lawyers weekly, december 2, 2011

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LegaL Leaders

diving inEx LCA head seeks constitutional reform

This Week

neW king on The bLockMallesons merges

in-depTh

Top of The corporaTe popsSpecsavers man wins in-house lawyer award

How does your salary compare?

in-depTh

goLdiLocks soLuTionA hiring strategy that’s just right

pay packeTsFriday 2 December 2011

$4.95 inc. GST

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In-House

International

Private PracticeMarket HotspotSydney

Funds4 – 8 yearsMajor player in the fi nancial services sector have a new, senior role suitable for a dynamic funds lawyer from a major fi rm or respected in-house team. High level experience required in advising on complex wholesale & retail Funds & Investment products (Australian & International) and related legislation including Corps Act (Ch 7). Existing mentoring or supervisory experience benefi cial. Ref: SYD/4556/DS

SydneyConstruction2 – 4 yearsA dynamic junior lawyer is required to advise on a wide range of construction and commercial matters including tenders and proposals, risk and contract matters. A top-tier commercial law background is required, preferably including construction experience either which could be a rotation. Rare and exciting opportunity for a junior lawyer to make a fi rst in-house move to a leading international corporation! Ref: SYD/4579/DS

SydneyCorporate4 – 6 years High level transactional and Corporate Advisory work on offer within a major listed company including Corps Act, ASX rules, Corp Governance and M&A. Top-tier corporate law background required including strong corporate advisory experience with top listed clients. Excellent career opportunities and interesting, challenging work available within this major market leader. Ref: SYD/4565/DS

SydneyPrecedents6 years +An experienced precedents or professional support lawyer is required to work with this high performing, multi-disciplined in-house legal team on a part-time basis. Experience in corporate/commercial law is preferred though broader experience would also assist your application. This is a rare and exciting in-house opportunity for lawyers with strong experience in this area from a major law fi rm. Ref: SYD/4566/DS

SydneyRestructuring & Insolv.2 – 4 yearsPremier fi rm with unparalleled expertise in Restructuring and Insolvency. The role will involve contentious and non-contentious matters including distressed investing, debt trading, restructuring, winding up actions including cross boarder matters. Ref: SYD/4366/AM

Sydney Banking & Finance Senior AssociateA new role for a senior project fi nance lawyer has been created. Advise PE fi rms, banks and major corporates on project and infrastructure fi nance, takeover and acquisition fi nancings. Ref: SYD/4376/OH.

SydneyComm. Litigation 2 – 4 yearsThis top-tier fi rm is seeking experienced lawyers to work on a range of litigated matters including complex and large scale contractual disputes, Corps Act and TPA disputes and construction cases. Ref: SYD/4359/AM

SydneyM&A 2 – 5 yearsA career moulding move for a motivated M&A lawyer has become available in our client’s enviable corporate group. Interesting work in a friendly team. Ref: SYD/4244/OH

SydneyEmployment Senior AssociateInternational fi rm seeks a senior associate to work on range of contentious and non-contentious matters including industrial/employment disputes, variety of employment agreements, and advising on OH&S matters for blue chip clients. Ref: SYD/4454/AM

SydneyCorporate/Commercial 3 – 5 yearsTo join this mid-tier fi rm you will possess top-notch drafting and technical skills and experience working on a range of corporate transactions. Hands on experience and plenty of client contact. Ref: SYD/4557/GG

SydneyConstruction2 years + Excellent drafting and communication skills are essential for this role working on high level front-end construction and infrastructure matters. This national mid-tier fi rm offers excellent training and mentoring. Ref: SYD/4288/GG

SydneyProperty3 – 5 yearThis premier Australian fi rm seeks a talented lawyer to work with leading partners on a range of high calibre property, projects and infrastructure matters. Excellent academics essential. Ref: SYD/4544/GG

Singapore | Project Finance4 years +Join the Asian infrastructure and project fi nance practice of a highly regarded growth oriented U.S. international law fi rm. A solid background and expertise in syndicated fi nance transactions will be viewed favourably. The work on offer is outstanding. Recent projects include an expressway in the Philippines, a stadium in Singapore and power and water projects in Vietnam and the Middle East. Ref: SIN/4512/RL

Tokyo | Project Finance4 – 6 yearsAn associate experienced in project fi nance or who has demonstrable solid general lending experience with a desire to work on project fi nance transactions gained from a top or quality international mid tier fi rm is sought by a leading UK law fi rm. The work primarily represents Japanese corporates on cross-border matters in China and Asia. Japanese language ability is NOT required but would be helpful. Ref: TOK/3720/RL

Singapore | M&A, Energy & Resources4 – 7 yearsOur client’s market leading corporate practice continues to expand in order to meet its strategic regional growth plan. A seasoned M&A associate with a broad background preferably in either oil & gas, mining or other natural resources to draft agreements and advise on transactions and projects in power and infrastructure development such as road, rail or ports is needed by this top global fi rm. Ref: SIN/4512/RL

Sydney

International

IP/IT

With the rapid growth of new technologies and landmark cases having been decided the market has seen a rise in the number of IP and IT roles across the board. We are currently working on a number of excellent opportunities for lawyers with contentious and non-contentious IP and transactional IT experience at all levels.

See below for a snapshot of roles available:

Top tier and mid tier law fi rms

PerthIP: 2 years +IT: 2 years +

Brisbane:IP litigation: 3 – 4 yearsIP/IT: 4 – 6 years/SA

SydneyIP litigation: 3 – 5 yearsIP Transactional: 2 years +IT/Telecommunications: 2 years +IT (outsourcing): Senior Associate

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“Market-leading remuneration has traditionally been offered by only top-tier firms. Those firms are no longer the only firms offering market-leading remuneration” Mahlab Salary Survey 2011– See page 16

contentsregulars

COVER STORY: Even if no one talks about it, money is a significant part of choosing a career path. Lawyers Weekly takes a look at the latest salary trends, figures and advice from around the country

10 1606 THIS WEEK: A round-up of the latest legal news

12 IN-DEPTH: Law firms with a conservative lateral hiring strategy tend to be more successful than their more active or minimally-active direct competitors, according to new research from the UK. Briana Everett reports

24 MY NEXT MOVE: I’ve been promised partnership but nothing has happened. When should I give up and move firms?

26 FOLKLAW: As November comes to a close, Folklaw felt it appropriate to pay homage to the best Movember moustaches lurking within Australia’s legal profession

IN-DEPTH: A twice-defeated Liberal Party candidate has beaten top lawyers from leading financial institutions to take home a prestigious corporate law award. Justin Whealing reports

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Are your legal trainees ready?

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Based on fields of research at the 4-digit level in the Excellence in Research for Australia 2010 National Report.

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Bob Dylan once said that “money doesn’t talk, it swears”.If that’s the case, when looking at salaries in the Australian

legal profession, Perth is in very rude health, Brisbane’s language is turning increasingly blue, Sydney continues to be lewdly loud while Melbourne still has a potty mouth in certain respects.

Lawyers Weekly has looked at the leading salary surveys from recruitment firms, with a few key trends emerging.

The resources boom has not only made Perth attractive to foreign governments and mining companies, it is becoming an increasingly lucrative destination for Australian lawyers.

“Salaries have increased significantly in Perth and particularly in the primary industry sectors, and now outpace Sydney in both value and incremental growth,” said the Taylor Root in-house commerce & industry market and salary guide. In private practice, Taylor Root noted that lawyers in Perth in the area of energy and resources and projects and construction sometimes get more than they would when compared to their Sydney counterparts, and that salaries in Perth are comparable to Sydney generally.

Brisbane, which has become the fastest growing office for a number of national firms, including Freehills, has also being able to offer more competitive salaries for desired candidates, with many practice areas now offering remuneration at a level comparable with Melbourne.

While Sydney continues to lead the way for salary levels overall, particularly in its core area of banking and finance, it is the resources rich states and practice areas which are catching up fast.

However, it is not all about money.According to Mahlab, 60 per cent of corporate lawyers

surveyed cited career development as the primary reason when moving to another organisation. Other non-monetary factors such as better management, quality and diversity of work, team, job security and work / life balance were also cited by corporate lawyers in the Mahlab survey as providing important areas of consideration in deciding whether to move or stay put.

Last week I had the pleasure of attending the Australian Corporate Lawyers Association (ACLA) Awards in Melbourne.

The Awards were a fitting celebration of the diversity of skills from within the in-house sector, whose number and influence is on the rise.

Editor’sNote

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Have your say Do you have something you’d like to share? Send an email to [email protected] or phone (02) 9422 2875. Alternatively, go to www.lawyersweekly.com.au and make a comment online.

