Mahlab Legal Salary Survey 2010 Corporate Australia

SURVEY 2010 Corporate Lawyers Company Secretaries Contract Lawyers

THE NEW LEGAL LANDSCAPE } CORPORATE

Figures contained within tables in this survey have been rounded to the nearest $500 and are quoted in local currency.

© Mahlab Recruitment (NSW) Pty Ltd 2010

© Mahlab Recruitment (VIC) Pty Ltd 2010

www.mahlab.com.au

CONTENTSForeword 1

Introduction 3

Corporate Lawyers 6

Company Secretaries 12

Contract Lawyers 16

P1 MAHLAB SURVEY 2010 } CORPORATE

FOREWORDBY KRISS WILL

With the strengthening of the market for legal services and the corollary need for talented lawyers increasing, firms are focussing their minds on the levers of effective engagement and talent retention.

There is a clear link between the level of engagement an employee has with their workplace, and their likelihood of leaving that workplace. An Australian Institute of Management survey found that “disengaged employees generally feel undervalued, have negative opinions of their managers, perform less than others, have higher absenteeism rates and are less committed and satisfied with their jobs”.1 No business wants their employees to feel and act this way, yet research shows that in 2008 (before the weakened economic times really impacted on employment) 21% of employees were actively disengaged.2 On the positive side, Gallup Consulting research indicates that actively engaged employees are 51% less likely to leave, 15% more productive and 12% more profitable than disengaged employees.3 According to their research, there were 18% of employees in this actively engaged category, leaving 61% of employees somewhere in between the poles of really negative and fabulously productive.

In recent times, the leadership of legal practices in both the private and corporate sectors has been tested. Difficult economic times have meant that many firms have had to implement one of the most difficult business decisions – the reduction of staffing costs by reducing the number of people on the payroll. This has been an extremely challenging time for everyone impacted and this impact is not limited to those who lost their jobs. The bond of trust between remaining employees and employers has been severely tested. The online job board SEEK surveyed over 6,000 employees across the Australian job market in late 2009 and found that 33% of employees felt

1 What Keeps Employees Engaged With Their Workplace?, Australian Institute of Management, 2006

2 Gallup Employee Engagement Survey Results, 2008

3 Gallup Employee Engagement Survey Results, 2008

burnt out and disillusioned.4 Whilst higher turnover will occur as a result of greater employment opportunities, there is no room for complacency. There are daily reports regarding the likely impact of the economic upswing on employee turnover. One report from May 2010 said the rate of employee exodus has been exaggerated and that only 23% of employees plan to leave their current employer in the next 12 months. With the investments made to develop, promote and retain talented lawyers and support staff, I do not think a predicted rate of turnover of only 23% is acceptable.

Leadership and retentionThere is clearly an enormous opportunity for improvement and legal employers are actively exploring ways to increase the level of employee engagement. Within firms the discussions often focus on “what are other firms doing?” and invariably the conversations turn to stories of free massages, generous leave policies and provision of the latest technology toys/tools. In my view, these are the perks and benefits which are ultimately just the fancy icing on what is a multi-layered cake, the ingredients for which are not exotic but often hard to mix. I think the question needs to be “what are we doing?” and the focus needs to start with the firm leadership.

Without good leadership it is very hard, if not impossible, to create a culture where people feel valued and engaged. Employees are looking to the firm’s leaders to set and maintain a clear direction, and imbue this direction with some enthusiasm. They want authentic and empathetic relationships with the partners and managers in the firm and they want to feel that the firm can be trusted.

Many in the legal profession believe the Australian economy is through the worst and work levels are showing all the commensurate positive signs. Confidence needs to be restored and employees are

4 2009 Satisfaction & Motivation Report, SEEK


looking to the firm’s leaders to show the way. However it is important to remember that whilst there is quiet relief that there is more work, people have not forgotten their colleagues who have had to leave the organisation. For many their own personal concerns about job security remain. Leaders need to focus on rebuilding trust and confidence in a way that does not whitewash the personal impacts of the last 18 months.

