Rounding out the Remuneration Report into the Big 6 today is Clayton Utz. From a partnership perspective, Clutz has enjoyed one of the best financial performances over the last year. In 2008/2009, revenue for Clutz skyrocketed by a whopping 4.9% to $491,000,000.00, making it the fourth highest be revenue nationally. An incredible result, really, in the midst of a financial crisis.

Top partners are reported to have taken home $1,600,000.00.

fear not, David

But it has all come at significant cost to the firm’s reputation and brand. Myopic partners, consumed by their bank balances, will likely count the cost in years to come with a crop of dud graduates and laterals who fill the seats vacated by disillusioned staff.

The Firm Spy had a hearty chuckle at the assessment recently given by our friends at ALB to Clayton Utz Chief Executive Partner David Fagan:

While most firm revenues took an inevitable slide during the GFC - some firms declined to release their 2009 figures at all - Clayton Utz has been something of a quiet achiever, maintaining growth at a rate in excess of its comparable rivals. Fagan is an astute commentator on the industry and a rare example of a law firm boss who is not afraid to speak his mind.

Not afraid to speak his mind? Sydney graduates would beg to differ. Those folks were apparently promised $5k raises at the end of each of their rotations, only to be reportedly dodged by the partnership! Was Mr Fagan minded to tell the grads that the partners would not be delivering on the alleged promise to pay the raises?

Fagan wasn’t minded, we don’t think, to “speak his mind” in relation to the procession of claims (reported by us) that the firm was allegedly systematically managing-out staff at the height of the GFC.

And what about that shocking hullabaloo in relation to the pay freeze?! Remember - when the AFR reported the firm as having said that it had “not made a final decision yet” about legal salaries, despite staff having been earlier informed that a pay freeze was being implemented!? Was someone, perchance, afraid to speak their mind?

Now onto lawyer salaries.

Firm Spy cannot confirm the veracity of these figures. They come from anonymous sources.

Sydney

0-1 Years PQE

Admitted between July 2008 and June 2009. Billable hours target - 7hours. Gross package 2008/2009 - $67,000. Gross package 2009/2010 - $67,000. Perks free fruit. Comments:
All graduates were told they would receive a salary increase of at least $5k p/a at the end of each of our 3 rotations (every 6 months). A detail conveniently not included in our employment contracts, but generally accepted and relied on by the graduates. For some reason our first rotation was extended from 6 months to 7 months and finally in March 2009, the Friday before we were due to start our second rotation and when we were eagerly expecting or anticipating our pay-rise, we were taken aside by someone from HR and told that the firm had decided to ‘hold’ grad salaries at their current rate because of market conditions - and that this was basically to avoid redundancies. This was actually prior to CU announcing the firm-wide salary-freeze.

and, from another tipster:

the buggers stiffed usin March on a pay rise they had promised us

1-2 Years PQE

Admitted between July 2007 and June 2008. Billable hours target - 7 hours. Gross package 2008/2009 - $73,000. Gross package 2009/2010 - $73,000. Perks: blackberry; free fruit; sparkling water on tap. Comments:

all overly demanding and hormonal partners; office politics; trying to avoid daggers every day from other solicitors; redundancies that have been made have been made very quietly, one day someone is in their office, then it’s empty.

3-4 Years PQE

Admitted between July 2005 and June 2006. Billable hours target - 7hours. Gross package 2008/2009 - $89,000. Gross package 2009/2010 - $89,000. Perks free fruit; blackberry

4-5 Years PQE

Admitted between July 2004 and June 2005. Billable hours target - 7hours. Gross package 2008/2009 - $103,000. Gross package 2009/2010 - $103,000. Perks free fruit, blackberry

Brisbane

0-1 Years PQE

Admitted between July 2006 and June 2007. Billable hours target - 7hours. Gross package 2008/2009 - $63,000. Gross package 2009/2010 - $63,000. Perks free fruit; mobile; subsidised further education

Melbourne

Paralegal

Not admitted. Billable hours target - 3 hours. Gross package 2008/2009 - $56,000. Gross package 2009/2010 - $56,000. Perks free fruit.

Special Counsel

More than 10 years PQE. Admitted before 1999. Billable hours - 7 hours. Gross package 2008/2009 - $195,000. Gross package 2009/2010 - $205,000. Perks - blackberry; free fruit.

