TAustralia Banking & Financial Services Salary Survey 2012-13

Legal: Banking & Financial Services
Market Update & Salary Guide 2012/2013

Australia

taylorroot.com

Legal: Banking & Financial Services: Market Update and Salary Guide 2012/2013

Introduction

We are pleased to present the Taylor Root in-house Legal questionnaire. Salary information was also gathered from our
Market Survey for the Banking and Financial Services (B&FS) extensive database of candidate lawyers and clients, who
industry sector for 2012-13. Our data analysis and trends we have assisted in recruitment processes over the last 12
cover Sydney and Melbourne given they are home to the months and more. Sectors covered in this survey include
majority of in-house counsel roles in this sector. We can retail, investment and corporate banking, wealth management,
provide relevant salary ranges for other cities on request. superannuation, insurance and funds management.

Other legal industry sectors such as commerce & industry, It is worth noting that when reviewing salary and benefits
private practice and compliance/risk are all covered in across the industry, there can be significant differences
separate surveys and can be accessed via our website at for similarly-qualified solicitors depending on skill set and
taylorroot.com. type of employer. For example, salary levels compare more
favourably in the investment banking or funds management
We aim to provide an accurate reflection of market conditions, sector compared with retail banking or insurance for lawyers
supply and demand, remuneration levels and any other with similar levels of experience and tenure. For the most
significant developments of note to have impacted on the in- accurate advice on salary levels and remuneration packages,
house counsel market over the last 12 months, whilst also please contact a member of our in-house recruitment team.
looking forward to 2013.
As always, feedback is welcome so please feel free to let us
A significant amount of data was collected from clients know your thoughts.
across the various B&FS market sub-sectors via an online

Brian Rollo
Group Manager

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Market Overview

Over the past 12 months in the B&FS sector, the slow down 2013. Although this number may actually seem quite high,
in recruitment activity which started in 2011 across Australia this can be explained by the current “threadbare” make up of
continued to hamper candidates seeking new in-house many legal teams due to forced and voluntary redundancies
opportunities. Only 20% of organisations in the B&FS sector over the last 18 months. The belief, or hope, amongst clients
actually recruited any lawyers into their in-house team in the being that any significant increase in workflow will result in
last 12 months compared to more than 50% in the previous new legal counsel hiring.
year. Of more significance, only 5% of respondents reported
a net increase in the numbers of lawyers within their team. There have been very few high-profile General Counsel level
This compares to over 45% of companies increasing numbers opportunities or movement over the last 12 months mainly
in the financial year of 2011-12 and has been the most due to incumbents lacking more attractive alternatives
significant shift in the supply-demand dynamic, particularly elsewhere, either in Australia or regionally across Asia Pacific.
within the banking sector itself. The resultant “merry-go-round” effect has, therefore, not
really been seen in recent times.
This relative lack of demand has resulted in the overall net
effect of fewer open vacancies on offer and an increasingly It is at the level below General Counsel, however, that we
competitive candidate market. There are noticeably more have seen the most acute shortage in vacancies. These
high-calibre candidates chasing those same rare opportunities Senior Counsel or Deputy General Counsel level roles with
in comparison to the plentiful supply of vacancies pre-GFC salaries in the $220,000 to $300,000 range have been few
and through calendar year 2010, for example. and far between over the last 12 months. This, again, can be
explained by the lack of corporate growth and available budget
Projecting forward over the next 12 months, the to recruit senior-level lawyers. Instead, financial institutions
overwhelming number of General Counsel/Heads of Legal are opting to hire less experienced mid-level lawyers who
predict that their legal team headcount will remain the same, cost less and can provide some relief from the bottle-neck
just over 75%, with the most common reason being hiring of Senior Counsel who are looking for the next promotion.
constraints and lack of budget. Less than 20% thought that Given ongoing concerns around headcount and cost, this
their team would experience net growth in numbers through trend looks likely to continue over the next 12 month period.

