Non-lawyer chiefs rival partners for pay, status

Non-solicitor law firm managers are increasingly being paid in line with partners, with chief executives of the largest firms earning up to 310,000 in basic salary, a survey has found.

The annual survey of senior finance and operating roles in law firms by recruiters Carter Murray put the average salary for non-lawyer chief executives at large firms in London and the south-east (50 or more partners) at 192,000, with a range of 125,000 to 310,000.

The average for firms with fewer than 50 partners was 122,000, with a top level of 198,000.

Outside that region, the average salary at the large firms was 138,000, and 98,000 for the smaller practices.

Bonus levels were also higher in London and the south-east at 25-30%.

The survey found that 60% of chief executives are accountants.

Carter Murray uncovered greater demands on finance directors to offer commercial and strategic planning skills, rather than just being a 'good numbers man'.

This led to base salaries at the 80-plus partner firms of 170,000 on average, and up to 360,000.

Finance directors are increasingly coming from outside the legal sector, it added.

Carter Murray head David Keddie said non-lawyer managers are finding themselves central to the difficult decisions firms are currently having to make.

For example, they are increasingly involved in culling under-performing partners.

As a result, remuneration and status in line with the partners is becoming more commonplace for non-lawyer managers, particularly in the smaller and mid-sized firms.

This usually takes the form of a guaranteed base salary supplemented by notional equity/profit points or a bonus linked directly to any increase in profits per equity partner, he said.