Canberra

It is very clear to us that the Firm Spy Remuneration Report has thus far been a ratings bonanza. Our internet traffic has taken off on (what our favourite special comments person would term) a “semi-ballistic trajectory”. And so, today we move onto Blake Dawson.

when enough is enough

By way of background, Blake Dawson has undergone a GFC period as tumultuous as any of the Big 6, though its partners still pocketed up to a reported $1,200,000. Distringuishable from other firms, however, Blakes has repeatedly deployed its PR machine with an almost comical modus operandi - break bad news to staff and then try to score points in the media with half-truths and distortion.

An excellent example is the Blake Dawson pay-rise-pay-freeze. At the time, the firm denied that it was introducing a blanket pay freeze, instead telling media it would still:

‘recognise exceptional performances but in a more focused way than in previous years.’

What is this “focus” rubbish? The firm later clarified, after the Firm Spy suggested that its pay position was less about “remuneration focus” and more about “remuneration f*ck-us”, that 30% of staff had received pay rises. We subsequently revealed, thanks to the excellent work of a Blakes firm spy, that the figure reported by the firm of 30% included raises given to newly admitted lawyers and elevations to SA. All of a sudden, 30% became 18%! Let’s hope that half of the 18% given pay rises weren’t support staff, otherwise less than one in ten lawyers would have received a pay rise. F*ck us? Err… maybe it is time for a “f*ck-you” strike! It wouldn’t be the first time that a revolt has been mooted. Little wonder why Blakes lawyer turn to chicanery like hijacking.

…And onto the figures reported by our anonymous Blake Dawson spies.

Firm Spy cannot guarantee the veracity of the figures quoted. They come from anonymous sources.

Sydney

Summer Clerk

Not admitted. Daily billable hours target - 5 hours. Salary - $900 per week. Comments:

Summer clerk for the upcoming break. Salary $900 incl super. Free gym membership for the 12 week period.

1-2 Years PQE

Admitted between July 2007 and June 2008. Daily billable hours target - 6.5 hours. Gross package 2008/2009 - $86,000. Gross package 2009/2010 - $86,000. Perks - free gym, subsidised further education.

2-3 Years PQE

Admitted between July 2006 and June 2007. Daily billable hours target - 6.5 hours. Gross package 2008/2009 - $88,000. Gross package 2009/2010 - $88,000. Perks - free gym, purchase additional leave, subsidised further education.

3-4 Years PQE

Admitted between July 2005 and June 2006. Daily billable hours target - 6.5 hours. Gross package 2008/2009 - $110,000. Gross package 2009/2010 - $110,000. Perks - free gym.

6-7 Years PQE

Admitted between July 2002 and June 2003. Daily billable hours target - 6.5 hours. Gross package 2008/2009 - $128,000. Gross package 2009/2010 - $128,000. Perks - blackberry, free gym, subsidised further education.

7-8 Years PQE

Admitted between July 2001 an June 2002. Daily billable hours target - 6.5 hours. Gross package 2008/2009 - $185,000. Gross package 2009/2010 - $200,000. Perks - blackberry, free gym, subsidised further education.

Melbourne

0-1 Years PQE

Admitted between July 2008 and June 2009. Daily billable hours target - 6.5 hours. Gross package 2008/2009 - $67,000. Gross package 2009/2010 - $70,000. Perks - purchase additional leave. Comments:

Morale is terrible. Many people I know will leave when hiring picks up again - so the firm is going to have a shortage of lawyers when many take off for greener pastures. Very small pay rise for those who were newly admitted (credit where it is due - any pay rise is better than none) from $67k to $70k. That is where the stats used to come from  - ie they gave x% of employees pay rises. The truth is, there were no pay rises for lawyers with 1, 2 and 3 years PQE. Revenue was only 1-2% down from the previous financial year [ED - it was actually lower by a mere 0.5%], staff have been shed, discretionary costs are down, lawyers are working long hours and harder than ever. By the sound of it, partners aren’t feeling any impact from the GFC. A couple of people I know did get a “bonus” in the form of a $200 gift voucher from Myer. WOW!!!