Top Ten sTories online this week1 Partners vote on Mallesons merger2 ‘Tis the season to get messy3 More walk out on DLA Canberra4 Skies clearer for cloud computing5 Moving on up6 Goldilocks solution key to lateral hiring strategy7 Lawyer embezzles funds to watch basketball8 Change of view: top tier to mid tier9 Litigation target takes top lawyer prize10 Gen Y seeks elder input

nexT weekFrom legal process outsourcing to mental health and time billing, next week Lawyers Weekly takes a look at the biggest risks to Australia’s legal profession in 2012.

e d i T o r i a l b o a r dLawyers Weekly is delighted to have the following

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a b o u T u sPublisher: John Nuutinen

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nick abrahams Partner,

Norton Rose

helen Mckenzie Deputy

managing partner,

Blake Dawson

sharon cook Managing

partner, Henry Davis York

David cowlingPartner,

Clayton Utz

ewen crouch Chairman of

partners, Allens Arthur Robinson

sue gilchristPartner and

practice leader (intellectual

property group), Freehills

andrew grechManaging director, Slater & Gordon

will irvingGroup general counsel, Telstra Corporation

Joe catanzaritiPartner, Clayton Utz

robert MillinerChief executive partner, Mallesons Stephen Jaques

Megan PittDirector, Australian Government Solicitor

lucinda smith Partner, Thomsons Lawyers

Join THe conversation

Editor, Justin Whealing

4 l aw y E r s w E E k ly 2 D E c E m b E r 2 011 www.lawyersweekly.com.au

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ALB Sydney Law Firm of the Year 2010 and 2011 Leading firm in Insolvency & Restructuring Doyles Guide 2011 Legal 500 (2012) IFLR 1000 (2012) Australia’s largest insolvency team Internationally and domestically recognised for excellence in banking litigation and insolvency & restructuring

E X P E R T SI N O U R F I E L D

Henry Davis YorkInsolvency & Restructuring team

NOW RECRUITING

We are seeking Senior Lawyers / Senior Associates to join our teamTalk to us

“When it comes to the Australian restructuring and insolvency market only one firm comes to mind: Henry Davis York.” IFLR 1000 2011

For further information or to apply for these positions please contact our retained consultant Jonathan Walmsley of Marsden Legal Search & Recruitment: T 02 8014 9050 E [email protected]

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6 l aw y e r s w e e k ly 2 d e c e m b e r 2 011 www.lawyersweekly.com.au

thisweek

More walk out on DLA Piper CanberraThree lawyers from DLA Piper

Canberra have left to establish a new legal practice focusing on the government sector. Proximity Legal in Canberra is the brainchild of former DLA Piper senior associate Sean King (pictured), and is designed to provide government sector legal services through a low overhead secondment model. King is the director of the firm, which was established in September, along with former DLA Piper senior associate James Dunn. “We saw a niche for low cost secondment services to government sector clients,” Dunn told Lawyers Weekly.

Adelaide graduate wins Menzies ScholarshipUniversity of Adelaide law

graduate Eleanor Mitchell was awarded a Menzies Memorial Scholarship in Law in Mel-bourne. Currently an associate to Justice Jayne Jagot of the Federal Court of Australia, next year Mitchell will undertake a Bachelor of Civil Law at Oxford University under the scholar-ship program. Melbourne lawyer Luke Raffin won a Menzies Scholarship earlier this year to Harvard University to study for a Master of Public Policy at the Kennedy School of Government.

Fifteen new silks for VictoriaThe Victorian Bar has welcomed the

appointment of 15 new silks by Chief Justice Marilyn Warren AC. William Evan Stuart, Thomas Gyorffy, Daniel Masel, Michael Hugh O’Bryan, Martin Rothwell Scott, Caroline Eve Kirton, Peter Barrington Kidd, Stephen Andrew O’Meara, James Peter Gorton, Peter Robert Darling Gray, Stuart John Wood, Matthew John Collins, Lesley Ann Taylor, Stephen Paul Donaghue, Michael James Croucher were all appointed as senior counsel.

RE W IND

THE PARTNERS of Mallesons Stephen Jaques and China-based international firm King & Wood voted last week on the proposed merger between the two firms.

While it has been confirmed that the Mallesons partnership exceeded the 75 per cent majority required to clear the first hurdle, at the time of going to press, the results of the partnership vote from King & Wood was unknown.

It is believed that both firms will rebrand as King & Wood Mallesons early next year if, as expected, King & Wood’s partners approve of the tie-up.

News of the global merger talks emerged earlier this year when both firms confirmed they were in discussions, bringing to an end Gilbert + Tobin’s alliance with the Chinese firm, which was established in 2007.

Mallesons said in a statement: “Mallesons confirms that it is in discussions with leading PRC law firm, King & Wood. Our discussions are ongoing and part of an ongoing process. Until that process concludes, we have nothing further to add.”

If the merger goes ahead, King & Wood will become the first Chinese based law firm to establish a presence in Australia. In the past two years, Norton Rose, Allen & Overy, DLA Piper, Clifford Chance and Squire Sanders have opened offices in Australia, with Ashurst taking over Blake Dawson in March 2012. Baker & McKenzie has been in Australia since 1964, while Jones Day, Kennedys and Holman Fenwick Willan have substantially grown their Australian offices over the past decade.

Established in 1993, King & Wood is one of the largest law firms in China with over 990 lawyers and legal professionals. Headquartered in Beijing, the firm has offices throughout China as well as in Hong Kong, Tokyo, Silicon Valley and New York.

Mallesons currently has offices in Hong Kong, Shanghai and Beijing.

Lawyers Weekly requested comment from senior partners of Mallesons regarding the outcome of last week’s vote, however nothing was provided at the time of publication.

When it was announced in April that Stuart Fuller (pictured) would be taking over from Robert Milliner as the firm’s chief executive partner next year, he told Lawyers Weekly that looking for a suitable merg-er partner would be one of his top priorities.

“It is a clear part of our strategy to create or join a leading international network,” said Fuller. “That has been an aspiration of this firm for as long as I have been a partner. I expect there will be some good opportunities around and we will execute against that strategy.”

The Web

mallesons approve merger

European financial turmoil stalled Qantas’ controversial plans to launch a premium airline in Asia. The debt crisis shook confidence in the project’s management team, which was in dialogue with the subsidiary airline in Singapore and Kuala Lumpur. A less risky alliance with Malaysia Airlines is now being considered.

BHP Billiton’s chief financial officer, Alex Vanselow, announced his retirement. Vanselow will leave BHP in February next year to pursue personal business interests and will be replaced by Graham Kerr, who has been with BHP for 17 years and was previously the president of the group’s diamonds and specialty products division.

Seven West Media chief David Leckie criticised his TV competitors’ 2012 revenue and ratings goals this week when he told the Australian Financial Review that Seven would dominate the industry. Despite Nine’s coverage of the London Olympics, Leckie said Seven had the “big regular programs” to remain number one next year.

Major Australian ISPs proposed to help police piracy by reporting customers suspected of copyright abuse to copyright holders. Telstra BigPond, Optus, iiNet, iPrimus and Internode agreed to act as police through issuing “education notices” three times to suspects before reporting their details.

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thisweek

Mallesons stephen Jaques and allens arthur Robinson have advised on a $2 billion (equivalent) refinancing of global private hospital group Ramsay health Care limited.

allens advised a syndicate of banks, led by anZ, naB and Westpac, while Mallesons advised Ramsay.

established in sydney in 1964, Ramsay operates 117 hospitals and day surgery facilities across australia, the United Kingdom, France and Indonesia.

the new debt facility is unsecured and consists of three-year and five-year tranches of australian dollars, sterling and euro currencies.

Ramsay’s existing debt facility, which matures in november 2012, will remain in place until the first drawdown is made under the new debt facility to refinance the existing facility.

allens sydney partner Richard Gordon, who led the allens team on the transaction, said the deal reflects the strength of the healthcare sector.

“the healthcare sector is a strong market that is underpinned by the ageing population demographic and we expect there to be sustained long-term investment,” Gordon said.

the new debt facility will allow Ramsay to refinance its existing debt facility and will provide debt headroom

of approximately $600 to 700 million (equivalent), which has been earmarked for its continuing brownfield programme and developments, future acquisitions and working capital.

employment figures released in May by the australian Bureau of statistics show that the health and social assistance sector has overtaken retail as australia’s biggest employment sector.

More than 450 per cent growth is forecast for the sector between now and 2050, as the over-85 population climbs from 400,000 people to about 1.8 million.

Gordon was supported by senior associates Jo Folan and thomas Mcauliffe.

the Mallesons team advising Ramsay was led by partner scott Gardiner, who was supported by special counsel sharon Bodell and solicitors Jonathan Chau and alex hill.

Mallesons also advised Ramsay health Care on the financing/refinancing associated with its acquisition of the affinity hospital Group in 2005 and its Capio UK acquisition in 2007.

Marque Lawyers nabs London partnerSydney boutique firm Marque Law-yers has

recruited Chaz Dheer as a partner to lead its corporate/M&A practice. Dheer was previously employed as a partner in the UK with London firm Simons Muirhead & Burton. Dheer has specific experience in advising media and technology companies.

Makinson & d’Apice expands partnershipMakinson & d’Apice has appointed two

strata law, building defects and community title specialists as partners in Sydney. Suzie Broome (pictured) previously worked in the departments of Defence, Resources and Energy, Attorney-General, Special Minister of State and Veterans’ Affairs. Beverley Hoskinson-Green was one of the first female partners at Blake Dawson and a founding partner of Andersen Legal.

