Scarcity of Banking Legal jobs, moves in-house MNC and maybe a new strategy
February 9, 2015
Dear Justy,
I studied hard and well and got into a great school. I was hired by a top firm and have been doing long hours on complex deals and my CV looks great. I had always hoped to end up in an in-house banking job but each time I’ve applied for something that I thought was a great fit I’ve lost out. And, there just doesn’t seem to be so many new opportunities coming up in Tokyo anymore.
Is it because Tokyo has lost ground to Hong Kong and Singapore or it is the world economy? What has happened and can I still get into an IBD legal role in Tokyo and how ?
Bummed Banking bengoshi
Dear Bummed
The answer is all of the above and more. I don’t have the numbers to truly verify but the eye test suggests that Tokyo has lost 35-45% of the total banking jobs in gaishikei’s since 2008. Even before the GFC the numbers were shrinking as people and their jobs moved on to Hong Kong or Singapore or were just made redundant.
The easy answer is that there just isn’t the low hanging fruit bankers need to flourish here in Tokyo and so they went away finding the pickings more, um, fruitful, elsewhere. The GFC has quickened the reduction of jobs in Tokyo finance but there was always going to be a slide down to a much smaller market than what we have seen the past ten years. The GFC just made it happen faster.
Add onto that Japanese Corporate tax, Narita being too far away to make Tokyo an accessible Asia HQ, lack of skilled bilingual workers, the regulatory environment in Japan and we (Tokyo) can’t compete against other financial centres in Asia.
However, there are still banks and asset mgmt. firms here and most of them still have legal teams so why isn’t there more hiring going on?
There is very little turnover in finance legal jobs and as a result there aren’t too many job opportunities and of the vacant jobs few are due to business growth reasons. If you look at most (not all) legal department teams you will typically see that the majority of the lawyers there are 10+ years experienced.
The optimal team structure, they say, is a pyramid of seniority for the sake of leverage and salary expense efficiency. Tokyo’s legal departments are more shaped like a ‘T’ with a General Counsel on top. A ‘T’-structure with an Umlaut if you will
It’s simply the result of years of cost cutting and staff reductions so only the best and the most efficient remain in these legal departments. They also happen to be the most senior. Some of them are covering 2-3times as much as they used to and use law firms as external counsel to manage the workload.
There are others still that are now doing 30-40% less workload then they did 5 years ago. They are likely next on the chopping block and they know it but they’ll stay around to collect the severance package and move out of finance then.
The problem here in Tokyo is there is nowhere for in-house finance lawyers to go even if they wanted to leave their jobs.
Japan’s economy isn’t creating much in the way of new industries and opportunities for these people; so a bottleneck effect is created. In other cities senior finance lawyers would move on to hedge funds, consulting jobs, their own specialized firms or other senior counsel roles in other industries.
In Tokyo, the drop from a finance legal salary to an in-house salary with a multinational (MNC) is usually a big drop so when someone moves it’s because they are either losing their job (a job sometimes not replaced) or it’s because they are interested in a professional/life-style change. To be sure, the latter is the minority and thus there are few new job openings in finance.
That said, Japanese banks are doing well these days but you’re not getting rich working there unless you are on the top of the pyramid. And you are not going to the top of the period unless you started there. Japanese banks do hire laterally but at a lower salary compared to foreign banks. For this reason, it’s not a heavily-travelled path for lawyers but there are signs that it is changing but that change typically takes a long time.
So to your question: How to get into a finance legal in-house role?
The late 1990’s and early 2000’s were boom markets and the exception, not the rule. Today we have fewer jobs and lots of competition for those jobs so the only way to stand out is to be unique – just like in every other industry. I think there’s been a built-in expectation of law firm associates from the late 1990’s to even today that if you join a top firm and work hard you will be rewarded with a great in-house job in time. To some degree maybe that’s still true, but only for the top Associates working with the top Partners. So, unless you are that top Associate you need to manage yourself so that you can create a career.
The difference between job and career is something for another discussion but going along with the flow is not building a career. It’s a step in building a career to be sure, but just because you are working at a Wall Street, Magic Circle or Big 4 law firm doesn’t mean you have a career. You need someone to hire you (or become Partner) for your law firm experience before you can say you have a career. And that’s not the end of it, is it? ….it never stops.