4-5 Years PQE

Admitted between July 2004 and June 2005. Daily billable hours target - 6.5hours. Gross package 2008/2009 - $90,000. Gross package 2009/2010 - $92,500. Perks - blackberry.

5-6 Years PQE

Admitted between July 2003 and June 2004. Daily billable hours target - 7 hours. Gross package 2008/2009 - $92,000. Gross package 2009/2010 - $94,000. Perks - blackberry, free fruit. Comments:

The unfriendly work environment, uncollegiate atmosphere, uninteresting work, lack of support/mentoring, no emphasis on development, not enough client contact, under-resourced, not enough emphasis on expertise building, hopeless HR team [sic]*

Canberra

Graduate

Not admitted. Daily billable hours target - 6 hours. Gross package 2008/2009 - $68,000. Gross package 2009/2010 - $68,000. Perks - free gym, subsidised further education.

[ED - another ACT grad gave us the following entry]

Graduate

Not admitted. Daily billable hours target - 5.5 hours. Gross package 2008/2009 - $61,000. Gross package 2009/2010 - $61,000. Perks - free gym.

Brisbane

Graduate

Not admitted. Daily billable hours target - 6.5 hours. Gross package 2008/2009 - $65,000. Gross package 2009/2010 - $75,000. Perks - free gym, subsidised further education.

*yes, the comments just cut off at this point.

Send the Firm Spy your news and views!

Following our very popular reports into the remuneration of lawyers at:

STOP ALLENS ARTHUR HIGHWAY ROBBERY!

• Mallesons;
• Freehills; and
• Minter Ellison

we today move onto the salaries paid to lawyers at Allens Arthur Robinson. Allens reported the fifth highest revenue of any Australian law firm in 2008/2009 with $415,000,000.00. Top partners apparently earned an incredible $1,400,000.00 over the same period. Chief executive partner Michael Rose nevertheless recently had the cheek to say:

It is our sense that activity across the market as a whole is down. We would expect that things will stay relatively flat or decline further over the next 12 months.

This is how Mick and the team at Allens Arthur Highway Robbery Robinson reportedly remunerate their staff:

Firm Spy cannot confirm these statistics. They come from anonymous sources.

Perth

Paralegal

Not admitted. Daily billable target - 3 hours. Gross package 2008/2009 - $42,000. Gross package 2009/2010 - $44,850. Perks - free gym; free fruit.

0-1 Years PQE

Admitted between July 2008 and June 2009. Daily billable target - 3.5 hours. Gross package 2008/2009 - not entered. Gross package 2009/2010 - $65,000. Perks - free gym; free fruit; purchase additional leave; subsidised further education.

1-2 Years PQE

Admitted between July 2007 and June 2008. Daily billable target - 5 hours. Gross package 2008/2009 - $68,000. Gross package 2009/2010 $68,000. Perks - free gym; free fruit; purchase additional leave; subsidised further education. Comments:

Allens RPs making less than $2k more than the grads!

2-3 Years PQE

Admitted between July 2006 and June 2007. Daily billable target - 6.5 hours. Gross package 2008/2009 - $76,000. Gross package 2009/2010 $76,000. Perks - free gym; free fruit; purchase additional leave; subsidised further education. Comments:

Allens seems to be overflowing with eccentric, maladjusted partners. My friends at other top tiers seem to have far fewer than us. In fact, the greater the personality disorder, the greater the chance of promotion.

Melbourne

Graduate

Admitted after July 2009. Daily billable target - 4.5 hours. Gross package 2008/2009 - $63,000. Gross package 2009/2010 $63,000. Perks - free gym; free fruit; purchase additional leave; subsidised further education. Comments:

Free gym isn’t much of a “perk” - it is a disgusting, crowded cess pit.

2-3 Years PQE

Admitted between July 2006 and June 2007. Daily billable target - 7 hours. Gross package 2008/2009 - $69,000. Gross package 2009/2010 $69,000. Perks - free gym; free fruit; purchase additional leave; subsidised further education. Comments

Salary freeze and talking crap about “staying close to clients in tough times”, but still increasing my charge-out rate to them to $350 an hour. Also a bonus system that is only aimed at increasing partner profits to a level that is more competitive with Mallesons and Clayton Utz partners.

