Energy lawyers lead way on pay
Law firms are labouring hard to prevent staff exiting to banks. Meanwhile, it seems banks themselves may be in danger of losing staff to energy companies.
Chris Hickey, director of professional services at recruitment firm Robert Walters, tells us one or two-year qualified lawyers can typically earn 25% to 30% more working for an investment bank than a magic circle law firm.
Little surprise, therefore, that law firms are trying to stem a mass migration of talent. The Financial Times last week reported that Allen & Overy is offering its young lawyers a 15% pay rise as of 1 November and a chance to share in the profits before they hit partner level.
Under the move, the FT says a new class of lawyer, known as a senior associate, will receive a profit share equal to around 50k, while another new class of lawyer, known as a 'counsel', will receive an annual salary of up to 230k.
The move may help dissuade legal pros from defecting to banks, where Hickey says one or two-year qualified lawyers typically earn around 115k.
At the same time, banks' lawyers may yet be poached by energy companies - particularly if they work on energy M&A deals. The Telegraph today reports on a salary survey by search firm GRS Group, which found that following a 7% increase in basic salary and 19.5% increase in bonuses, in-house energy lawyers are now on average packages of 234k.
This may even be enough to encourage mid-ranking M&A energy bankers to sit up and take note.
