Law firm compensation, benefits and billing report 2023/2024 - Hong Kong

Insights HONG KONG  Law firm compensation,  benefits and billing report  2023/24 Private and Confidential Researched in September 2023 by Lexology Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 A Contents Foreword 1 Methodology 2 Key to tables and charts 3 Compensation trends 10 Billing rate trends 12 Table and charts Base compensation (fee-earners) UK law firms Table 1a Annual base compensation (fee-earners) 13 Table 1b Lower-tier‡ UK law firms – typical annual base compensation bands (fee-earners) 14 Table 1c Lower-mid-tier‡ UK law firms – typical annual base compensation bands (fee-earners) 15 Table 1d Upper-mid-tier‡ UK law firms – typical annual base compensation bands (fee-earners) 16 Table 1e Upper-tier‡ UK law firms – typical annual base compensation bands (fee-earners) 17 US law firms Table 2a Annual base compensation (fee-earners) 18 Table 2b Lower-tier‡ US law firms – typical annual base compensation bands (fee-earners) 19 Table 2c Upper-tier‡ US law firms – typical annual base compensation bands (fee-earners) 20 Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 B All international law firms (total sample) Table 3a Annual base compensation (fee-earners) 21 Table 3b Annual base compensation (US-qualified fee-earners) 22 Chart 3 Annual base compensation (fee-earners) – median, 25th and 75th percentile firms and average salary  band range values 23 Base compensation (business services) All international law firms (total sample) Table 4a Annual base compensation (business management/compliance/facilities) 24 Table 4b Annual base compensation (finance/information technology) 25 Table 4c Annual base compensation (marketing/human resources) 26 Table 4d Annual base compensation (knowledge management/professional support/secretaries) 27 Bonuses All international law firms (total sample) Table 5a Bonus eligibility 28 Table 5b Prevalence of bonuses among firms that awarded bonuses during past year 29 Benefits and allowances All international law firms (total sample) Table 6a Benefits and allowances (housing and cost of living/education) 30 Table 6b Benefits and allowances (health and lifestyle/social) 31 Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 C Table 6c Benefits and allowances (equipment/travel and transport/food) 32 Table 6d Benefits and allowances (overtime/hours/holiday and leave) 33 Staff ratios and demographics All international law firms (total sample) Table 7a Average personnel ratios 34 Table 7b Average female/male demographic ratios 35 Table 7c Average size of sample offices 35 Table 7d Headcount growth and turnover 35 Billing rates UK law firms Table 8 Standard billing rates 36 All international law firms (total sample) Table 9 Standard billing rates 37 Chart 9 Standard billing rates – median, 25th and 75th percentile firms and average billing band range values 38 About Lexology PRO Insights 39 Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 1 RETURN TO CONTENTS Foreword This is the 16th edition of the Lexology PRO Insights Hong  Kong law firm compensation, benefits and billing report.  It was prepared on the basis of in-depth research carried  out during July to October 2023. The results are based on  data supplied by participating law firms. The report was  researched by Gwilym Davies of Lexology PRO Insights.  We intend to repeat this exercise annually, addressing  any fluctuations in the market, along with new areas as  suggested by respondents. For this reason, we remain eager  for feedback on the usefulness of the findings and on how  the report’s format and relevance can be improved. Profile of participating law firms We would like to express our appreciation to all of the  law firms that provided their time and cooperation in the  preparation of this report. Their identity is confidential.  All of the law firms surveyed for this report are experienced  in advising international and domestic clients across a range  of corporate, financial and general business areas. The  sample of participating firms breaks down as follows: • All international law firms (total sample for data  analysis) – 24 • International law firms of UK origin – 15  • International law firms of US origin – 9 With many law firms now truly international entities, the  terms ‘US firm’ and ‘UK firm’ above are used to refer to the  major originating component of a law firm.  Mean size of the offices surveyed (Hong Kong operations): • All personnel – 148 • Fee-earners – 78 • Support staff – 69  No data analysis was undertaken for groups whose sample  size was considered too small. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 2 RETURN TO CONTENTS Methodology IIn gathering the information for this report, we spoke to  senior decision makers at law firms and obtained details  of compensation, benefits and billing rates. The following  information is presented in such a way as to conceal the  identity of the firms that provided the information, while still  providing meaningful comparative data on compensation,  benefits and billing rates.  Readers may notice isolated statistical anomalies in certain  figures given in the tables and charts. These typically  result from occasional variations in the level of response  from participants or limited data samples for categories  not applicable to all firms, both of which can give rise to  isolated distortions. In these instances, please refer to the  charts for an indication of the general trend. In some cases,  interpolation has been used to ensure cohesive data for  associate pay and billing rate grids from respondents with  limited data sets.  Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 3 RETURN TO CONTENTS Key to tables and charts The following key clarifies what is meant by each job title, given that some are not universally applied by respondent firms: Fee-earners • Equity partner: A stakeholder in the firm. • Salaried/local partner: A local or junior partner who has  not been fully admitted into the firm’s core equity. • Counsel/of counsel: Typically a pre-partner position  or sometimes a consultant/academic/elder statesman  retained by the firm on a full- or part-time basis.  • Level n (typically n to [n+1] PQE/[n+1] year) associate: Lawyer at level n of a law firm’s associate seniority pay  scale, typically with n to [n+1] years’ recognised postqualification experience (PQE) since achieving Hong Kong  qualification or equivalent level. NQ at level 0 denotes  newly qualified. • Trainee – year n (HK or UK system): Trainee lawyer on  Hong Kong or UK system in year n of training contract. • Level n (typically n to [n+1] PQE/[n+1] year) associate  [US qualified]: US-qualified lawyer on non-localised pay  scheme at level n of US associate lockstep scale, typically  with n to [n+1] years’ recognised post-qualification  experience (PQE) since achieving qualification.  • Legal manager: Typically US or China-qualified lawyer  often awaiting Hong Kong qualification and usually  deemed to be just below Hong Kong newly qualified (NQ)  lawyer level.  • Paralegal – level n: Provides clerking duties, file  management and skilled support. Usually possesses  some form of legal training or qualification. • Translator – senior/manager: Experienced translator, in  some cases with management duties. • Translator – junior: Junior translator. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 4 RETURN TO CONTENTS Business services Note: Certain positions may be omitted from the results tables if the sample size is deemed insufficient (ie, if fewer than three  law firms have submitted data for a given position). General work title categories General work title category Description Common role titles Typical personnel supervision duties  (direct or indirect) Chief officer/regional head [level 6] Regional or global head Chief officer, global head, regional head, group  head, etc Entire regional divisions (typically 50+ personnel) Director/head of department [level 5] Directors/heads of department/highly senior  managers Director, head of department, senior manager,  office head, etc Entire departments, often across multiple offices  (typically 20+ personnel) Senior manager [level 4] Mid-level to senior managers Senior manager, manager, etc Team or department (typically 5-20 personnel) Manager/senior coordinator [level 3] Junior to mid-level managers/skilled or specialist  administration Manager, assistant manager, senior coordinator,  specialist, adviser, analyst, executive, etc Small team or department (typically 1-10  personnel) Coordinator [level 2] Senior administration Coordinator, specialist, adviser, analyst, executive,  engineer (IT) etc Usually none - perhaps supervising small team  (typically 1-5 personnel) Assistant [level 1] Junior administration Assistant, administrator, secretary, clerk,  technician etc Usually none Departmental and work function categories Business and office management • Business administration (general): Roles relating to the  firm or office’s general business operations, sometimes  overseeing multiple work functions (HR/finance/business  development, etc). • Project/change: Project-based roles within the firm  or office’s general business operations, sometimes  assigned to various departments. Risk, compliance and general counsel • Compliance: Roles relating to ensuring that the firm or  office is fully compliant with local regulatory, compliance  and risk issues. • Compliance lawyer: Qualified in-house lawyers  specialising in risk, compliance and regulatory issues. • Company secretarial/office of GC: Roles relating to the  firm or office’s internal legal affairs. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 5 RETURN TO CONTENTS • Public relations officer: Roles relating to procuring  local visas and ensuring staff compliance with local  employment regulations.  