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Market Overview Continued

The attraction of an in-house legal career is still strong and more prescriptive in their hiring criteria under current
amongst banking and finance lawyers. However, there has market conditions. Therefore, the recruitment process has
also been a larger number of reverse moves back to private remained challenging for most types of banking and finance
practice over the last 12 months than we have seen for a roles, despite the relative lack of competing job opportunities.
number of years. There is also some suggestion that the
number of top-tier lawyers who are looking to move in- Companies still utilise secondee options from panel firms
house may have dropped somewhat in the last year. This can as a solution to short term resourcing issues as well as
be explained by any of the following reasons or perceptions: employing lawyers on a fixed term or temporary basis for
similar reasons. Typically these contract lawyers will cover
• The lack of in-house opportunities in the sector, prolonged maternity leave positions or provide additional resources for
over the last two years; specific projects. The last 12 months has seen a poportional
• Ongoing structural and regulatory problems for global increase in secondee deployment and temporary contractors
financial institutions to resolve; due to headcount constraints. This was predicted last year
• The higher guaranteed remuneration available within private and we expect this increased supply of contract opportunities
practice in Australia for lawyers with these skills. to continue for the next 6-12 months.

The increased hesitancy of candidates who would ordinarily The bulk of in-house recruitment takes place at the 4-8 year
be looking to move in-house means that identification of the level of post admission experience. It is relatively uncommon
highest-calibre candidates has continued to be a challenge for B&FS organisations to recruit lawyers with less than three
for those employers who have been recruiting in this space. year’s experience, although there has been a slight increase
This is coupled with hiring managers becoming less flexible in roles at this level compared to previous years.

Joanne Bews
Consultant

taylorroot.com


Demand

In a similar vein to last year, in-house B&FS legal hiring trends equates to less transactional work for in-house counsel in
have largely followed the fortunes of the global economy. For the investment banks.
instance, investment banks have continued to feel the impact
of global economic headwinds and regulatory issues in By contrast, the Australian banking groups have been active
Europe and North America. Locally, this has meant enforced with more frequent strategic or business-critical legal hires
headcount reductions and hiring freezes being imposed from occurring, reflecting the relative ongoing strong financial
overseas head offices. As a result, 2012 has seen one of performance and health of the Big 4 banks. There have
the lowest levels of hiring and vacancies in IB legal teams been a variety of roles requiring superannuation, life and
in recent times. More specifically, transactional banking insurance product and regulatory experience, as well as
and finance, capital markets or financial markets in-house broader corporate/commercial, distribution and advisory
legal roles in the last 12-18 months have been few and far roles, all available on a fairly consistent basis from local and
between. Capital markets and M&A activity has been very international FS companies this year.
low as have trading volumes in financial markets. All this

International Candidates
Much like 12 months ago, there is little appetite within continued to readily source talent from other jurisdictions,
banking and financial institutions to recruit lawyers directly there still remains a general reluctance from in-house teams
from international markets, with the exception of internal given restrictions on headcount and recruitment spend.
transfers. Several years ago, lawyers with specialist
transferable skills (e.g. derivatives, capital markets, funds, For foreign-qualified B&FS lawyers with no Australian
banking) could find work relatively easily in-house in experience (even including those from top-tier firms in the
Australia, but that has not been the case since the downturn UK or US) it is still a struggle to obtain a role directly in-house
in 2008/2009. While leading law firms in Australia have in Australia, including for those already on the ground here.

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Remuneration & Benefits
With the more subdued market conditions and cost controls Our expectation is that salary reviews for the coming year will
in place over the last 12 months, salary reviews within the be similar to 2012, with steady, modest increases across the
B&FS sector have been modest. 30% of respondents awarded board. It is unlikely that investment banking salary packages
increases of 1-3% (e.g. investment banking or corporate will increase significantly for some time.
banking sectors) while 35% awarded between 4-7% (e.g.
retail financial services or wealth management sectors). 15% On the following pages we have detailed the results of our
of respondents gave no review. salary findings. Please note that salary bandings can be very
broad for lawyers working in-house. Typically, these ranges
Annual bonus payments almost always make up an element broaden with seniority as specific responsibility will differ
of remuneration package for in-house B&FS lawyers. Around between organisations. For example, a senior role with team
85% of respondents awarded a performance-related bonus management and a wide geographical responsibility (e.g.
in 2012, most typically awarded on company and individual Asia Pacific) will remunerate at the upper end of the band
performance. Just over 60% of respondents noted bonus compared to a sole legal counsel role with local responsibility.
values between 1-20% of annual base salary, with 30% Senior salary levels are dependent on a number of factors
paying around 20-30%. including:

Investment banking legal salaries and total remuneration • Their background and experience;
packages continue to lead the market, despite the salary
stagnation in that specific sector over the last 12 months. • Reporting lines;
Where bonuses are being paid, they are generally paid
between 10 – 35% of salary within this sector, however, • The size of the organisation recruiting;
there are examples of some specialist, business-facing legal
roles which pay significantly higher than this range. • The legal function (for example, whether the lawyer is
hands-on or manages the legal function only);
Retail banks and retail financial services/wealth management
companies have remained competitive with each other and • The industry sector;
have raised salaries modestly but consistently in the last year.
Bonuses in this sector remain consistent at around 5 – 25% • Company performance; and
on average.
• The scope of responsibility (including people management,
As mentioned in our last survey, lower demand for senior geographical or otherwise) included in the role.
candidates on the open market, as well as restricted
recruitment headcount budgets, mean that sign-on and
guaranteed bonuses are still extremely rare.