So, you need a strategy to achieve your goals. How can you make you unique? What skills do you have that are or will be in demand for the near future? I can tell you right now that if you are a junior bengoshi with private banking experience Hiroshi Kurosaka has two great jobs for you right now because – there are very few junior bengoshi with private banking experience.
If you have that experience then you are unique, specialized and marketable. And, that’s the start of a career.
You have to be brutally honest with yourself as well. Unless you have excellent bilingual skills and are recognized internally at your firm and the lead on the biggest deals, the road to your dream job is going to be tough. But there are many things you can do if you are so determined to work at a bank. I wrote about going into Compliance previously (please see Lawyers, Regulatory & the two-step).
There’s the big dog in the ‘small dogs’ park’ theory I like very much. Take your killer skills and CV to a place where you are the big dog
There are still some Asset Management firms where you can do this (be a big dog) but that window is closing. There’s the insurance and re-insurance industries where there are still a number of non-qualified lawyers in top management roles. That’s an opportunity.
There is also the career strategy of being realistic and giving up the banking dream job for a career as an in-house counsel at a multi-national (MNC). There must be industries or companies that excite you. Again, think big dog in small dogs’ park and you might be pleasantly surprised how your options change for the better – maybe not in terms of working in banking or finance but in job satisfaction.
One bright spot here is that in many regulated industries – retail pharmaceutical, online pharmaceutical, telecommunications, oil/gas, shipping, etc. – the in-house lawyer presence is quite small. This has been changing over the years. Hopefully companies in these industries will continue to value the importance of a legal department and we’ll see more jobs here.
You probably need help as well – internally and externally. Internally, your Managing Partner with good connections can promote you and your skills to his/her clients if you have an open relationship with him/her. Secondments are good experience as well and can lead to other in-house opportunities.
Externally, networking in the form of meeting other in-house lawyers that can introduce you to their managers and Head of Legal is useful – socially is best. And, the guys at Just Legal will do in a pinch as well!
So, what have we learned – the job market for your dream job is a tough road and you have to manage career by being honest about the market and your abilities. (I know what you are thinking “ground breaking work JD. Way to go. “Hey, I’m just a dog!)
But here’s one new idea, if you are not the brightest in your law firm class or honestly don’t think you can bridge the performance gap to the best in your class/year at your firm then jump in-house earlier rather than waiting. Jump before your 4th year (skip LLM or gaiben years away) and take the chance to make it in-house.
More and more banks (and MNCs) want junior talent to try to re-establish the optimal pyramid structure. So often the Associates we speak to want to wait to get more law firm experience or complete their LLM. This used to make a lot of sense. However, in today’s market, this is possibility a mistake unless you are going for Partnership and even that option (and expensive option at that) is becoming more scarce as firms are making up Partners at a much slower rate than they have in the past and that is not going to change.
So, instead of waiting until at least your 5th or 6th year to start looking in-house maybe it’s time to start trying at year 3?
Just Search Group has officially launched, bringing together specialist executive search expertise under a single, scalable brand serving the Japan market. The newly formed parent company encompasses Just Legal, a market-leading legal recruitment firm established in 2014, and introduces Just HR, its latest division dedicated to HR executive search. The creation of Just Search Group marks a strategic step toward delivering specialist search and recruitment services with a unified purpose. Led by Group CEO, Paul Cochrane, Just Search Group’s mission is to deepen its long-term partnerships while maintaining the high-quality, consultative service that clients across Japan have come to trust. Just HR, headed by co-founder and Managing Director Jason Lewis, starts with a clear focus: supporting organisations in their search for exceptional HR talent. The launch complements broader trends within the Japanese executive hiring market, where businesses are increasingly focused on employee experience, culture transformation and organisational resilience. Just HR is poised to support this shift by connecting forward-thinking employers with HR professionals who can lead meaningful change. From CHROs and HRBPs to specialists in Learning & Development, Employee Relations, and beyond, Just HR is designed to address the growing demand for capable HR leadership in Japan’s evolving market. With plans in motion to grow into additional professional sectors, Just Search Group is now focused on building a future-ready platform for delivering its singular style of executive search in Japan. “This is a pivotal moment,” said Cochrane. “Bringing Just Legal and Just HR together under Just Search Group sets a strong foundation for future growth into new professional verticals, while reinforcing our commitment to meticulous and human-centred search.” “Our clients have consistently told us that the real value lies in specialization,” said Jason Lewis. “Just HR was built in direct response to that need, giving clients a dedicated, knowledgeable partner for HR executive search. We’re excited to bring this level of depth and focus to the market.” For more information, visit justsearchgroup.com .