Steadily grow your leadersWho is responsible for this? In my view, good leadership needs to be across the organisation – not just one charismatic managing partner, CEO or general counsel. The day to day experiences of people in workplaces are what create their realities – not the story the website spruiks, the latest award the firm has won or the recent media profile for a particular case.

The development of good leaders is a challenge for many organisations; however law firms often fall into the trap of failing to recognise the benefit in starting this development early in a professional’s career. Many firms have recognised that leadership training, like career planning, needs to start from day one, and those that have are today reaping the benefits of this long term approach. Leadership training often sounds “high-falutin’” but the reality is that it starts with basic people management and self management skills. Coaching from others in the business can provide the valuable guidance needed to develop these all important fundamentals.

And one final difficult bitFinally, too often one hears that a firm is not comfortable committing to leadership development as this means having to articulate and live by the expressed values of the firm. Good leaders promote these values by example. Good leaders also address behaviour that does not support the firm’s values, and this can be very confronting. Having the courage and the competence to have these difficult conversations is, in my view, the hallmark of a good leader. Too often in private law firms the aberrant behaviour of partners is tolerated as it has become too difficult to address. Often these aberrant behaviours damage relationships and trust. The failure of the leadership team to “walk the talk” often results in a culture of cynicism which undermines the investments and initiatives of the firm at every turn. Engagement will remain low and turnover will be higher in firms where there is not the courage to address poor leadership.

Kriss Will is the Managing Director of Kriss Will Consulting Pty Ltd, a consultancy firm which specialises in management consulting and training and development. Kriss has a Master of Business Administration and an honours Arts degree (double major in Psychology).

She has worked in the professional services sector for over 20 years, holding in-house roles as an HR Manager, Marketing Manager and General Manager, and established her own management consultancy business in 1996. Kriss consults to law firms of all shapes and sizes and really enjoys working with lawyers to create sustainable successful businesses.


INTRODUCTIONWelcome to Survey 2010. Mahlab’s annual survey is Australia’s most comprehensive survey of the legal profession, encapsulating market trends and accurate, current remuneration ranges captured from the 2010 salary reviews. We are pleased to bring you up to date and comprehensive information on market conditions and trends in the legal profession in Australia and around the globe.

Enter the new legal landscape. The global financial crisis has changed the legal landscape. Relationships between clients and law firms and between staff and employers have changed. The outlook for 2010 and beyond is optimistic and has been borne out of a most challenging and confronting time for the legal industry. Expectations in terms of staffing, service delivery and response to client requirements have also changed. In this new landscape, there is not only a renewed optimism but greater efficiencies, improved profitability and signs of a slow, steady move towards better times. The focus for the year ahead will be rebuilding teams, processes, relationships and trust. It is a time for rejuvenation, retention and recruitment.

Many law firms were negatively impacted by the global financial crisis in 2009, particularly the top tier and boutique firms that previously relied upon large transactional work for a few major clients. Redundancies, salary freezes and the dismantling of practice groups was commonplace given the severity of the market. Lawyers who retained their positions were grateful and understood why their salaries were frozen.

For various reasons, the mid tier firms fared better than the top tier, and in some cases, strengthened their client list and market share. For many of these firms strong recruitment levels were maintained. Many of their practice groups were significantly enhanced with the recruitment of lawyers and partners and/or senior practitioners with transportable practices who may not have considered a move to a mid tier firm prior to the global financial crisis.

The start of 2010 brought with it a lifting of recruitment and salary freezes. This activity was again led by the mid tier firms and more recently, the top tier firms. Practice areas that have experienced increased recruitment activity include resources law, corporate law (in particular, public mergers and acquisitions and private equity work), banking

and finance, commercial law, IT/IP, employment, insurance and litigation as well as banking and finance. It is anticipated that scarcity of specialist lawyers will once again become a problem as the Australian and international economies strengthen.