6-7 Years PQE

Admitted between July 2002 and June 2003. Daily billable target - 7.5 hours. Gross package 2008/2009 - $202,000. Gross package 2009/2010 - $202,000. Perks - free gym; free fruit; purchase additional leave; subsidised further education; blackberry.

Sydney

0-1 Years PQE

Admitted between July 2008 and June 2009. Daily billable target - 6 hours. Gross package 2008/2009 - $70,000. Gross package 2009/2010 $70,000. Perks - free gym; free fruit; purchase additional leave; subsidised further education.

3-4 Years PQE

Admitted between July2005  and June 2006. Daily billable target - 6.5 hours. Gross package 2008/2009 - $93,000. Gross package 2009/2010 $93,000. Perks - free gym; free fruit; purchase additional leave; subsidised further education; blackberry. Comments:

Ambivalent. Salary levels are awful. My charge our rate has increased $90 per hour but my salary has not. I am now a 3-4 year lawyer on a 2-3 year salary and I am busy! An AAR lawyer in 2008 was effectively paid more than those in 2009.

5-6 Years PQE

Admitted between July 2003 and June 2004. Daily billable target - 8.5 hours. Gross package 2008/2009 - $145,000. Gross package 2009/2010 - n/a. Perks - free gym; free fruit; purchase additional leave; subsidised further education; mobil phone.

Brisbane

0-1 Years PQE

Admitted between July 2008 and June 2009. Daily billable target - 6 hours. Gross package 2008/2009 - $63,000. Gross package 2009/2010 $63,000. Perks - free gym; free fruit; purchase additional leave; subsidised further education. Comments:

Sad - graduates are paid almost exactly the same as first year lawyers.

Send the Firm Spy your news and views!

Let’s kick off this fabulous Friday with a revised version of our report into Freehills lawyer salaries. Together with Minter Ellison, Freehills is Australia’s equal second largest firm by revenue. In 2008/2009, the firm reported revenue of $493million.

Top partners are reported to have earned $1,900,000.00.

This is how they apparently remunerate their staff.

1.9 Miiiiiiiiiiiiiiiiiiiillion!

Firm Spy cannot confirm these statistics. They come from anonymous sources.

Sydney

Graduate

Admitted 2009. Daily billable target - 4.5 hours. Gross package 2008/2009 - N/A. Gross package 2009/2010 - $70,000 + 9%. Perks - blackberry; free gym; subsidised further education

0-1 Years PQE

Admitted between July 2008 and June 2009. Daily billable target - 7.5 hours. Gross package 2008/2009 - $70,000. Gross package 2009/2010 - $70,000. Perks - free fruit; free gym; purchase additional leave; subsidised further education

1-2 Years PQE

Admitted between July 2007 and June 2008. Daily billable target - 5.5 hours. Gross package 2008/2009 - $68,500. Gross package 2009/2010 - $82,000. Perks - free lunch once per week; free gym; subsidised further education; purchase additional leave.

Several entries quote the above, while several quote the figures below. ??????????

Admitted between July 2007 and June 2008. Daily billable target - 6 hours. Gross package 2008/2009 - $85,000. Gross package 2009/2010 - $85,000. Perks - free fruit; free gym; subsidised further education

3-4 Years PQE

Admitted between July 2005 and June 2006. Daily billable target - 7.5 hours. Gross package 2008/2009 - $95,000. Gross package 2009/2010 - $95,000. Bonus - $5000. Perks - free fruit; free gym; subsidised further education

6-7 Years PQE

Admitted between July 2002 and June 2003. Daily billable target - 7.5 hours. Gross package 2008/2009 - $170,000. Gross package 2009/2010 - $185,000. Perks - blackberry; free fruit;; free gym; subsidised further education

10+ Years PQE

Admitted before 1999. Billable target - 7.5 hours. Gross package 2008/2009 - $205,000. Gross package 2009/2010 - $205,000. Bonus - $22,000. Perks - blackberry; free gym; subsidised further education

Melbourne

Graduate

Admitted after June 2009. Daily billable target - 4.5 hours. Gross package 2008/2009 - $63,000. Gross package 2009/2010 - $63,000. Perks - free fruit; purchase additional leave; subsidised further education.