Opportunities for Foreign Lawyers in Japan: A Growing Legal Market
We are pleased to announce the release of the latest issue of our newsletter! Following the positive response to our previous issue, this edition focuses on the differences between in-house and external counsels. *** In the preparation of this issue, we had the privilege of interviewing seven lawyers from both law firms and corporations. Additionally, we would like to extend our heartfelt gratitude to Ms. Mariko Mimura from Nishimura & Asahi for her invaluable supervision. We were fortunate to gather insights from distinguished professionals with experience in both law firms and corporations, as well as those who have experience working with both Japanese and international companies. We deeply appreciate the cooperation of everyone involved. ***
Paid Marketing Internship Opportunity (Creative & Digital Focus) Just Legal K.K., a leading legal search consultancy firm in Tokyo, is expanding and looking for a proactive Marketing Intern to join our team. We are seeking a dynamic individual with a passion for engaging the younger generation through innovative marketing strategies. Responsibilities: Develop and implement creative marketing strategies aimed at engaging new audiences. Create and edit video/photo content for social media and promotional material. Assist in the planning and execution of digital marketing campaigns. Collaborate with the team to brainstorm new ideas and approaches for outreach. Requirements: Strong interest in digital marketing and content creation. Experience in video and photo editing. Proactive and able to work independently on projects. A creative mindset and ability to think outside the box. This is a great opportunity to gain hands-on experience in a fast-growing firm and make a real impact. For applications and information contact Edgar Salazar – edgar.salazar@justlegal.co.jp
Our team member Yuna was featured by a prominent podcaster in Japan! In the Podcast Yuna and the host Catherine explore the followings; What’s HOT in today’s legal job market in Japan, Most wanted Skills , and Emerging sectors like HealthTech and bio ventures If you’re a legal professional, this episode will give you valuable insights into the future of law in Japan. Don’t miss out - tune in now! Listen here: Podcast Link Watch on YouTube: YouTube Link
A law firm client we met recently shared the struggles they were having with hiring associates. Their biggest competition is not other law firms, but in-house opportunities. In-house roles often attract candidates who want a better work-life balance, a stable salary, and closer involvement with a single business. However, we are seeing an increasingly number of lawyers who have spent years in-house, transition back to private practice. Here are the reasons why: 1. Desire for Varied Legal Work “When I work for my company, I only have one client. But if I work for a law firm, I get to work with multiple clients or various projects.” One of the primary drivers for a return to private practice is the scope and variety of legal work available. In-house lawyers often deal with a narrower set of issues specific to the industry or company they work for. While this can be beneficial for developing deep expertise in certain areas, it can also become repetitive or limiting over time. Private practice, on the other hand, offers the chance to work on a broader range of cases and clients, covering multiple industries and legal issues. This diversity can be intellectually stimulating and more aligned with a lawyer’s interests in continuing legal education and varied legal challenges. 2. Greater Control Over Career Progression “If I stay at my current company, I won’t get promoted unless the senior counsel moves up or out.” Some in-house counsel positions have more limited upward mobility compared to private practice. For ambitious lawyers who want to rise through the ranks, build their own practice, or achieve partnership, private practice can offer more autonomy and clearer career progression pathways. The return to private practice lets them shape their own career trajectory, take on leadership roles, or specialize in areas they’re passionate about. 