In 2010 almost all lawyers received a salary review. Some firms made interim salary adjustments as well as conducting annual salary reviews. It is interesting to note that by 2010 lawyers certainly expected salary increases, although expectations varied wildly as to quantum. This year lawyers in private practice have achieved salary increases of between 12–14% on average. Broad and varied salary increases have occurred this year due to some lawyers receiving more than one increase while others receiving none. The salary bands within law firms generally did not increase. There is a clear trend amongst law firms to remunerate strong performers by selectively offering bonuses while closely managing base salary increases. Employers continue to make clearer the link between the performance and value staff bring and remuneration.

Retention is now a key issue for employers as many lawyers are contemplating making a move. The difficult market conditions, demanding clients who are controlling hourly rates and have more stringent requirements of service delivery, salary freezes and the requirements for staff to do more with less, as well as a stalling of career progression have all begun to take their toll. Many lawyers have been waiting patiently for the market to improve before canvassing their options. Lawyers are considering opportunities within Australia in law firms, corporations and government bodies, as well as some international opportunities.

Rejuvenation of the work environment and staff engagement will be another key focus for law firms and is inherently linked to retention. It will be imperative that firms ensure employee engagement is renewed and remains high. The

KATHERINE SAMPSON

LISA GAZIS


main issues are staff perceptions of how employers treated them and their colleagues during the financial crisis, how the firm demonstrated its loyalty towards staff, and how the firm responded to an uplift in market conditions not just in terms of financial rewards but also in relation to quality of work, training, development and career advancement initiatives. It is expected that the number of lawyers resigning from private practice firms in pursuit of alternative opportunities will rise in the next 12 months and this will put pressure on the legal employment market.

The arrival of the international firms such as Norton Rose (through merger with Deacons) and the subsequent opening of Allen & Overy, will also put pressure on the employment market. Whilst these firms undertake domestic work it is believed that a major impetus for their arrival has been to use Australian offices as part of an integrated strategy to further expand market share in Asia. It also allows such firms to provide a seamless service internationally, which appeals to global clients. In the case of Norton Rose, its merger with Deacons has allowed the firm to draw Australian lawyers into Asian offices. The trend for international mergers and strategic alliances will continue. As a result, Australian local firms are now competing for talent directly in Australia with strongly branded international firms practising locally. The kudos of working for an international law firm, the quality of work, the international exposure and career opportunities are very appealing to young lawyers. These firms will strongly challenge the Australian law firm appeal domestically and impact on the legal talent pool.

Law firm mergers in 2009–2010 increased. Mergers have been particularly prevalent amongst the mid tier firms pursuing strategic growth. Recent mergers include Thomson Playford with Cutler Hughes & Harris in Sydney and then Thomson Playford again with Dibbs Abbott Stillman in Melbourne,

Norton Rose with Deacons, and in Brisbane Cooper Grace Ward with Bain Gasteen. Strategic ambitions to increase service offerings by being a larger firm, with more infrastructure and resources and having more depth of experience across practice areas and locations, are key motivations.

Partner movement also increased in 2009–2010. As firms restructured and did away with less profitable practice areas, other firms exploited this trend to grow their businesses strategically by acquisition. Partners with time on their hands in a less active market had more time to consider their careers and options and many moved. Property partners, corporate and commercial law partners, partners in banking and finance, insolvency partners particularly in financial services law were all represented in such moves.

For law firms, the balance of power has now shifted and in-house counsel and clients have greater influence in relation to the services they expect from firms and fee arrangements. Pressure imposed by clients to tightly manage and in many cases reduce legal spend has forced firms to seriously consider and accommodate billing arrangements such as fixed fees, success payments and other alternative billing methods. This pressure will ultimately impact revenue and how lawyers in law firms at all levels are remunerated as current remuneration models are inextricably linked to hourly rate billing targets.

