Report highlights key factors for in-house success
In-house counsel who want to earn a lot of money should work elsewhere first, move into an industry such as life sciences, and be a man.
That’s according to the Association of Corporate Counsel (ACC), which published its 2018 Global Compensation Report this week, a study of salary and benefits information from more than 5,000 in-house counsel and legal professionals in 65 countries.
It found a 22% gender pay gap for general counsel where men earn a median of $270,000 (£203,340) in total compared with $210,000 (£158,163) for women with similar experience and in a comparable role. However, the gap shrinks for those who received their degree more recently—for example, the gap is $85,000 (£64,010) for those who graduated law school before 2000 but $35,000 (£26,359) for those who graduated after 2015.
‘While it was not a surprise, it was certainly disheartening to see the extent of gender pay disparities in the in-house community,’ said Veta T. Richardson, president and CEO of ACC.
‘Yet we are optimistic that the gap appears to shrink for newer generations of corporate counsel leaders and hope the data in the survey will yield more transparency.’
The research showed that it pays to gain experience outside of a corporate legal department first—even two years in a law firm or government department equates to higher compensation.
In terms of sector, in-house counsel can expect to make more money if they work in biotechnology/life sciences, technical/research development or accommodation/food services.
It can also pay to work in a public company—median base salaries for all in-house legal positions are nearly $25,000 (£18,828) higher in public companies than in private ones, and there is a $48,000 (£36,154) difference when comparing total compensation.
Overall, however, salaries are expected to go up. Some 78% of in-house counsel expect a rise next year and more than a quarter of general counsel expect an increase of at least 5%.
More than three-quarters of respondents received a performance-related bonus in 2017, and the median amount was $33,000 (£24,856). Nearly half have 25 or more days paid holidays and 43% have flexible work schedules.
The three highest paying practice areas are capital markets/securities/finance, mergers and acquisitions, and antitrust/trade regulations.
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