Clutz hires capital markets associateClayton Utz has recruited Australian and

New York-qualified capital markets lawyer Elissa Tobin as a senior associate. Tobin joins Clutz’s capital markets group in Melbourne from US firm Sidley Austin in Sydney.

A&O expands Aussie litigation practice Allen & Overy has expanded its Australian

practice to cover litigation and regulatory investigations expertise with the appointment of senior Australian lawyer John Samaha to its partnership. Prior to establishing his own practice, Samaha & Associates, in 2009, Samaha was a senior litigation partner at Mallesons where he worked for 20 years.

Deal name: Billion dollar refinancing of Ramsay Health Care Limited

Key players:Mallesons Stephen Jaques, Allens Arthur Robinson

Movers &

Shakers

DE A L Of THE W EEK

DE A L M A K ERS

mallesons and allens advise a clean bill of health

David Friedlander Ian Paterson Mark McNamara

Firm Blake Dawson (Bluescope Steel), Mallesons Stephen Jaques (underwriters, Credit Suisse)

Clayton Utz (Origin Energy Limited), Mallesons Stephen Jaques (UBS, NAB, ANZ, CBA, Macquarie)

Baker & McKenzie (Mitr Phol Sugar), Mallesons Stephen Jaques (MSF Sugar)

Deal name Million dollar Bluescope capital raising

Offer of hybrid notes to be listed on the ASX

Thai-based Mitr Phol Sugar’s off-market takeover bid for Australian-based MSF Sugar

Area Corporate Corporate M&A

Value $600 million $500 million $313 million

Key players Mallesons’ David Friedlander

Mallesons’ Ian Paterson Bakers’ Mark McNamara

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thisweek

The noTion of the responsibility to protect in relation to mass atrocity crimes has at last come into its own, according to the former Minister for Foreign Affairs, Gareth evans.

Speaking in Sydney on 23 november as part of the Law, Governance and Social Justice Series, evans spoke on the topic of ‘Law, Justice and Mass Atrocity Crimes’.

he said that while the period since the Second World War had seen myriad “conscience-shocking situations” – such as massacres in Rwanda and Srebrenica – the “old habits on non-intervention died hard”.

however, evans said 2011 is the year in which the recognition of the responsibility to protect has “truly come of age” and the international community is at last showing a preparedness to deal with future situations of potential mass atrocity.

in 2004, evans was part of the Un Secretary-General’s Panel on Threats, Challenges and Change, which produced a report, A More Secure World: Our Shared Responsibility, outlining the responsibility of the international community to prevent and stop war crimes, genocide, ethnic cleansing and crimes against humanity.

“[This year has seen] conceptual agreement and real action,” said evans, referring to the international community’s decision to intervene

in Libya at a time when a massacre in Misrata seemed imminent.

“That intervention unquestionably worked. no-one wants to return to the inaction of the past.”

evans also pointed out that in international law, justice and peace do not always go hand in hand. “Demands do clash, and hard choices must sometimes be made,” he said. “ongoing conflicts pose real world policy dilemmas.”

evans referred to the case of Charles Taylor, the Liberian dictator who was offered asylum in nigeria in 2003 in order to bring to an end 14 years of civil war. however, in 2006, under immense pressure from the international community, nigeria handed Taylor over for prosecution in the international Criminal Court. evans said that while this decision might have been seen by some as leading to justice, it has also led to other conflicts dragging on longer than they perhaps would have.

“Should universal justice yield to the demands of peace?” asked evans.

Styles case settles Intervention needed to stop atrocitiesFormer Clayton Utz employee Bridgette Styles has settled a sexual harassment case against the firm.

Styles, a graduate solicitor with the firm for just over one year until late 2008, alleged she was the victim of sexual harassment and defamation during her time with the firm.

On 25 November, the matter was settled out of court following mediation with former High Court judge Michael McHugh. Final orders, which remain confidential, were handed to Supreme Court Justice Lucy McCallum.

Styles’ barrister, Sue Chrysanthou, issued a statement which said, “I am very happy with the terms of the settlement that we’ve reached – the terms are confidential”.

Darryl McDonough (pictured), the chief executive partner of Clayton Utz, released an official statement which said, “During her time at the firm, Ms Styles demonstrated that she has very good legal skills. We wish her well in her legal career”.

Styles had claimed that a solicitor with the firm, Luis Izzo, with whom she had been romantically linked, made allegations to Joe Catanzariti, the head of the firm’s workplace relations, employment and safety practice group, that she was “conspiring” against a group of lawyers with regards to a sexual harassment complaint.

In June this year, the New South Wales Supreme Court also heard that Styles was the subject of disparaging comments from Clayton Utz staff at bars in close proximity to the firm’s Sydney office. She also alleged that 16 defama-tory imputations were made against her in an email sent to a human resources manager at the firm.

Upon leaving Clayton Utz in 2008, Styles took up a role with Johnson, Winter & Slattery before being admitted to the Bar in October this year.

Styles was seeking at least $200,000 in damages.

AUSTRALiAn CoMPAnieS are lagging behind global anti-bribery standards, thus placing themselves at risk, according to a new report.

Baker & McKenzie launched the report, Bribery: Do Australian Companies Take it Seriously?, at new South Wales Parliament on 23 november, just a week after Minister for home Affairs Brendan o’Connor said he was seeking public comment on a proposal to change Australia’s anti-foreign bribery laws.

The report is based on the views of senior executives from 81 Australian organisations across various industries surveyed by Beaton Consulting.

Baker & McKenzie’s head of dispute resolution Asia Pacific, Mini vandePol, said that

while o’Connor has indicated that Australia has a strong framework in place to combat corruption, Transparency international has criticised Australia’s enforcement record.

“only 36 per cent of our survey respondents believed that Australia has adequate enforcement,” she said. “it’s not just about risk, it’s about reward. Tighter regulation levels the playing field and encourages companies to operate appropriately and ethically wherever they do business.”

Respondents to the survey said the most common motives to implement anti-bribery measures include a desire to be an ethical company and enhance the company’s reputation.

According to vandePol, this result shows that companies

appreciate that the rewards of good compliance go further than risk mitigation, but also suggests that companies are approaching these measures as optional extras, rather than an essential part of their compliance framework.

“our survey revealed that 13 per cent of respondents do no monitoring of intermediaries in high risk jurisdictions such as China and india, and this rises to 23 per cent in the energy and resources sector,” said vandePol.

Oz companies lag on corruption

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thisweek

The noTion of the responsibility to protect in relation to mass atrocity crimes has at last come into its own, according to the former Minister for Foreign Affairs, Gareth evans.

Speaking in Sydney on 23 november as part of the Law, Governance and Social Justice Series, evans spoke on the topic of ‘Law, Justice and Mass Atrocity Crimes’.

he said that while the period since the Second World War had seen myriad “conscience-shocking situations” – such as massacres in Rwanda and Srebrenica – the “old habits on non-intervention died hard”.

however, evans said 2011 is the year in which the recognition of the responsibility to protect has “truly come of age” and the international community is at last showing a preparedness to deal with future situations of potential mass atrocity.

in 2004, evans was part of the Un Secretary-General’s Panel on Threats, Challenges and Change, which produced a report, A More Secure World: Our Shared Responsibility, outlining the responsibility of the international community to prevent and stop war crimes, genocide, ethnic cleansing and crimes against humanity.

“[This year has seen] conceptual agreement and real action,” said evans, referring to the international community’s decision to intervene

in Libya at a time when a massacre in Misrata seemed imminent.

“That intervention unquestionably worked. no-one wants to return to the inaction of the past.”

evans also pointed out that in international law, justice and peace do not always go hand in hand. “Demands do clash, and hard choices must sometimes be made,” he said. “ongoing conflicts pose real world policy dilemmas.”

evans referred to the case of Charles Taylor, the Liberian dictator who was offered asylum in nigeria in 2003 in order to bring to an end 14 years of civil war. however, in 2006, under immense pressure from the international community, nigeria handed Taylor over for prosecution in the international Criminal Court. evans said that while this decision might have been seen by some as leading to justice, it has also led to other conflicts dragging on longer than they perhaps would have.

“Should universal justice yield to the demands of peace?” asked evans.

Styles case settles Intervention needed to stop atrocitiesFormer Clayton Utz employee Bridgette Styles has settled a sexual harassment case against the firm.

Styles, a graduate solicitor with the firm for just over one year until late 2008, alleged she was the victim of sexual harassment and defamation during her time with the firm.

On 25 November, the matter was settled out of court following mediation with former High Court judge Michael McHugh. Final orders, which remain confidential, were handed to Supreme Court Justice Lucy McCallum.

Styles’ barrister, Sue Chrysanthou, issued a statement which said, “I am very happy with the terms of the settlement that we’ve reached – the terms are confidential”.

Darryl McDonough (pictured), the chief executive partner of Clayton Utz, released an official statement which said, “During her time at the firm, Ms Styles demonstrated that she has very good legal skills. We wish her well in her legal career”.

