SURVEY 2011

CORPORATE }
CORPORATE LAWYERS COMPANY SECRETARIES CONTRACT LAWYERS

SEISMIC SHIFT } REDEFINING THE LEGAL MARKET

CONTENTS
Foreword Summary Corporate Lawyers Company Secretaries Contract Lawyers 1 3 6 12 15

Figures contained within tables in this survey have been rounded to the nearest $500 and are quoted in local currency.
Mahlab Recruitment (NSW) Pty Ltd 2011 Mahlab Recruitment (Vic) Pty Ltd 2011

www.mahlab.com.au

FOREWORD
Law in Australia: New Changes, New Challenges BY TED DWYER
The current market is posing new questions about what makes a great lawyer, as well as how to create them.

A watershed event happened last year in the Australian legal profession. For the first time in decades, the fee income generated by the top 10 firms in Australia contracted. And were not talking about small numbers or percentages, either. Depending on who you talk to, the top 10 firms lost $150 200 million in fee income in a year. Some firms top line growth contracted by 10%. This is unprecedented. However, we know that the legal market is dynamically transforming before our very eyes. Much discussion has focused on the structural changes and strategic responses that these dynamics entail. This includes the process of de-leveraging. Those who view this process as a law firm contracting, or getting smaller by reducing overheads, do not understand de-leveraging correctly. Think of it more as a process of creating a leaner, fitter and more client-focused organisation. It is less about protecting existing ways to create profit, but more about finding new ways to create high levels of profit, with clients. And above all, its about thinking about the lawyers the firm will need to create to keep clients happy. Its worth remembering here that theres nothing wrong with maximising profitability. Profit is not simply a number, but a resource that supplies benefits to all, including clients. Highly profitable firms invest in high quality client service. However, clients must always come first. Its important that all lawyers start to understand the firm as a client-centred organisation that supplies benefits (including profit). Any lawyer who continues to view the firm as a profit-centred organisation that clients feed is making a serious error in the current market. In a market increasingly defined by client needs, it is the clients not just other lawyers who define what a great lawyer is.

Assumptions Drive Decisions

For the client-centred law firm, critical questions that need to be asked now are: what type of lawyer do quality clients want to work with now, and in the future?; what lawyer do we seek to create at the firm?; what skills and abilities will these people need?. This involves challenging long-held assumptions about what makes a great lawyer. Many firms still define great lawyers by their level of technical expertise. For many years, leading firms have used this core assumption in how they view lawyering: that it is fundamentally an intellectual vocation, founded in expertise. This dogma persists. For example, a cornerstone of many law firms recruitment and selection is the academic results of youngsters from prestigious universities. 80 90% of the learning and development budget is aimed at creating highly specialised experts, in one area of law. Law firm compensation is based on seniority, experience, intellectual achievement and specialised expertise, as well as production of billable hours. This is problematic in the current market. Leading firms must above all supply lawyers that clients want to work with. Technical expertise is very important, but it has to be delivered in a way that resonates with clients. Get it right and client engagement, not to mention fee income, grows. Get it wrong and the reverse will happen.

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The Holy Grail: Differentiation and Intimacy

The current market reminds us that law is, ultimately, a relationships business. And we know that clients view relationships as having multiple components, technical expertise being just one. The other components of quality relationships appear to be the same as those that exist in our personal relationships trust; responsiveness; empathy; transparency; likeability; honesty; and, above all, genuine caring, based on demonstrable actions. Some firms are thinking very effectively about how to create relationship skills in solicitors in a way that both enhances client relationships, as well as income and profit. These firms seek to create a form of intimacy with clients which makes it highly likely that clients will seek new forms of integration with their firm. This effort is particularly relevant when it comes to differentiation. Clients agree the level of client service has never been higher. But law firms are still perceived as similar. This is despite the major efforts of law firms to create a difference that resonates with clients. Firms have invested very large amounts of energy and resources into creating that difference. This includes branding, discounting, highly complicated pricing and alternative fee agreements. All these initiatives are valuable, but often exclude investment in people. Law firms would be well advised to base their differentiation strategy on what remains the core driver of our profession relationships, specifically on enhancing the myriad of interactions between the firm and clients that occur at matter and nonmatter level every day.

