Singapore Legal Salary Survey 2016

www.aquissearch.com

Singapore Legal Salary Survey & Guide 2016

Private Practice

In-house Financial Services

In-house Commerce

www.aquissearch.com 2Singapore Legal Salary Survey & Guide 2016

Introduction

Aquis Search is delighted to present our annual Salary Surveys for Singapore 2015-2016. Our aim in producing these surveys is to provide guidance to clients and candidates on current compensation levels post end of year reviews and predict how the market will shape up over the next 12 months.

Our information has been researched and collated with the help of our clients and candidates and from our knowledge of the marketplace. You will find our commentary on different areas in the private practice, financial services, and in-house commerce spaces.

As with all surveys, the ranges represent the mainstream view and there will be individual situations that fall outside the range published here. Please use this survey as a guide and do not hesitate to call for further clarification on the compensation trends in the market .

• Private Practice P.3

• In-house Financial Services P.6

• In-house Commerce P.9

www.aquissearch.com 3Private Practice

Introduction

Constant change has become the norm in this dynamic market and 2015 was no exception. The year started with the launch of the Singapore International Commercial Court (SICC), and ended with the establishment of the Legal Services Regulatory Authority (LSRA). There was news of two major international law firms that entered the market and reports of mergers and alliances between local firms and international counterparts. Three of the oldest and most established Singaporean firms announced mergers or alliances this year, as did several smaller firms.

This spate of formal tie-ups is indicative of the fierce competition in the market, as firms grapple with how to remain competitive and profitable in this ever-evolving landscape. It is also indicative of the growing trend towards internationalization in the legal sector as Singapore aims to be not just the dispute resolution hub for Asia, but the heart of Southeast Asia’s burgeoning legal industry. As the lines between international and local firms have eroded amidst rising competition, it has become harder for smaller to mid-size firms to compete. Many foresee that the days of the ‘full service’ medium size law firm are near an end. The Singapore market will likely see a continued hollowing-out of the middle class, as mid-size firms are forced to either grow/merge to gain economies of scale and regional scope, or specialize in a particular practice area in order to remain competitive and profitable.

Mergers & Acquisitions

According to a recent survey of global economic confidence, it appears that the stabilization of the political climates in several ASEAN jurisdictions, combined with currency devaluations, weakened corporate balance sheets and other factors have resulted in an increase in attractive acquisition targets for foreign companies and investors. 2015 was a very busy year for M&A and 2016 is likely to follow suit. Thus, we expect the demand for junior and mid-level M&A lawyers with international and cross-border deal-making experience to remain steady in 2016.

Finance and Capital Markets

From a capital markets perspective, it was a relatively quiet year again in Singapore as law firms found deals hard to come by, and this increased fee pressure. In many instances, law firms have not been replacing headcount lost due to attrition in ECM/IPO practices. However, companies appear to view the US equity markets as an increasingly attractive alternative, and thus the lone bright spot in ECM is an increase in demand for US qualified capital markets associates, particularly those with Mandarin language skills. Acquisition financing and debt fundraisings also remained relatively active, so overall, we expect to some moderate associate headcount in finance and DCM practices over the coming year.

Project Finance and Infrastructure

Deal activity in the energy markets has slowed considerably, but there has been sustained demand for legal expertise in some jurisdictions, and overall, many industry experts remain bullish on the infrastructure sector in Southeast Asia. Many large scale infrastructure projects, particularly in developing countries such as Myanmar, Laos, Thailand, and Indonesia, are currently in the works and the need for improved infrastructure, particularly transportation, remains high in these countries as urban populations continue to swell.

Singapore’s large and well-established construction, infrastructure and logistics industries make it uniquely positioned to take advantage of the expected increase in regional capital investment. Law firms in Singapore with well established cross-border project finance and construction practices will also benefit. We have already seen an uptick in hiring during late 2015 and early 2016 for projects and project finance associates with several international law firms.

Litigation and Arbitration

Singapore remains a popular disputes/arbitration hub for companies doing business in South and Southeast Asia. The city-state is geographically well positioned and it is viewed as a neutral, efficient and reliable jurisdiction for the international business community. With the establishment

PRIVATE PRACTICE


of the SICC we expect that popularity to continue. However, despite the new source of work, headcount growth in disputes practices has slowed in 2015 compared with the rapid build-outs of arbitration practices we witnessed earlier in the decade. We saw some mid-level instructions within the more established international arbitration practices this past year, and we expect to see some moderate growth in the overall disputes market in 2016 as well.