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Salary Data - Points to Note
• We have identified each employer as falling into one of two categories, depending on the scale and function of the business,
and particularly the size of the in-house legal division. Large domestic or international organisations (Tier 1) will typically
remunerate at the mid to top-end of the salary range, while smaller domestic or boutique international businesses (Tier 2)
tend to remunerate at the mid to bottom-end of the range. However, with the growth in some high-margin “boutiques” and
the rigidity of several major financial institutions’ salary bands, this typical pattern can sometimes be reversed.

• Figures refer to salary packages inclusive of superannuation but exclude bonus and other benefits.

• For specific advice on salary levels and benefits or for a discussion around any of the points and figures in the survey, please
contact one of our in-house banking and finance legal team, contact details included within.

• Brisbane, Perth, Adelaide and other city or regional data can be discussed with one of our consultants directly on request.

• Salary package figures current as at November 1st 2012.

Tara Sacks
Senior Consultant

taylorroot.com


Salaries - Sydney

Investment Banking / Financial Markets / Structured Finance
Tier 1 Tier 2
0 - 2 years $85,000 - $105,000 $78,000 - $100,000
3 - 5 years $100,000 - $155,000 $98,000 - $147,000
5 - 7 years $135,000 - $195,000 $130,000 - $185,000
7 - 10 years $160,000 - $240,000 $150,000 - $225,000
10+ years $200,000 - $280,000 $180,000 - $240,000
Manager / ED / MD $250,000 - $375,000 $220,000 - $300,000
General Counsel $350,000+ $240,000+

Corporate Banking / Debt Finance
Tier 1 Tier 2
0 - 2 years $80,000 - $105,000 $77,000 - $100,000
3 - 5 years $96,000- $140,000 $92,000 - $140,000
5 - 7 years $135,000 - $180,000 $130,000 - $170,000
7 - 10 years $160,000 - $220,000 $150,000 - $205,000
10+ years $190,000 - $250,000 $175,000 - $225,000
Manager / ED /MD $220,000 - $320,000 $210,000 - $280,000

Funds / Investment Management
Large / International Small / Domestic
0 - 2 years $75,000 - $100,000 $75,000 - $95,000
3 - 5 years $112,000 - $150,000 $95,000 - $140,000
5 - 7 years $140,000- $175,000 $130,000 - $170,000
7 - 10 years $160,000 - $220,000 $145,000 - $210,000
10+ / Manager $180,000 - $245,000 $170,000 - $235,000

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Retail Banking / Financial Services
Tier 1 Tier 2
0 - 2 years $75,000 - $100,000 $70,000 – $90,000
3 - 5 years $110,000 - $145,000 $100,000 - $135,000
5 - 7 years $135,000 - $180,000 $130,000 - $170,000
7 - 10 years $165,000 - $220,000 $155,000 – $205,000
10+ / Manager $180,000 – $250,000 $170,000 - $230,000

Insurance
Tier 1 Tier 2
0 - 2 years $75,000 - $95,000 $75,000 - $92,000
3 - 5 years $105,000 - $135,000 $100,000 – $125,000
5 - 7 years $130,000 - $180,000 $125,000 - $160,000
7 - 10 years $155,000 - $195,000 $152,000 - $180,000
10+ / Manager $180,000 - $280,000 $170,000 - $240,000

Wealth Management / Supperannuation
Tier 1 Tier 2
0 - 2 years $75,000 - $100,000 $70,000 - $95,000
3 - 5 years $105,000 - $138,000 $95,000 – $126,000
5 - 7 years $130,000- $175,000 $122,000 - $165,000
7 - 10 years $155,000 - $210,000 $150,000 - $185,000
10+ / Manager $180,000 - $250,000 $175,000 - $225,000

