Firms pay top rate to recruit the best management staff

The battle between firms to recruit the best staff has moved into the realm of management professionals, according to a new survey which shows that financial directors at some City firms are earning 360,000.

Finance recruitment company Carter Murray also found in its survey of 140 individuals that chief executive officers were being offered salaries of up to 195,000 and management accountants up to 62,000.

David Keddie, head of Carter Murray, said there was a growing acceptance by lawyers of the need for professional managers.

'An average-sized profitable firm will have an idea of where they want to be in the marketplace, but they need professional management staff to help crystallise that vision and make them realise how to reach that goal.'

He added that when the market was financially stretched, as in the past year, good managers were more important than ever.

'When firms are trying to work out how to survive and position themselves in the market - whether to become niche, or grow organically or through mergers - it helps to have external management advice,' he said.

'Partners are realising that although they may be good lawyers, they are not necessarily good financial managers: at the moment they are trying to batten down the hatches and rein in their working capital, and they need specialists to coach them on these financial issues.'

Financial directors' enhanced roles are reflected in their salaries - an average of 167,000 in City firms with 80 or more partners, and 90,000 elsewhere in the country - and the fact that 78% are on their firm's management committees.

On average, salaries for financial management professionals rose by 4.2% last year - compared to a rise of more than 5% the previous year.

A firm with more than 80 partners employed an average of 46 financial staff, and those with 30-80 partners had, on average, 18 finance personnel.

Victoria MacCallum