In 1952, Lay was assigned to Naval HQ as Assistant Chief of Naval Staff (Warfare) and made a member of the Naval Board of Canada. He was promoted to rear admiral and assigned to Naval HQ as Vice-Chief of Naval Staff and as Chief of the Naval Staff in 1954, serving until his retirement in 1958.
Lay's naval career spanned from 1952 to 1958, during which he held significant positions such as Assistant Chief of Naval Staff (Warfare) and member of the Naval Board of Canada. He was promoted to rear admiral and served as Vice-Chief of Naval Staff and Chief of the Naval Staff.