Survey of 43 firms finds salary growth slowing across the sector, even as competition for senior talent intensifies.
The impact of technological disruption in the legal sector is now reflected in business services salaries, with chief technology officers now among the highest paid in the sector. Technology leaders receive the highest median salary of £305,000, according to Totum’s 2026 Business Services Reward Survey.
Traditionally, finance salaries have been among the most well remunerated in legal, and that trend continues particularly at the top end. In the 75th percentile, chief-level finance salaries sit at £380,000.
The shift in technology salaries reflects a broader reckoning with technology’s transformative role in legal services. Artificial intelligence platforms, cyber security demands and data architecture projects have pushed firms into fierce competition for senior technology talent – and pay packets are beginning to show it.
Our findings offer the most comprehensive picture yet of how professional services businesses are rewarding the support functions that have become central to strategy and growth.
Growth slows, but senior pay surges
The headline story is one of deceleration. Average annual salary increases across business services functions came in at 4.4% in 2025, down from 5% the previous year. Firms are forecasting a further slowdown, predicting a 3.7% average rise in 2026. The overall median increase was just 4% – a full percentage point lower than last year.
The moderation reflects a market that has shifted decisively from candidate-led to employer-led. Just 7% of firms said they needed to increase salary offers above normal levels to secure hires – down from 42% in 2023. The proportion looking outside the legal sector for talent has fallen from 92% three years ago to just 55% today, as a larger pool of legally experienced candidates reduces the pressure to cast the net wide.
Yet at the very top of the pay scale, competition is intensifying. Director and chief-level salaries continue to climb, with all functional director roles except risk and compliance now offering a median above £150,000. At chief level, median salaries range from £220,000 to over £300,000, with some top 20 firms paying beyond £500,000 for their most senior finance and operations leaders.
Increasingly, firms are looking beyond just pay packets when it comes to recruiting and retaining business services talent. Flexible working, more tailored benefit offerings and development opportunities are all important components when it comes to candidate decision making.
Finance holds firm; pricing salaries surge
At chief level, the median salary for financial leaders of £289,056 still shows growth from last year. Within finance teams, the most notable development is the growth of commercial pricing roles. The median salary for a head of pricing has risen to £140,000, up from £127,200 a year ago – one of the highest at that level across all functions – reflecting firms’ intensified focus on profitability management.
The past year also saw an unusually high turnover among senior finance leaders: more than a fifth of top-50 UK law firms changed their most senior finance role in 2025, with planned retirements accounting for over half of departures.
London premium narrows; regions close the gap
The capital’s salary advantage is gradually eroding. London salaries now run 12% above the national average, down from 13% last year. More strikingly, cities such as Cambridge and Leeds are now paying at or above the national average, while Birmingham reaches 95%.
The narrowing reflects both deliberate strategy and economic pressure. A third of firms now say they are willing to hire on a location-agnostic basis, up from 24% last year, and 31% are actively looking to place roles in regional offices rather than London.
Technology salaries in particular are converging geographically: Manchester (112% of national average) and Birmingham (109%) are within touching distance of London’s 116%, reflecting the broader national competition for technical talent.
Partners, perks and the private equity factor
Business services leaders are also gaining a foothold in firm leadership structures. Nearly half of surveyed firms (43%) now report having at least one business services leader classified as an equity or salaried partner – up from 34% last year and 27% in 2023. The median number of such roles per firm has risen to 2.6.
The trend is being accelerated by private equity, which has begun to make inroads into the legal sector and typically rewards chief-level business services executives in ways that mirror ownership structures. However, with private equity investment still in its infancy, the full implications for business services compensation strategies is still to play out.
Firms are also competing on benefits. The proportion offering health and wellness initiatives has risen from 76% to 88%, ethical pension fund choices from 65% to 76%, and electric vehicle salary sacrifice schemes from 27% to 40%. One fifth now offer financial support for fertility treatment, up from 15% last year.
The road ahead
The overall business services picture is of a market settling into a more sustainable rhythm after years of salary growth. However, the technology function stands apart. As AI reshapes legal practice and cyber threats multiply, firms that fail to attract and retain strong technology leadership risk falling behind at strategic levels.
To learn more about our reward survey or if you are interested in a bespoke reward research project, contact our Head of Marketing and Special Projects Sarah Broad [email protected]