Salary survey: Lawyers' bonuses to rise
Lawyers working in investment banks can expect bonuses 10%-20% higher this year than last, according to Sheffield Haworth, a recruitment firm.
Growing demand for lawyers working in sectors such as equity and credit derivatives and structured products is encouraging higher base pay and occasionally even guaranteed bonuses, said Siobhan Lewington, senior consultant in Sheffield Haworth's legal team.
The firm said it reached its conclusions after speaking to about 10 leading investment banks.
A junior equity derivatives lawyer with two years post-qualification experience who moved firm this year could expect a base salary of 55,000 to 70,000 (€80,000-€101,000), plus a bonus of between 20% and 30%, Lewington said.
A senior equity derivatives lawyer with more than five years experience could expect a base salary of up to 100,000, plus a bonus of 60%-100%.
Pay for lawyers in structured finance, securitisation, and corporate finance is likely to be between 10% and 20% below this, Lewington said. 'Demand for equity derivatives lawyers exceeds supply. Banks are being forced to hire lawyers with only a little equity derivatives experience.'
Sheffield Haworth said compensation for lawyers fell up to 30% in 2002, largely due to poor bonuses. In some banks base salaries have not increased since 2000.
New recruits have fared better. Legal departments had been offering signing-on bonuses of up to 20,000 this year, particularly for junior lawyers.
Legal recruitment in 2004 is likely to focus on structured debt, debt capital markets, credit derivatives, equity derivatives and distressed debt, Sheffield Haworth predicted.
