5 minute read
Breaking Down In-House Counsel Compensation Trends For 2024
By BOB BARKER
In-house counsel salaries are growing modestly, the gender pay disparity gap is narrowing, and fewer legal department employees are job hopping. These are just a few of the key insights to emerge from the BarkerGilmore’s 2024 In-House Counsel Compensation Report. As businesses navigate the complexities of a post-pandemic economy, understanding the compensation shifts is crucial for legal professionals and organizations aiming to attract and retain top legal talent.
The Big Picture
BarkerGilmore conducted an online survey in March 2024 to assess in-house counsel compensation trends for 2023 and 2024. The online survey was administered to a random sample of in-house counsel at various levels of seniority within different sized organizations across the United States. The survey featured multiple-choice and open-ended questions answered by over 3,700 individuals from various industries and practice areas. The data is self-reported.
The report reveals a moderate salary increase for in-house counsel across the board, with an average rise of 4.4%. Managing counsel received the highest salary increment at 3.8%, followed by general counsel at 3.2% and senior counsel at 2.9% from 2023 to 2024.
Average Sign-On Bonus with Percent of Respondents that Received, by Position
Senior Counsel Compensation Breakdown by Gender
Bonuses also reflected notable trends. While bonuses were generally awarded at 95% of the target, Senior counsel often received slightly over their target at 101%. In contrast, general counsel received the lowest value of their target bonuses at 83%.
However, general counsel were the most likely to receive a sign-on bonus (28%) of an average $75,000. Twenty-seven percent of managing counsel received an average sign-on bonus of $30,000, and 23% of senior counsel saw an average sign-on bonus of $27,000.
Gender Pay Gap Is Narrowing
There has been a promising trend of narrowing gender pay disparity in recent years for in-house counsel. This positive shift is especially notable among general counsel roles, where the pay gap has been a topic of concern and discussion.
In 2024, the gender pay gap among general counsel narrowed to 4.3% from 4.9% a year earlier, representing significant progress in the ongoing effort to eliminate gender-based pay disparities. While this figure still indicates existing disparities, it marks a step in the right direction toward achieving pay equity.
IN-HOUSE COUNSEL STAYING PUT
The report delves deeper into critical trends affecting the job market, highlighting a significant shift toward stability in job transitions among in-house counsel. Only 9% of in-house counsel changed jobs in 2023, contrasting with the higher turnover rates observed in the previous two years.
The macroeconomic environment spurred this shift. Companies hired fewer legal professionals as they tightened their budgets and faced challenging market trends. Most notably, the technology sector laid off in-house counsel as businesses struggled or sought to tighten their belts to improve shareholder returns. Past demand for talent was stronger, driving up compensation and reflecting adjustments in certain industry sectors.
In tandem with this more cautious approach to career progression, in-house counsel are expressing gratitude for their compensation levels. Legal professionals are less likely to seek a new position in order to obtain more money. There has been a 22% decrease in the likelihood of legal professionals seeking new positions due to concerns over compensation.
These findings underscore a significant change in the mindset and priorities of in-house counsel. Stability and job satisfaction have become increasingly crucial as the legal sector evolves in an economy still on the mend.
Likelihood of Compensation-Motivated Job Search by Practice Area, All Positions
STRATEGIC INSIGHTS FOR IN-HOUSE COUNSEL
The report provides strategic insights for in-house counsel evaluating their career paths. Moving into the general counsel seat typically provides a seat at the executive table and a sizable boost in compensation.
In addition to leading the legal function, many GCs take on additional responsibilities, and some are more lucrative than others. For example, a general counsel who takes on the additional role of government affairs can typically see their total compensation increasing by 35%. Similarly, those serving concurrently as chief compliance officers usually earn 25% more than peers without these added responsibilities. These and other findings in the report emphasize organizations’ high value on diverse skill sets in the senior legal position.
The report also highlights which practice areas are the highest paying. Banking and finance, energy, and litigation practitioners are among the highest earners, consistent with previous years.
ADAPTING TO EVOLVING TRENDS IN IN-HOUSE COUNSEL COMPENSATION
The recent data on in-house counsel compensation not only offers benchmarks but also mirrors broader industry trends, such as the continuing efforts toward gender pay equity, the importance of holistic compensation strategies, and the increasingly pivotal role of in-house counsel as business enablers.
Looking ahead, it will be crucial for leaders to adapt to these changes. By refining compensation practices, they can ensure they attract and retain the expertise needed to effectively manage the complexities of the global business environment.