0-1 Years PQE

Admitted between July 2008 and June 2009. Daily billable target - 6 hours. Gross package 2008/2009 - $64,000. Gross package 2009/2010 - $64,000. Perks - free fruit; subsidised further education

3-4 Years PQE

Admitted between July 2005 and June 2006. Daily billable target - 6 hours. Gross package 2008/2009 - $95,000. Gross package 2009/2010 - $98,000. Perks - free fruit; subsidised further education

4-5 Years PQE

Admitted between July 2004 and June 2005. Daily billable target - 6 hours. Gross package 2008/2009 - $115,000. Gross package 2009/2010 - $130,000. Perks - blackberry; free fruit; subsidised further education.

8-9 Years PQE

Admitted between July 2000 and June 2001. Daily billable target - 7 hours. Gross package 2008/2009 - $155,000. Gross package 2009/2010 - $155,000. Perks - blackberry; subsidised further education

Brisbane

Graduate

Admitted between July 2008 and June 2009. Daily billable target - 4.5 hours. Gross package 2008/2009 - $60,000. Gross package 2009/2010 - $60,000. Perks - free fruit; college of law; study leave; subsidised further education.

Perth

0-1 Years PQE

Admitted between July 2008 and June 2009. Daily billable target - 6 hours. Gross package 2008/2009 - $65,000. Gross package 2009/2010 - $65,000. Perks - free fruit; free gym; subsidised further education

Send the Firm Spy your news and views

Please find below our revised report into Mallesons lawyer salaries. Thankfully, the firm has introduced a sweeping redundancy scheme in between the receipt of many of these responses and today’s publication, making it difficult to determine who has submitted the relevant responses and whether they remain at the firm.

Of course, we’re dealing with a chief executive warlock, so anything is possible! Please let us know if you’re worried that we have inadvertently exposed you as an anonymous tipster (of sorts) by sending us your remuneration package details.

We still need more people to complete the survey, so by all means continue your great work by filling in the remuneration survey.

We will post each of the Big 6 law firms in order of revenue.

Mallesons is on the record as saying that its partnership has a whopping profit margin of 44%. It is easy to see why when looking at the paltry salaries given to staff.

Firm Spy cannot guarantee the accuracy of these figures. They come from anonymous sources.

Brisbane

0-1 Years PQE

Admitted between July 2008 and June 2009. Daily billable target - 6 hours. Gross package 2008/2009 - $60,000. Gross package 2009/2010 - $65,000. Perks - free fruit; free gym; subsidised further education.

6-7 Years PQE

Admitted between July 2002 and June 2003. Daily billable target - 7.5 hours. Gross package 2008/2009 - $139,000. Gross package 2009/2010 - $139,000. Perks - blackberry; free fruit; free gym; subsidised further education.

7-8 Years PQE

Admitted before - July 2002. Daily billable target - 7.5 hours. Gross package 2008/2009 - $138,000. Gross package 2009/2010 - $138,000. Perks - blackberry; free gym; subsidised further education.

Melbourne

Graduate

Admitted 2009. Daily billable target - 4.5 hours. Gross package 2008/2009 - $64,000. Gross package 2009/2010 - $66,000. Perks - free fruit; free gym; subsidised further education. Comments:

I’m employed - counts for something.

[and]

Hi guys I’m a recently admitted (20 Oct) Solicitor in Mallesons’ Melbourne office. Your figures are correct but the billable targets are not. It was 4hrs/day when we were grads and is now 6hrs/day (since admission). Cheers

0-1 Years PQE

Admitted between July 2008 and June 2009. Daily billable target - 6 hours. Gross package 2008/2009 - $68,000. Gross package 2009/2010 - $68,000. Perks - free fruit; free gym; subsidised further education.

1-2 Years PQE

Admitted before - July 2008. Daily billable target - 6.5 hours. Gross package 2008/2009 - $74,000. Gross package 2009/2010 - $74,000. Perks - free fruit; free gym; subsidised further education.

2-3 Years PQE

Admitted between July 2006 and June 2007. Daily billable target - 7 hours. Gross package 2008/2009 - $82,000. Gross package 2009/2010 - $82,000. Perks - free fruit; free gym; subsidised further education. Comments:

MSJ’s remuneration strategy is to pay below market (ie 80-90%). Lovely strategy given that the partners are the most well paid in Australia! If only they put that in their recruitment promotional material! Re the subsidised further education - there are quite strict rules about how long you must remain after you receive you final results (12 - 24 months) otherwise you must pay it all back.