Creating Client Intimacy

Leading law firms have already started the process of creating client intimacy skills in lawyers, especially in these areas: Technology deploying the full range of options that new technologies, especially Web 2.0 and social media, help to embed relationships with clients around individuals and practice areas. Pricing rather than encouraging lawyers to assume that all clients simply want the lowest price, leading to complicated scoped estimates with endless caveats and variations, these firms are helping their lawyers recognise that clients approaching quality firms will usually be far less sure of their needs than many lawyers expect, and may therefore be less resistant to premium pricing than many lawyers assume. Relationship building focus on the skills required to build quality personal relationships, then apply those skills to high quality clients. The difference will be palpable to the client, leading to more work and income for the firm. Technical Specialisation in the GFC, stories of banking and finance lawyers twiddling their thumbs, as their insolvency colleagues burnt the midnight oil, were common. However, what might be more effective in future is ensuring that all lawyers are trained as experts in counter-cyclical services. In other words, when work is slow in services relying on market liquidity (banking and finance, corporate), these lawyers can be transferred into services that are not (insolvency, dispute resolution). Of course, working with clients to identify their needs requires skills that need to be learned, practised and refined. Lawyers are often not naturally gifted in this area, or have lost their natural gifts as a result of the very technocratic training they have received. But law is a relationships business. Lawyers who dont spend time to improve their skills in these areas may be technically gifted, but will increasingly find themselves shut out of client relationships and then, out of business itself. Ted Dwyer is the Director of Dwyer Consulting. Ted provides law firms with expert advice on profitability, strategy, CRM and pricing. Ted Dwyer 2011

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SUMMARY

Welcome to Survey 2011. Mahlabs annual survey is Australias most Seismic shifts in the comprehensive survey private law firm hierarchy of the legal profession, and the relationship between corporate counsel encapsulating market and their providers trends and accurate, current remuneration The unusually turbulent 2009 saw the global economy in disarray and ranges captured from lawyers struggling with previously the 2011 salary review. unheard-of salary freezes, neutral and We are pleased to even backward career movement and bring you up to date the disappearance of the overseas experience as a career option. and comprehensive information on market In 2010 Mahlab reported a new conditions and trends in legal landscape: a steady increase in employment, modest pay increases the legal profession in and a pervading optimism in a Australia and overseas.
climate of rebuilding and renewal. Rejuvenation, retention and recruitment were key themes.

Great changes have occured this year in the Australian legal profession a seismic shift in the private law firm hierarchy and a significant change in the relationship between corporate counsel and their legal providers.

While there has been growth in per partner takings actual growth in revenue has been moderate.
With employees once again mobile, private practice and corporate employers are being forced to respond more swiftly to secure new talent and are paying for the privilege. This year, private practice remuneration has risen 23%, with band increases of 6.53%. Bonuses for high performers subsist, although these tend to be linked to achievement of budget as a starting point. Sign-on bonuses have returned. In-house salaries have risen a more modest 4.69%. Legal employers are feeling the pressure on salaries which is being fuelled by several factors including the mining and resources boom. The strong demand for lawyers by private practice and corporations in and/or servicing the mining boom will continue.

KATHERINE SAMPSON

LISA GAZIS

2011 has seen the profession thriving and bold moves by key players, such as more global firms entering the Australian market, that have resulted in significant changes in Australian providers. Natural disasters, political change, and the mining boom have contributed to the growth in profitability of the legal profession. Lawyers have shaken off their post-GFC caution and are now on the move. Increased business activity generally means more work for lawyers, with mergers and acquisitions once more on the rise (although many practitioners are still under-employed compared to preGFC days), and energy and resources, construction and infrastructure and employment lawyers in demand. Litigation lawyers are also busy, with an increase in insurance work as a result of floods, Cyclone Yasi and ongoing class actions related to corporate collapses. Insolvency practitioners have perhaps been a little disappointed in work volume, although expert teams are still busy.