Styles had claimed that a solicitor with the firm, Luis Izzo, with whom she had been romantically linked, made allegations to Joe Catanzariti, the head of the firm’s workplace relations, employment and safety practice group, that she was “conspiring” against a group of lawyers with regards to a sexual harassment complaint.

In June this year, the New South Wales Supreme Court also heard that Styles was the subject of disparaging comments from Clayton Utz staff at bars in close proximity to the firm’s Sydney office. She also alleged that 16 defama-tory imputations were made against her in an email sent to a human resources manager at the firm.

Upon leaving Clayton Utz in 2008, Styles took up a role with Johnson, Winter & Slattery before being admitted to the Bar in October this year.

Styles was seeking at least $200,000 in damages.

AUSTRALiAn CoMPAnieS are lagging behind global anti-bribery standards, thus placing themselves at risk, according to a new report.

Baker & McKenzie launched the report, Bribery: Do Australian Companies Take it Seriously?, at new South Wales Parliament on 23 november, just a week after Minister for home Affairs Brendan o’Connor said he was seeking public comment on a proposal to change Australia’s anti-foreign bribery laws.

The report is based on the views of senior executives from 81 Australian organisations across various industries surveyed by Beaton Consulting.

Baker & McKenzie’s head of dispute resolution Asia Pacific, Mini vandePol, said that

while o’Connor has indicated that Australia has a strong framework in place to combat corruption, Transparency international has criticised Australia’s enforcement record.

“only 36 per cent of our survey respondents believed that Australia has adequate enforcement,” she said. “it’s not just about risk, it’s about reward. Tighter regulation levels the playing field and encourages companies to operate appropriately and ethically wherever they do business.”

Respondents to the survey said the most common motives to implement anti-bribery measures include a desire to be an ethical company and enhance the company’s reputation.

According to vandePol, this result shows that companies

appreciate that the rewards of good compliance go further than risk mitigation, but also suggests that companies are approaching these measures as optional extras, rather than an essential part of their compliance framework.

“our survey revealed that 13 per cent of respondents do no monitoring of intermediaries in high risk jurisdictions such as China and india, and this rises to 23 per cent in the energy and resources sector,” said vandePol.

Oz companies lag on corruption

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Barrister saves life en route to courtBarrister Charlie Woodhouse of Old Square Chambers has been praised by barristers after he saved a man

who was about to hang himself in Central London County Court. Woodhouse was on his way to a court last week when he saw a man tie a rope around his neck and launch himself from the first floor of a balcony, reports The Lawyer. Woodhouse allegedly caught the man by his jacket and held his body weight for several minutes before hauling him to safety.

Firms advise on billion dollar Samson oil and gas grabPrivate equity firm Kohlberg Kravis Roberts & Co (KKR) last week led a consortium offering $US7.2

billion for a private oil and gas exploration and production company, reports The AM Law Daily. The oil and gas company, Samson Investment Company, operates over 4,000 wells in the US and has nearly 1,200 employees. KKR is being advised by US firm Simpson Thacher & Bartlett, while Samson is being advised by Jones Day.

‘Do not resusci-tate’ order triggers EHRC interestThe Equality and Human Rights Commission in Britain will decide in December

whether or not it will intervene in ‘do not resuscitate’ orders used for patients in care homes, hospitals, and in their own homes, reports The Guardian. If it does intervene, the EHRC will seek out High Court permission to act as a witness in a landmark case where the order was used in a hospital in Cambridge, and a woman died.

DLA Piper chief set for another termThe joint chief executive of DLA Piper, Nigel Knowles, is standing unop-posed for

re-election, reports The Lawyer. The timeframe for partners to nominate themselves as candidates for the role ends this month and, so far, Knowles, who has held the post for a three-year term, is the one and only candidate. Knowles shares the CE top job with Chicago-based Lee Miller.

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thisweek

In order to effectively recruit Gen Y lawyers and graduates, law firms and corporations need to treat them with the respect qualified lawyers of all ages deserve. Stephanie Quine reports

US/U

K U

pdate

Gen y seeks elder input

Generation Y values supervision, feedback and the experience of their elders - more so than previous generations, according to Professor neil Gold.

Speaking at the College of Law’s australasian Lecturers’ Conference in Sydney recently, Gold highlighted clear variances in the approach to learning by different generations.

“Gen Y has a huge number of strengths ... For law firms, it’s a matter of taking advantage of these qualities,” said Gold, adding that Gen Y’s interest in “working together to learn” and its appreciation of supervision and feedback is not nearly as prevalent in the Baby Boomer generation.

“When Gen Y goes to inspect a university, for example, they go with their parents. Whereas Baby Boomers wouldn’t have wanted to be with their parents, they wanted to be more independent. in a sense, they ‘knew better’,” said Gold.

“it’s not that Gen Y isn’t independent, but it values the input of people with more experience too, and that’s a positive thing.”

Gold’s opening presentation was based upon “writings over a period of time” rather than any empirically-based evidence. throughout his nearly 40 years in university teaching and management, he has held a host of senior positions in law faculties around the world, established the first skills-based Practical Legal training (PLt) program in British Columbia, Canada, written the report on which the new Zealand PLt system is based, and led the establishment of new curriculum concepts and programs in a number of places, including Hong Kong.

the most prevalent concern for law firms today, Gold said, is the influx of Gen Y who will “soon take over the workplace in numbers, if not in authority”.

“Baby Boomers are going to soon retire from senior roles and firms will be taken up by the Generation X group, which is smaller and will be impacted significantly by Gen Y,” said Gold, adding that australian materials refer to Gen Y as between 17 and 23 year olds, while in the US the consensus is closer to between 14 and 29 years.

“if you use something in the middle, you realise that it’s only a small group of people who are now Gen Y, in the early stages of their

legal career. Suddenly, they will flood in over the next several years so the changes are going to be very dramatic.”

Gold argued that Gen Y has, in the past, been forced into “some kind of conformity” in the workplace, and that law firms are just becoming aware of its true presence.

He recommends that law firms harness the qualities of Gen Y, which Gold believes includes an experimental and innovative streak and a willingness to devote significant amounts of time to pursuits out of the office.

“When Gen Y say, ‘i don’t have time for this’, they’re not being disrespectful. they’re just trying not to overload themselves,” he said. “they want to balance all their work and do a good job. they also want more in their life beyond work. all the previous generations were very work orientated, especially the Baby Boomers.”

But for all their strengths, Gold noted that Gen Y is very “loose” with its socialising and communication.

He said while Gen Y’s familiarity with technology can be used to help enhance law firm communication, if left undisciplined within the practice of law, it presents potential concerns for particular legal matters.

“Gen Y, in that sense, needs guidance on how to better communicate in instances where informal and casual communication may affect the legal result,” he said.

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Is there an award for the most litigated against lawyer?Srechko Kontelj receives the Corporate Lawyer of the Year Award from Bill Fazio

Winners are grinners:Government Lawyer of the Year Glenn Owbridge shares a joke with Herbert Geer managing partner Bill Fazio

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Goldilocks solution key to lateral hiring strategyLaw firms with a conservative lateral hiring strategy tend to be more successful than their more active or minimally-active direct competitors, according to new research from the UK. Briana Everett reports

As a follow up to research conducted earlier this year into 1,944 partner moves in London across a five-year period, Motive Legal Consulting has conducted new research to determine the extent

to which lateral partner hiring delivers value to law firms and the most appropriate strategy to do so.

Recognising that law firm development is affected by a multiplicity of factors, the research report maintains that lateral partner hiring continues to be the “main perceived engine of law firm growth”, with almost every law firm in the UK market having a dedicated strategy to hire partners.

With a serious degree of attrition amongst lateral partner hires in the UK – a rate of 33 per cent after three years and 44 per cent after five years – the research sought to uncover the financial value to firms.

Released in October, the new research examined the same data set of 1,944 lateral partner hires from July 2005 and July 2010. The research focused on six pairs of London law firms, which were chosen based on a number of criteria, including similar size, similar strategy/focus, similar geographic location/spread, similar revenues per partner, no major mergers during the five-year period, and differing lateral hiring strategies.

Comparing large, city-based international firms, national firms, city-based sector-focused firms, independent city-based firms, Scottish firms and midtown firms, the research concluded that “the best hiring strategy is the Goldilocks solution: not too hot, not too cool, but just right”.

“This research would seem to indicate that excessive or sloppy lateral hiring (i.e. having a high attrition rate) can put law firms at a serious disadvantage vis-à-vis their competitors. In all cases, firms with lower attrition rates and generally lower hiring rates have performed better than their nearest rivals,” said Brandon.

“Equally, being too conservative about hiring leads to sluggish performance. Too much new blood risks washing away what is there already, or diluting the culture; too little, and the firm stagnates, with new, organically-generated partners unable to drive revenue growth.”

The harmful hiring strategies Noting that lateral partner hiring strategies have become a “part of doing business these days” for Australian law firms, former Middletons chief executive and consultant John Chisholm said that while some Australian firms are

aggressive when it comes to their lateral partner hiring strategy, others are much less aggressive, preferring to grow the firm from within.