3. Opportunity to Build a Personal Brand “I would like to be seen as a specialist in my practice area.” Most often, an in-house legal counsel’s identity is tied to the company they represent. In private practice, lawyers have the opportunity to build and cultivate a personal brand, and the ability to grow their professional stature within the legal market is a significant motivator for making the switch. 4. Opportunity to Help Establish a New Practice “I want to leverage the specialized experience I’ve gained and help establish a practice from scratch.” Some lawyers leave their previous law firms to gain more in-depth experience in a particular industry. After a few years in private practice, once they become known as an expert in the field, lawyers can also seize the opportunity to help establish or grow a new practice area within a firm by leveraging the expertise, industry insights, and valuable connections they’ve gained as an in-house counsel. This allows them to play a pivotal role in shaping the firm’s direction while building on their specialized knowledge and experience. 5. Compensation and Financial Incentives I’ve heard many candidates explain the reason they want to go back into private practice is to provide more financial stability for their family. Since the compensation structure in private practice are often based on billable hours, client acquisition, and firm performance, compensation can be much higher than in-house, especially for senior lawyers. 6. Reconnection with Legal Expertise “I don’t want to have to keep dealing with non-legal related matters.” In-house counsel roles often require lawyers to wear many hats, including handling compliance, risk management, and business strategy. Some lawyers find that this shift away from pure legal work causes them to lose touch with their core legal skills. A move back to private practice allows them to refocus on being a lawyer first and foremost, often with more direct involvement in complex litigation, negotiations, or regulatory work. 7. Sense of Achievement “Even if I did a great job closing the deal or winning a case, most often my supervisors from non-legal departments didn’t understand and appreciate the work that I did.” Professional feedback is more frequent and performance-driven, with clear benchmarks like client satisfaction, billable hours, and revenue generation. This regular evaluation fosters a strong sense of progress, driving motivation and continuous growth, making private practice a rewarding environment for those seeking achievement and career development. On the associate level, the partner you are working with on a deal may have more knowledge on the subject and can provide immediate feedback and suggestions on the legal issues you are tasked to complete. As with any career change, moving back to private practice comes with its own challenges: 1. Business development and acquiring clients. In-house lawyers often lack the extensive client networks that private practice attorneys cultivate over time, making it harder to bring in business. 2. Skill alignment can be an issue. In-house roles tend to focus on business operations, risk management, and internal advisement, while private practice requires proficiency in billable work, business development, and courtroom advocacy. Reacquiring or sharpening these skills can be tough. 3. Perceived gap in recent experience, especially in litigation or specialized legal areas. Some firms might be skeptical about a lawyer’s ability to reintegrate into the fast-paced, client-centric environment of private practice. 4. Work-life balance can shift significantly. Private practice typically involves longer hours and higher pressures to meet billable targets, a big contrast to the often more predictable schedules of in-house roles. Conclusion For many lawyers, returning to private practice after working in-house can seem like the right move, particularly when considering long-term career goals, such as working on more varied legal work, having greater career control, financial incentives, personal branding, or a reconnection with core legal skills. However, the transition is not without its challenges. Lawyers may need to rebuild a client base, adjust to the high demands of billable hours, and refresh skills specific to private practice. Despite these obstacles, this shift is a reminder that legal careers are not linear. With careful planning and strategic effort, many paths can lead to success, growth, and fulfillment.