Legal employers are feeling the pressure on salaries

At the same time, the law firm hierarchy has shifted, with new entrant global firms Allen & Overy, Clifford Chance and DLA Piper (completing its merger with DLA Phillips Fox) joining Norton Rose to lure lawyers below partner level with the promise of access to international deals and referrals, offshore secondments and the glamour of the new kid on the block and to attract partners of major firms with a fresh, strong brand and a full purse. Major firms are vying for position, re-shaping their offering and their leveraging and making dramatic changes to their equity holdings and the partnership as a whole. They aim to improve profitability, to enhance their competitiveness against Australian and global players and, interestingly, to enhance their allure as future merger targets for the international invaders.

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A number of partners have responded to this fundamental re-shaping by upping sticks and relocating to smaller firms (usually mid firms) often taking clients and teams with them. Senior associates and special/executive counsel are wondering where their partnership prospects lie in the new world order, and are considering their options. In the last 12 months, many mid firms have benefitted from this shuffling for position at the top, recruiting partners and teams and applying traditional top tier remuneration to new and existing staff. Against the backdrop of navel gazing and adjustment of major firms, corporate clients continue to exert pressure on hourly rates the rates themselves and their very existence.

In-house counsel are under increasing pressure to contain costs of external providers and to ensure that the means of charging are more predictable and stable, to look for alternatives such as LPO providers and to retain as much work in-house as is feasible. We have also observed a trend to contain costs through the recruitment of specialised lawyers. Even employment law and litigation matters, traditionally outsourced, are being handled in-house where possible.

The boom is in WA while other States are cautiously improving

The Australian profession is considered by overseas counterparts as being in boom mode. Whilst the Australian profession is faring better than many of the overseas markets the boom is happening in Western Australia and the other States are cautiously improving. While the UK, Middle East, Asia and the USA remain subdued, a small number of overseas firms have slowly and very cautiously begun to open their doors in London and Asia to Australian lawyers. Young lawyers here are responding positively and will be open to these opportunities.

Pressure on hourly rates continues

Outsourcing legal tasks offshore or legal process outsourcing (LPO) is also a growing trend, as Australian firms join their US and UK counterparts in assessing and approaching LPO providers in India and South Africa, for example. Their corporate clients are already active in this regard, with one quarter of corporate respondents reporting LPO activity. There has also been a revival in inhouse recruitment activity, particularly in mining and resources and banking and finance. There is an increased demand for in-house counsel in Brisbane and Perth, Sydney and Melbourne. These opportunities have generated strong responses from candidates, many of whom have waited for two years or more for the right opportunity to arise. There is also a rise in company secretarial roles, as an adjunct to a legal role or as a stand-alone position.

About Survey 2011

Conducted online in June 2011, input was provided by individuals and employers across Australia and internationally. Questions were focused on remuneration and benefits, work habits and practices, job and career satisfaction and retention and future employment intentions. Survey 2011 responses are supplemented by up to date data collected from Mahlabs Australian and international clients and candidates, with an emphasis on information that reflects 1 July 2011 reviews.

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49%
Male

Female

51%

Once again we are grateful for the support shown by our clients, private practice solicitors, company secretaries and corporate lawyers who participated in the survey. Thank you for your support. We particularly thank the Australian Corporate Lawyers Association (ACLA), Young Lawyers of the Law Society of NSW, the Young Lawyers section of the Law Institute of Victoria, The Victorian Women Lawyers, The Women Lawyers of South Australia, the Women Lawyers of Queensland and Chartered Secretaries Australia for circulating our questionnaire to their members. We appreciate their ongoing commitment to making Survey 2011 a success. Thank you.