In particular, there has been an increase in demand for lawyers with experience in compliance, regulatory disputes and investigations as we are seeing several international firms build out their expertise in anti-corruption, white collar, fraud and AML. This demand seems to be driven by increased scrutiny of multi-national companies by US, UK and even local/regional statutory authorities and regulators.

Intellectual Property and Technology, Media & Telecoms (TMT)

While the financial services industry is under some duress, and overall growth in most sectors has slowed considerably in Southeast Asia, largely driven by the slowdown in the PRC economy, there has been one notable bright spot. The technology and life sciences sectors in Singapore, China, and the region, continue to see strong growth and increased foreign investment.

As commercial organizations and MNCs continue to expend resources on IP, technology, data storage, analytics and data security, the demand for lawyers with technology contracting and commercial IP expertise will continue to rise. Many companies are building out in-house legal teams to support this need making it increasingly difficult for law firm TMT and IP practices to retain talent. These factors add up to a very favourable job market for lawyers in this area, even those with only moderate IP/TMT experience.

Skills in Demand

As discussed above, internationalization and competition are the dominant themes in the Singapore legal market. Job seekers are also seeing the effects of these trends and associates with

cross-border experience and specialized training, particularly in areas such as intellectual property, technology, media & telecoms (TMT/ICT), regulatory disputes/ investigations, or project finance, are in high demand. Conversely, the market has grown increasingly challenging for legal professionals who don’t have the specialized experience that many employers, both law firms and in-house, are demanding.

The increased demand for lawyers with specialised skill sets makes the search for talent a challenging one. Demand has tended to be highest for mid-level to senior associates (4-7 PQE). These associates are attractive to both in-house corporate and financial institutions, as well as law firms, as they have enough specialised experience without being so expensive as a partner level hire.

The need for Singapore qualified lawyers within international law firms has also remained high as competition for work has intensified and pressure to meet QFLP headcount obligations have also come into play. In addition, the demand for Mandarin language skills across the market has also put a premium on the subset of Singaporean lawyers with proficient language ability. Although Singaporean law firms have tried to fight back by raising salaries over the past 5 years, they face a continuing battle to retain staff. The recent economic slowdown has made associate retention even more difficult as rising salary costs and lower fees have taken their toll on the bottom lines of many firms.

PRIV

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E PRA

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Forecast for 2016

Overall, competition has been fierce in the legal sector and fee rates have been under pressure. With some possible exceptions, we expect that associate compensation will remain stagnant across the market in 2016, and we may see significant reductions in bonus compensation at some law firms. Retention challenges in specific practice areas may force uplifts in compensation for select associates, but we expect such occurrences to remain rare and on a case-by-case basis. Demand in specialised areas such as compliance, investigations, IP/TMT and Project Finance will result in firms having to look further afield to jurisdictions like the UK, Australia and even Greater China to source talent, which may also put upward pressure on salaries or bonuses in those specific practices.

PRIV

AT

E PRA

CT

ICE

Minimum

125,000

145,000

165,000

185,000

210,000

225,000

240,000

250,000

270,000

Maximum

150,000

170,000

190,000

210,000

230,000

245,000

255,000

300,000

320,000

PQE

NQ

1

2

3

4

5

6

7

8

UK Firms (SG Dollars)

Minimum

140,000

150,000

165,000

175,000

190,000

210,000

225,000

240,000

Seniority

1

2

3

4

5

6

7

8

US Firms (US Dollars)

Minimum

50,000

55,000

66,000

72,000

85,000

105,000

120,000

140,000

Maximum

70,000

80,000

93,000

105,000

120,000

150,000

180,000

210,000

PQE

NQ

1

2

3

4

5

6

7

Local firms (SG Dollars)

Compensation

Maximum

160,000

170,000

185,000

210,000

230,000

250,000

270,000

280,000

www.aquissearch.com 6In-house Financial Services

Corporate Banking The regional banks have continued to expand in SE Asia and are developing a more international workforce and culture by making solid inroads into the corporate banking market.

Team size depended of course on the size of the bank but ultimately ranged from the smaller institutions of 1-2 to larger institutions of 8-10. Interestingly, we noted a push towards driving efficiencies and an over reliance on lawyers within global transaction banking which may well impact on the size of teams moving forward.

Investment Banking

Overall, sentiment in the industry has continued to remain downbeat in late 2015 and into 2016. Banks seem to be focused on consolidating their IB and trading teams back into their core markets and from a regional perspective, it would seem that Singapore will continue to lose headcount and business – primarily to Hong Kong and in some cases, to Tokyo.

