Newly-qualifieds and trainees at City firms are not the only juniors enjoying bumper pay rises – so are their in-house contemporaries, according to a report on counsel compensation. However, efforts to retain junior talent should not come at the expense of more experienced lawyers, corporates have been warned.
Legal recruiter Major, Lindsey & Africa reported this week that, since 2021, ‘total actual cash’ compensation to general counsel and chief legal officers has fallen by 4% globally. However, the most junior members of in-house teams have enjoyed a 19% rise. Deputy and associate GCs received an 8% increase.
The report says: ‘Corporate leaders face challenges in keeping up with pay rises and bonuses competitors offer, particularly in the current climate. The problem can be acute when the legal team is comprised of lawyers who have been with an enterprise for many years. Salaries in those cases tend to slip below market and can create risk to the business by leaving the company vulnerable to decreased morale and productivity, unwanted employee turnover, and loss of intellectual capital.’
Naveen Tuli, managing partner of Major, Lindsey & Africa’s in-house counsel group, said in-house remains attractive for junior lawyers burnt out by private practice but accustomed to high salaries. But in boosting their attraction to junior talent, legal departments should ‘mitigate against the potential knock-on effect on experienced lawyers’.
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