Gender of Respondents 14%

Other

7% Brisbane 6% Adelaide 4% Perth

Sydney

Melbourne

38%

31%

Location of Respondents

We welcome your feedback. Please direct your comments to Sophie Waters, National Marketing Manager: sophie.waters@mahlab.com.au.

Katherine Sampson

Lisa Gazis

Mahlab gratefully acknowledges the support of these industry associations in circulating links to the online questionnaire to their members.

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CORPORATE LAWYERS
4.69% average salary increase Bonus range: 10 50% of base salary 82% are satisfied with their job

Legal Provider Relationships

One third of corporate departments have sought to change their external legal providers in 2010 2011, compared to just under a quarter in the previous year. A common trend to emerge is that corporate legal departments are undoubtedly seeking better value and greater flexibility in their external fee arrangements. Some examples of this include a reduction in standard fees, increased fixed fee arrangements and more innovation in fee structuring, particularly for volume work.

The decision to outsource will obviously impact the amount of work sent to local external legal service providers, and also the profile of inhouse counsel recruited.

Remuneration
Corporate lawyers received modest increases to their salary packages this year, in line with the conservative reviews of the last couple of years. A greater number of companies are paying bonuses, and at higher rates than last year where bonuses were heavily constrained. This reflects a generally positive outlook of the economy and a renewed confidence held by most corporations. 75% of respondents received salary increases this year, compared to just 44% in 20092010 and 36% in 20082009. This year the average percentage increase in salaries for corporate lawyers is 4.69% compared to 4.06% in 20092010 and 3.5% in 2008 2009. Some companies continue to pay above the average and on occasion significantly higher to retain star performers.

The volume of work briefed to external legal providers is decreasing

58% of companies surveyed advised that the volume of work they briefed to external legal providers had decreased, compared to 33% in 20092010. 29% of respondents advised that their company had renegotiated new terms with their external legal providers in the last 12 months, a similar figure to the previous year.

4.06%
20092010

20082009

One quarter of companies surveyed advised that they are currently outsourcing legal work to offshore providers. This number is set to increase with almost one-third of those surveyed advising that they intend to outsource legal work to off shore providers in the next 1218 months. These figures illustrate the increasing popularity of outsourcing arrangements for internal legal functions and follows similar trends overseas, particularly in the USA and the UK. Companies intend to outsource a broad range of work, including discovery on major litigation to corporate/M&A, fund raising and specific jurisdictional advice. A significant amount of high volume, junior level legal work is also being outsourced offshore. P6 MAHLAB SURVEY 2011 } CORPORATE

Average salary increase by %

A healthy 68% of corporate lawyers advised that they were satisfied with the outcome of their salary reviews, compared with 62.5% in 2009 2010 and 56% in 2008 2009 during the height of the GFC.

62.5%
20092010

56%

Respondents satisfied with Review

20082009

20102011

68%

20102011

Outsourcing of legal work to off shore providers will increase in the next 1218 months

4.69%

3.5%

Greater focus on bonuses

Whilst increases in base salary packages remain relatively conservative, the bonus component received greater focus in the past year. Of the 71% of corporate lawyers whose companies pay bonuses, 62% received a bonus this year, compared to 58% of the 73% of corporate lawyers in 2009 2010 who were entitled to receive a bonus. The average range for bonuses nationally remains between 10 50% of base salary with the higher end applying to more senior corporate positions. Bonuses are generally calculated on a combination of individual performance, legal department performance and company performance. The bonus target for junior to mid-level lawyers is 10 20%. Interestingly, a reasonable number of newly appointed lawyers at this level had a fixed amount included in their packages as a bonus rather than a percentage of their package, with the whole or a portion paid according to their individual and companys performance.

