Finance directors and marketing heads are being paid as much as junior partners as a reward for the increasingly influential role they play in the top commercial law firms, according to an annual survey by recruiter Carter Murray.

The survey found that both in-house finance directors and heads of marketing had a 4% pay increase last year, with average basic salaries in large City firms of £172,000 and £120,000 respectively.


City: firms increase marketing

The highest-paid finance directors received a salary of up to £320,000, while the highest-paid marketing and business development heads made more than £150,000. Of the handful of non-lawyer chief executives at law firms, the best paid received £332,000 last year.

Staff in these top-level positions also saw bonus payments of around 18%, with 85% receiving some kind of year-end bonus.


Outside of London and among smaller firms, the pay levels fell by more than 50%, with finance directors in firms outside the south-east with less than 30 partners receiving an average basic salary of £66,000.


The relatively high rates of pay underline the growing reliance of City and leading national firms on non-lawyers' professional financial management and targeted marketing expertise.


This reliance was also reflected in the survey's finding that many non-lawyers now sit on law firm management boards. It found that 45% of all marketing heads now sit on the board, while 80% of finance directors have board-level status.


Carter Murray manager David Keddie said: 'Financial directors are increasingly playing a vocal part in firms.' He added that law firm marketing is seeing rapid growth and PR professionals are now involved in strategic decision-making.


Iain Rodger, head of public relations at City firm Allen & Overy, said: 'As the law becomes more commoditised, law firms have to differentiate themselves.'


According to the survey, 2004 has seen a big increase in the number of large-firm finance director moves - in particular within the top 50 firms - with a knock-on effect on the whole recruitment market. Smaller firms have been recruiting on an ad hoc basis.


Candidates from outside the legal sector have filled many of the more senior finance director roles as firms strive to bring in fresh commercial skills, it added.


The survey predicted an increase in senior finance recruitment as confidence returns slowly to the market.