From a hiring perspective, it was replacement rather than additional headcount that saw lawyers with structured products and regulatory experience the most sort after. Core skills in demand were in-house experience and a strong understanding of the various global regulatory regimes relating to financial products. Institutions generally took a leaner approach to hiring, in some cases not back filling hires and thus reducing overall headcount within the team. That said, we did see an uptick in legal interim hiring.

Derivatives/ISDA

Hiring remained steady in this area; there being a finite number of legally qualified lawyers with specialist derivatives transactional expertise and/or knowledge of regulatory regimes such as Dodd Frank & EMIR as well as increased regulation across Asia Pacific.

ISDA negotiation positions remain difficult to fill due to this being a specialised skill set where often the options for upward mobility are limited; lawyers are typically seeking more exposure to derivatives transactions beyond being

a negotiator or they are seeking a move into the business in some cases. Several institutions with large master documentation teams sought to add 1 or 2 headcount in this area but generally it was replacement rather than additional hires that were required. Team size varied across different institutions.

Private Banking

Singapore remains a regional hub for private banks and continues to grow with competition existing more than ever between the larger institutions scaling back their investment banking activities to focus more on wealth management and private banking and the smaller banks with an older, more traditional client base.

Candidates with local qualification continued to be in demand with some product or regulatory experience being favoured and we have seen continued demand for lawyers with funds, derivatives or previous investment banking experience. Team size varied between 2-6 lawyers depending on the institution.

Asset Management

We saw some modest hiring within asset management, private equity and venture capital with these roles being largely sought after by candidates with corporate and funds experience. Most legal teams in Singapore remain small which means limited opportunities for candidates wanting to develop in-house skills within asset management. Many of the candidates we meet in Singapore at investment banks are looking to move into the buy side – however opportunities are limited and the barrier to entry is high.

Teams remained lean, typically ranging from 1-3 lawyers with opportunities to develop upwards quite rare, often regional rather than in-country heads within the mid-sized institutions. These teams remained relatively stable meaning there were limited replacement hires outside of the large institutions.

IN-HOUSE FINANCIAL SERVICES


Insurance

Once again, it proved to be a busy year for insurance. The industry is made up of international, local and government backed insurers and reinsurers servicing the local and regional markets. A mixture of growth, consolidation as well as restructuring has contributed to a semi-fluid market, however, there remains a significant shortage of experienced talent in this market.

Core skills typically vary due to the overall lack of insurance trained lawyers in Singapore. Depending on the role, banking and financial services lawyers have been heavily recruited as these lawyers have tended to be more familiar with the raft of changes in global regulation; something which insurance has taken longer to get up the curve on from a legal and compliance perspective.