of work, working in a team, work/life balance and having the opportunity for strategic input. Just over one third of corporate lawyers advised that they were considering leaving their current organisation, a fairly significant drop on last years 45%. 78% of these lawyers said they would be seeking another in-house legal role, compared to 87% last year. This fall can in part be attributed to an increase in the number of corporate lawyers seeking to go overseas. 11% advised that if they were to move it would be overseas, compared to 7% in 20092010. It should be noted that it is still quite difficult to secure an inhouse role overseas particularly given the international economic climate.

engage, motivate and challenge team members with a view to retention. Ensuring that team members have a broad mix of stimulating work, swapping the clients they service, delegating responsibility for managing junior staff or a project, encouraging skills development in areas such as company secretarial, secondments into the business, and supporting further study, (leadership and management courses) are just some of the innovative ways legal managers have sought to develop and retain staff.

Recruitment Activity
Recruitment activity was steady throughout 20102011, with many corporate legal departments seeking to expand. Although contractors and secondees were once again relied upon by some companies, many chose to recruit on a permanent basis with a view to reducing external legal provider spend. The corporate market remained an attractive career alternative for private practitioners despite an improved local law firm market. With more high quality legal work being retained in-house and increased expectations on in-house lawyers to make a greater contribution to the business, many private practitioners view in-house opportunities as an attractive long term career option.

7.4% of corporate lawyers looking to join private practice

Interestingly, there was also an increase in the number of corporate lawyers seeking to join private practice, 7.4% this year, compared to 3.3% last year. This reflects a more buoyant private practice environment offering greater opportunities. Career development is the primary reason cited by corporate lawyers for moving to another organisation (60%). When asked if their organisation offered good career progression opportunities, 65% of survey respondents said their employer did not. Increased remuneration, better management, quality and diversity of work, team, job security and work/life balance also rated as important factors in a potential move to another role.

Newly appointed junior to mid-level lawyers had a fixed bonus rather than %
The primary reasons given for why bonuses were not paid included the business being cautious or the company not performing well. In some instances, star performers received discretionary bonuses as a retention strategy, where companies did not pay formal bonuses.

Limited opportunities for the large pool of good quality senior lawyers
Most opportunities are for junior to intermediate level lawyers (26 years post admission experience), with the senior end of the market remaining tight. While the corporate and government sectors have produced some interesting senior level roles, there are limited opportunities for the large pool of good quality senior lawyers to consider. As a result, each senior role has received a strong, competitive response from the market. Senior lawyers have had to be flexible in terms of their expectations the level of the

Career Development
Corporate lawyers maintained a high level of satisfaction in their roles, with 82% reporting that they are either very satisfied or somewhat satisfied, compared to only two thirds of respondents in 20092010. Despite increased workloads and external legal provider cost constraints, some of the key reasons corporate lawyers enjoy their current roles include the quality and diversity P7 MAHLAB SURVEY 2011 } CORPORATE

65% believe their employer does not offer good career progression opportunities
It is not surprising that corporate lawyers cited career development as their main motivator for seeking a new role. With limited opportunities to move up the hierarchy of inhouse legal teams to more senior roles, the primary challenge for the managers of in-house legal teams has become finding opportunities to

role, nature of the company, sector, whether they have management responsibility and remuneration. There has been a significant amount of recruitment by financial institutions, property and construction groups and energy and resources companies. Demand for corporate counsel in the IT, professional services, FMCG, media and entertainment, gaming and health and pharmaceuticals industry is also evident. The Brisbane and Perth markets are very active and experiencing considerable growth. There is a high level of demand for junior to intermediate level lawyers with general commercial law backgrounds in both of these cities. Demand is outstripping supply for quality lawyers in these centres, particularly those with energy, resources and projects and construction/ infrastructure backgrounds. A significant number of the in-house roles in Brisbane and Perth are with resources or energy companies or ancillary companies in the consulting or engineering sectors. The increase in the number of in-house opportunities in these markets is due to organic growth in team sizes as well as the emergence of newly created greenfield roles where companies are establishing their own internal legal function for the first time.