4-5 Years PQE

Admitted between July 2004 and June 2005. Daily billable target - 7.5 hours. Gross package 2008/2009 - $102,000. Gross package 2009/2010 - $102,000. Perks - blackberry; free fruit; free gym; subsidised further education.

6-7 Years PQE

Admitted between July 2002 and June 2003. Daily billable target - 6.5 hours. Gross package 2008/2009 - $115,000. Gross package 2009/2010 - $123,000. Bonus - $11,500. Perks - free fruit; free gym; subsidised further education.

8-9 Years PQE

Admitted between July 2000 and June 2001. Daily billable target - 7.5 hours. Gross package 2008/2009 - $163,000. Gross package 2009/2010 - $163,000. Perks - blackberry; free fruit; free gym; subsidised further education; purchase additional leave. Comments:

I don’t think a blackberry is a perk! The fresh fruit is only available in some departments. Generally it’s a great place to work but so much depends on the particular partners you are working with. One thing that could be improved is transparency in career paths and future prospects.

10+ Years PQE

Admitted before - 1999. Daily billable target - 7.5 hours. Gross package 2008/2009 - $130,000. Gross package 2009/2010 - $130,000. Perks - free fruit; free gym; subsidised further education.

Sydney

Paralegal

 Daily billable target - 4 hours. Gross package 2008/2009 - $65,000. Gross package 2009/2010 - $65,000. Perks - free gym.

0-1 Years PQE

Admitted between July 2008 and June 2009. Daily billable target - 6 hours. Gross package 2008/2009 - $76,000. Gross package 2009/2010 - $76,000. Perks - free fruit; free gym; subsidised further education.

1-2 Years PQE

Admitted between July 2007 and June 2008. Daily billable target - 6.5 hours. Gross package 2008/2009 - $84,000. Gross package 2009/2010 - $84,000. Perks - free fruit; free gym; subsidised further education; parking on weekends; subsidised pilates and yoga; various discounts on products.

2-3 Years PQE

Admitted between July 2006 and June 2007. Daily billable target - 6.5 hours. Gross package 2008/2009 - $85,000. Gross package 2009/2010 - $85,000. Perks - blackberry; free fruit; free gym; subsidised further education.

5-6 Years PQE

Admitted between July 2003 and June 2004. Daily billable target - 7.5 hours. Gross package 2008/2009 - $137,000. Gross package 2009/2010 - $137,000. Bonus - $13,500. Perks - free fruit; free gym; subsidised further education; purchase extra leave.

8-9 Years PQE

Admitted between July 2000 and June 2001. Daily billable target - 7.5 hours. Gross package 2008/2009 - $153,000. Gross package 2009/2010 - $153,000. Perks - blackberry; free fruit; free gym; subsidised further education. Comments:

Crappy salary makes me feel sad and the partners’ massive profits do not help.

Perth

1-2 Years PQE

Admitted between - July 2007 and June 2008. Daily billable target - 6.5 hours. Gross package 2008/2009 - $77,000. Gross package 2009/2010 - $77,000. Bonus - $5000. Perks - free fruit; free gym; subsidised further education. Comments:

Despite the freezing of my already below market salary, my billable targets increased and so did my charge-out rate. Further, there is no rewards for top performers as can be seen by the token bonus received.

Err… it seems there is ALOT of interest in lawyer remuneration across the firms. The Firm Spy has experienced a major upswing in traffic this week, while our weekly newsletter subscribers have rocketed past a whopping 5000!

no bonus; no biscuits; no minties

On that basis, we intend to re-post the Mallesons and Freehills remuneration survery posts in a more exacting fashion, giving you all the info in intricate detail. Some of you have remarked that a major discrepancy exists between our figures and those promulgated by Hays “in association with the law firms”. We intend to dissect that once all the figures are up and if we get a sniff that the partners have been underquoting, rest assured you will hear about it!

