Junior finance lawyers earn more than counterparts in other practice areas

Emolument, an online service that crowdsources pay-related data, has released research into (i) which are the best-paying practice areas for junior lawyers, and (ii) the pay gap between those working for a law firm and those that have gone in house.

Unsurprisingly, the highest junior salaries are attached to those working in finance related areas, with leveraged and acquisition finance topping the league table at an average of £90,000. This is swiftly followed by investment funds (£82,000), and derivatives and structured finance (£72,000) in spots two and three. It’s not until you get down to intellectual property at £58,000 that a non-finance specific area makes an appearance in the list. And private client, at £45,000, is exactly half of the top finance spot.

The survey also looked at entry-level in-house salaries. Again, the most highly paid are those junior lawyers working in the world of finance - banking and financial service companies pay an average of £50,000. Compare this to the next sector on the list, insurance, at £31,000. Lowest is in the charity and not-for-profit space, with an average salary of £26,000.

The gap between working within a firm and in house widens as lawyers become more experienced, becoming particularly marked at around the 10-year mark:

Alice Leguay, co-founder and chief operating officer at Emolument, said: “While choosing to study law is a long and demanding journey, it is rewarding when it comes to picking a career and a working environment. If it's high pay you are looking for, then aim for legal counsel positions at investment banks or finance-related departments within a law firm. Beyond pay though, working as legal counsel is an effective way to switch sectors and infiltrate a new industry or firm as other opportunities beyond purely law-related jobs are bound to open up. A stepping-stone to a different career or a vocation, being a lawyer is a bow with many strings.”