A shortage of quality lawyers with relevant experience in Brisbane and Perth has led to a highly competitive market with employers often competing for the same pool of lawyers. This high level of competition has led to an upward pressure on salaries, particularly amongst lawyers with a highly sought after skill set. Energy, resources, engineering, construction and infrastructure organisations are often paying at the top end of the Australian market to secure quality lawyers. More lawyers from other States are willing to relocate to these States for in-house opportunities. An offer to assist with relocation costs will increase the number of lawyers who can be considered for a role. The number of in-house counsel working part time has steadily increased over the last couple of years. 16% currently work part time, whereas the figure was 13% in 2009 2010 and 7% in 20082009. Most respondents advised that they worked part time due to family commitments (73%), while the rest advised it was due to work/ life balance.

Recruitment Outlook
A steady stream of in-house opportunities will be available, as companies remain cautiously optimistic about the economy. The focus will continue to be at the junior to intermediate end of the market. Some movement is anticipated at the senior end of the market, as a result of senior lawyers moving on due to restructuring, to advance their careers outside of law, newly appointed CEOs wishing to appoint a new general counsel or companies deciding to appoint their first inhouse counsel.

7%

13%
20092010

20082009

Perth and Brisbane employers are competing for the same pool of lawyers

% of in-house lawyers working part time

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20102011

16%

CORPORATE SALARIES } SYDNEY

Year Level 1 2 3 4 5 6+ DGC GC Range $65,000 $85,000 $78,000 $98,000 $92,000 $120,000 $110,000 $145,000 $130,000 $165,000 $140,000 $235,000 $170,000 $280,000 $175,000 $600,000+ Mode $80,000 $95,000 $115,000 $138,000 $160,000 $192,500 $255,000 $305,000

CG DG C 6+ 3 4 5

CORPORATE SALARIES } MELBOURNE

Year Level 1 2 3 4 5 6+ DGC GC Range $58,000 $80,000 $73,500 $95,000 $85,000 $115,000 $95,000 $139,000 $120,000 $160,000 $130,000 $225,000 $155,000 $275,000 $180,000 $600,000+ Mode $76,000 $90,000 $105,000 $125,000 $150,000 $184,000 $225,000 $300,000

GC DG 6+ C 2 3 4 5

Salary bands in the corporate market tend to be very broad. An individuals position within a band will depend on a number of factors including background and experience of the individual, size of the organization and its legal function, industry sector and level of management responsibility within the role. Please contact our consultants for tailored advice.

Figures refer to total package including benefits but excluding bonuses and share options.

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CORPORATE SALARIES } PERTH

Year Level 1 2 3 4 5 6+ DGC GC Range $65,000 $80,000 $70,000 $94,000 $85,000 $118,000 $100,000 $143,000 $120,000 $160,000 $130,000 $240,000 $140,000 $260,000 $170,000 $500,000+ Mode $77,000 $89,000 $110,000 $131,000 $149,000 $190,000 $232,000 $295,000

GC 6+ DG C

CORPORATE SALARIES } BRISBANE

Year Level 1 2 3 4 5 6+ DGC GC Range $60,000 $77,500 $65,000 $90,000 $75,000 $110,000 $90,000 $125,000 $95,000 $155,000 $125,000 $220,000 $145,000 $250,000 $150,000 $500,000+ Mode $72,500 $82,500 $100,000 $118,500 $142,000 $180,000 $200,000 $255,000

GC 4 5 DG 6+ C

CORPORATE SALARIES } ADELAIDE

Year Level 1 2 3 4 5 6+ DGC GC Range $55,000 $76,000 $70,000 $90,000 $82,500 $108,000 $88,000 $130,000 $100,000 $150,000 $120,000 $200,000 $145,000 $225,000 $150,000 $500,000+ Mode $73,000 $85,500 $103,000 $117,000 $137,500 $168,000 $196,000 $250,000

GC 4 5 6+ DG C

Salary bands in the corporate market tend to be very broad. An individuals position within a band will depend on a number of factors including background and experience of the individual, size of the organization and its legal function, industry sector and level of management responsibility within the role. Please contact our consultants for tailored advice.