“But I would suspect there wouldn’t be a major mid-tier or large law firm that doesn’t have an ongoing brief out with head hunters,” he said.

Without the same data available in Australia as is in the UK, Chisholm conceded that Australia most likely has a similar attrition rate of laterally appointed partners as the UK. “I think it’s between 30 and 40 per cent here in Australia at the three to five-year level,” he said.

While it’s difficult to pinpoint why a partner leaves a firm, Chisholm said hiring a partner laterally should not be a business decision but instead one based on people and culture.

“You don’t look at it as buying or selling a chattel – it’s much, much more than that. That’s why sometimes they [lateral partner hires] fall over,” he said. “It’s a people decision and that’s much more important.”

One disadvantage of a firm’s aggressive lateral partner hiring strategy, according to Chisholm, is the impact it has on morale within the firm, in terms of career progression. Observing that a lateral partner hire can have great benefits and can sometimes present a much-needed quick fix, Chisholm said the senior associates within firms with an aggressive hiring strategy will often feel that opportunities for career progression are available elsewhere.

“At a firm which is pretty aggressive on the lateral hire, you can understand some [senior associates] feel, ‘Well for my career, maybe I’m better off at another firm or perhaps I’ve got more chance of being a partner in another firm than I have in my own’,” he said. lw

“You don’t look at it as buying or selling a chattel - it’s much, much more than that”john chisholm, chisholm consulting

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legalleaders

There are some people in life that seem to have time hidden up sleeves and in pockets. Glenn Ferguson is one of them.

Next week, he puts the final touches on a year-long report into the constitutional recognition of Australia’s first people. Over the past 12 months, he has travelled from his home in Queensland’s Sunshine Coast to Cape York, Western Australia, the Northern Territory and the Torres Strait Islands to consult with lawyers and Indigenous people on the prospect of a referendum for reconciliation.

At the same time, he maintains his own law firm, Ferguson Cannon Lawyers, and takes an active role with the Law Council of Australia (LCA), LAWASIA, the Law Society of Queensland and various task forces in the legal, migration and business sectors.

It all stems from a deep-seated interest in people and law.As well as sitting on the expert government panel for

constitutional recognition of Australia’s Indigenous people, Ferguson also chairs the LCA’s Indigenous Legal Issues Committee, and has done so for five years.

“I’ve always had a strong interest in Indigenous people … I think reconciliation is something that, overwhelmingly, all of Australia feels good about,” says Ferguson, adding that being on the expert panel has been the most rewarding experience he’s had in the law.

“I just hope the Government follows it through and it comes to fruition … Once we put the report forward, it’s up to the Government and the Opposition. Fingers crossed we get a good result for the country.”

a stronger professionFerguson continues to advocate for an independent legal

profession, as he did during his LCA presidency last year. “There’s been a lot of work put into the national

profession reform … it’s like any road, this one’s just a bit bumpier than most,” he says.

“But the idea of a national board and national standards is very important commercially.”

Also close to his heart – given his experience practising on Queensland’s Sunshine Coast – is just how to deal with the dire shortage of lawyers in rural and regional Australia.

“I take my hat off to lawyers who work in remote communities because of their sense of duty – they make the law worthwhile,” he says.

A recent LCA study found that 42 per cent of legal practitioners in regional and rural areas do not intend to practice law in five years’ time, while 40 per cent do not have enough lawyers to support their client base.

“We all knew the problem was there, but we never quite knew the extent of it,” says Ferguson. “Some of those statistics are frightening.”

Ferguson believes in offering more assistance for lawyers flying in and out of regional Australia and providing opportunities for Indigenous Australians to pursue careers in law. Each of these things, along with better use of technology for practical legal training, he believes can assist with the shortage of lawyers in rural areas.

“I’ve always had a bit of a passion for practical legal training,” says Ferguson, who chaired the College of Law in Queensland in 2005 and remains on the national board.

diving in Despite his active involvement in the profession, the law was only Ferguson’s third calling. He recalls the early 1980s, when he was a cadet with (what was then called) Australian Iron and Steel – a subsidiary of BHP, now owned by BlueScope Steel – as a time when “the only new mines opening up were open cut ones in Queensland”.

“We were based in Wollongong at that stage … it seemed like a pretty dramatic time in mining back then … I look back on it now and laugh,” he says.

At the same time, Ferguson was a keen scuba diver, and it was actually donning his fins and regulator that led him to taking up a career in law.

“I had a couple of mates who were in the police divers at the time and I’d done two years in mining, so I thought, ‘I’ll go and join the police force for a break and to reassess what I want to do.’ It was really there that I fell into law,” he explains.

After completing the police diving course and realising that he “hated the diving [the police] were doing”, Ferguson

“I think reconciliation is something that, overwhelmingly, all of Australia feels good about”Glenn ferGuson, pIcTured (Above); And wITh hIs wIfe And chIldren (Top)

Glenn Ferguson might never have earned his practicing certificate if it wasn’t for a keen interest in scuba diving. But his interest in many things outside the law can account for his active involvement in a profession he is truly proud of today. He speaks to Stephanie Quine

Taking the plunge

correcTIonIn edition 560, Lawyers Weekly ran a photo of Elizabeth Evatt, incorrectly stating she was receiving a lifetime achievement award from the Law Society of NSW. This award was in fact from the Women Lawyers’ Association of NSW. Lawyers Weekly apologises for the error.

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Stephen [email protected] 9422 22900425 270 832

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Try advertising with Australian Lawyer 2B, Australia’s number one national publication for law students.

went on to study law part-time at Sydney University alongside his policing colleagues.

He eventually fi nished his law degree at the same time he was working as a detective in the major crime squad.

Family manFerguson had always wanted to move

to Queensland so, when he fi nished his law degree, he resigned from the force and moved to Townsville, where he worked at the Bar for two years.

“I really loved that,” says Ferguson, “I’ve always loved diving and the tropics.”

After deciding the Bar was not for him, in 1991 he moved with his wife at the time (who has since passed away) to the Sunshine Coast.

“I worked for a couple of fi rms and started my own in 1995, which now has o� ces in Brisbane and the Sunshine Coast,” says Ferguson.

“Starting o� your own practice in those years was a lot of good fun. It’s a lot harder now because regulation and legislation and compliance is so hard, in any business.”

Ferguson still makes time to go fi shing and ocean swimming in the morning before work,

while keeping up with a 22-year-old son fi nishing a business degree, a 21-year-old daughter studying social work, and a 17-year-old son who happens to be o� to schoolies this year.

“My wife now is a superintendant in the Queensland police, so he’ll be on his best behaviour,” jokes Ferguson.

Into the future with AsiaIn all the travel Ferguson has done – and that includes fi ve trips to his favourite destination, Japan – he says the Australian legal profession has always been held in high regard.

“Our grads are highly sought after and it’s a credit to law schools,” says Ferguson.

His long-held belief that “the future of the Australian legal profession is in Asia” was a major push for his involvement in LAWASIA, and his presidency over the organisation from 2008 to 2009.

“There’s a huge entree for Australian legal fi rms in Asia and it’s pleasing to see that coming to fruition. Even big English fi rms are looking at Australia as their stronghold into the Asian market because of the quality of our profession,” he says, adding that Australia’s geographical

isolation has made Australian lawyers adaptable and outward looking.

Back to basicsAn experienced commercial and corporate

lawyer, Ferguson says he still “loves the challenge” of acting for clients who are today “much more savvy, better informed and demanding of strategic advice”, rather than mere interpretation of the law.

He says he is “trying to slow down” – but that isn’t stopping his plans to cycle through Belgium, the Netherlands and France next year with his wife.

Nor is it stopping him from indulging his passion for rugby union, by playing veterans rugby “with the old blokes”.

And while Ferguson lists many people whom he admires, including Ghandi, Margaret McMurdo AC and Michael Kirby, above all he admires those who “stand up for people” and are “really active” in the judicial and legal community – both traits which Ferguson can himself claim.

“That’s what makes the profession,” he says. “The involvement of people at the top of the game who still have the time to talk to anyone.” LW

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Over the past few years, signifi cant salary increases have been few and far between for most lawyers – largely thanks to a lingering GFC hangover. But for a variety of reasons, 2011 seems to have been a year where the pay scales went up for most. Undoubtedly, Perth and

Brisbane are experiencing the most signifi cant shift when it comes to what fi rms are willing to pay their lawyers, and the salary gap between those cities and Sydney and Melbourne appears to be closing – at all levels. So, whether you’re interested in salaries based on level of experience, cities, tiers or in-house, Lawyers Weekly has put together a snapshot of salary trends based on information fro m the leading salary surveys from around Australia.

Even if no one talks about it, money is a signifi cant part of choosing a career path. Lawyers Weekly takes a look at the latest salary trends, fi gures and advice from around the country.

For the love of money

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According to Mahlab’s 2011 Survey, global law fi rms are poaching lawyers from national fi rms. As a result, Australia’s large law fi rms are having to reshape their o� ering and make dramatic

changes to their equity holding and partnership as a whole. A candidate-short market has meant that firms

across all tiers have had to do more than offer a good salary to attract talent in 2011. “A competitive salary is critical, but it’s no longer enough,” says Mallesons Stephen Jaques executive director of people and development Cathi Bawden. “It’s the broader offering, the career care, individual support, flexibility for different career and life stages.”