Compensation IN-H

OU

SE FINA

NC

IAL SER

VIC

ES

Minimum

7,000

9,500

13,000

18,000

22,000

Maximum

10,000

14,000

20,000

26,000

35,000

Level/ No. of Years

Experience

0-2 years

3-5 years

6-8 years

9-11 years

12+ years

Monthly Base Salary (SGD) Bonus

1-3 months

3-6 months

4-6 months

4-8 months

8+ months

Funds/ Asset Management/ Investment Management

Investment Banking

Minimum

8,000

10,500

17,000

20,000

25,000

Maximum

11,000

18,000

25,000

30,000

40,000

Level/ No. of Years

Experience

0-2 years

3-5 years

6-8 years

9-11 years

12+ years


1-2 months

1-3 months

2-4 months

2-5 months

3-6 months

Private Banking

Minimum

6,500

8,000

12,000

15,000

20,000

Maximum

10,000

15,000

20,000

23,000

35,000

Level/ No. of Years

Experience

0-2 years

3-5 years

6-8 years

9-11 years

12+ years


2-4 months

3-6 months

3-6 months

3-7 months

5+ months

Insurance

Minimum

5,000

6,500

9,000

14,000

15,000

Maximum

7,000

12,000

16,000

25,000

35,000

Level/ No. of Years

Experience

0-2 years

3-5 years

6-8 years

9-11 years

12+ years


0-2 months

0-3 months

1-3 months

2-4 months

4+ months

Minimum

4,000

7,000

10,000

14,000

16,000

Maximum

8,000

12,000

15,000

20,000

25,000

Level/ No. of Years

Experience

0-2 years

3-5 years

6-8 years

9-11 years

12 years

Monthly salary range (SGD) Bonus

1-3 months

2-4 months

2-5 months

2-6 months

3-6+ months

ISDA Negotiators


Forecast For 2016 2016 should be more of the same. Whilst overall sentiment within financial services is negative, several banks are making inroads and are looking to pick up previously unavailable talent and market share. Traditional corporate banking within mid sized local and regional institutions should remain positive. Private banking will remain steady but we should see an increase in competition for candidates. Insurance will continue to grow and require legal and compliance expertise as it climbs the regulatory curve. Overall, Singapore is a highly dynamic and innovative hub which continues to attract multi-national companies looking to take advantage of its geographical location providing access to multiple regional markets. Whilst cost cutting will continue at a pace, there will remain areas that require specific skill sets and expertise.

IN-H

OU

SE FINA

NC

IAL SER

VIC

ES

www.aquissearch.com 9In-house Commerce

Year In Review Given the ease and cost of setting up business in Singapore, and the close proximity to the regional markets, a number of MNC’s are considering relocating their headquarters here. The introduction of the Fair Consideration Framework slowed the recruitment process for junior positions as companies were pushed to source more local talent, but has not significantly affected senior level hiring.

Private practice lawyers from the leading local firms remain in demand from both the in-house market and the international firms. These lawyers typically come from a handful of well known local Singaporean firms where pay levels, although rising, remain within reach of in-house budgets. Associates continue to cite career path and work life balance when considering a switch in-house, however, those coming from the international law firms typically have to assess the full picture in the context of a prospective salary reduction.

Many in-house commercial legal roles still have very broad remits and thus general corporate commercial lawyers continue to be able to traverse across many industries relatively easily. However, more senior mandates often came with specific industry knowledge, and specialized roles are becoming more and more common within in-house legal teams as larger MNCs and regional corporates are becoming more sophisticated and demanding of the legal and compliance functions.

The contract market for legal recruitment in Singapore remains active as it is becoming more common for companies taking on a project based lawyer to work on a 6 or 12 month basis. Law firm secondments remain common practice but due to budget constraints and attempts to reduce legal fees, employers are becoming more willing to seek out external contractors to fill needs.

Skills in Demand The shortage of local talent with international experience has meant Singapore continues to provide opportunities for foreign lawyers. However, expat packages are limited and only on offer for senior level hires at the GC or equivalent level, and the demand for regional language skills, such as Mandarin or Bahasa, is becoming more and more prevalent.

The most common specialist positions coming into the market include technology, data privacy, and intellectual property as well as employment law roles. With increased investment in technology, companies must also contend with increased IP risk, as well as increased data and cyber security risk. We have already begun to see a strong demand for expertise in this sector for lawyers with IP protection and data privacy/security expertise. This trend will continue into 2016 and likely beyond.

Compliance and regulatory also remains one of the hottest areas with many lawyers being asked to head the function and develop the strategic framework for compliance across the organisation. Regulatory frameworks have historically not been as sophisticated in regional markets as they are in more mature jurisdictions such as the US or EU, however, that has begun to change as local and regional governments have grown more savvy and increased their enforcement capabilities.

Recruitment Challenges Budget remains the number one challenge when sourcing talent with compensation for associates at law firms increasing at a faster rate than in-house peers creating a gap in the market, particularly at mid-senior levels. Mid level hiring remains highly competitive thus inflating candidates’ expectations regarding salary increments at this level.

General Counsels with a pan-Asia remit were particularly focused on having at least one member of the team with Mandarin or Bahasa skills and demand for experienced and specialist lawyers based in Singapore with these language skills can be a challenge. Conversely, those GCs who choose to hire local lawyers on the ground in regional jurisdictions found hiring regionally far more difficult with lengthy delays in finding quality talent in markets such as Indonesia, Thailand and India. Planning ahead for a regional search is critical and when factoring in notice periods, clients must often allow for up to six months to bring a regional hire on board.

IN-HOUSE Commerce

www.aquissearch.com 10In-house Commerce

Selected Industry Insights and Forecast We have seen strong hiring demand in the life sciences sector. Although many of Singapore’s key sectors are facing difficult times, and overall growth in many industries has slowed, the pharmaceutical, biotech and life sciences industry continues to expand at a solid pace. Both the government and private multi-national corporations have invested heavily in the sector in recent years and research has indicated that solid growth should continue at least through 2018. We have seen a number of specialised roles cropping up in the market including senior regulatory counsel positions as well as a continued demand regionally for lawyers with either IP, regulatory or strong commercial contracts experience to support expanding operations. In the case of IP and regulatory, hiring managers are typically looking for industry specific experience.