We will kick things off with a revised report into remuneration at equal second largest national firm in terms of revenue, Minter Ellison. Before we do, let us post the comments we received from an anonymous Minters spy earlier today:

FYI - The Minters (Sydney at least) intranet blocks access to your firm salary survey - “This Websense category is filtered: Personal Network Storage and Backup”. I dont think it likes Google spreadsheets. I am not implying it is deliberate, just pointing it out if responses from here are poor. $77,000 (excl. super) - a couple of months shy of 2 years post admission. Sydney. We get free gym membership. Bonus scheme. No fruit. No biscuits. Good dinners after 7:45pm (previously 7pm but delayed mid-GFC to discourage people hanging around to eat - must have been all the starving juniors due to the pay freeze). Great site.

Apparently the MInters spy forgot to include the fantastic, and very valuable, initiative recently implemented by the Sydney Minters partnership to GIVE ALL STAFF ACCESS TO UNLIMITED FREE MINTER ELLISON-BRANDED DISPOSABLE COFFEE CUPS! Alas, the spy was correct that responses from Minters have been low. Feel free to change that folks by logging it at home and plugging your details into the survey, available at this link.

And now for the statistics:

Firm Spy cannot guarantee the accuracy of these figures. They come from anonymous sources

Sydney 1-2 years PQE

Admitted between July 2007 and June 2008. Daily billable target - 6.5 hours. Gross package 2008/2009 - $79,000. Gross package 2009/2010 - $80,000. No bonus last year. Free gym. Subsidised further education.

Melboure 2-3 years PQE

Admitted between July 2006 and June 2007. Daily billable hours target - 6 hours. Gross package 2008/2009 - $70,000. Gross package 2009/2010 - $75,000. No bonus last year. Free gym. Comments:

The firm overall is great (plenty of decent people at the junior level) but I work in a division which is run by a couple of retard partners. It’s a completely decentralised system, not even a pyramid structure as you would understand it - everyone’s like a sole practitioner… they use “upwards management” as their buzzword, which IMO is just an excuse for not managing. No communication for six months, then of course at the review meeting blame everything on you…upwards management - hah, what a load of bullshit.

Melboure 5-6 years PQE

Admitted between July 2003 and June 2004. Daily billable hours target - 6 hours. Gross package 2008/2009 - $110,000. Gross package 2009/2010 - $110,000. No bonus last year. Free gym. Purchase additional leave available. Subsidised further education.

Adelaide 1-2 years PQE

Admitted between July 2007 and June 2008. Daily billable hours target - 6 hours. Gross package 2008/2009 - $61,000. Gross package 2009/2010 - $62,500. $2500 bonus received last year.

We know - there is not much to report here! So please help out Minters lawyers!

Send the Firm Spy your news and views!

Thanks to the AFR for the following profile:

Partner Remuneration System

Lock-step, virtually full equity partnership

Partner Pay For 2008/09

Most of its equity partners earned $1,400,000.00 to $1,600,000.00. Entry-level partners earned $380,000.00 to $400,000.00.

Pay

Estimated Profit Margin = 44%

i see … another international merger!

Estimated Profit = $244,000,000.00

Estimated Profit Per Lawyer = $270,000.00

Estimated Profit Per Equity Partner = $1,300,000.00

Revenue

Revenue 2008/09 = $553,000,000.00

Revenue Change = +1.5%

Revenue Per Lawyer = $610,000.00

Revenue Per Partner = $2,920,000.00

Revenue Per Equity Partner = $2,940,000.00

The Verdict

Even though Mallesons is head and shoulders above its competitors in terms of revenue, chie executive Robert Milliner is cautious about the outlook for this year. Capital markets are showing signs of life but he says there is a lack of liquidity and he questions whether corporate recapitalisations will fuel a significant rise in transactions. Mergers and acquisitions and banking and finance work has now centred on capital raisings, specific projects and refinancings, infrsstructure, energy and resources, litigation and corporate work are showing signs of life.

Comment

Mallesons retains its position as leader of the law firm pack; it is attentively managed and highly responsive to client demands. Its early investment in Asia has helped create a growth in profile in a mature local market. Among its bigger deals was the advice it gave Chinalco on its proposed investment with Rio Tinto. Attention to costs allowed profit margins to be maintained this year, but the cost of the recent voluntary redundancy program will be felt this year, a program that reflects management’s tentative approach to the current year. But the firm will be leaner - and its profits protected - when business conditions pick up, putting it in an even stronger position for global growth.