On the international scene, we anticipate that recruitment of Australian lawyers will remain somewhat subdued until the end of 2010. The Middle East and Asian markets have remained steady while the UK market, although challenging, has begun to show glimmers of improvement with salary freezes lifting and recruitment activity increasing. The USA market remains subdued.

On the corporate front, recruitment activity was encouraging with a steady number of jobs occurring in most sectors. This is reflected

not only in increased permanent vacancies but also in the conversion of fixed term hires into permanent hires. The trend of employers seeking to recruit in-house lawyers on a contract basis will continue throughout the year. These roles have been particularly valuable in situations where employers have found it difficult to predict long term work flow or where increasing permanent head count was not possible. Contract lawyers have been recruited by companies for projects such as acquisitions, restructures and divestments and to manage litigation.

While in-house recruitment activity in 2009–2010 was mainly focussed at the junior to senior counsel levels, it is anticipated that as the market improves there will be more head of legal positions and greenfield roles on offer. Industry sectors which are experiencing increased activity include energy and resources, information technology and telecommunications, health and pharmaceuticals, banking and finance and FMCG. The increase in regulatory requirements has also resulted in a growth in compliance and regulatory positions.

As a result of the pressures to reduce costs within corporations there has been a noticeable change in how in-house counsel are perceived both within organisations and outside. The influence of the in-house counsel is rising and there is also a greater recognition of the value they bring in terms of the work performed and the costs they manage. In some in-house teams, KPI’s for bonuses for in-house counsel include the ability of the lawyer to reduce external spend. In-house counsel are now more vocal in their demands namely, in asking for better, more relevant and value-added services from external providers, competitive fees based on alternative billing methods and timely service delivery.

Salary packages generally remained frozen during the global financial crisis but many corporations have now lifted salary freezes and reviewed staff rewards. While many


reviews have been in line with CPI, reviews have resulted in a national average increase of 4.06% and many star performers were rewarded with bonuses.

Shared services professionals namely, management, marketing, business development, human resources and knowledge management specialists are slowly recovering from a difficult 2008–2009. Salary freezes were commonplace and for many professionals in these areas, roles and working hours were reduced. Where recruitment activity took place it was often on a fixed term basis, although since January 2010 there has been an increase in the number of job opportunities becoming available, particularly in the business development area, reflecting increased activity and optimism. Salary reviews in this area have been particularly modest. It is anticipated that this market will steadily improve towards the end of 2010 and into 2011.

Thank youOnce again we are grateful for the support shown by our clients, private practice solicitors, company secretaries, corporate lawyers and professionals in marketing, human resources and knowledge management who participated in the survey. Thank you for your support.

We particularly thank the Australian Corporate Lawyers Association (ACLA), Australasian Professional Services Marketing Association (APSMA), Victorian Women Lawyers, The Law Society of New South Wales Young Lawyers, Women Lawyers Association of Queensland, Young Lawyers Victoria and the Law Institute of Victoria, Legal KM Forum, and Women Law Association NSW for circulating our questionnaire to their members. We appreciate their ongoing commitment to making Survey 2010 a success. Thank you.

Survey 2010 responses are supplemented by up to date data collected from Mahlab’s Australian and international clients and candidates, with an emphasis on information that reflects 1 July 2010 reviews.

We welcome your feedback. Please direct your comments to Sophie Waters, National Marketing Manager: [email protected]

Katherine Sampson Lisa Gazis

Mahlab gratefully acknowledges the support of these industry associations in circulating links to the online questionnaire to their members.


CORPORATE LAWYERSAlthough the effects of the global financial crisis continued to impact the corporate market, the past financial year was generally less troubled for in-house counsel than most of their law firm counterparts.

Remuneration levels remained relatively steady, with smaller bonuses on offer. There is a reasonable level of job security in the corporate market, notwithstanding some high profile corporate collapses. In contrast to previous economic downturns, the number of redundancies was relatively small and generally limited to those sectors which were most impacted by the global financial crisis, namely financial services and property. This is no doubt a reflection of organisations recognising the added value in-house counsel provide and the view of corporate decision makers that the in-house legal function is “essential”.