Facilities and office services • Facilities/office services: Roles relating to office  services, facilities, and health and safety. • Reception: Roles relating to reception and front of house. • Guest services/client host: Roles relating to guest  services and hosting of clients. • Travel: Roles relating to organising travel arrangements  for employees. • Driver/courier: Roles relating to driving and  courier services. • Security: Roles relating to facilities security. • Catering: Roles relating to in-house catering and serving. Finance • Financial operations (general): Roles relating to general  financial operations and management. • Accountant: Qualified or in-training accountants.  • Billing, accounts receivable and collections: Roles  relating to billing, credit control, invoicing and collections. • Accounts payable: Roles relating to accounts payable by  the firm or office. • Financial systems and reporting: Roles relating to  specialised financial systems, analysis and reporting. • Pricing and fee arrangements: Roles relating to pricing,  fee arrangements, and working with practice groups to  maximise utilisation and profit margins. • Payroll: Roles relating to firm and office payroll. • Taxation: Roles relating to internal firm or office  taxation issues. Information technology • IT (general): Roles relating to general information  technology management and strategy within the firm  or office. • Infrastructure and software: Roles relating to designing,  developing and building software and hardware for the  office, firm or clients. • IT support and training: Roles relating to technology  support and software training. Marketing and business development • Marketing/BD: Roles relating to firm or office business  development and marketing including work pitches. • Events/PR/communications: Roles relating to firm or  office public relations, events, general brand marketing  and awareness. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 6 RETURN TO CONTENTS Human resources • HR (general): Roles relating to general human resources  management and strategy. • Learning and development: Roles relating to hard and  soft training and the continued professional development  of staff and fee-earners. • Recruitment: Roles relating to firm or office recruitment  and retention, including graduate recruitment. • Diversity and inclusion: Roles relating to firm or office  diversity and inclusion policies.  • Compensation and benefits: Roles relating to reward,  compensation and benefits for staff and fee-earners. Knowledge and data management • Knowledge management/library: Roles relating to the  firm’s internal library and knowledge systems. • Research services: Roles relating to internal research  projects supporting practice groups and senior management.  • Data/CRM: Roles relating to managing and  maintaining internal data and customer relationship  management systems. Practice services and operations (professional support) • Legal project management: Non-fee-earning roles providing  strategic support to legal practice groups on specific projects. • Transaction support: Non-fee-earning roles providing  direct support to transactional practice groups. • Professional support lawyer: Non-fee-earning qualified  lawyers providing additional support for practice groups. • Document production: Roles relating to design, drafting  and production of client documents, marketing copy and  other outbound materials.  • File clerk: Roles providing file clerking duties. • Court clerk: Roles providing court clerking duties. Secretarial services • Secretarial services: Roles relating to the management  of secretarial teams. • Executive assistant: Experienced personal assistants to  partners and senior management. • Legal secretary – senior: Experienced secretaries  or assistants usually with some legal knowledge and  enhanced administrative duties, often working with  partners or senior lawyers. • Legal secretary – junior: Junior secretaries with limited  legal knowledge and administrative responsibilities,  typically working with associates. • Evening secretary: Afterhours secretaries. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 7 RETURN TO CONTENTS The following tables and charts illustrate the ranges of compensation and billing rates for the  report sample. Due to the nature of the report, there are variations in the level of detail provided by respondents. Every  attempt has been made to record the data in a common format in order to provide comparative statistics. For each of the previously detailed positions, each table gives the following data: • weighted mean;  • median (50th percentile); • arithmetic mean; • Insights average; • first/third quartile (25th/75th percentile firms); • average salary/billing band range; • fifth/95th percentile firms; • number of people in sample; and • number of firms in sample. The weighted mean is calculated using average salary and billing values and employee numbers provided by  participating law firms for a given job position. Therefore, firms with a greater number of employees will be  given more weight in calculating this figure.  The median (50th percentile) is the second quartile and the middle value of all average salary and billing  values given by participating firms for a given job position. The arithmetic mean is calculated using average salary and billing values provided by participating firms for  a given job position, with no weighting taken into account.  Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 8 RETURN TO CONTENTS The Insights average is a ‘mean of means’, calculated by taking the mean of the weighted mean, median  and arithmetic mean. This guidance figure may help to eliminate statistical anomalies which can arise in  calculating these various averages.  First quartile values represent average salary and billing figures for firms in the 25th percentile of the  sample group (typically lower-tier firms). Third quartile values represent average salary and billing figures  for firms in the 75th percentile of the sample group (typically upper-tier firms).  The average salary/billing band range figure is the mean difference between the highest and lowest salary/ billing values for a given job position at each participating firm. The fifth and 95th percentile values represent average salary and billing figures at the extreme ends of the  sample (typically firms near the very bottom and top of the sample group).  The number of people in the sample is the total number of people in the sample for a given job position. The number of firms in the sample is the number of participating law firms with relevant personnel in a  given job position.  Certain data may be omitted in certain employment categories or firm groups due to insufficient  sample sizes. Annual compensation figures for Hong Kong are in Hong Kong dollars. They are gross, full-time  equivalent (FTE 1.0), inclusive of any guaranteed 13th/14th-month bonus, but exclusive of performancerelated bonuses. They do not include the employer’s Mandatory Provident Fund contributions. Annual  compensation figures for US-qualified lawyers exclude any major allowances, such as cost-of-living  allowances.  Billing rates are hourly and in Hong Kong dollars.  Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 9 RETURN TO CONTENTS Where figures were provided in currencies other than those on display, the following exchange rates  were used: USD1 = HKD7.84 (no change on the exchange rate of HKD7.84 used in last year’s research)  GBP1 = HKD9.89 (+9.6% on the exchange rate of HKD9.02used in last year’s research) Readers will notice isolated anomalies in the average figures for compensation and billing. These are the  result of occasional variations in the levels of response, giving rise to some distortions. In these instances,  please refer to the charts for a better indication of the overall trend in that particular sector.  Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 10 RETURN TO CONTENTS Compensation trends Type of associate compensation system operated by  firms surveyed: • Lockstep grid based purely on years’ PQE: 13% • Lockstep grid based primarily on years’ PQE (with some  flexibility based on merit/competency): 74% • Lockstep grid based purely on merit/competency  (not PQE): 13% UK law firms Comparing like-for-like associate salary changes among  UK law firms in Hong Kong, for which two years of data was  available, yielded the following results: • Percentage of firms that increased like-for-like associate  compensation bands: 71% • Median net percentage change in like trainee  compensation bands (year 1 to 2): 0% • Median net percentage change in like-for-like associate  compensation bands (0 to 3 PQE): +4.2% • Median net percentage change in like-for-like associate  compensation bands (3 to 7 PQE): +2.9% • Median net percentage change in like-for-like associate  compensation bands (7+ PQE): +4.2% • Median overall net percentage change in like-for-like  associate compensation bands: +3.4% US law firms Comparing like-for-like associate salary changes among  US law firms in Hong Kong, for which two years of data was  available, yielded the following results: • Percentage of firms that increased like-for-like associate  compensation bands: 71% • Median net percentage change in like trainee  compensation bands (year 1 to 2): 0% • Median net percentage change in like-for-like associate  compensation bands (0 to 3 PQE): +0.5% • Median net percentage change in like-for-like associate  compensation bands (3 to 7 PQE): +0.4% • Median net percentage change in like-for-like associate  compensation bands (7+ PQE): +1.1% • Median overall net percentage change in like-for-like  associate compensation bands: +1.6% Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 11 RETURN TO CONTENTS All international law firms (total sample) Comparing like-for-like associate salary changes among all  international law firms in Hong Kong, for which two years of  data was available, yielded the following results: • Percentage of firms that increased like-for-like associate  compensation bands: 71% • Median net percentage change in like trainee  compensation bands (year 1 to 2): 0% • Median net percentage change in like-for-like associate  compensation bands (0 to 3 PQE): +3.2% • Median net percentage change in like-for-like associate  compensation bands (3 to 7 PQE): +1.8% • Median net percentage change in like-for-like associate  compensation bands (7+ PQE): +1.9% • Median overall net percentage change in like-for-like  associate compensation bands: +1.8% Provided that associates meet performance targets,  they will typically advance up a seniority level in lockstep  compensation grids annually. The average annual salary  increase for an associate advancing up a level on a lockstep  grid in Hong Kong during the first 10 years of fully qualified  practice is 6.5%, associate compensation levels tending to  plateau thereafter. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 12 RETURN TO CONTENTS Billing rate trends – Hong Kong Comparing like-for-like associate billing rate changes  among all international law firms in Hong Kong, for which  two years of data was available, yielded the following results: • Percentage of firms that increased like-for-like associate  billing rate bands: 70% • Median net percentage change in like trainee billing rate  bands (year 1 to 2): +3.5% • Median net percentage change in like-for-like associate  billing rate bands (0 to 3 PQE): +2.0% • Median net percentage change in like-for-like associate  billing rate bands (3 to 7 PQE): +5.9% • Median net percentage change in like-for-like associate  billing rate bands (7+ PQE): +5.3% • Median overall net percentage change in like-for-like  associate billing rate bands: +4.8% Provided that associates meet performance targets, they  will typically advance up a seniority level in lockstep billing  grids annually. The average annual billing rate increase for  an associate advancing up a billing level on a lockstep grid in  Hong Kong during the first 10 years of fully qualified practice  is 6.0%, associate billing rates tending to plateau thereafter. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 13 RETURN TO CONTENTS Table 1a Hong Kong – UK law firms – annual base compensation (fee-earners) Position Weighted  mean Median (50th  percentile  firms) Arithmetic  mean Insights  average Average salary  band range 5th percentile  firms 1st quartile  (25th percentile  firms) 3rd quartile  (75th percentile  firms) 95th  percentile  firms Number of  people in  sample Number  of firms in  sample Salaried/local partner 2,821,000 2,905,000 2,798,000 2,841,000 1,457,000 2,585,000 2,727,000 2,922,000 2,936,000 27 3 Counsel/of counsel 2,273,000 2,262,000 2,171,000 2,235,000 646,000 1,648,000 1,974,000 2,383,000 2,633,000 64 13 Level 10+ (typically 10+ PQE/11th+ year) associate 1,966,000 2,020,000 1,917,000 1,968,000 339,000 1,515,000 1,744,000 2,056,000 2,197,000 53 13 Level 9 (typically 9-10 PQE/10th year) associate 1,914,000 1,725,000 1,827,000 1,822,000 220,000 1,515,000 1,704,000 1,986,000 2,216,000 31 13 Level 8 (typically 8-9 PQE/9th year) associate 1,802,000 1,706,000 1,748,000 1,752,000 225,000 1,453,000 1,593,000 1,811,000 2,156,000 33 14 Level 7 (typically 7-8 PQE/8th year) associate 1,675,000 1,623,000 1,627,000 1,642,000 194,000 1,303,000 1,469,000 1,731,000 1,991,000 39 14 Level 6 (typically 6-7 PQE/7th year) associate 1,615,000 1,524,000 1,562,000 1,567,000 302,000 1,273,000 1,405,000 1,635,000 1,952,000 51 14 Level 5 (typically 5-6 PQE/6th year) associate 1,551,000 1,436,000 1,478,000 1,488,000 161,000 1,197,000 1,403,000 1,521,000 1,819,000 53 15 Level 4 (typically 4-5 PQE/5th year) associate 1,450,000 1,365,000 1,377,000 1,397,000 154,000 1,144,000 1,285,000 1,463,000 1,633,000 64 15 Level 3 (typically 3-4 PQE/4th year) associate 1,328,000 1,289,000 1,305,000 1,307,000 139,000 1,124,000 1,206,000 1,381,000 1,553,000 62 15 Level 2 (typically 2-3 PQE/3rd year) associate 1,276,000 1,184,000 1,219,000 1,226,000 120,000 1,055,000 1,148,000 1,255,000 1,426,000 64 15 Level 1 (typically 1-2 PQE/2nd year) associate 1,149,000 1,149,000 1,136,000 1,145,000 63,000 968,000 1,053,000 1,194,000 1,336,000 58 15 Level 0/NQ (typically 0-1 PQE/1st year) associate 1,029,000 1,050,000 1,051,000 1,043,000 44,000 898,000 1,002,000 1,103,000 1,226,000 40 15 Trainee – year 2 (HK or UK system) 611,000 600,000 602,000 604,000 5,000 548,000 574,000 646,000 660,000 59 15 Trainee – year 1 (HK or UK system) 583,000 564,000 567,000 571,000 2,000 505,000 538,000 622,000 628,000 54 15 Legal manager (senior) 995,000 889,000 995,000 960,000 - 744,000 842,000 1,042,000 1,394,000 4 4 Paralegal – level 3+ 670,000 666,000 680,000 672,000 77,000 539,000 629,000 689,000 894,000 26 9 Paralegal – level 2 425,000 437,000 452,000 438,000 39,000 366,000 403,000 489,000 573,000 22 10 Paralegal – level 1 339,000 347,000 347,000 344,000 46,000 245,000 302,000 372,000 467,000 27 10 All figures in HKD annual - inclusive of any guaranteed 13th month bonus but exclusive of performance-related bonuses. All lawyers in this table are locally qualified or on localised pay packages. For US-qualified lawyers on US-style pay packages see table 3-b. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 14 RETURN TO CONTENTS Table 1b Hong Kong – lower-tier‡ UK law firms – typical annual base compensation bands  (fee-earners) Position Median lower salary band Median mid-band salary Median upper salary band Counsel/of counsel 1,568,000 1,658,000 1,860,000 Level 10+ (typically 10+ PQE/11th+ year) associate 1,542,000 1,565,000 1,588,000 Level 9 (typically 9-10 PQE/10th year) associate 1,542,000 1,565,000 1,588,000 Level 8 (typically 8-9 PQE/9th year) associate 1,344,000 1,461,000 1,536,000 Level 7 (typically 7-8 PQE/8th year) associate 1,296,000 1,359,000 1,496,000 Level 6 (typically 6-7 PQE/7th year) associate 1,260,000 1,332,000 1,344,000 Level 5 (typically 5-6 PQE/6th year) associate 1,160,000 1,228,000 1,260,000 Level 4 (typically 4-5 PQE/5th year) associate 1,116,000 1,168,000 1,224,000 Level 3 (typically 3-4 PQE/4th year) associate 1,080,000 1,153,000 1,167,000 Level 2 (typically 2-3 PQE/3rd year) associate 1,056,000 1,056,000 1,080,000 Level 1 (typically 1-2 PQE/2nd year) associate 988,000 1,008,000 1,038,000 Level 0/NQ (typically 0-1 PQE/1st year) associate 942,000 961,000 990,000 Trainee – year 2 (HK or UK system) 576,000 576,000 576,000 Trainee – year 1 (HK or UK system) 540,000 540,000 540,000 All figures in HKD annual - inclusive of any guaranteed 13th month bonus but exclusive of performance-related bonuses. ‡ Within the context of this table, ‘lower-tier UK firms’ has been defined as the group of UK firms for which average salaries typically sit below the 25th percentile of the total sample group of UK firms.  All lawyers in this table are locally qualified or on localised pay packages. For US-qualified lawyers on US-style pay packages see table 3-b. Interpolation may have been applied to certain statistical anomalies in the data set to generate the above table. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 15 RETURN TO CONTENTS Table 1c Hong Kong – lower-mid-tier‡ UK law firms – typical annual base compensation  bands (fee-earners) Position Median lower salary band Median mid-band salary Median upper salary band Counsel/of counsel 1,920,000 1,980,000 2,376,000 Level 10+ (typically 10+ PQE/11th+ year) associate 1,464,000 1,744,000 1,872,000 Level 9 (typically 9-10 PQE/10th year) associate 1,600,000 1,704,000 1,812,000 Level 8 (typically 8-9 PQE/9th year) associate 1,599,000 1,690,000 1,751,000 Level 7 (typically 7-8 PQE/8th year) associate 1,525,000 1,575,000 1,629,000 Level 6 (typically 6-7 PQE/7th year) associate 1,458,000 1,496,000 1,608,000 Level 5 (typically 5-6 PQE/6th year) associate 1,390,000 1,414,000 1,436,000 Level 4 (typically 4-5 PQE/5th year) associate 1,246,000 1,342,000 1,370,000 Level 3 (typically 3-4 PQE/4th year) associate 1,200,000 1,248,000 1,265,000 Level 2 (typically 2-3 PQE/3rd year) associate 1,133,000 1,176,000 1,230,000 Level 1 (typically 1-2 PQE/2nd year) associate 1,091,000 1,109,000 1,127,000 Level 0/NQ (typically 0-1 PQE/1st year) associate 1,047,000 1,047,000 1,068,000 Trainee – year 2 (HK or UK system) 564,000 564,000 564,000 Trainee – year 1 (HK or UK system) 534,000 534,000 534,000 All figures in HKD annual - inclusive of any guaranteed 13th month bonus but exclusive of performance-related bonuses. ‡ Within the context of this table, ‘lower-mid-tier UK law firms’ has been defined as the group of UK firms for which average associate salaries typically sit between the 25th and 50th percentile of the total sample group of UK law firms.  All lawyers in this table are locally qualified or on localised pay packages. For US-qualified lawyers on US-style pay packages see table 3-b. Interpolation may have been applied to certain statistical anomalies in the data set to generate the above table. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 16 RETURN TO CONTENTS Table 1d Hong Kong – upper-mid-tier‡ UK law firms – typical annual base compensation  bands (fee-earners) Position Median lower salary band Median mid-band salary Median upper salary band Counsel/of counsel 2,073,000 2,340,000 2,580,000 Level 10+ (typically 10+ PQE/11th+ year) associate 1,860,000 2,088,000 2,244,000 Level 9 (typically 9-10 PQE/10th year) associate 1,632,000 1,776,000 2,088,000 Level 8 (typically 8-9 PQE/9th year) associate 1,560,000 1,708,000 2,057,000 Level 7 (typically 7-8 PQE/8th year) associate 1,508,000 1,620,000 1,970,000 Level 6 (typically 6-7 PQE/7th year) associate 1,450,000 1,536,000 1,884,000 Level 5 (typically 5-6 PQE/6th year) associate 1,398,000 1,469,000 1,634,000 Level 4 (typically 4-5 PQE/5th year) associate 1,332,000 1,382,000 1,473,000 Level 3 (typically 3-4 PQE/4th year) associate 1,242,000 1,317,000 1,362,000 Level 2 (typically 2-3 PQE/3rd year) associate 1,150,000 1,204,000 1,290,000 Level 1 (typically 1-2 PQE/2nd year) associate 1,095,000 1,131,000 1,167,000 Level 0/NQ (typically 0-1 PQE/1st year) associate 1,015,000 1,035,000 1,071,000 Trainee – year 2 (HK or UK system) 630,000 630,000 630,000 Trainee – year 1 (HK or UK system) 594,000 594,000 594,000 All figures in HKD annual - inclusive of any guaranteed 13th month bonus but exclusive of performance-related bonuses. ‡ Within the context of this table, ‘upper-mid-tier UK law firms’ has been defined as the group of UK firms for which average associate salaries typically sit between the 50th and 75th percentile of the total sample group of UK law firms.  