General counsel have benefited from directors' concerns over corporate governance with a hike in pay that has seen some top heads of legal earning as much as £540,000 a year, research revealed last week.

In-house lawyers received an average pay increase of 7%, a survey of almost 500 general counsel by recruitment firm Chambers & Partners revealed.


While the top salaries are reserved for lawyers who answer directly to the chief executive officer, department heads who report to another lawyer are earning as much as £333,700, the survey found.


Boxall: legal advice emphasis

A member of the legal department with four to five years' post- qualification experience (PQE) can expect to earn almost £125,000, rising to £150,000 with ten years' PQE or more.

The average 29-year-old legal manager earns £83,700, rising to almost £105,000 for those aged 50 or older.


Chambers & Partners consultant Fiona Boxall said: 'The 7% increase is a direct result of the fact that boards are placing a lot more emphasis on legal advice. They want to cover themselves, and frankly, they want someone to blame.


'We have a lot of companies coming to us at the moment which are recruiting an in-house lawyer for the first time. They want someone who can work with the board and make sure everything is buttoned down from a regulatory point of view. And they will pay well for these people.'


Companies in the oil and gas sector paid the highest salaries, according to the survey, followed by retail and energy. Telecoms and property companies paid the lowest salaries. In terms of practice area, mergers and acquisitions and corporate were the most lucrative fields of expertise, with property specialists earning considerably less.


Heads of legal who acted as directors on the main board were paid half as much again as those who did not hold a directorship. However, company secretaries received much less of a premium, being paid an average of just one- tenth more than those who did not perform the additional role.


Ms Boxall added: 'There is not that much of a pay differential for being company secretary, but more and more heads of legal are taking on that role to make sure they can keep an eye on corporate governance. People with this experience are very highly paid anyway.'