The e-commerce, IT&T and Data Infrastructure industries have also continued to see significant growth in Singapore and throughout the region. There continues to be heavy investment in this sector by regional governments, proliferation of foreign technology MNCs, and increasing growth and maturity within local tech companies. Thus, the demand for lawyers with IT contracting and commercial IP experience remains high. Again, IT industry experience is a critical requirement more frequently sought after by hiring managers particularly at the more senior level. At the more junior level, there is more flexibility to consider corporate/commercial candidates with limited technology experience.

Senior management needs to understand the regulatory implications and risk of commercialisation, data transfer, cyber security and IT risk as a high priority. Therefore the demand for telecom, eCommerce, fair trade and other related regulatory expertise, as well as data security/protection expertise has grown significantly, and there is no leveling off of demand in sight for 2016 or the next few years.

Compensation

IN-HOUSE Commerce

IN-H

OU

SE Co

mm

erc

e

5,000 – 8,500

8,000 – 14,000

12,000 – 18,000

17,000 – 28,000

25,000 – 35,000+

PQE/ Experience Monthly Salary Range (SGD)

Average Annual Bonus

1 – 2 months

1 – 3 months

2 – 4 months

2 – 5+ months

3 – 5+ months

1 – 3 years

4 – 7 years

8 – 10 years

11 – 14 years

15+ General Counsel


Contacts

Edward PhilipAssociate Director

Legal, Compliance & Private PracticeSingapore, South East Asia+65 3157 [email protected]

Edward is an Associate Director based in Singapore, responsible for the recruitment of Legal & Compliance professionals across South East Asia.

He recruits across both the Private Practice and In-House markets where he has an extensive network and holds numerous relationships with Senior Partners, Heads of Legal & Compliance and Human Resources professionals.

Previously, Edward worked as a lawyer with a boutique West London firm advising on commercial disputes before moving into the Financial Services Industry where he serviced Chinese clients investing in the UK.

Edward holds a Bachelors degree in French from the University of Exeter and an LLB from the College of Law, London, UK. He was admitted as a solicitor in 2008.

Edward is a MOM registered EA, registration number: R1329057.

Jonathan MarkSenior Consultant

Legal & Private PracticeSingapore, Asia Pacific+65 3157 [email protected]

Jonathan is a Senior Consultant based in Singapore, specializing in the recruitment of legal professionals in Singapore, Malaysia and throughout the Asia Pacific region.

He is responsible for the placement of lawyers and related legal professionals across all levels for both the private practice and in-house markets. He has established strong relationships with hiring Partners and Heads of Legal & Compliance in a variety of industries including regional and global international law firms, technology, e-commerce, insurance, investment and asset management firms, consumer and private banks, hedge funds and private equity.

Prior to joining the recruitment industry, Jonathan worked as a lawyer with a Fortune 500 company in the United States, specializing in Employment and Labour Relations. He holds a Bachelor’s Degree in Biological Sciences from the Johns Hopkins University and a Juris Doctor from Boston College.


About Aquis Search

Aquis Search is a leading regional Executive Search firm specialising in the Finance & Accounting, Human Resources & Corporate Services, Investment Management, Legal and Risk & Compliance sectors across Asia. We offer clients Executive Search, Research & Advisory, Search & Selection and Contract & Payroll services.

Our clients are members of a global network of prestigious financial institutions, leading UK and US law firms, regional market leaders and Fortune 500 organisations. Clients’ recruitment briefs are successfully met by our team of experienced, multilingual Consultants. Professional integrity is the key value on which our client relationships are built and the majority of our business is from personal referral. This is a testament to the high level of professionalism for which we are known.

Aquis Search was established in Hong Kong in 2009. Today we operate offices in Beijing, Hong Kong, Mumbai, Shanghai, Singapore and Taipei.

For further information please contact Aquis Search below or to email [email protected]

Hong Kong:19/F, Kailey Tower, 16 Stanley Street, Central, Hong Kong+852 2537 0333

Singapore:11/F Straits Trading Building, 9 Battery Road, Singapore 049910+65 3157 9393

Shanghai:Unit B21, 22/F, Tower 3, Jing An Kerry Centre, 1228 Middle Yan’an Road, Shanghai, China 200040 +86 21 3319 1977

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Delhi:Suite 422, Level 4, Rectangle 1, Commercial Complex D-4, Saket, New Delhi-110017, India+91 11 4553 8909

Singapore Legal Salary Survey 2016

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