But while Australia’s national fi rms are fi ghting o� the onslaught of global fi rms, Australia’s mid tier is quietly

As more and more global fi rms enter Australia, the country’s law fi rm hierarchy has shifted and the gap between top-tier and mid-tier salaries is closing.

Firm hierarchy shifts

continued on p18

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creeping up on the country’s top-tier fi rms when it comes to salaries, quality of work and fi rm culture.

With the current candidate shortage across the legal industry, particularly in the energy and resources and banking and fi nance areas, the recruitment market is becoming more and more competitive, generating stronger salaries as well as the use of sign-on bonuses in some cases. And the mid-tier fi rms are putting up a good fi ght in the war for talent.

“The Australian private practice market is redefi ning long-held beliefs of what constitutes ‘top tier’,” the Mahlab report states. “Market-leading remuneration has traditionally been o� ered by only top-tier fi rms. Those fi rms are no longer the only fi rms o� ering market-leading remuneration.”

In 2011, several mid-tier law fi rms snapped up a number of high-performing partners from the top tier, with the lure of competitive salaries, high-quality work and an attractive fi rm culture.

Carter Newell’s chief executive o� cer, Dr Peter Ellender, says while the fi rm has had di� culty fi nding the right people over the last 12 months, given the signifi cant candidate shortage across the market, the mid tier is increasingly competitive when it comes to salaries.

“We certainly have experienced the war for talent in the resources, construction and engineering areas in particular,” says Ellender. “It’s more access to people rather than a pure salary move, but it obviously does put pressure onto that side of the market.

“I think there’s a closing of the gap or a leveling o� , certainly,” he says, “The mid tier has the advantage of the cultural benefi ts and the higher retention rates, but still some very excellent work that good quality specialist candidates can sink their teeth into.”

As the hierarchy of fi rms shifts, Mahlab notes the number of partners which have relocated from the top tier in favour of smaller fi rms, often taking clients and teams with them.

“In the last 12 months, many mid-tier fi rms have benefi tted from this shu� ing for position at the top, recruiting partners and teams and applying traditional ‘top-tier’ remuneration to new and existing sta� ,” says the Mahlab report.

According to JLegal’s Private Practice Overview, the mid

Partnership salaries

SYDNEY

Mode Major Firms $1,380,000 Mid Firms $856,000 Small Commercial CBD Firms $478,000

MELBOURNE


PERTH


BRISBANE


ADELAIDE

Mode Major Firms $830,000 Mid Firms $580,000 Small Commercial CBD Firms $310,000

Source: Mahlab

tier’s high standard of work which has been attracting top talent this year is due to an increasing focus on cost-cutting amongst clients.

“It is not only due to the mid-tier fi rms and boutiques paying their lawyers market-leading salaries that they manage to attract the best lawyers; these fi rms also attract the ‘big players’ as clients,” says JLegal. “With a focus on cost cutting and saving, large clients are transferring their work from the top fi rms to mid-level fi rms and as such, boutique and mid tiers can now also guarantee the highest quality of work that once only the top tier could o� er.”

According to the Mahlab Survey, Sydney senior associates and special counsels can earn up to $250,000 in top-tier/major fi rms and $195,500 in mid-tier fi rms, while at small/boutique fi rms they can earn up to $180,000.

In Melbourne, senior associates/special counsels can earn $200,000 in the top tier, $183,000 in the mid tier and $160,000 in smaller fi rms.

At the partner level, Perth partners earn $1,325,000 at the top tier, while mid-tier partners rake in about $745,000. In Sydney, the gap between the top and mid tier is slightly smaller, with partners at top-tier fi rms earning $1,380,000 and $856,000 in the mid tier.

Mid-tier motivations

According to the 2011 Hays Salary Guide, over the past year candidates have demonstrated a clear desire to improve their work/life balance, which has led to the movement of candidates from the top tier to smaller boutique or specialist firms. Candidates are being very selective about their options and will consider salary, type of work and career opportunities when looking for their next role. A competitive salary

is critical, but it’s no longer enough” CATHI BAWDEN, EXECUTIVE DIRECTOR, PEOPLE AND DEVELOPMENT, MALLESONS STEPHEN JAQUES

continued from p17

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Australian firms insist that competition for talent with global firms is not driving salary changes.

“It might in the future,” says John Denton, partner and CEO of Corrs Chambers Westgarth, which last month poached Baker & McKenzie construction partner Andrew Chew.

“[Global firms] are not a great concern for me in terms of recruitment, because we haven’t actually seen a lot of that ‘luring’ of top partners away.”

Similarly, at Allens Arthur Robinson, any change in salary trends at the lateral recruitment level has not been noticed because the market is “always really tight for the highest quality lawyers”, says the firm’s executive partner Maryjane Crabtree.

“There’s not a lot out there that we would be interested in, but there never are … so we haven’t really noticed a big change,” Crabtree told Lawyers Weekly.

According to the 2011 Hays Salary Guide, salaried partners can expect to earn between $200,000 and $250,000 in the top tier and around $180,000 in small practices, while equity partners can rake in between $400,000 and $750,000 in the top tier; $300,000 in the mid tier; and $250,000 in small practices.

In line with survey predictions that major firms must “streamline their services, adding or removing practice groups” over the next year to bolster their “gold standard” in specialised areas in order to compete with international firms, the top tier is taking close notes on the market.

“I don’t think we’ve changed our practices at this point, but we’re watching the market very carefully,” says Crabtree, adding that Allens tends to recruit highly specialised practitioners rather than utilising one lawyer across several practice areas. Such a strategy, Hays reports, is a sign of the improving market.

Performance perksMahlab reports that newly appointed junior to mid-level lawyers are enjoying fixed bonuses, rather than percentage bonuses. However, at Allens, bonuses are not paid at all to entry-level lawyers. “They kick in at about second year,” says Crabtree.

“[Bonuses] relate to various aspects of [our lawyers’] performance and seniority, and are not linked to the firm’s performance, so it’s really looking at their individual performance,” she says.

No fixed bonuses are given at Corrs, either. Instead, the firm has an “unusual” incentive scheme for all employees, says Denton.

“Under the plan, an upper range of 10 to 15 per cent of salary can be paid as a bonus, but this rises to between 15 per cent and 22.5 per cent if Corrs reaches designated performance goals for the year,” he says.

young blood Mahlab reports that an increase in class actions has created roles for the excess of lawyers at entry level, except in Victoria, where “fewer graduates were recruited at the same time as universities increased their law intake”.

Despite these findings, Corrs recruited more graduates this year, especially in Victoria, but Denton says this is not related to class actions.

“We don’t recruit grads on a commodity basis to service a particular area. A lot of firms are looking at the relationship with their employees as a transaction rather than a relationship of values for both parties,” he says.

Allens, too, reports that it “gradually increased” the number of graduates it recruited in both Perth and Brisbane this year.

With the “outsourcing of legal work to off-shore providers [set to] increase in the next 12 to 18 months”, according to Mahlab, the effects on graduate intake will be closely watched. Mallesons Stephen Jaques, which announced a major outsourcing contract last month, has emphasised that it will not decrease its graduate intake as a result.

According to Mahlab, graduates in top-tier private practice can expect to earn between $70,000 and $80,000, and look forward to increases of between $6,000 and $15,000 after one year’s experience. Graduate salaries are also generally higher in Sydney and Perth and lowest in the ACT, according to Hays.

balancing actIn terms of desire for work/life balance, which Hays suggests is becoming increasingly important to employees and a catalyst for their movement to smaller boutique or specialist firms, Allens has people working flexibly at all levels of the lawyer spectrum.

“We recognise that both younger lawyers and partners have lives outside work … so we have different combinations of work modes at all levels,” says Crabtree.

Those who seek balance through management responsibility within firms are experiencing frustration with the lack of opportunity to get involved, according to Mahlab.

While there are opportunities for partners to take on leadership positions in staff liaison, practice head or client relationship roles, Crabtree says many partners “don’t want to be involved in management at all”.

“They’re very happy to focus on their practice and their team and couldn’t be less interested in management. That said, you do find partners who really want to be more hands-on who might look for a move,” she says.

Top dogs Top partners in major Australian firms are being lured to global

firms by the “promise of access to international deals and referrals, offshore secondments … a fresh, strong brand, and a full purse”, according to the Mahlab 2011 Salary Survey.

Private practice salaries Sydney - major firms

Year Level Range ModeGrad $70,000 – $80,000 $72,5001 $76,000 – $95,000 $80,0002 $80,000 – $110,000 $93,0003 $88,000 – $135,000 $106,0004 $98,000 – $140,000 $118,0005+ (not SA) $106,000 – $145,000 $125,000SA1 $138,000 – $165,000 $146,000SA2 $148,000 – $180,000 $164,000SA3 $163,000 – $205,000 $180,000SA4 $176,000 – $230,000 $193,000SA5 / SC $183,000 – $300,000 $250,000

Source: Mahlab

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This can only be good news when it comes to salaries.