Only 36% of in-house counsel received a salary increase in July 2009 at the height of the salary freezes. This year the average percentage increase in salaries for corporate lawyers is 4.06% compared with 3.5% in 2008–2009 and 5.7% in 2007–2008. Those who were reviewed at a higher percentage were star performers whose companies were keen to retain them.

While base salary levels have increased a little, the bonus component of in-house remuneration is more important than ever before, ranging from 10–50% nationally. This year the bonus paid tended to be at the low to mid level of the available range rather than at the top, with company performance being the main influencer in this economic climate. As a rule, the higher bonus percentage applies to the more senior positions, with the average target for a mid level lawyer being 20%.

A combination of any of company performance, legal department performance and individual performance targets is the basis of the bonus calculation. Nearly 3 in 5 respondents received a bonus, with the majority of those who did not advising that this was due to either their company not performing well or the business remaining cautious about the economic climate. 73% of bonuses paid to

corporate lawyers were performance based although some companies relied on discretionary bonuses in order to acknowledge significant contribution and ensure they retained strong performers.

In some instances a new recruit was offered a choice between a slightly lower base/higher bonus component and the reverse.

In-house counsel still report a high level of satisfaction in their roles, with 7 in 10 respondents either being “very satisfied” or “somewhat satisfied” despite increased workloads and tight constraints on external legal spend. However, 45% advised that they were considering leaving their current organisation, a slight increase from 41% in 2008–2009. Of those considering leaving their current employer 80% are seeking another in-house role, a 20% increase over the previous year.

In many cases, in-house teams expanded during 2009–2010, either through the engagement of permanent staff or through the use of contractors and/or secondees as corporations increasingly look to cut their external legal spend. Corporate restructuring and rationalisation led to a continued focus by corporate legal departments to reduce their reliance on external legal providers. Legal departments achieved this by retaining the legal work in-house and expanding the team. Survey 2010 reveals that more than 60% of organisations sought to reduce their external legal spend during the past financial year, with 40% having negotiated new terms with their external legal service providers and 36% having changed their external legal providers.

Vetting requests for external advice, requesting fixed price estimates or maximum fee arrangements from external legal providers, tightening the scope of instructions and having competitive tenders for larger pieces of work are just some of the ways in-house counsel sought to reduce external legal spend. Interestingly 37% of those surveyed advised that they anticipated their external legal


“More high quality work is being done in-house,

attracting a greater number of private practice lawyers”

4.06% salary increases

73% of bonuses paid were

performance based

3 in 5 receive a bonus

60% of organisations

reduce legal spending45%

considering leaving their employer


spend to increase in the new financial year as market conditions improved, and corporate activity increased.

A cost conscious corporate market means that more high quality legal work is being done in-house. This is attracting a greater number of private practice lawyers, with more such applicants registering for in-house roles, especially in the second half of the year. Dissatisfaction with law firm remuneration and less opportunities for lawyers to work overseas also account for the increase in private practice applications. The nature and quality of the work retained by the legal team has also led to improved in-house retention rates.

Demand for corporate counsel was evident across a range of industries during the financial year, with a notable rise in recruitment by financial institutions, property, and energy and resources companies towards the end of 2009 and continuing throughout 2010. Recent recruitment activity in these sectors follows an extremely difficult period during the global financial crisis with limited opportunities available and redundancies taking place.

There is a noticeable increase in demand for IT and telecommunication lawyers. Opportunities are also occurring in professional services, FMCG, health and pharmaceuticals and the renewable energy industry. Similar to last year, the government sector also produced a number of very interesting senior level opportunities. Regulatory and compliance roles were particularly prevalent. A general trend is the increasing regulatory component of in-house roles across most industries. The property and construction sector has also bounced back, with recent recruitment activity for in-house lawyers at all levels. This is in some part related to the Federal Government’s continuing infrastructure program.