Figures refer to total package including benefits but excluding bonuses and share options.

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CORPORATE LAWYER } BENEFITS OFFERED

% of surveyed lawyers 20072008 20082009 20092010 63 69 60 34 31 19 53 34 20 50 61 36 47 59 14 27 31 61 38 42 45 45 87 21 20 47 20102011 72 69 56 29 28 16 63 31 13 47 57 37 59 65 19 29 35 57 32 29 40 50 84 12 13 38

TECHNOLOGY
Blackberry/iPhone Laptop/ipad Mobile phone 51 69 62 54 72 60

FINANCIAL
Share plans/options Additional Superannuation Vehicle Car parking Income protection insurance Life insurance/private health insurance Paid parental leave Corporate credit card 44 29 47 32 26 55 60 37 33 44 29 34 16 62

LIFESTYLE
Reduced working days per week Additional leave without pay Working from home Emergency childcare/parents room Extended/indefinite leave Purchase annual leave 38 60 60 14 29 31 32 54 59 23 30 30

CAREER DEVELOPMENT
Management training Further study full fees Further study part fees Paid study leave Unpaid study leave Professional memberships Secondments international Secondments local Travel international 66 41 47 53 53 89 22 24 48 71 38 47 48 48 91 23 26 47

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COMPANY SECRETARIES
1.22% average salary increase 45% received a bonus Rise in demand

Remuneration
Just under two thirds of company secretaries received a salary review in the past year. The significant proportion of company secretaries not receiving a salary review reflects a continued conservative approach towards remuneration by corporations. Almost two thirds of respondents work for organisations offering performance based bonuses. Just under half of those surveyed actually received a bonus this year. These figures are slightly down on the figures from the previous year. The main reasons cited by company secretaries for not receiving a bonus was that the company did not perform well enough or ongoing caution of their employer.

worked in a company secretariat of 15 people. Of these, 44% are working in solo roles compared to 40% last year.

More working on a contract basis

This year more company secretaries are working on a contract basis. 12% of respondents are employed in a contract role compared to only 6% last year. Some of the reasons for employing a company secretary on a contract basis include headcount, budget restrictions or for a particular corporate governance project. The workload for company secretaries remains relatively high. Significantly, more than 40% of respondents said that their hours of work increased compared to last year and approximately 50% said that their hours have remained steady. Almost 80% of respondents said the size of their company secretariat would stay the same next year. This will lead to busy roles for people within company secretariats given the increased attention and requirements in this area.

Recruitment Activity
There is a noticeable improvement in the demand for company secretarial and corporate governance professionals at all levels in both publicly listed and non-listed organisations. Complex regulatory requirements and increased market scrutiny have made it necessary for corporations to focus on corporate governance and compliance issues. New regulatory regimes in the areas of anti-money laundering and counter-terrorism as well as financing and personal property securities reform have increased demand for professionals.

1/3 would consider moving to a role other than a co sec position

One third of respondents are considering leaving their current employer. This is a slight decrease from 40% last year. Most of those looking to move want another company secretarial role in a larger company. For those looking to remain with their current employer, the major objective is to secure a more senior role. Interestingly, nearly one third of respondents said they would consider moving to a role other than a company secretary position. This is a slight increase on last year. The most common factors influencing a company secretary to join another organisation are career development, greater remuneration and the opportunity for strategic input. A better work/life balance and working in a good team are also key factors.