All lawyers in this table are locally qualified or on localised pay packages. For US-qualified lawyers on US-style pay packages see table 3-b. Interpolation may have been applied to certain statistical anomalies in the data set to generate the above table. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 17 RETURN TO CONTENTS Table 1e Hong Kong – upper-tier‡ UK law firms – typical annual base compensation bands  (fee-earners) Position Median lower salary band Median mid-band salary Median upper salary band Counsel/of counsel 2,136,000 2,565,000 3,060,000 Level 10+ (typically 10+ PQE/11th+ year) associate 2,005,000 2,094,000 2,130,000 Level 9 (typically 9-10 PQE/10th year) associate 2,049,000 2,094,000 2,108,000 Level 8 (typically 8-9 PQE/9th year) associate 1,976,000 2,007,000 2,036,000 Level 7 (typically 7-8 PQE/8th year) associate 1,885,000 1,985,000 2,005,000 Level 6 (typically 6-7 PQE/7th year) associate 1,674,000 1,902,000 1,937,000 Level 5 (typically 5-6 PQE/6th year) associate 1,642,000 1,775,000 1,873,000 Level 4 (typically 4-5 PQE/5th year) associate 1,510,000 1,600,000 1,659,000 Level 3 (typically 3-4 PQE/4th year) associate 1,412,000 1,514,000 1,574,000 Level 2 (typically 2-3 PQE/3rd year) associate 1,359,000 1,416,000 1,452,000 Level 1 (typically 1-2 PQE/2nd year) associate 1,276,000 1,306,000 1,330,000 Level 0/NQ (typically 0-1 PQE/1st year) associate 1,152,000 1,184,000 1,212,000 Trainee – year 2 (HK or UK system) 638,000 646,000 648,000 Trainee – year 1 (HK or UK system) 614,000 622,000 624,000 All figures in HKD annual - inclusive of any guaranteed 13th month bonus but exclusive of performance-related bonuses. ‡ Within the context of this table, ‘upper-tier UK firms’ has been defined as the group of UK firms for which average salaries typically sit above the 75th percentile of the total sample group of UK firms.  All lawyers in this table are locally qualified or on localised pay packages. For US-qualified lawyers on US-style pay packages see table 3-b. Interpolation may have been applied to certain statistical anomalies in the data set to generate the above table. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 18 RETURN TO CONTENTS Table 2a Hong Kong – US law firms – annual base compensation (fee-earners) Position Weighted  mean Median (50th  percentile  firms) Arithmetic  mean Insights  average Average salary  band range 5th percentile  firms 1st quartile  (25th percentile  firms) 3rd quartile  (75th percentile  firms) 95th  percentile  firms Number of  people in  sample Number  of firms in  sample Salaried/local partner 2,971,000 2,950,000 2,886,000 2,936,000 686,000 2,307,000 2,741,000 3,094,000 3,375,000 54 4 Counsel/of counsel 2,620,000 2,957,000 2,924,000 2,834,000 1,050,000 2,352,000 2,559,000 3,266,000 3,471,000 64 6 Level 10+ (typically 10+ PQE/11th+ year) associate 2,227,000 2,097,000 2,371,000 2,232,000 880,000 1,739,000 1,958,000 2,763,000 3,349,000 32 8 Level 9 (typically 9-10 PQE/10th year) associate 2,330,000 2,291,000 2,465,000 2,362,000 272,000 1,780,000 1,867,000 3,098,000 3,332,000 22 6 Level 8 (typically 8-9 PQE/9th year) associate 2,613,000 1,853,000 2,343,000 2,270,000 76,000 1,793,000 1,817,000 2,912,000 3,292,000 12 7 Level 7 (typically 7-8 PQE/8th year) associate 2,122,000 1,848,000 2,282,000 2,084,000 333,000 1,719,000 1,753,000 2,840,000 3,217,000 27 7 Level 6 (typically 6-7 PQE/7th year) associate 2,025,000 1,712,000 2,127,000 1,954,000 247,000 1,536,000 1,622,000 2,658,000 3,083,000 39 7 Level 5 (typically 5-6 PQE/6th year) associate 1,862,000 1,499,000 1,876,000 1,746,000 277,000 1,256,000 1,464,000 2,697,000 2,845,000 24 9 Level 4 (typically 4-5 PQE/5th year) associate 1,685,000 1,444,000 1,687,000 1,605,000 202,000 1,230,000 1,350,000 1,845,000 2,611,000 30 9 Level 3 (typically 3-4 PQE/4th year) associate 1,558,000 1,384,000 1,527,000 1,489,000 179,000 1,115,000 1,274,000 1,626,000 2,229,000 43 9 Level 2 (typically 2-3 PQE/3rd year) associate 1,456,000 1,275,000 1,391,000 1,374,000 125,000 1,055,000 1,201,000 1,518,000 1,915,000 45 8 Level 1 (typically 1-2 PQE/2nd year) associate 1,325,000 1,179,000 1,275,000 1,260,000 105,000 986,000 1,095,000 1,377,000 1,740,000 42 8 Level 0/NQ (typically 0-1 PQE/1st year) associate 1,228,000 1,127,000 1,208,000 1,188,000 10,000 893,000 1,062,000 1,283,000 1,676,000 33 8 Trainee – year 2 (HK or UK system) 684,000 660,000 670,000 672,000 211,000 594,000 624,000 736,000 742,000 31 5 Trainee – year 1 (HK or UK system) 607,000 582,000 600,000 596,000 - 543,000 557,000 624,000 682,000 18 4 Legal manager (junior) 1,160,000 1,159,000 1,077,000 1,132,000 396,000 864,000 995,000 1,200,000 1,234,000 6 3 Paralegal – level 3+ 951,000 920,000 921,000 931,000 604,000 806,000 816,000 1,025,000 1,036,000 23 4 Paralegal – level 2 576,000 566,000 569,000 570,000 108,000 533,000 551,000 584,000 608,000 30 4 Paralegal – level 1 406,000 391,000 380,000 392,000 77,000 322,000 344,000 401,000 441,000 17 7 All figures in HKD annual - inclusive of any guaranteed 13th month bonus but exclusive of performance-related bonuses. All lawyers in this table are locally qualified or on localised pay packages. For US-qualified lawyers on US-style pay packages see table 3-b. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 19 RETURN TO CONTENTS Table 2b Hong Kong – lower-tier‡ US law firms – typical annual base compensation bands  (fee-earners) Position Median lower salary band Median mid-band salary Median upper salary band Counsel/of counsel 1,950,000 2,677,000 3,286,000 Level 10+ (typically 10+ PQE/11th+ year) associate 1,616,000 2,010,000 2,117,000 Level 9 (typically 9-10 PQE/10th year) associate 1,638,000 1,827,000 1,920,000 Level 8 (typically 8-9 PQE/9th year) associate 1,801,000 1,817,000 1,854,000 Level 7 (typically 7-8 PQE/8th year) associate 1,541,000 1,753,000 1,788,000 Level 6 (typically 6-7 PQE/7th year) associate 1,426,000 1,622,000 1,674,000 Level 5 (typically 5-6 PQE/6th year) associate 1,349,000 1,473,000 1,527,000 Level 4 (typically 4-5 PQE/5th year) associate 1,272,000 1,368,000 1,449,000 Level 3 (typically 3-4 PQE/4th year) associate 1,223,000 1,299,000 1,329,000 Level 2 (typically 2-3 PQE/3rd year) associate 1,080,000 1,218,000 1,260,000 Level 1 (typically 1-2 PQE/2nd year) associate 1,008,000 1,122,000 1,140,000 Level 0/NQ (typically 0-1 PQE/1st year) associate 936,000 1,104,000 1,126,000 Trainee – year 2 (HK or UK system) 624,000 624,000 624,000 Trainee – year 1 (HK or UK system) 563,000 563,000 563,000 All figures in HKD annual - inclusive of any guaranteed 13th month bonus but exclusive of performance-related bonuses. ‡ Within the context of this table, ‘lower-tier US firms’ has been defined as the group of US firms for which average salaries typically sit below the median of the total sample group of US firms.  All lawyers in this table are locally qualified or on localised pay packages. For US-qualified lawyers on US-style pay packages see table 3-b. Interpolation may have been applied to certain statistical anomalies in the data set to generate the above table. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 20 RETURN TO CONTENTS Table 2c Hong Kong – upper-tier‡ US law firms – typical annual base compensation bands  (fee-earners) Position Median lower salary band Median mid-band salary Median upper salary band Level 10+ (typically 10+ PQE/11th+ year) associate 3,234,000 3,266,000 3,299,000 Level 9 (typically 9-10 PQE/10th year) associate 3,234,000 3,266,000 3,299,000 Level 8 (typically 8-9 PQE/9th year) associate 3,234,000 3,276,000 3,299,000 Level 7 (typically 7-8 PQE/8th year) associate 3,120,000 3,179,000 3,234,000 Level 6 (typically 6-7 PQE/7th year) associate 2,886,000 3,003,000 3,117,000 Level 5 (typically 5-6 PQE/6th year) associate 2,697,000 2,789,000 2,883,000 Level 4 (typically 4-5 PQE/5th year) associate 2,301,000 2,496,000 2,688,000 Level 3 (typically 3-4 PQE/4th year) associate 1,950,000 2,126,000 2,299,000 Level 2 (typically 2-3 PQE/3rd year) associate 1,755,000 1,853,000 1,948,000 Level 1 (typically 1-2 PQE/2nd year) associate 1,677,000 1,716,000 1,753,000 Level 0/NQ (typically 0-1 PQE/1st year) associate 1,642,000 1,675,000 1,709,000 Trainee – year 2 (HK or UK system) 702,000 702,000 818,000 Trainee – year 1 (HK or UK system) 696,000 696,000 696,000 All figures in HKD annual - inclusive of any guaranteed 13th month bonus but exclusive of performance-related bonuses. ‡ Within the context of this table, ‘upper-tier US firms’ has been defined as the group of US firms for which average salaries typically sit above the median of the total sample group of US firms.  All lawyers in this table are locally qualified or on localised pay packages. For US-qualified lawyers on US-style pay packages see table 3-b. Interpolation may have been applied to certain statistical anomalies in the data set to generate the above table. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 21 RETURN TO CONTENTS Table 3a Hong Kong – all international law firms (total sample) – annual base  compensation (fee-earners) Position Weighted  mean Median (50th  percentile  firms) Arithmetic  mean Insights  average Average salary  band range 5th percentile  firms 1st quartile  (25th percentile  firms) 3rd quartile  (75th percentile  firms) 95th  percentile  firms Number of  people in  sample Number  of firms in  sample Salaried/local partner 2,921,000 2,922,000 2,848,000 2,897,000 1,016,000 2,304,000 2,727,000 2,959,000 3,305,000 81 7 Counsel/of counsel 2,447,000 2,322,000 2,409,000 2,392,000 774,000 1,655,000 1,992,000 2,644,000 3,370,000 128 19 Level 10+ (typically 10+ PQE/11th+ year) associate 2,064,000 2,035,000 2,090,000 2,063,000 528,000 1,565,000 1,800,000 2,101,000 3,266,000 85 21 Level 9 (typically 9-10 PQE/10th year) associate 2,087,000 1,827,000 2,029,000 1,981,000 236,000 1,552,000 1,718,000 2,094,000 3,275,000 53 19 Level 8 (typically 8-9 PQE/9th year) associate 2,018,000 1,793,000 1,947,000 1,919,000 199,000 1,461,000 1,688,000 1,958,000 3,276,000 45 21 Level 7 (typically 7-8 PQE/8th year) associate 1,858,000 1,706,000 1,845,000 1,803,000 225,000 1,359,000 1,524,000 1,980,000 3,179,000 66 21 Level 6 (typically 6-7 PQE/7th year) associate 1,793,000 1,608,000 1,750,000 1,717,000 284,000 1,332,000 1,500,000 1,873,000 3,003,000 90 21 Level 5 (typically 5-6 PQE/6th year) associate 1,648,000 1,491,000 1,627,000 1,589,000 191,000 1,229,000 1,404,000 1,608,000 2,775,000 77 24 Level 4 (typically 4-5 PQE/5th year) associate 1,525,000 1,392,000 1,494,000 1,470,000 171,000 1,162,000 1,338,000 1,508,000 2,398,000 94 24 Level 3 (typically 3-4 PQE/4th year) associate 1,422,000 1,317,000 1,388,000 1,376,000 152,000 1,071,000 1,235,000 1,449,000 2,051,000 105 24 Level 2 (typically 2-3 PQE/3rd year) associate 1,350,000 1,224,000 1,279,000 1,285,000 122,000 1,052,000 1,160,000 1,349,000 1,812,000 109 23 Level 1 (typically 1-2 PQE/2nd year) associate 1,223,000 1,150,000 1,185,000 1,186,000 77,000 974,000 1,053,000 1,232,000 1,679,000 100 23 Level 0/NQ (typically 0-1 PQE/1st year) associate 1,119,000 1,080,000 1,106,000 1,102,000 33,000 877,000 1,002,000 1,146,000 1,633,000 73 23 Trainee – year 2 (HK or UK system) 636,000 600,000 619,000 618,000 53,000 551,000 576,000 651,000 737,000 90 20 Trainee – year 1 (HK or UK system) 589,000 564,000 574,000 576,000 2,000 512,000 540,000 622,000 642,000 72 19 Legal manager (senior) 1,211,000 896,000 1,211,000 1,106,000 469,000 752,000 882,000 1,482,000 1,958,000 5 5 Legal manager (junior) 1,012,000 831,000 874,000 906,000 396,000 552,000 600,000 1,159,000 1,225,000 8 5 Paralegal – level 3+ 802,000 689,000 754,000 748,000 252,000 540,000 636,000 820,000 1,028,000 49 13 Paralegal – level 2 512,000 473,000 485,000 490,000 64,000 376,000 424,000 566,000 589,000 52 14 Paralegal – level 1 364,000 359,000 360,000 361,000 57,000 250,000 321,000 396,000 461,000 44 17 Translator – senior/manager 740,000 657,000 711,000 703,000 83,000 578,000 613,000 782,000 883,000 5 3 Translator – junior 413,000 436,000 413,000 421,000 - 313,000 398,000 452,000 482,000 4 4 All figures in HKD annual - inclusive of any guaranteed 13th month bonus but exclusive of performance-related bonuses. All lawyers in this table are locally qualified or on localised pay packages. For US-qualified lawyers on US-style pay packages see table 3-b. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 22 RETURN TO CONTENTS Table 3b Hong Kong – all international law firms (total sample) – annual base  compensation (US-qualified fee-earners) Position Weighted  mean Median (50th  percentile  firms) Arithmetic  mean Insights  average Average  salary band  range 5th percentile  firms 1st quartile  (25th  percentile  firms) 3rd quartile  (75th  percentile  firms) 95th  percentile  firms Number of  people in  sample Number  of firms in  sample Level 10+ (typically 10+ PQE/11th+ year) associate [US qualified] 3,241,000 3,361,000 3,090,000 3,231,000 - 2,407,000 3,058,000 3,393,000 3,393,000 8 4 Level 9 (typically 9-10 PQE/10th year) associate [US qualified] 3,116,000 3,341,000 2,878,000 3,112,000 78,000 1,754,000 2,866,000 3,354,000 3,354,000 8 4 Level 8 (typically 8-9 PQE/9th year) associate [US qualified] 3,275,000 3,276,000 3,281,000 3,277,000 52,000 3,253,000 3,263,000 3,296,000 3,311,000 8 3 Level 7 (typically 7-8 PQE/8th year) associate [US qualified] 3,174,000 3,179,000 3,196,000 3,183,000 680,000 3,138,000 3,156,000 3,227,000 3,266,000 9 3 Level 6 (typically 6-7 PQE/7th year) associate [US qualified] 2,782,000 2,887,000 2,596,000 2,755,000 577,000 1,646,000 2,259,000 2,977,000 3,179,000 12 6 Level 5 (typically 5-6 PQE/6th year) associate [US qualified] 2,797,000 2,789,000 2,870,000 2,818,000 589,000 2,711,000 2,745,000 2,954,000 3,087,000 9 3 Level 4 (typically 4-5 PQE/5th year) associate [US qualified] 2,385,000 2,404,000 2,312,000 2,367,000 594,000 1,999,000 2,219,000 2,496,000 2,496,000 10 4 Level 3 (typically 3-4 PQE/4th year) associate [US qualified] 2,102,000 2,126,000 2,070,000 2,099,000 351,000 1,975,000 2,042,000 2,126,000 2,126,000 7 3 Level 2 (typically 2-3 PQE/3rd year) associate [US qualified] 1,613,000 1,853,000 1,724,000 1,730,000 219,000 1,371,000 1,672,000 1,853,000 1,926,000 17 5 Level 1 (typically 1-2 PQE/2nd year) associate [US qualified] 1,662,000 1,700,000 1,609,000 1,657,000 78,000 1,340,000 1,583,000 1,726,000 1,749,000 8 4 Level 0/NQ (typically 0-1 PQE/1st year) associate [US qualified] 1,678,000 1,677,000 1,680,000 1,678,000 - 1,677,000 1,677,000 1,681,000 1,684,000 7 3 All figures in HKD annual - inclusive of any guaranteed 13th month bonus but exclusive of performance-related bonuses. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 23 RETURN TO CONTENTS Chart 3 Hong Kong – all international law firms (total sample) – annual base  compensation (fee-earners) – median, 25th and 75th percentile firms and average  salary band range values  – – – – – – – All figures in HKD annual – inclusive of any guaranteed 13th month bonus but exclusive of performance-related bonuses. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 24 RETURN TO CONTENTS Table 4a Hong Kong – all international law firms (total sample) – annual base  compensation (business management/compliance/facilities) Position Weighted  mean Median (50th  percentile  firms) Arithmetic  mean Insights  average Average  salary band  range 5th percentile  firms 1st quartile  (25th  percentile  firms) 3rd quartile  (75th  percentile  firms) 95th  percentile  firms Number of  people in  sample Number  of firms in  sample Business and office management Business administration – director/head of department [level 5] 1,727,000 1,738,000 1,727,000 1,731,000 - 1,467,000 1,665,000 1,774,000 1,989,000 5 5 Business administration – senior manager [level 4] 1,317,000 1,332,000 1,317,000 1,322,000 - 1,254,000 1,289,000 1,353,000 1,369,000 3 3 Business administration – manager/senior coordinator [level 3] 809,000 796,000 809,000 805,000 - 613,000 756,000 830,000 1,035,000 5 5 Business administration – coordinator [level 2] 432,000 407,000 433,000 424,000 33,000 370,000 379,000 460,000 531,000 5 4 Business administration – assistant [level 1] 205,000 232,000 255,000 231,000 35,000 186,000 199,000 253,000 389,000 29 6 Risk, compliance and general counsel Compliance – manager/senior coordinator [level 3] 727,000 722,000 727,000 726,000 - 597,000 719,000 756,000 848,000 5 5 Compliance – coordinator [level 2] 467,000 436,000 470,000 457,000 145,000 389,000 405,000 532,000 581,000 7 5 Compliance – assistant [level 1] 303,000 322,000 336,000 320,000 67,000 262,000 270,000 388,000 428,000 7 4 Company secretarial/office of GC – manager/senior coordinator [level 3] 838,000 840,000 863,000 847,000 45,000 648,000 707,000 950,000 1,164,000 10 8 Company secretarial/office of GC – coordinator [level 2] 397,000 397,000 403,000 399,000 71,000 364,000 378,000 425,000 448,000 8 3 Company secretarial/office of GC – assistant [level 1] 299,000 300,000 295,000 298,000 175,000 251,000 271,000 317,000 332,000 8 6 Facilities and office services Facilities/office services – manager/senior coordinator [level 3] 752,000 756,000 752,000 753,000 - 605,000 702,000 803,000 891,000 10 10 Facilities/office services – coordinator [level 2] 355,000 371,000 385,000 370,000 69,000 304,000 330,000 413,000 521,000 30 13 Facilities/office services – assistant [level 1] 218,000 208,000 238,000 221,000 36,000 180,000 195,000 225,000 373,000 64 17 Reception – coordinator [level 2] 366,000 355,000 368,000 363,000 16,000 323,000 333,000 391,000 439,000 11 8 Reception – assistant [level 1] 333,000 317,000 330,000 327,000 42,000 279,000 301,000 362,000 391,000 19 12 Guest services/client host – assistant [level 1] 327,000 358,000 317,000 334,000 104,000 246,000 296,000 358,000 358,000 4 3 Catering – coordinator [level 2] 276,000 268,000 276,000 274,000 - 198,000 202,000 342,000 365,000 4 4 Catering – assistant [level 1] 183,000 183,000 179,000 182,000 35,000 148,000 173,000 191,000 198,000 22 8 Driver/courier – assistant [level 1] 209,000 222,000 208,000 213,000 26,000 178,000 197,000 226,000 229,000 9 3 Boat staff – coordinator [level 2] 421,000 401,000 409,000 410,000 65,000 367,000 390,000 420,000 461,000 5 4 All figures in HKD annual - inclusive of any guaranteed 13th month bonus but exclusive of performance-related bonuses. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 25 RETURN TO CONTENTS Table 4b Hong Kong – all international law firms (total sample) – annual base  compensation (finance/information technology) Position Weighted  mean Median (50th  percentile  firms) Arithmetic  mean Insights  average Average  salary band  range 5th percentile  firms 1st quartile  (25th  percentile  firms) 3rd quartile  (75th  percentile  firms) 95th  percentile  firms Number of  people in  sample Number  of firms in  sample Finance Financial operations (general) – chief officer/global/regional head  [level 6] 2,359,000 2,345,000 2,359,000 2,354,000 - 1,827,000 2,314,000 2,652,000 2,753,000 5 5 Financial operations (general) – director/head of department [level 5] 1,760,000 1,869,000 1,800,000 1,810,000 116,000 1,350,000 1,672,000 1,998,000 2,105,000 9 8 Financial operations (general) – senior manager [level 4] 1,251,000 1,162,000 1,214,000 1,209,000 189,000 904,000 1,101,000 1,386,000 1,535,000 16 12 Financial operations (general) – manager/senior coordinator [level 3] 850,000 858,000 837,000 849,000 219,000 716,000 822,000 872,000 930,000 7 5 Financial operations (general) – coordinator [level 2] 538,000 520,000 536,000 531,000 88,000 480,000 490,000 566,000 615,000 5 4 Accountant – manager/senior [level 3] 656,000 634,000 657,000 649,000 272,000 526,000 595,000 721,000 800,000 25 13 Accountant – coordinator/mid-level [level 2] 450,000 480,000 482,000 471,000 82,000 378,000 435,000 519,000 579,000 36 16 Accountant – assistant/junior [level 1] 303,000 310,000 317,000 310,000 56,000 282,000 292,000 340,000 360,000 21 7 Billing, accounts receivable and collections – manager/senior  coordinator [level 3] 657,000 721,000 686,000 688,000 213,000 511,000 588,000 769,000 823,000 19 10 Billing, accounts receivable and collections – coordinator [level 2] 485,000 485,000 478,000 483,000 96,000 373,000 440,000 533,000 567,000 31 16 Billing, accounts receivable and collections – assistant [level 1] 324,000 345,000 347,000 339,000 83,000 277,000 295,000 386,000 433,000 19 8 Accounts payable – coordinator [level 2] 398,000 393,000 386,000 392,000 42,000 330,000 358,000 417,000 436,000 5 3 Information technology  IT (general) – senior manager [level 4] 1,105,000 1,095,000 1,105,000 1,102,000 - 938,000 1,011,000 1,148,000 1,317,000 6 6 IT (general) – manager/senior coordinator [level 3] 834,000 848,000 832,000 838,000 499,000 646,000 743,000 903,000 1,004,000 13 12 IT (general) – coordinator [level 2] 552,000 560,000 554,000 555,000 83,000 474,000 505,000 590,000 634,000 7 6 IT (general) – assistant [level 1] 415,000 417,000 414,000 415,000 77,000 393,000 403,000 427,000 435,000 5 3 Infrastructure and software – manager/senior coordinator [level 3] 780,000 749,000 728,000 753,000 283,000 589,000 737,000 770,000 821,000 11 5 Infrastructure and software – coordinator [level 2] 570,000 603,000 564,000 579,000 62,000 497,000 544,000 604,000 605,000 7 3 IT support and training – manager/senior coordinator [level 3] 687,000 720,000 709,000 706,000 148,000 541,000 659,000 749,000 876,000 11 8 IT support and training – coordinator [level 2] 503,000 495,000 507,000 502,000 86,000 375,000 456,000 592,000 630,000 17 11 IT support and training – assistant [level 1] 407,000 396,000 396,000 400,000 75,000 348,000 358,000 434,000 446,000 7 4 All figures in HKD annual - inclusive of any guaranteed 13th month bonus but exclusive of performance-related bonuses. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 26 RETURN TO CONTENTS Table 4c Hong Kong – all international law firms (total sample) – annual base  compensation (marketing/human resources) Position Weighted  mean Median (50th  percentile  firms) Arithmetic  mean Insights  average Average  salary band  range 5th percentile  firms 1st quartile  (25th  percentile  firms) 3rd quartile  (75th  percentile  firms) 95th  percentile  firms Number of  people in  sample Number  of firms in  sample Marketing and business development  Marketing/BD – chief officer/global/regional head [level 6] 2,568,000 2,551,000 2,568,000 2,562,000 - 2,343,000 2,367,000 2,751,000 2,816,000 4 4 Marketing/BD – director/head of department [level 5] 1,845,000 1,740,000 1,845,000 1,810,000 - 1,528,000 1,645,000 2,080,000 2,206,000 7 7 Marketing/BD – senior manager [level 4] 1,252,000 1,235,000 1,245,000 1,244,000 186,000 910,000 1,183,000 1,398,000 1,479,000 20 13 Marketing/BD – manager/senior coordinator [level 3] 771,000 758,000 773,000 767,000 236,000 633,000 681,000 831,000 953,000 47 18 Marketing/BD – coordinator [level 2] 484,000 478,000 492,000 485,000 87,000 422,000 454,000 528,000 582,000 16 12 Marketing/BD – assistant [level 1] 316,000 353,000 329,000 333,000 114,000 261,000 303,000 358,000 370,000 13 7 Events/PR/communications – senior manager [level 4] 1,157,000 1,106,000 1,189,000 1,151,000 58,000 1,014,000 1,092,000 1,224,000 1,469,000 6 5 Events/PR/communications – manager/senior coordinator [level 3] 832,000 851,000 858,000 847,000 196,000 762,000 774,000 936,000 963,000 6 4 Events/PR/communications – coordinator [level 2] 462,000 456,000 462,000 460,000 - 438,000 446,000 475,000 491,000 3 3 Human resources HR (general) – chief officer/global/regional head [level 6] 2,103,000 2,072,000 2,103,000 2,092,000 - 1,879,000 2,013,000 2,215,000 2,337,000 5 5 HR (general) – director/head of department [level 5] 1,742,000 1,684,000 1,742,000 1,723,000 - 1,584,000 1,613,000 1,813,000 1,982,000 4 4 HR (general) – senior manager [level 4] 1,266,000 1,235,000 1,249,000 1,250,000 146,000 973,000 1,152,000 1,324,000 1,571,000 16 12 HR (general) – manager/senior coordinator [level 3] 843,000 827,000 786,000 818,000 440,000 549,000 609,000 904,000 1,008,000 18 11 HR (general) – coordinator [level 2] 464,000 492,000 469,000 475,000 150,000 354,000 405,000 496,000 573,000 17 10 HR (general) – assistant [level 1] 314,000 299,000 316,000 310,000 61,000 238,000 274,000 340,000 425,000 16 13 Learning and development – director/head of department [level 5] 1,781,000 1,781,000 1,781,000 1,781,000 372,000 1,613,000 1,688,000 1,874,000 1,948,000 3 3 Learning and development – senior manager [level 4] 1,213,000 1,541,000 1,322,000 1,359,000 - 931,000 1,202,000 1,552,000 1,561,000 2 3 Learning and development – manager/senior coordinator [level 3] 908,000 898,000 908,000 905,000 - 737,000 783,000 1,021,000 1,100,000 6 6 Learning and development – coordinator [level 2] 487,000 457,000 487,000 477,000 - 357,000 415,000 528,000 659,000 5 5 Recruitment – manager/senior coordinator [level 3] 894,000 912,000 906,000 904,000 111,000 745,000 851,000 986,000 1,041,000 9 7 Recruitment – coordinator [level 2] 510,000 526,000 499,000 512,000 12,000 441,000 479,000 533,000 539,000 4 3 Compensation and benefits – senior manager [level 4] 1,397,000 1,405,000 1,397,000 1,400,000 - 1,317,000 1,351,000 1,450,000 1,465,000 4 4 All figures in HKD annual - inclusive of any guaranteed 13th month bonus but exclusive of performance-related bonuses. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 27 RETURN TO CONTENTS Table 4d Hong Kong – all international law firms (total sample) – annual base  compensation (knowledge management/professional support/secretaries) Position Weighted  mean Median (50th  percentile  firms) Arithmetic  mean Insights  average Average  salary band  range 5th percentile  firms 1st quartile  (25th  percentile  firms) 3rd quartile  (75th  percentile  firms) 95th  percentile  firms Number of  people in  sample Number  of firms in  sample Knowledge and data management Knowledge management/library – manager/senior coordinator [level 3] 651,000 745,000 720,000 705,000 201,000 566,000 646,000 808,000 858,000 5 3 Knowledge management/library – coordinator [level 2] 502,000 570,000 525,000 532,000 72,000 394,000 445,000 585,000 632,000 7 5 Knowledge management/library – assistant [level 1] 346,000 288,000 346,000 326,000 - 287,000 287,000 375,000 445,000 3 3 Research services – manager/senior coordinator [level 3] 689,000 706,000 699,000 698,000 - 662,000 682,000 720,000 732,000 4 3 Document production – assistant [level 1] 347,000 481,000 418,000 415,000 112,000 299,000 379,000 487,000 493,000 9 3 Practice services and operations (professional support) Legal project management – director/head of department [level 5] 2,046,000 1,946,000 2,046,000 2,012,000 - 1,729,000 1,858,000 2,134,000 2,503,000 4 4 Transaction support – assistant [level 1] 304,000 296,000 298,000 299,000 79,000 294,000 295,000 301,000 304,000 67 3 Professional support lawyer – senior 1,834,000 1,863,000 1,799,000 1,832,000 67,000 1,421,000 1,823,000 1,980,000 2,004,000 6 5 Professional support lawyer – junior 1,657,000 1,580,000 1,603,000 1,613,000 97,000 1,456,000 1,474,000 1,736,000 1,774,000 11 6 Document production – coordinator [level 2] 521,000 526,000 531,000 526,000 72,000 469,000 487,000 570,000 601,000 9 4 Court clerk 398,000 360,000 390,000 383,000 51,000 207,000 310,000 481,000 583,000 9 7 File clerk 255,000 326,000 295,000 292,000 115,000 223,000 269,000 336,000 345,000 11 3 Secretarial services Secretarial services – coordinator [level 2] 608,000 615,000 608,000 610,000 66,000 569,000 599,000 625,000 633,000 19 8 Executive assistant 466,000 553,000 562,000 527,000 120,000 426,000 508,000 648,000 687,000 40 5 Legal secretary – senior 545,000 555,000 558,000 553,000 147,000 483,000 538,000 577,000 649,000 241 22 Legal secretary – junior 436,000 439,000 421,000 432,000 109,000 256,000 362,000 483,000 526,000 130 19 Evening secretary 530,000 502,000 543,000 525,000 53,000 474,000 482,000 564,000 671,000 6 4 All figures in HKD annual - inclusive of any guaranteed 13th month bonus but exclusive of performance-related bonuses. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 28 RETURN TO CONTENTS Table 5a Hong Kong – all international law firms (total sample) – bonus eligibility Fee-earners Business services Paralegals Trainees Junior lawyers Mid-level lawyers Senior lawyers Assistants Mid-level staff Managers Directors Guaranteed 13th-month bonuses 13th-month bonus awarded as standard* 7% 0% 0% 0% 0% 44% 44% 7% 0% Variable bonus eligibility Eligible for performance-related bonus 79% 36% 100% 100% 100% 79% 79% 86% 93% Eligible for global firm-wide profit-related bonus 7% 7% 7% 7% 14% 14% 14% 7% 7% Eligible for local office profit-related bonus 7% 7% 7% 7% 14% 14% 14% 7% 7% Eligible for bonus for bringing in new clients 14% 14% 21% 21% 21% 7% 7% 7% 7% Eligible for bonus for helping to recruit new personnel 92% 85% 92% 92% 92% 92% 92% 85% 85% Performance-related bonus structure Purely based on billable/chargeable hours 7% 7% 14% 14% 7% n/a n/a n/a n/a Purely based on partner discretion 7% 0% 0% 0% 0% 21% 21% 21% 21% Based on combination of factors 86% 93% 86% 86% 93% 79% 79% 79% 79% Factors considered in performance-related bonus Billable hours 46% 23% 85% 85% 77% n/a n/a n/a n/a Chargeable hours 46% 15% 77% 77% 69% n/a n/a n/a n/a Work ethic 46% 15% 62% 62% 54% 31% 31% 31% 38% Work quality 46% 15% 69% 69% 62% 38% 38% 38% 46% Publishing, content and speaking 23% 15% 38% 38% 31% 0% 0% 0% 8% Knowledge management and training 33% 17% 75% 75% 67% 0% 0% 0% 8% Business development 38% 15% 85% 85% 77% 8% 8% 8% 15% Recruitment 8% 0% 15% 15% 15% 0% 0% 0% 8% Client relations 46% 15% 69% 69% 62% 15% 15% 15% 23% Pro bono 46% 15% 85% 85% 77% 8% 8% 8% 8% *These amounts have been included in the annual salary tables. All figures = percentage of participating firms where bonus scheme is available Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 29 RETURN TO CONTENTS Table 5b Hong Kong – all international law firms (total sample) – prevalence of bonuses  among firms that awarded bonuses during past year Fee-earners Business services Paralegals Trainees Junior lawyers Mid-level  lawyers Senior  lawyers Assistants Mid-level staff Managers Directors Billable hours related bonus amounts available Mean minimum billable hour target for bonus 1,417 n/a 1,671 1,671 1,671 n/a n/a n/a n/a Mean minimum hours-related bonus available (as % of annual salary) 6% n/a 6% 6% 6% n/a n/a n/a n/a Mean maximum hours-related bonus available (as % of annual salary) 20% n/a 26% 26% 29% n/a n/a n/a n/a Total bonus amounts awarded among firms that awarded bonuses during the last year (not including any guaranteed 13th-month bonuses) Median % of headcount that received bonus (among firms that awarded bonuses) 80% 50% 33% 42% 51% 96% 92% 94% 100% Median maximum total bonus awarded (as % of annual salary) 14% 6% 17% 25% 25% 11% 12% 11% 14% Median average total bonus awarded (as % of annual salary) among those who received bonus 9% 6% 15% 15% 13% 9% 10% 11% 11% Mean % of headcount that received bonus (among firms that awarded bonuses) 62% 50% 41% 50% 48% 75% 79% 79% 80% Mean maximum total bonus awarded (as % of annual salary) 15% 6% 18% 22% 21% 13% 10% 13% 17% Mean average total bonus awarded (as % of annual salary) among those who received bonus 9% 6% 12% 13% 11% 9% 8% 10% 11% Absolute sample maximum bonus available (as % of annual salary) 22% 7% 29% 30% 29% 20% 13% 20% 35% Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 30 RETURN TO CONTENTS Table 6a Hong Kong – all international law firms (total sample) – benefits and allowances  (housing and cost of living/education) Fee-earners Business services Benefit Paralegals Trainees Junior  lawyers Mid-level  lawyers  Senior  lawyers Partners Assistants Mid-level  staff Managers Directors Housing and cost of living  Housing allowance 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Housing provided (rent paid by firm) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Low rent accommodation available through firm 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Tax-favourable rent scheme 27% 40% 40% 40% 40% 33% 33% 33% 40% 33% Housing loan 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% Personal flight allowance 0% 0% 13% 13% 13% 13% 0% 0% 7% 13% Annual return air tickets for individual 0% 0% 0% 0% 0% 7% 0% 0% 0% 0% Annual return air tickets for family 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Education and training LLM support 0% 13% 13% 13% 13% 13% 0% 0% 7% 7% Further legal education costs 7% 27% 27% 27% 20% 13% 0% 0% 7% 7% Study leave 40% 40% 60% 60% 40% 33% 27% 33% 33% 33% Firm-wide training programmes 53% 73% 73% 73% 73% 67% 53% 60% 67% 67% Local training schemes/allowance 20% 33% 33% 33% 33% 33% 20% 20% 27% 27% International training schemes/allowance 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Foreign language training 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% All figures = percentage of participating firms where benefit is available. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 31 RETURN TO CONTENTS Table 6b Hong Kong – all international law firms (total sample) – benefits and allowances  (health and lifestyle/social) Fee-earners Business services Benefit Paralegals Trainees Junior lawyers Mid-level  lawyers Senior lawyers Partners Assistants Mid-level staff Managers Directors Health and lifestyle Relocation costs 13% 7% 20% 20% 20% 27% 13% 13% 13% 13% Private medical/healthcare (local cover) 80% 80% 93% 93% 87% 67% 87% 87% 93% 93% Private medical/healthcare (international cover) 47% 53% 53% 53% 47% 47% 53% 53% 53% 53% Private medical/healthcare for spouse/dependants (local) 33% 40% 40% 40% 33% 47% 33% 33% 40% 47% Private medical/healthcare for spouse/dependants (international cover) 20% 27% 27% 27% 20% 33% 20% 20% 27% 27% Direct medical billing (to insurer rather than patient) 7% 7% 7% 7% 0% 7% 7% 7% 7% 7% Healthcare financial contributions required from employee 7% 7% 7% 13% 13% 13% 7% 7% 7% 7% Annual healthcare check 36% 43% 43% 43% 43% 57% 43% 43% 43% 43% Biennial healthcare check 7% 7% 7% 7% 7% 14% 7% 7% 7% 7% Private dental care 60% 67% 67% 67% 60% 60% 73% 73% 67% 67% Private dental care for spouse/dependants 40% 40% 53% 53% 47% 40% 40% 47% 53% 53% Dental care financial contributions required from employee 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% Employee assistance programme (EAP)/personal support helpline 67% 67% 67% 67% 67% 60% 60% 60% 60% 60% Wellbeing programme/allowance 50% 43% 50% 50% 50% 43% 43% 43% 43% 43% Gym membership (fully covered) 0% 0% 0% 0% 0% 0% 7% 7% 7% 7% Gym membership (subsidy) 13% 7% 13% 13% 7% 13% 13% 13% 13% 13% Yoga classes 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% Private club membership 0% 0% 0% 0% 7% 0% 0% 0% 0% 0% Childcare 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Child school fees 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Life insurance‡ 53% 60% 67% 60% 60% 47% 60% 60% 60% 53% Life assurance (lifetime investment policy) 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% Length of service bonus/award 40% 27% 40% 40% 40% 40% 53% 53% 53% 47% Social Winter office party 53% 60% 60% 53% 60% 53% 60% 60% 60% 60% Summer office party 27% 27% 27% 27% 27% 27% 27% 27% 27% 27% Annual retreat 7% 13% 20% 13% 20% 13% 7% 7% 7% 7% Sports teams 20% 20% 20% 20% 20% 13% 20% 20% 20% 20% ‡ Average payout is 3x annual salary. All figures = percentage of participating firms where benefit is available. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 32 RETURN TO CONTENTS Table 6c Hong Kong – all international law firms (total sample) – benefits and allowances  (equipment/travel and transport/food) Fee-earners Business services Benefit Paralegals Trainees Junior lawyers Mid-level  lawyers Senior lawyers Partners Assistants Mid-level staff Managers Directors Equipment Smartphone 47% 73% 80% 80% 87% 73% 20% 40% 73% 80% Fully paid phone contract (work only) 53% 67% 80% 80% 80% 67% 13% 47% 80% 80% Fully paid phone contract (work and personal) 13% 13% 13% 13% 13% 13% 0% 7% 13% 13% Phone allowance (work only) 7% 7% 7% 7% 7% 0% 13% 20% 13% 13% Phone allowance (work and personal) 7% 7% 7% 7% 7% 0% 0% 7% 7% 7% Home broadband allowance 0% 0% 0% 0% 0% 7% 0% 0% 0% 0% Laptop/notebook/tablet 67% 80% 87% 87% 87% 87% 67% 73% 87% 87% Remote office/desktop connection 73% 80% 87% 87% 87% 80% 73% 73% 87% 87% Business clothing allowance 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% Travel and transport Travel insurance (work only) 53% 60% 60% 60% 60% 53% 53% 53% 67% 60% Travel insurance (work and leisure) 13% 13% 13% 13% 20% 20% 7% 7% 7% 13% Business class for work-related travel 7% 7% 7% 7% 27% 20% 0% 0% 7% 27% Use of company car/driver during office hours 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Car loan 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Car lease 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Taxis home after hours ‡ 47% 47% 47% 40% 33% 40% 53% 53% 47% 47% Private car ownership/leasing subsidy 7% 0% 0% 0% 0% 0% 7% 7% 7% 7% Commuting costs 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Public transport season ticket 7% 7% 7% 7% 7% 0% 7% 7% 7% 7% Parking space on site 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Parking allowance 0% 0% 0% 0% 0% 7% 0% 0% 0% 0% Food Workplace canteen (fully paid) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Workplace canteen (subsidised) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Food vouchers 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Food costs after hours 13% 13% 13% 7% 13% 13% 20% 20% 13% 13% ‡ Typically after 9.30pm. All figures = percentage of participating firms where benefit is available. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 33 RETURN TO CONTENTS Table 6d Hong Kong – all international law firms (total sample) – benefits and allowances  (overtime/hours/holiday and leave) Fee-earners Business services Benefit Paralegals Trainees Junior  lawyers Mid-level  lawyers  Senior  lawyers Partners Assistants Mid-level  staff Managers Directors Overtime Eligible for overtime 7% 0% 0% 0% 0% 0% 47% 7% 7% 0% Median overtime rate (weekday) 1.5 n/a n/a n/a n/a n/a 1.5 1.5 n/a n/a Median overtime rate (weekend) 1.8 n/a n/a n/a n/a n/a 1.8 1.8 n/a n/a Median overtime start time (number of hours past contractual hours) 0.8 n/a n/a n/a n/a n/a 0.8 0.8 n/a n/a Contractual working hours Mean weekly contractual working hours 38.8 39.0 38.9 38.9 38.9 38.8 38.7 38.7 38.8 38.8 Median weekly contractual working hours 40.0 40.0 40.0 40.0 40.0 40.0 39.4 39.4 40.0 40.0 Absolute minimum weekly contractual working hours 36.3 36.3 36.3 36.3 36.3 36.3 36.0 36.0 36.0 36.0 Absolute maximum weekly contractual working hours 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 Work start time range 9.00am to 9.30am 9.00am to 9.30am Work finish time range 5.30pm to 6.00pm 5.30pm to 6.00pm Holiday Median number of annual working days' holiday (not including public holidays) 20.5 22.0 25.0 25.0 24.5 30.0 20.0 20.5 24.0 25.0 Absolute minimum number of annual working days' holiday (not including public holidays) 16.0 17.0 20.0 20.0 20.0 20.0 16.0 16.0 20.0 20.0 Absolute maximum number of annual working days' holiday (not including public holidays) 25.0 27.0 27.0 27.0 27.0 35.0 26.0 26.0 26.0 32.0 Median number of days' holiday allowed to roll-over to next year 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 Maternity leave Median number of weeks' maternity leave at full pay 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 Absolute maximum number of weeks' maternity leave at full pay 26.0 26.0 26.0 26.0 26.0 26.0 26.0 26.0 26.0 26.0 Additional maternity leave available at reduced pay 18% 18% 12% 12% 6% 6% 18% 18% 18% 18% Additional maternity leave available unpaid 24% 24% 29% 29% 24% 29% 24% 24% 24% 24% Paternity leave Median number of working days' paternity leave available 5.0 5.0 5.0 5.0 10.0 5.0 5.0 5.0 5.0 5.0 Absolute maximum number of working days' paternity leave available 61.0 61.0 61.0 61.0 61.0 61.0 61.0 61.0 61.0 61.0 Other leave Time off in lieu (TOIL) available 20% 7% 13% 13% 13% 13% 20% 20% 13% 13% Median number of days' bereavement leave for primary family member 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 Median number of days' bereavement leave for other relative 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Percentage figures = percentage of participating firms where benefit is available. Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 34 RETURN TO CONTENTS Table 7a Hong Kong – all international law firms (total sample) – average personnel ratios Average % of total headcount Fee-earners (all lawyers, partners, paralegals, trainees) 56.8% Business services (non-fee-earning) staff 43.2% Partners 13.1% Qualified lawyers (not including partners) 31.1% Business and office management 2.1% Risk, compliance and general counsel 1.4% Facilities and office services 5.9% Finance 7.3% Information technology 2.9% Marketing and business development 4.4% Human resources 3.4% Knowledge and data management 0.8% Practice services and operations (professional support) 1.6% Secretarial services 13.2% Median fee-earner:secretary ratio 4.2:1 Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 35 RETURN TO CONTENTS Table 7b Hong Kong – all international law firms (total sample) – average female/male  demographic ratios Average female demographic % Average male demographic % Fee-earners 56% 44% Associates 65% 35% Partners 29% 71% Business services (non-fee-earning) staff 78% 22% Table 7c Hong Kong – all international law firms (total sample) – average size of sample offices Mean headcount among sample firms Median headcount among sample firms All personnel 148 101 Fee-earners (trainees, paralegals, partners, lawyers etc.) 78 61 Business services (non-fee-earning) staff 69 43 Table 7d Hong Kong – all international law firms (total sample) – headcount growth and turnover Median annual headcount turnover Percentage of firms that increased total headcount  during the past year Median net percentage change in total headcount  All personnel 19% 20% -5.7% Fee-earners (trainees, paralegals, partners, lawyers etc) 19% 30% -6.5% Business services 13% 20% -3.4% Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 36 RETURN TO CONTENTS Table 8 Hong Kong – UK law firms – standard billing rates Position Weighted  mean Median (50th  percentile  firms) Arithmetic  mean Insights  average Average  billing band  range 5th percentile  firms 1st quartile  (25th  percentile  firms) 3rd quartile  (75th  percentile  firms) 95th  percentile  firms Number of  people in  sample Number  of firms in  sample Equity partner 8,400 8,200 8,600 8,400 2,100 7,300 8,000 9,000 10,400 78 7 Salaried/local partner 8,100 7,200 8,100 7,800 1,100 6,500 7,200 9,000 10,300 27 5 Counsel/of counsel 7,900 8,000 7,900 7,900 1,100 6,700 6,900 8,600 9,200 35 8 Level 10+ (typically 10+ PQE/11th+ year) associate 7,000 6,000 6,900 6,600 600 5,600 5,700 7,900 9,000 30 7 Level 9 (typically 9-10 PQE/10th year) associate 7,100 5,900 6,800 6,600 700 5,600 5,700 7,900 9,000 13 7 Level 8 (typically 8-9 PQE/9th year) associate 6,400 5,600 6,500 6,200 700 5,400 5,500 7,200 9,000 16 7 Level 7 (typically 7-8 PQE/8th year) associate 6,200 5,700 6,600 6,100 1,000 5,400 5,600 7,300 9,000 11 7 Level 6 (typically 6-7 PQE/7th year) associate 6,600 5,500 6,000 6,000 700 5,000 5,200 6,200 8,100 23 7 Level 5 (typically 5-6 PQE/6th year) associate 5,300 5,300 5,500 5,400 700 4,300 5,100 5,900 7,300 20 8 Level 4 (typically 4-5 PQE/5th year) associate 5,500 5,200 5,400 5,400 600 4,100 4,900 5,700 7,000 21 8 Level 3 (typically 3-4 PQE/4th year) associate 5,100 4,800 5,100 5,000 600 3,700 4,600 5,500 7,000 27 8 Level 2 (typically 2-3 PQE/3rd year) associate 4,700 4,500 4,600 4,600 400 3,700 4,200 4,800 5,800 22 8 Level 1 (typically 1-2 PQE/2nd year) associate 4,500 3,800 4,100 4,100 300 2,900 3,500 4,700 5,300 25 8 Level 0/NQ (typically 0-1 PQE/1st year) associate 4,000 3,700 3,900 3,900 600 2,900 3,300 4,500 5,300 21 8 Trainee – year 2 (HK or UK system) 3,100 3,100 3,100 3,100 600 2,500 2,900 3,400 3,700 28 8 Trainee – year 1 (HK or UK system) 3,200 3,000 3,100 3,100 600 2,500 2,700 3,400 3,700 18 8 Paralegal – level 3+ 2,800 2,800 2,600 2,700 1,500 2,100 2,400 2,900 2,900 13 3 Paralegal – level 2 2,700 2,800 2,700 2,700 500 2,400 2,600 2,900 2,900 7 3 Paralegal – level 1 2,400 2,400 2,300 2,300 600 1,700 2,000 2,600 2,900 8 3 All figures are in HKD per hour Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 37 RETURN TO CONTENTS Table 9 Hong Kong – all international law firms (total sample) – standard billing rates Position Weighted  mean Median (50th  percentile  firms) Arithmetic  mean Insights  average Average  billing band  range 5th percentile  firms 1st quartile  (25th  percentile  firms) 3rd quartile  (75th  percentile  firms) 95th  percentile  firms Number of  people in  sample Number  of firms in  sample Equity partner 8,800 8,200 8,800 8,600 1,900 7,300 8,100 9,900 10,400 106 8 Salaried/local partner 9,000 8,100 8,400 8,500 1,000 6,600 7,200 9,700 10,400 54 6 Counsel/of counsel 8,500 8,400 8,200 8,400 1,400 6,700 7,400 9,200 9,300 63 11 Level 10+ (typically 10+ PQE/11th+ year) associate 7,300 7,300 7,100 7,300 600 5,600 5,900 8,100 8,900 43 10 Level 9 (typically 9-10 PQE/10th year) associate 7,300 6,700 7,000 7,000 600 5,600 5,800 8,000 8,900 21 10 Level 8 (typically 8-9 PQE/9th year) associate 6,500 5,900 6,600 6,300 700 5,400 5,600 7,800 8,900 19 10 Level 7 (typically 7-8 PQE/8th year) associate 6,600 5,900 6,600 6,400 800 5,400 5,700 7,300 8,900 25 10 Level 6 (typically 6-7 PQE/7th year) associate 6,500 5,600 6,000 6,000 800 5,000 5,300 6,600 7,900 35 10 Level 5 (typically 5-6 PQE/6th year) associate 5,600 5,300 5,600 5,500 700 4,400 5,200 6,300 7,200 27 11 Level 4 (typically 4-5 PQE/5th year) associate 5,700 5,200 5,500 5,400 600 4,200 4,900 6,100 6,900 33 11 Level 3 (typically 3-4 PQE/4th year) associate 5,300 4,900 5,100 5,100 600 3,800 4,600 5,600 6,900 44 11 Level 2 (typically 2-3 PQE/3rd year) associate 4,800 4,700 4,700 4,700 300 3,700 4,300 4,900 5,800 33 10 Level 1 (typically 1-2 PQE/2nd year) associate 4,400 4,100 4,200 4,200 200 3,000 3,600 4,800 5,300 39 10 Level 0/NQ (typically 0-1 PQE/1st year) associate 4,100 4,100 4,100 4,100 500 2,900 3,300 4,800 5,300 29 10 Trainee – year 2 (HK or UK system) 3,000 3,000 3,100 3,000 500 2,500 2,700 3,400 3,700 40 9 Trainee – year 1 (HK or UK system) 3,000 2,900 3,000 3,000 500 2,500 2,700 3,400 3,700 30 9 Paralegal – level 3+ 2,800 2,800 2,900 2,800 1,400 2,100 2,600 2,900 3,800 22 5 Paralegal – level 2 2,800 2,800 2,700 2,700 400 1,900 2,400 2,900 3,300 15 5 Paralegal – level 1 2,700 2,300 2,400 2,500 600 1,700 2,200 2,800 3,300 16 6 All figures are in HKD per hour Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 38 RETURN TO CONTENTS Chart 9 Hong Kong – all international law firms (total sample) – standard billing rates –  median, 25th and 75th percentile firms and average billing band range values – – – – – All figures are in HKD per hour Lexology PRO Insights – Hong Kong law firm compensation, benefits and billing report 2023/24 © Law Business Research 2023 39 RETURN TO CONTENTS About Lexology PRO Insights Lexology PRO Insights conducts confidential surveys of  compensation, benefits and billing rates among international  law firms in key jurisdictions around the globe. The reports  resulting from our surveys offer detailed compensation,  benefits and billing rate benchmarking data for all levels of  fee-earners and business services staff, and are used by HR  management teams at more than 50 major international law  firms across more than 25 countries. Our research surveys In order to gather the information for our reports, we survey  major international law firms and leading local law firms.  Since a great deal of the data provided is highly sensitive, we  guarantee all our participant law firms complete anonymity  and provide confidentiality agreements to reassure them that  their data is in the safest of hands. As an incentive to take  part in our research surveys, we offer participating law firms  substantial discounts on the price of associated reports  (usually between 40% and 50%). We also offer substantial  additional discounts for subscription packages covering  multiple jurisdictions.  For information on pricing, survey participation and  discounted bundle packages, or to request surveys in new  markets, please contact: Jamie Traverse-Healy ACCOUNT MANAGER Tel: +44 20 7939 4221 [email protected] Gwilym Davies HEAD OF RESEARCH Tel: +44 20 7940 6858 [email protected] www.lexology.com/aboutinsights www.lbresearch.com This report is the result of extensive and time-consuming research by Law Business Research Ltd. Photocopying or any other unauthorised use is strictly prohibited.