An interesting and growing trend in the corporate market is the employment of more specialized lawyers within their teams as permanent or temporary members.

Larger corporations see the attraction of having specialist lawyers “on call”, particularly where the company is facing a major change in the regulatory framework, internal processes or a major deal or project. This has led to an increase in opportunities for M&A lawyers, competition law and IT and IP law specialists. It has also created opportunities for bright, mid level general commercial lawyers willing to undergo training in-house and devote themselves to one major project for a year or more, thereby creating specialists from generalists. This trend is driven by a desire for increased productivity, efficiency and most of all, cost reduction. Some law firms are taking note of this trend and its likely impact on the traditional law firm offering.

The enthusiasm of senior associates to move in–house clearly out weighed the availability of corporate roles during 2009–2010. Many aim to increase exposure to the corporate world through secondments or to take a greater risk than previously contemplated by leaving their permanent law firm job to take up a contract role in a company or government entity in order to “get their foot in the door”.

More in-house counsel are working part time, up from 7% in 2008–2009 to 13% in 2009–2010, with working hours per week rising from 29 to 32 hours. Most survey respondents advise that they are working part-time due to family commitments, however some (11%) advise that this is due to employer requirements, a further likely impact of the global financial crisis. Interestingly, this figure is half of what it was in the previous financial year, which reflects a growing confidence in the economy by the employer.

The last quarter of the financial year has seen a flurry of new in-house opportunities across all industry sectors. While corporations remain cautious more opportunities are coming on to the market as confidence in the economy improves. These encouraging signs of improved

activity will continue to see in-house legal teams grow in 2010–2011. 40% of corporations surveyed said their legal teams will grow in the next 12 months with approximately two-thirds of those new hires being permanent staff and the remainder being contract appointments.


SALARIES } CORPORATESYDNEY

Year Level Range Mode

1 $65,000 – $85,000 $76,000

1 2 3 4 5 6+ DG

C

GC

2 $75,000 – $95,000 $92,5003 $90,000 – $120,000 $111,5004 $109,000 – $145,000 $137,5005 $125,000 – $160,000 $158,000

6+ $135,000 – $230,000 $184,500DGC $165,000 – $280,000 $238,000

GC $170,000 – $600,000+ $289,000

MELBOURNE


1 $58,000 – $80,000 $75,000

1 2 3 4 5 6+ DG

C

GC

2 $70,000 – $95,000 $87,0003 $85,000 – $113,000 $101,5004 $92,000 – $139,000 $123,0005 $117,000 – $158,000 $147,000

6+ $130,000 – $220,000 $176,000DGC $150,000 – $250,000 $204,000

GC $170,000 – $600,000+ $283,000

Figures refer to total package including benefits but excluding bonuses and share options.

Salary bands in the corporate market tend to be very broad. An individual’s position within a band will depend on a number of factors including background and experience of the individual, size of the organisation and its legal function, industry sector and level of management responsibility within the role. Please contact our consultants for tailored advice.


BRISBANE


1 $60,000 – $75,000 $68,000

1 2 3 4 5 6+ DG

C

GC

2 $65,000 – $90,000 $80,0003 $75,000 – $110,000 $97,5004 $90,000 – $125,000 $113,5005 $95,000 – $155,000 $138,500

6+ $110,000 – $190,000 $162,000DGC $135,000 – $220,000 $177,500

GC $150,000 – $500,000+ $230,000

PERTH


1 $65,000 – $80,000 $74,000

1 2 3 4 5 6+ DG

C

GC

2 $68,000 – $94,000 $86,5003 $82,000 – $115,000 $104,0004 $98,000 – $140,000 $128,0005 $110,000 – $160,000 $144,500