According to Hays Legal, jobs are once again starting to flow but the

market for quality candidates is extremely tight.“Employers are competing with each other for

market share and talent,” says the Hays report.According to Mahlab, movement in base

salary levels within law firms has been significant in 2011, with an overall average salary increase of 23 per cent nationally.

So where exactly is the talent going to get the best salaries? Which cities are hot and which cities are not? Lawyers Weekly finds out.

PerthWhen it comes to cities that are hot in the salaries department, Perth has to sit at the top of the list for the simple reason that it is currently Australia’s darling. This is no different in the legal sector.

Particularly in the energy & resources-related sectors, salaries have been steadily creeping towards what lawyers in Sydney can expect, and are now considered to be in line with those in Melbourne.

“Perth salaries have been steadily increasing at a faster rate than other states over the past few years and are now on par with Melbourne salaries or higher for certain practice areas, for example energy and resources and corporate/ M&A,” says the latest Mahlab salary report.

Taylor Root drew similar conclusions in its report, saying, “We have seen lawyers in Perth being offered salaries comparable to Sydney and, in the core practice areas of energy & resources, projects and construction, sometimes more than they would achieve in Sydney.”

According to Gareth Bennett, the people and development director at Freehills, Sydney and

Melbourne may not hang on to their traditionally market leading salaries for too much longer.

“We have always got to be prepared for change, and to assume that the stereotypes and hierarchies that have existed up until now will continue is something that we can’t take for granted at all,” he says. “We’ve got to be ready. That’s why we look at the markets very carefully and look at how salaries are changing.”

For Allen & Overy Perth managing partner Geoff Simpson, brand, quality of work and, of course, bonuses all play a role in attracting talent to Perth.

“A&O has global, over-riding principles on reward, and it is the total package, not just the dollars,” he says. “Part of that is obviously a bonus as well. That’s a discretionary thing. It’s not formulaic. It’s based on rewarding contribution in the wider sense.”

If you’ve got the right skill set, the world is your oyster in Perth.

brisbaneIf there is one city that is proving to be the dark horse on the salary front, it’s most definitely Brisbane. Also a booming energy and resources state, salaries here are steadily on the rise and don’t look like slowing down anytime soon.

“The traditional gap between Brisbane and Sydney has … narrowed and candidates can expect to receive competitive offers more in line with those seen in Melbourne,” says the Taylor Root salary report.

Hays Legal also sees Queensland as ripe for the picking for those looking for strong salaries in an energy-related field.

“The demand for skills is perhaps most obvious in Western Australia and Queensland, where the legal market has nearly reached pre-2008 conditions of job richness and candidate paucity,” says the report.

According to Bennett, the rate of growth of law firms in Brisbane is such that he can see salary dominance in energy and resources shifting north.

“If you look at where the real growth stories are at the moment, then the Perth and Brisbane markets are absolutely booming,” he says. “The Brisbane office for us is the real growth story for the firm.”

sydney and melbourneDespite the boom being experienced in Perth and Brisbane, Sydney still has the edge when it comes to salaries, according to JLegal. Despite this, though, Randstad says salary increases have remained modest, largely due to Sydney’s vulnerability to the impact of international economic trends related to its position as the corporate and financial hub of Australia.

“Salary increases have been conservative since 2010 with an expectation that 2011 will provide an average increase of between five and seven per cent in annual salaries,” says the report. “Bonus components continue to be factored into remuneration packages as an added financial incentive for the highest performers.”

Randstad also says the Melbourne market has shown good signs of a recovery since the GFC, although job opportunities are yet to return to 2007/08 levels.

The city showdownAfter a period of stagnancy and rigidity following the GFC, the Australian legal profession is now starting to experience a shortage of lawyers.

Cashing in: City comparison

Sydney 7+ years $165,000 - $250,000 (top tier); $150,000 - $220,000 (mid tier)Perth 7+ years $160,000 - $250,000 (top tier); $140,000 - $200,000 (mid tier)Brisbane 7+ years $150,000 - $220,000 (top tier); $140,000 - $200,000 (mid tier)Melbourne 7+ years $150,000-plus (top tier); $150,000-plus (mid tier)

Source: Taylor Root

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In-house lawyers now account for over 20 per cent of the profession. In the past, lawyers have left private practice law firms to go in-house due to a combination of long hours, disillusionment with

timesheets, and law firm bureaucracy, while swallowing a substantial pay cut. This is not necessarily the case anymore.

According to the Mahlab Private Practice Salary Survey, lawyers with top-tier firms in Sydney in their third year of practice can expect to earn between $88,000 and $135,000. In-house lawyers with the same level of experience compare very favourably, and can generate salaries of between $92,000 and $120,000.

In Brisbane, in-house lawyers are even more ahead of the curve.

Top-tier and large national law firm employees at the second-year senior associate level can expect to earn a salary of between $130,000 and $170,000. Corporate lawyers with six or more years experience can expect to be paid at a rate between $125,000 and $220,000.

Mahlab reports that in-house lawyers received an average salary increase of 4.69 per cent for the 2010-11 financial year. While that might generally be considered to be a modest salary increase, it is up on wage increases from 2008-09 (3.5 per cent) and 2009-10 (4.06 per cent).

“There has also been a revival in in-house recruitment activity,” says the Mahlab Report. “There is an increased demand for in-house counsel in Sydney and Perth, Brisbane and Melbourne.”

It pays well to be in PerthThe Taylor Root 2011-12 salary guide shows that for in-house lawyers, Perth is the hot place to be.

“Salaries have increased significantly in Perth and particularly in the primary industry sectors, and now outpace Sydney in both value and incremental growth,” says the survey. “Our results show that every client reported an upward salary review indicating that, for now, the post-GFC salary freezes are over.”

It is not just in energy and resources where Perth lawyers are faring well.

According to Taylor Root, in-house lawyers with six to 10 years experience in IT and telecommunications can

The ever-expanding and lucrative houseIt is the fastest growing area of the legal profession, and they are making their voices heard.

It’s not just about the money

60% of corporate lawyers cited career development as the primary reason why they move to another organisation

Source: Mahlab

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Finding supportThe Foundation’s objective is to decrease distress, disability and the causes of depression and anxiety in the legal profession

www.tjmf.org.au

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expect to achieve higher salaries than their Melbourne counterparts, while for the areas of trade and transport and property and construction, Perth lawyers with more than 10 years experience can expect a healthier pay packet than both their Sydney and Melbourne counterparts.

The energy rich state of Queensland is also able to offer in-house lawyers competitive salaries. For lawyers at the three to five-year level, it offers parity or, at the very least, increased incomes with Sydney and Melbourne counterparts, in areas as diverse as trade and transport, property and construction, and energy and resources.

can bonuses last?Bonus payments have become the norm for Australian in-house lawyers.

According to Taylor Root, 90 per cent of respondents were awarded a performance-related bonus. Almost one third of those respondents (30 per cent) received increases in excess of 20 per cent of their annual base salary.

As expected, the more senior lawyers received the largest bonuses, with the Mahlab survey pointing to bonus targets of between 10 and 20 per cent of annual salary for junior lawyers.

The greater availability of bonuses for junior lawyers is part of a trend that has seen in-house positions become more attractive for junior lawyers.

According to the JLegal salary survey, while in-house roles normally attract lawyers with between four to six years experience, corporations are now more willing to look at lawyers with two to four years’ experience.

“The advantage of increasing headcount at this junior level is that candidates have the requisite legal skills to effectively assist senior colleagues and can be developed whilst relationships with external providers are maintained,” says the JLegal report. lw

Adelaide and Canberra salaries

Sector 0-2 yrs 3-5 yrs 6-10 yrs 10 yrs + ,000 ,000 ,000FMCG $50-$80 $70-$130 $130-$170 $170 IT/telco $55-$95 $90-$130 $130-$170 $170 Retail/distribution $50-$80 $80-$125 $125-$170 $170 Media & entertainment $50-$70 $70-$125 $125-$170 $170 Professional services $55-$80 $80-$135 $130-$180 $180 Property & construction $55-$90 $85-$135 $140-$180 $180 Energy & resources $55-$90 $90-$140 $140-$185 $185 Trade & transport $50-$75 $80-$130 $130-$180 $180 Manufacturing $50-$75 $75-$130 $130-$170 $170

Source: Taylor Root

Permanent salaries for in-house counsel

Position 0-2 yrs 3-6 yrs 7-10 yrs 10+ yrs AUD AUD AUD AUD ($’000) ($’000) ($’000) ($’000)

Banking & Finance 70-85 90-160 140-220+ 200+Trade/Transport 70-80 80-140 130-200+ 160+IT/Telecom 70-85 90-150 140-200+ 180+Energy/Resources 70-85 90-150 140-220+ 170+FMCG 70-85 90-150 130-200+ 170+Retail/Distribution 65-75 80-140 120-190+ 170+Property/Construction 70-85 85-160 130-190+ 180+Media/Entertainment 65-75 80-140 120-175+ 170+

Source: Randstad

Banking and finance roles “dead”

While the Taylor Root in-house legal market survey for the banking and financial services sector showed a buoyant market for most of the year – with more than half of their client organisations increasing the size of their legal teams this year, recent volatility on global financial markets has made many financial institutions reassess its headcount.

