MINIMUM MAXIMUM

NQ £70,000 £145,000

1 YEAR PQE £75,000 £155,000

2 YEARS PQE £80,000 £170,000

3 YEARS PQE £85,000 £190,000

4 YEARS PQE £95,000 £210,000

5 YEARS PQE £100,000 £225,000

6 YEARS PQE £115,000 £250,000

7 YEARS’ PQE £130,000 £275,000

IN-HOUSE NQ £55,000 £75,000

JUNIOR LEGAL COUNSEL £65,000 £90,000

SENIOR LEGAL COUNSEL £120,000 £155,000

HEAD OF LEGAL £135,000 £450,000

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2020 LONDON MARKET PREDICTIONS

1Continued Rise in Private

Practice RemunerationRemuneration in London is by far

the highest in the UK with lawyers working in the top-tier

firms in the City having the potential to be some of the

highest earners in the global legal market. An additional factor

for the many national/international firms that also have UK offices outside of London, is

that we are likely to see a ‘knock on’ effect pushing up local

salaries making remuneration more competitive in the likes of Edinburgh, Manchester, Leeds

and Birmingham.

2Increased Demand

for Regulatory ExperienceThe impact of Brexit will

continue to put lawyers with regulatory experience in high demand in the London market.

We are already seeing an increase in both private practice and in-house legal (with a focus

on the banking sector) hiring lawyers with financial regulatory,

compliance and procurement experience. This is a trend that we expect to see continue in

2020 as well as for the foreseeable future.

3Hiring from the Scottish, Irish & Oversea Markets

The progressive City law firms continue to seek to hire the best talent from the Scottish, Irish and Overseas markets. From NQ level to Partner level, we expect to see

2020 presenting an unprecedented number of

opportunities available for lawyers from these regions looking to

move to the City. There will not be a better time to consider a move to London (both in practice and

in-house) if you have an in-demand skill-set.

4Brexit- What will in mean for London?

With law firms in London preparing for a deal or no-deal Brexit in 2020, law firms will be be required to be more flexible with their clients with the focus moving to a more advisory and

consultative approach. A positive impact is that any

potential drop in the value of the pound may also lead to

international clients looking at London as a more cost-effective

location for doing business.

ABOUT THOMSON LEGAL

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Thomson Legal was founded by David Thomson, a veteran and leading expert in the legal recruitment market in Scotland. Having worked internationally and with a network of Scottish and global clients, the aim of Thomson Legal is to help candidates with their career moves both domestically and internationally. Thomson Legal is regarded as an innovative and market leading consultancy by clients and candidates alike.

After graduating in Law & Modern Languages from University of Glasgow and working in-house, David moved into legal recruitment in 1999, initially working with legal recruitment specialists Mahlab in Sydney, Australia. After returning and working in the UK and Ireland, David has built up the reputation of being an expert in his field working with leading global recruitment companies including Taylor Root, Hays Legal and Hudson. David provides strategic advice and recruitment assistance to major international law firms and FTSE 100 companies and works with market leaders in the UK, Ireland, Europe, Offshore, the Middle East, Australia and Asia Pacific. For more information or to discuss how Thomson Legal can help you with your legal career, please get in touch.

CONTACT THOMSON LEGAL:

London: + 44 (0) 203 174 2482

Aberdeen : + 44 (0) 1224 502 044 Edinburgh: + 44 (0) 131 450 7164 Glasgow: + 44 (0) 141 224 0260 Dublin: + 353 (0) 1 699 1360 Mobile: + 44 (0) 775 380 9223

Email: david@thomsonlrc.com Web: www.thomsonlrc.com

https:/uk.linkedin.com/in/davidbthomson

@thomsonlrc

www.thomsonlrc.com