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Partner Remuneration System

Performance-based with a bonus. Partnership size dwarfs its rivals.

Partner Pay For 2008/09

The firm paid a bonus to many partners last year, for the third year in a row. The very top equity partners took home $1,450,000.00, while about 40% got $1,100,000.00, inclusive of bonus, last year.

Pay

Estimated Profit Margin = 40%

Estimated Profit = $197,000,000.00

the faces behind the partnership

Estimated Profit Per Lawyer = $190,000.00

Estimated Profit Per Equity Partner = $890,000.00

Revenue

Revenue 2008/09 = $493,000,000.00

Revenue Change = +4.7%

Revenue Per Lawyer = $470,000.00

Revenue Per Partner = $1,760,000.00

Revenue Per Equity Partner = $2,230,000.00

The Verdict

Chief executive partner John Weber says his first year was “very tough”, especially in the second half, when work levels failed to return after Christmas - although conditions began to improve in May and June. Almost 5% revenue growth for the last year was driven by the government practice group, along with litigation, human resources and industrial relations, which all reported double-digit revenue growth.

Comment

Minter is the behemoth in terms of partner numbers, which creates challenges in terms of integrating systems and cultures, but the management team is seeking to bring offices closer together. The firm became more profitable by planning for the financial crisis two years ago, when it sublet office space. While its size and revenue performance suggests Minter is one of the leading players, it is somewhat enigmatic to its competitors.

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Partner Remuneration Survey

Performance-based, full equity partnership.

Partner Pay 2008/09

The top partners are said to draw $1,900,000.00 after bonuses are distributed, while most 120-point partners receive between $1,400,000.00 and $1,500,000.00. Entry-level partners receive $380,000.00.

Pay

Estimated Profit Margin = 41%

Estimated Profit = $202,000,000.00

steady revenue this year

Estimated Profit Per Lawyer = $260,000.00

Estimated Profit Per Equity Partner = $980,000.00

Revenue

Revenue 2008/09 = $493,000,000.00

Revenue Change = 0%

Revenue Per Lawyer = $630,000.00

Revenue Per Partner = $2,390,000.00

Revenue Per Equity Partner = $2,390,000.00

The Verdict

Freehills is working on the Myer float, announced last week, and Freehills chief executive Gavin Bell says more capital raisings are pending. He says Freehills has avoided a redundancy program after allowing headcount to fall as a result of natural attrition, following a cost review two years ago, which also stripped other expenses from the business.

Comment

Revenue has been flat for two years, allowing Clayton Utz and Minter Ellison to close the gap and forcing Freehills’ management to look to China for growth; last week, it announced an alliance with China-based TransAsia Lawyers to boost inbound investment briefs. While Freehills has lost several high-profile lawyers over the past year, the quality and depth of the partnership is rivalled only by Mallesons Steohen Jaques.

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Partner Remuneration System

Lock-step model.

Partner Pay 2008/09

The best equity partners pulled in between $1,400,000.00 and $1,600,000.00, with the lowest starting on $450,000.00. Fixed-share partners, who make up two-fifths of the partnership, received between $300,000.00 and $400,000.00.

Pay

Estimated Profit Margin = 46%

reverting to old PCs after cuts in discretionary spending

Estimated Profit = $225,000,000.00

Estimated Profit Per Lawyer = $260,000.00

Estimated Profit Per Equity Partner = $1,250,000.00

Revenue

Revenue 2008/09 = 491,000,000.00

Revenue Change = +4.9%

Revenue Per Lawyer = $560,000.00

Revenue Per Partner = $2,260,000.00

Revenue Per Equity Partner = $2,750,000.00

The Verdict

Chief executive partner David Fagan says the firm is optimistic about the 2010 financial year and is advising on some major infrastructure projects, including the winning consortium on Victoria’s desalination roject, Queensland government’s asset sale program and Perth’s Northbridge rail project. It is also expecting an increase in regulatory litigation in the wake of the economic crisis.

Comment

Clayton Utz is the most profitable law firm and the economic environment is playing to its strengths in litigation and major infrastructure. It has avoided significant staff cuts by paying more rigorous attention to discretionary spending. The firm is making inroads on its competitors in the client relationship stakes, investing more in client feedback.

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