6+ $120,000 – $240,000 $176,000DGC $135,000 – $260,000 $200,000

GC $150,000 – $500,000+ $258,000

ADELAIDE


1 $55,000 – $76,000 $72,000

1 2 3 4 5 6+ DG

C

GC

2 $70,000 – $90,000 $84,5003 $80,000 – $105,000 $101,5004 $88,000 – $127,000 $115,0005 $95,000 – $150,000 $133,500

6+ $120,000 – $190,000 $165,500DGC $145,000 – $245,000 $195,500

GC $145,000 – $500,000+ $222,000


Salary bands in the corporate market tend to be very broad. An individual’s position within a band will depend on a number of factors including background and experience of the individual, size of the organisation and its legal function, industry sector and level of management responsibility within the role. Please contact our consultants for tailored advice.


CORPORATE LAWYER } BENEFITS OFFERED

TECHNOLOGY

Blackberry / iPhone 51 54 63

Home computer internet connection 25 21 26

Laptop 69 72 69

Mobile phone 62 60 60

FINANCIAL

Share plans/options 44 37 34

Additional superannuation 29 33 31

Vehicle 16 N/a 19

Car parking 47 44 53

Income protection insurance 32 29 34

Life insurance/private health insurance 26 34 20

Paid parental leave 55 16 50

Corporate credit card 60 62 61

LIFESTYLE

Reduced working days per week 38 32 36

Time in lieu 43 36 39

Additional leave without pay 60 54 47

Working from home 60 59 59

Emergency childcare/parent’s room 14 23 14

Extended/indefinite leave 29 30 27

Purchase annual leave 31 30 31

CAREER DEVELOPMENT

Management training 66 71 61

Further study – full fees 41 38 38

Further study – part fees 47 47 42

Paid study leave 53 48 45

Unpaid study leave 53 48 45

Professional memberships 89 91 87

Secondments – international 22 23 21

Secondments – local 24 26 20

Travel – international 48 47 47

Travel – interstate 76 79 77

% of surveyed lawyers

2007

–200

8

2008

–200

9

2009

–201

0


COMPANY SECRETARIESConsistent with market conditions generally, there were a more limited range of opportunities for company secretary and assistant company secretary professionals. In contrast, compliance, governance and regulatory work increased and these professionals are in greater demand, often recruited as members of an in-house corporate legal team. Complex regulatory requirements and market scrutiny make it necessary for corporations to focus even more on corporate governance and compliance issues.

There were only a limited number of senior roles for company secretaires in the past year. Despite this, many mid level and senior lawyers are still keen to undertake company secretary qualifications. Most of these lawyers do not wish to pursue pure company secretarial roles. Rather, many undertake the qualification with a view to progressing their career into a blended general counsel and company secretarial role. Survey 2010 results show that three quarters of respondents hold a Bachelor of Law degree in addition to their company secretary qualifications.

This year more company secretary respondents indicate that they are working in sole roles. There is a decrease in the number of company secretaries surveyed working in secretariats comprising 2–5 people.

70% of respondents indicated they are satisfied with the outcome of their salary review, as opposed to only 50% last year. Approximately 85% of respondents did not receive an annual salary increase in July 2009. However 40% of respondents did enjoy some form of salary increase in the first half of 2010 to make up for the lack of increase the previous year.

The vast majority of respondents surveyed work for organisations offering performance based bonuses, in line with previous years. It is important to note that just under 60% of respondents received a bonus this year, an increase from about 40% last year.

Compared to last year, over 4 in 5 respondents said that their hours of work have increased. However, despite being busy, two thirds of respondents said the size of their company secretariat would stay the same.

40% of company secretaries surveyed indicated that they are considering leaving their current employer. This is an increase from only 25% last year when the global financial crisis meant professionals were holding onto their roles and seeing little opportunity to “look

around”. Last year, all who said they were looking to move said they would move to another company secretary role, indicative of the lack of opportunity for company secretaries to consider broader options in the very tight market. This year, nearly 30% said they would consider moving to a role other than a company secretary one, illustrating a greater confidence in the market that they would be attractive to an employer in a role outside of their specialist skill set.