More in-house roles include Co Sec responsibilities

Almost half of respondents are legally qualified. This trend is likely to continue with an increasing number of in-house legal roles, particularly at the senior end, incorporating company secretarial responsibilities. Many lawyers are responding to this development by adding company secretarial skills and corporate governance knowledge to their current skill set. Most company secretarial functions are relatively lean. This years survey revealed that almost 90% of corporate governance professionals P12 MAHLAB SURVEY 2011 } CORPORATE

COMPANY SECRETARY } SALARIES

PUBLICLY LISTED
State NSW Vic Range $145,000 $480,000 $130,000 $450,000 Mode $245,000 $245,000

NOT PUBLICLY LISTED

State NSW Vic Range $120,000 $300,000 $115,000 $290,000 Mode $200,000 $185,000

Salary bands apply to individuals undertaking full company secretary roles. There may be some individuals in major companies who are earning outside the bands revealed by the survey, however they would be the exception. Please contact our consultants for tailored advice.

Figures refer to total package including benefits but excluding bonuses and share options.

COMPANY SECRETARIES } BENEFITS OFFERED

% of surveyed Company Secretaries 20072008 20082009 20092010 73 73 33 27 47 27 67 53 67 20 33 67 20 33 60 27 27 27 47 60 47 47 67 47 93 13 13 73 20102011 52 67 56 31 50 23 11 40 52 19 40 39 29 17 50 15 28 50 19 34 58 39 34 35 33 74 10 10 34

TECHNOLOGY
Blackberry/iphone Laptop/ipad Mobile phone 50 63 56 50 75 63

FINANCIAL
Additional Superannuation Car parking Income protection insurance Life Insurance / Health insurance Paid parental leave Corporate credit card Vehicle Travel insurance Share plans/options 25 50 38 44 38 56 19 31 63 13 25 25 100 25 50 13 25 25

LIFESTYLE
Reduced working days per week Additional leave without pay Working from home Emergency childcare/parents room Purchase additional leave Additional annual leave Extended/indefinite leave 25 53 50 0 25 13 100 50 88 13 13 38

CAREER DEVELOPMENT
Mentoring/coaching Management training Further study full fees Further study part fees Paid study leave Unpaid study leave Professional memberships Secondments international Secondments local Travel international 44 56 36 39 31 87 25 13 56 38 75 38 13 38 38 100 100 13 25

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CONTRACT LAWYERS
Appointment of lawyers on a contract basis remains a noticeable feature of the corporate legal market and a popular choice for organisations.

Employers took advantage of the high quality and large number of lawyers happy to work on a contract basis, regardless of whether this was because of a personal preference or as an interim measure whilst that lawyer looked for a permanent inhouse role. Once principally the domain of senior lawyers, a reasonable number of contract roles were filled by junior to intermediate level lawyers. While some of these lawyers were between roles due to redundancy or having come back from overseas, it was interesting to see the number of currently employed private practitioners willing to consider a contract role as a way of getting into the corporate market. Those lawyers who were successful in gaining contract roles were able to quickly add value given the quality of the skills and experience they offered. Contract opportunities continue to occur where an extra legal resource is required however concerns over head count and ongoing costs prevent a permanent appointment being made. Corporations have also utilised senior lawyers in contract appointments to cover periods of extended leave for a permanent staff member on parental leave or long service leave, to meet the spike in work load caused by a special project or to test the need for a permanent employee. Some corporations also recruited a contract lawyer as an interim measure while they conducted a permanent recruitment for the same role. Contract opportunities arose in the corporate and government sectors. Contract appointments are generally remunerated on a pro rata basis on market rates without any loading (which has sometimes applied in the past).

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Sydney Level 9, 6 OConnell Street, Sydney 2000 T: (02) 9241 1199 E: syd@mahlab.com.au

Melbourne Level 1, 535 Bourke Street, Melbourne 3000 T: (03) 9629 2111 E: melb@mahlab.com.au

www.mahlab.com.au
Tw: @mahlabrecruit.com