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Salaries - Melbourne

Investment Banking / Financial Markets / Structured Finance
Tier 1 Tier 2
0 - 2 years $85,000 - $105,000 $80,000 - $95,000
3 - 5 years $100,000 - $155,000 $95,000 - $145,000
5 - 7 years $135,000 - $195,000 $130,000 - $180,000
7 - 10 years $160,000 - $240,000 $150,000 - $225,000
10+ years $200,000 - $280,000 $175,000 - $230,000
Manager / ED / MD $220,000 - $300,000 $200,000 - $270,000

Corporate Banking / Debt Finance
Tier 1 Tier 2
0 - 2 years $80,000 - $100,000 $75,000 - $95,000
3 - 5 years $95,000- $140,000 $90,000 - $140,000
5 - 7 years $135,000 - $180,000 $130,000 - $165,000
7 - 10 years $160,000 - $220,000 $150,000 - $205,000
10+ years $190,000 - $250,000 $175,000 - $225,000
Manager / ED /MD $210,000 - $300,000 $200,000 - $275,000

Funds / Investment Management
Large / International Small / Domestic
0 - 2 years $75,000 - $95,000 $75,000 - $90,000
3 - 5 years $100,000 - $150,000 $95,000 - $140,000
5 - 7 years $140,000- $175,000 $130,000 - $170,000
7 - 10 years $160,000 - $220,000 $150,000 - $210,000
10+ / Manager $180,000 - $245,000 $170,000 - $235,000

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Retail Banking / Financial Services
Tier 1 Tier 2
0 - 2 years $75,000 - $95,000 $70,000 – $90,000
3 - 5 years $100,000 - $135,000 $95,000 - $120,000
5 - 7 years $130,000 - $180,000 $125,000 - $165,000
7 - 10 years $150,000 - $210,000 $140,000 – $195,000
10+ / Manager $170,000 – $250,000 $160,000 - $225,000
General Counsel $350,000+ $270,000 +

Insurance
Tier 1 Tier 2
0 - 2 years $70,000 - $95,000 $70,000 - $90,000
3 - 5 years $100,000 - $130,000 $95,000 – $120,000
5 - 7 years $125,000- $180,000 $120,000 - $160,000
7 - 10 years $155,000 - $200,000 $145,000 - $180,000
10+ / Manager $170,000 - $225,000 $165,000 - $210,000
General Counsel $250,000+ $200,000 +

Wealth Management / Supperannuation
Tier 1 Tier 2
0 - 2 years $80,000 - $95,000 $75,000 - $90,000
3 - 5 years $95,000 - $135,000 $90,000 – $125,000
5 - 7 years $130,000- $175,000 $120,000 - $165,000
7 - 10 years $150,000 - $210,000 $145,000 - $185,000
10+ / Manager $180,000 - $225,000 $175,000 - $220,000

Note: All salaries are inclusive of superannuation, but exclusive of added benefits (e.g. bonuses, car allowances, share
options, long-term incentives etc).

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Your Taylor Root Contacts
For further information on the Australian in-house banking & financial services recruitment market, please
contact a member of our team on + 612 9236 9000 (Sydney) or + 613 8610 8400 (Melbourne):

Sydney Office
David Buckley Brian Rollo Joanne Bews
Partner Group Manager Consultant
davidbuckley@taylorroot.com.au brianrollo@taylorroot.com.au joannebews@taylorroot.com.au

Melbourne Office
Tim Fogarty Tara Sacks
Partner Senior Consultant
timfogarty@taylorroot.com.au tarasacks@taylorroot.com.au

Taylor Root is a member of The Specialist Recruitment Group PTY LTD (The SR Group). The SR Group is
a specialist recruitment consultancy dedicated to raising standards in the business environments that we
serve. The sectors we cover include tax, legal, compliance, human resources, marketing and executive
search, dealing with a substantial number of the world’s leading professional partnerships, multi-national
corporations and international banking groups as well as small to medium sized developing organisations.

Please note that Taylor Root conduct salary surveys and market reports for other jurisdictions around the
world. For details visit taylorroot.com

London Dubai Hong Kong
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London EC4V 4HN PO Box 506739 10 Harcourt Road , Central, Hong Kong
T: +44 (0)20 7415 2828 T: +9714 448 7770 T: +852 2973 6333

Singapore Melbourne Sydney
30 Cecil Street Level 4, Level 12, 25 Bligh Street
#21-03/04 Prudential Tower 520 Collins Street Sydney
Singapore 049712 Melbourne, VIC 3000 NSW 2000
T: +65 6420 0500 T: +61 (0)3 8610 8400 T: +61 (0)2 9236 9000

Taylor Root is a member of The SR Group

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TAustralia Banking & Financial Services Salary Survey 2012-13

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