Speaking to Lawyers Weekly last month, Taylor Root manager Brian Rollo said the market for in-house lawyers in the banking and finance space is “dead”.

“Banks and corporates that hire transactional lawyers haven’t got any headcount approval because of overseas issues. So they’ve been massively impacted by what’s happening in Europe,” he said.

The reluctance to hire has also started to flow through to the hip pocket. A senior in-house counsel at a well-known international financial institution told Lawyers Weekly that for the last six months, there has been virtually no pay increases for many in-house roles in banking and finance.

Average salary increase by %

2008–2009 3.5%2009–2010 4.06%2010–2011 4.69%

Source: Mahlab

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folklaw

R E A D T H E L AT E S T F O L K L A W O N L I N E www.lawyersweekly.com.au/folklaw

AS NOVEMBER comes to a close, it is with great honour that Folklaw felt it appropriate to pay homage to the best Movember moustaches lurking within Australia’s legal profession.

Last week, we put the call out on Twitter for the best Movember facial hair and received a barrage of interesting, comical and often downright frightening ‘tache styles.

From dirty handlebars to the dead ferret, David Boon, Chopper Read, Frenchman and Spaniard, we were thoroughly amused by an array of top-lip entertainment.

Thank you to all who were brave enough to share their Movember moustaches with Lawyers Weekly, and respect for participating in such a good cause!

Here are some of the best…


Top: Swaab Attorneys Tom Johnston (left) and Tony D’Agostino; Above: Allen & Overy file in lineBottom left: TressCox Lawyers Middle (top): Joshua Busuttil, Allens Arthur Robinson; Middle (bottom): Clint Slogrove, Queensland Law SocietyBottom right: David Allen, Slater & Gordon

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Bentley Adelaide32 Belair RoadHawthorn, 5062South Australia08 8272 8155

Bentley Brisbane570 Wickham Street Fortitude Valley, 4006Queensland07 3257 7222

Chellingworth Bentley101 Stirling HighwayNedlands, 6009 Western Australia08 9273 3131

Lance Dixon Bentley565 Doncaster Road Doncaster, 3108Victoria03 9848 9000

Bentley Sydney52-58 William StreetSydney, 2000New South Wales02 8338 3988

Overseas model shown. BT1

www.bentleymotors.com

T H E N E W C O N T I N E N T A L G T. A U T O M O T I V E A R T.

I N S I D E , A H A N D C R A F T E D C A B I N I N F U S E D W I T H

T H E L A T E S T I N T O U C H S C R E E N T E C H N O L O G Y.

O U T S I D E , P I O N E E R I N G S U P E R - F O R M E D A L U M I N I U M B O D Y W O R K

T R A N S P O R T S T H E N E W G T T O N E W L E V E L S O F A T H L E T I C S C U L P T U R E .

U N D E R T H E S K I N A 6 . 0 L T W I N -T U R B O C H A R G E D W 1 2 E N G I N E

P R O D U C E S 4 2 3 K W O F U N A D U LT E R A T E D P O W E R .

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THE SR GROUP . BREWER MORRIS . CARTER MURRAY . FRAZER JONES . PARKER WELLS . SR SEARCH . TAYLOR ROOT LONDON . DUBAI . HONG KONG . SINGAPORE . SYDNEY . MELBOURNE

For International roles, call Karlie Connellan or Joanne Bews on +61 (0)2 9236 9000 or email [email protected] or [email protected] Australian Private Practice roles, call Matt Harris or email [email protected]

For Australian In-House roles, call Brian Rollo or email [email protected] Melbourne roles, call Tim Fogarty on +61 (0)3 8610 8400 or email [email protected]

Please note our advertisements use PQE purely as a guide. However we are happy to consider applications from all candidates who are able to demonstrate the skills necessary to fulfi l the role.

Penny ParkerIn-HouseSydney

taylorroot.com.au

International Roles

Personal Indemnity SydneyLeading insurance practice requires a lawyer with professional indemnity experience. Structured and ad hoc training in a client facing role. Competitive remuneration and an incentivised bonus structure on offer for the right candidate. An excellent opportunity. Ref: 634631. 2-4 years

Employment SydneySeeking two new employment lawyers, this stand out Sydney team has a fantastic range of work and clients available alongside an extremely competitive salary and benefi ts structure. Top class mentoring and career development scope on offer. An excellent opportunity. Ref: 654521. 4+ years

Energy & Resources SydneyCurrently working on two similar roles at large mid-tier fi rms in the energy & resources fi eld. Excellent opportunities to specialise in an area of practice that has been booming recently. Clear career progression on offer in an environment that promotes a good work/life balance. Ref: 644748. 2-4 years

Litigation Perth & BrisbaneExceptional opportunity to utilise your litigation expertise in this top-tier fi rm. Multiple roles across Perth and Brisbane which provide an exceptional opportunity to take a step up. Excellent long-term prospects and top of the market salary on offer. Interviewing now. Ref: 644677. 2-7 years

Commercial SydneyThis leading Australian corporate based in Sydney requires a lawyer to join their in-house legal team. Broad commercial including contract negotiation, construction agreements and general corporate and regulatory advice to the business. An excellent opportunity. Ref: 644301. 2-5 years

Commercial Sydney Global leisure brand requires a lawyer for their expanding operations in Australia. You should have a top-tier background and 1-2 years’ in-house/secondment experience. Fantastic opportunity to be part of a global business during an exciting growth phase. Ref: 644641. 6-10 years

In-House Commercial MelbourneTransport and trade sector corporation, a leader nationally in its fi eld, is seeking to make a manager appointment. Strong compliance, governance, commercial and external legal counsel management experience required. To c.$180,000. Apply for details. Ref: 644787. 6-12 years

Litigation MelbourneThis top-tier fi rm is seeking to recruit commercial litigation talent for its 5 partner practice. Broad caseload of complex matters will ensure your continued development. Some insolvency experience would be of interest, but not required. Top of the market remuneration. Ref: 644629. 3-5 years

Corporate MelbourneLeading national fi rm is recruiting for its corporate advisory and negotiated M&A practice in Melbourne. Working with the practice group leader, this will give you brilliant exposure to the partnership. Strong academic credentials are essential as is solid training to date. Ref: 644440. 2-4 years

Legal Consultant IraqWe work for the leading international legal consultancy in Iraq. Their work is top-tier and they host a wide variety of superb lawyers on their team. The role will offer excellent quality work and benefi ts in a massive emerging market. An excellent opportunity. Apply now. Ref: MA23783. 1+ years

Commercial/Oil & Gas Abu DhabiWe have been instructed by a leading international E&P company to recruit a lawyer for their Abu Dhabi-based team. You should have excellent academics and Top 10 international law fi rm experience focusing on transaction commercial oil & gas matters. Ref: GP21863. 5-6 years

Energy MuscatTop international fi rm has an exciting opportunity for the right candidate to join the energy and projects team in their highly regarded Muscat offi ce. The candidate should have around 2-5 years’ PQE, from a major international law fi rm or a major international oil company. Ref: 867143. 3-6 years

Corporate/Funds Cayman IslandsOur client, one of the leading international offshore fi rms, is currently looking to recruit UK-qualifi ed lawyers into its Cayman Islands offi ce. M&A, ECM or funds experience from a top City fi rm is essential. Tax free salary and year round sunshine guaranteed. Apply now. Ref: 825660. 3+ years

Construction LondonLeading Magic Circle fi rm is seeking construction lawyers with experience in the power, energy, infrastructure and commercial property sectors. First class academics and expertise in international advisory work are preferred. Fantastic opportunities at this world class fi rm. Ref: 773360. 2+ years

TMT/IP SingaporeWell respected UK fi rm seeks outstanding TMT/IP associates and corporate lawyers interested in working for TMT clients. You will have at least 3 years’ experience with a top-tier Australian/UK fi rm and a strong interest in the TMT sector. Excellent opportunity to join a great brand. Ref: 146801. 3-5 years

Construction Litigation SingaporeContentious construction lawyers are sought by this international fi rm with a strong projects and construction practice. You will have experience acting on big ticket construction disputes or arbitrations. Must have worked on international matters, preferably with exposure to Asia. Ref: 146601. 4-8 years

Corporate Hong Kong Mandarin speaking corporate lawyer is required by this top international law fi rm in Hong Kong. Work will include M&A, listings and private equity work on behalf of international clients. An excellent opportunity to join one of the leading brand names in the region. Ref: 140800. 2-4 years

Banking Finance Paris Two leading international law fi rms are looking for top-tier asset fi nance and general banking lawyers to join their Paris offi ces. Candidates must be fl uent in French, have excellent academics and employment history with experience gained at a top-tier UK/US/international law fi rm. Ref: 866849. 3+ years

Australian Roles

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lawyers weekly, december 2, 2011

Documents

construction experience

major rm

major law

strong experience

corporate advisory work

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