Despite the current and recent economic situation of Japan, not to mention the consequences of the global pandemic; in the last five years, the number of foreign lawyers living in Tokyo has shown significant growth. Moreover, both Japanese and foreign law firms seek foreign-qualified lawyers, and foreign lawyers abroad looking to move to Japan are increasing in number. It is therefore important for foreign lawyers to be fully prepared for this transition in the event of a change in the Tokyo market. While considering personal aspects of this career change, such as logistics of moving and cost of living, it is important to understand what Japanese law firms require in a foreign lawyer. Among these requirements, one of the most important requirements is qualification or eligibility to become a foreign lawyer in Japan. As a foreign lawyer willing to build a successful career in Japan, becoming a Gaikokuho-Jimu-Bengoshi (Gaiben), is a ‘basic’ step. The Gaiben qualification opens opportunities and allows you to provide legal services that would otherwise be restricted to you. Below, you’ll be able to find the importance of obtaining this qualification, and how to achieve this. Why is the Gaiben Qualification Important? 1. Legal Authorization: The Gaiben qualification legally empowers foreign lawyers to advice on the law in their jurisdiction of primary qualification. The legal practice in Japan, without this status, is forbidden by Article 72 of the Bengoshi Act. 2. Broadened Legal Practice: As a Gaiben, you are at liberty to offer professional legal services not only about the laws of your jurisdiction but also about designated laws if approved to do so by the Minister of Justice. This is inclusive of advice concerning laws in other jurisdictions, provided that you have obtained written advice to that effect from a lawyer who is qualified to practice in that jurisdiction. 3. Professional Credibility: With the Gaikokuho-Jimu-Bengoshi qualification, your professional credibility, and reputation in the Japanese legal market will be advanced. It tells that you attain rigorous standards and recognition by Japanese authorities that may attract clients and opportunities for employment. 4. Career Opportunities: Most law firms in Japan require foreign applicants to be either eligible or already registered as a Gaiben in order to consider the possibility of them joining. Not being qualified, being eligible for it, or not willing to qualify would close the door to a large amount of opportunities. Steps to Become a Gaikokuho-Jimu-Bengoshi (Gaiben) 1. Qualification as a Foreign Lawyer: · Ensure that you are qualified as a lawyer in your home jurisdiction. 2. Work Experience Requirements: · You must have a minimum of three years of work experience in the practice of law, with at least one year outside of Japan. 3. Preliminary Examination: · Apply for the preliminary examination. First, your application documents will be checked for completeness before examination. 4. Minister of Justice Approval: · In case of eligibility, subsequently file your application with the Minister for approval accompanied with the appropriate fees and signing of sworn statements. Then, the Ministry will contact the Japan Federation of Bar Associations for an opinion. 5. Consultation and Counseling: · As part of the process, you can be provided with counseling services to assist you on the approval procedures. The application is then put before the Foreign Lawyers Committee within the JFBA, which submits its opinion. 6. Final Decision and Registration · In case of successful applications, the applicant will be notified of their Gaikokuho-Jimu-Bengoshi status. This fact is advertised in the official gazette. In case of approval, you are registered to the bar association of your choice. · The average waiting period for a decision from the moment you submit your application is of 6 to 12 months. Flow of Approval Procedures Following is a detailed flow of the approval procedures to become a Gaikokuho-Jimu-Bengoshi. Main Stage: Approval 1. Application for Approval: · Take the Approval Application form and original copies of accompanying documents to the Ministry of Justice. · File the application and swear an oath. · Pay the Application fee by affixing revenue stamps of ¥27,500 on the application form. · An approval application receipt shall be issued. · Make necessary corrections, and contact the Ministry of Justice office for an appointment to visit them. · Fill up the application, and take an oath in Japanese. You may bring an interpreter if you need one. 2. Application for Approval Examination: · The Ministry of Justice will seek an opinion from the Japan Federation of Bar Associations, JFBA. · The application is examined, then a judgment is rendered or passed. 3. Notice of the Results of the Examination: · Publication in the government gazette of the notice of the results. · A notice for approval or rejection is issued and sent to the applicant and the JFBA. · In case of the approval of the application, follow up on the registration at a bar association. Conclusion One of the most important steps in building up a good, strong legal practice in Japan would be the Gaikokuho-Jimu-Bengoshi qualification for any foreign lawyer. Having such a qualification will help to expand the legal services you can offer. This enhances professional prestige and helps in ensuring conformity with Japanese law. If all steps involved are properly followed and you are aware of the importance of the process, it will help you acquire Gaiben status and, hence, a lot of the related professional opportunities within the legal environment in Japan. Links of Interest · https://www.nichibenren.or.jp/en/about/judicial_system/gaiben_info.html · https://www.moj.go.jp/ENGLISH/information/gjb.html · https://www.moj.go.jp/ENGLISH/m_housei07_00003.html