The most common factor that would influence a company secretary to join another organisation is career progression, closely followed by the quality of work being offered. Seeking a better work/life balance and being involved in the strategic input of the company are also popular factors influencing their decision to move to a new organisation. Compared with last year’s results, the opportunity for career development is more important, indicative of respondents believing their careers halted during the global financial crisis and now seeking to make up for lost time.

4.06% increase in

salaries

70% satisfied with salary review

Work hours increased for

80%

40% are considering leaving their

current employer.

COMPANY SECRETARY } SALARIESPUBLICLY LISTED

State Range Mode

NSW $145,000 – $480,000 $240,000VIC $125,000 – $450,000 $245,000

NOT PUBLICLY LISTED

State Range Mode

NSW $115,000 – $300,000 $200,000VIC $110,000 – $290,000 $180,000

NSW

VIC

NSW

VIC

Salary bands apply to individuals undertaking full company secretary roles.


There may be some individuals in major companies who are earning outside the bands revealed by the survey, however they would be the exception. Please contact our consultants for tailored advice.


COMPANY SECRETARIES } BENEFITS OFFERED

TECHNOLOGY

Blackberry / iPhone 50 50 73

Home computer internet connection 31 38 27

Laptop 63 75 73

Mobile phone 56 63 33

FINANCIAL

Additional superannuation 25 13 27

Car parking 50 25 47

Income protection insurance 38 25 27

Paid parental leave 38 25 53

Private health insurance/life insurance 44 100 67

Corporate credit card 56 50 67

Share plans/options 63 25 67

Vehicle 19 13 20

LIFESTYLE

Reduced working days per week 25 100 20

Time in lieu 44 50 47

Additional leave without pay 53 50 33

Working from home 50 88 60

Emergency childcare/parent’s room 0 13 27

Extended/indefinite leave 18 38 27

Purchase additional leave 25 13 27

CAREER DEVELOPMENT

Management training 44 75 60

Further study – full fees 56 38 47

Further study – part fees 36 13 47

Paid study leave 39 38 67

Unpaid study leave 31 38 47

Professional memberships 87 100 93

Secondments – international 25 100 13

Secondments – local 13 13 13

Travel – international 56 25 73

Travel – interstate 81 63 67

2007

–200

8

2008

–200

9

2009

–201

0

% of surveyed company secretaties


CONTRACT LAWYERSIn the past financial year, many contract opportunities arose where an extra legal resource was called for and concerns over head count and increased costs prevailed.

A number of corporate clients used a contract appointment to test the need for a permanent appointment. Maternity leave, a major project or an interim appointment while a corporate review or restructure was undertaken led to the need for a senior contributor for 6–12 months. Many of the latter roles continued beyond the initial contract period, becoming longer term contracts or permanent appointments. Both the corporate and government sectors produced contract opportunities, presenting valued roles for many senior lawyers who found themselves between roles.

Sole purpose law firms were established in 2009–2010 to provide lawyers for short term in-house legal roles. These law firms provided a valuable alternative to the traditional secondee arrangement, particularly given the limited pool of secondees available. They also provided employment opportunities for senior lawyers who either undertook contract work on a regular basis or were looking for a short term contract while they sought a permanent in-house role.

Most contract appointments were remunerated on a pro rata basis on market rates without the “loading for risk” factor which sometimes applied in previous years.

Sydney Level 9, 6 O’Connell Street, Sydney 2000 T: (02) 9241 1199 F: (02) 8243 4646 E: [email protected]

www.mahlab.com.au

Melbourne Level 1, 535 Bourke Street, Melbourne 3000 T: (03) 9629 2111 F: (03) 9629 2155 E: [email protected]

Mahlab Legal Salary Survey 2010 Corporate Australia

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Transcript of Mahlab Legal Salary Survey 2010 Corporate Australia