Already in 2024, Japan’s legal job market has seen significant activity, reflecting broader economic trends and industry demands. As the economy rebounds from the COVID-19 pandemic, several key factors are shaping the landscape for legal professionals. Here, we delve into the current trends and what they mean for job seekers and employers alike. A Bustling Legal Job Market The in-house legal job market in Japan is busy. Companies across various sectors are in search of in-house legal counsel to navigate the growth of their businesses. This is particularly noticeable across manufacturing & hi-tech, healthcare & health-tech, finance & investments, and energy. These industries are know the importance of strong legal support to manage regulatory compliance, intellectual property, mergers and acquisitions, and other critical legal functions. Rising Salaries Salaries for in-house counsel continues to increase compared to the pre-COVID era. Although the rise has not been drastic (yet), it is steady and significant enough to impact hiring trends. A growing number of companies are showing a willingness to offer higher pay for key legal hires, acknowledging the value of experienced legal talent. This willingness to invest in top-tier professionals highlights the competitive nature of the market. Candidate-Short Market Despite the active job market, there remains a shortage of qualified candidates; i.e. commercially minded, bilingual in-house counsel. This scarcity continues to drives up demand, giving job seekers an often strong negotiating position. Employers are finding it challenging to fill positions with the right talent, leading to longer recruitment processes and increased competition among companies. Emphasis on Cultural Fit In this candidate-short market, companies are placing a higher priority on finding the right cultural and personality fit. Technical skills and experience remain crucial, but organizations are increasingly looking for candidates who align with their values and can integrate seamlessly into their corporate culture. This shift underscores the importance of soft skills and the ability to work collaboratively within teams. In Summary The in-house legal job market in Japan continues to be dynamic and evolving. With rising salaries, high demand for in-house legal counsel, and a focus on cultural fit, both employers and job seekers must adapt to these trends. For companies, offering competitive compensation and emphasizing corporate culture are key strategies to attract and retain top talent. For job seekers, highlighting both hands-on transactional or technical experience, and alignment with company values can enhance job prospects in this bustling market.
The Japanese legal market continues to evolve and adapt to changes in business and society; namely geopolitical, economic, and environment right now. With the Japanese economy the talk of the global business community (including a weak yen, unfortunately…), the legal market is buzzing, and we are seeing healthy demand for a variety of bilingual lawyers and compliance professionals. Here is a quick snapshot as of Spring 2024. In-house Legal In-house legal departments focusing on asset management and health technology are experiencing significant growth. Asset Management: With the increasing complexity of global finance, there’s a rising demand for legal expertise in navigating intricate regulatory frameworks and modern financial instruments. The industry continues to grow, particular as the Japanese Government tries to encourage its citizens to invest, not just save their hard-earned cash. Health Technology (HealthTech): The intersection of healthcare and digital technology is expanding rapidly, creating a need for legal professionals who understand regulatory compliance, data privacy, and intellectual property issues in this sector. The speed of development in this area, particular in conjunction with AI, is breathtaking, and we are seeing more and more companies enter the Japanese market or be born in Japan, and in need of lawyers and compliance support. Additionally, investment businesses and private equity are seeing heightened activity, requiring legal support for venture funding and managing regulatory challenges. Private equity continues to grow in size and in power, even if there is much potential in this area in Japan. Private Practice Mergers and Acquisitions (M&A), Private Equity, and Energy/Projects are areas of high demand. Corporate M&A and Private Equity: In this dynamic business environment, companies restructuring and seeking legal guidance for strategic transactions. There are still a huge number of Japanese companies with capital to invest, and a growing appetite for acquisitions (the recent US Steel deal being a great example). Energy/Projects: With a focus on sustainability and renewable energy, legal expertise in this sector is increasingly vital for navigating complex project development and regulatory landscapes. Energy transformation continues to be a hot topic, and likely will be for years to come. The Japanese legal market continues to change, presenting both challenges and opportunities for job seekers and employers. Given current client needs, and conversations across the market, we anticipate the need to experienced lawyers and compliance professionals to remain strong, particularly in the areas outlined here, and including others such as AI and related technologies.
Our esteemed consultant Yuna Yoshimasa was awarded the “Young Leadership Award” by the management committee of Health 2.0 conference which was held during the week of February 19th in Dubai. Congratulations to Yuna for being recognized for your contribution to the healthcare industry.
