You’re a corporate counsel who’s been diligently working to protect your company’s legal interests, handling everything from contracts to compliance. Yet, when it comes to compensation, you might find yourself in a position similar to that of Jackie, a seasoned attorney who successfully negotiated a significant salary increase.

Jackie had spent nearly a decade at her firm and was ready for a new challenge. When she received an offer from a well-known financial institution to join their in-house legal team, she was pleased but knew she deserved more. Rather than settling, she confidently asked for $15,000 more than the initial offer, which the institution accepted. This negotiation boosted her salary and also reaffirmed her value in her new role.‍

Why should lawyers negotiate salaries?

‍‍“True negotiation is not ‘I win, you lose.’ There may be times when that could be the case, but the party on the other side will hate you and will look for ways to screw you over the first chance they get.”‍
~ Sterling Miller, CEO and Senior Counsel, Hilgers Graben PLLC
Ten Things: Business Skills All In-House Lawyers Must Know

Negotiating your salary is essential. It’s about getting paid what you’re worth. Your role is crucial to the company, and your compensation should reflect that. A well-negotiated salary enhances your career growth, boosts job satisfaction, and secures your financial future. When you’re paid what you’re worth, you feel more motivated and valued, leading to greater success in your role.

In this article, you'll explore key aspects of salary negotiation, including how to understand current salary benchmarks and develop effective strategies to secure the compensation you deserve. By the end, you'll be ready to approach your next salary discussion with confidence and clarity.

Understanding in-house counsel compensation packages

#1 Base salary

Your base salary is the core of your earnings as in-house counsel. This is the fixed amount you receive regularly, regardless of bonuses or other benefits. Typically, base salaries vary depending on your experience, the company’s location, and its size.

• Experience: Entry-level in-house counsel generally earn lower base salaries, while those with extensive experience can command much higher pay. For instance, senior in-house counsel with over a decade of experience often see salaries well into the six figures.
• Location: Salaries differ across regions, with metropolitan areas typically offering higher base salaries due to the higher cost of living and demand for legal expertise.
• Company size: Larger companies, especially those in competitive industries like technology or finance, usually offer higher base salaries compared to smaller firms.

#2 Bonus structures

Bonuses play a crucial role in your total compensation. They reward you for your performance and contribute to your overall financial package. The most common types of bonuses include:

• Performance-based bonuses: These bonuses are tied to your performance or the company’s financial success. They can range from 10% to 30% of your base salary, adding a significant boost to your income.
• Signing bonuses: These are one-time payments offered when you join a new company, often to attract top talent. Signing bonuses can vary widely, but they often range from $10,000 to $50,000 or more.
• Retention bonuses: Retention bonuses are given to ensure key employees stay with the company during critical periods, such as mergers or acquisitions. These bonuses can be substantial, depending on the circumstances.

#3 Equity components

Equity compensation is another important aspect of your package, particularly in certain industries like technology. The two main types of equity compensation are:

• Stock options: Stock options allow you to purchase company shares at a predetermined price. If the company’s stock price increases, you can buy shares at the lower price and sell them at the current market value, potentially making a significant profit.
• Restricted Stock Units (RSUs): RSUs are company shares granted to you as part of your compensation. These shares typically vest over a set period, meaning you earn them over time as you continue working at the company.

#4 Total compensation

When assessing a job offer, focus on the total compensation package, not just the base salary. Your total compensation includes:

• Base salary: The fixed amount you receive annually
• Bonuses: Including performance-based, signing, and retention bonuses
• Equity components: Such as stock options and RSUs
• Benefits: Health insurance, retirement plans, and other perks

By considering all these elements, you ensure that you are fairly compensated for your role. This holistic view of your compensation package is essential for making informed decisions about your career.

How much do in-house lawyers make?

Below is a breakdown of what in-house counsel can expect to earn at different career stages, how geographic location affects salaries, and how different industries and company stages influence base pay.

#1 Base salary expectations by experience level

Based on the data from SpotDraft’s salary report, here’s what in-house counsel can expect to earn at various stages of their careers:

• Junior level (1-5 years): In-house counsel at the junior level typically earn around $141,796 annually. These roles generally involve handling routine legal tasks and supporting more experienced attorneys.
• Mid-level (5-10 years): For mid-level in-house counsel, average base salaries are around $168,771 per year. This stage involves more complex legal work, greater responsibility, and often includes managing a team or significant legal projects.
• Senior level (10+ years): Senior in-house counsel can expect to earn between $170,955 and $208,200 annually. These roles usually involve strategic legal advisory, working closely with the executive team, and overseeing the entire legal function of the organization.

#2 Geographic variations in base salaries

• Major legal hubs: In large cities with a high cost of living, such as New York and San Francisco, base salaries for in-house counsel tend to be at the higher end. Companies in these areas are more likely to offer competitive salaries to meet the demand for top legal talent.
• Smaller markets: In regions with lower living costs, such as the Midwest or the South, base salaries are generally lower. However, they are still competitive within the local market.

#3 Industry comparisons in base salaries

• Technology: In-house counsel in tech companies, particularly those in fast-growing or high-demand sectors, often receive higher base salaries. This is especially true as companies advance through funding rounds.
• Finance: The finance industry also offers competitive base salaries, particularly in major financial centers. Legal roles in this sector often require specialized knowledge, which is compensated accordingly.
• Healthcare: In-house counsel in healthcare typically see moderate base salaries. However, as the regulatory environment in healthcare becomes more complex, there is an increasing demand for experienced legal professionals, which is reflected in compensation.
• Energy: The energy sector offers strong base salaries, particularly for roles that require specialized legal expertise. As companies in this sector grow, in-house counsel can expect competitive compensation packages.

#4 Base salaries by financing stage

• Early-stage startups: In-house counsel at early-stage startups usually start with lower base salaries. However, these roles often include significant equity components to offset the lower salary.
• Growth-stage companies: As companies secure more funding, base salaries increase to attract and retain talent. Growth-stage companies offer more competitive salaries, reflecting their increased financial stability.
• Late-stage companies: In-house counsel at late-stage companies, especially those preparing for an IPO or acquisition, see higher base salaries. These roles require extensive experience and leadership, which is reflected in the compensation.
• Public companies: Once a company is public, base salaries align more closely with those at established large enterprises. Compensation packages at this stage are typically robust, offering a balance between salary and equity or other incentives.

For more detailed insights and a complete breakdown of in-house counsel compensation, kindly check out the full SpotDraft salary report.

Salary negotiation challenges for in-house counsel

“In a negotiation, you want to get as much information as possible about what the other side is thinking and what they want, along with their motives, fears, concerns, and interests.  The best way to do this is by listening to them vs. talking.  The rule of thumb here is to listen 70% of the time, talk the other 30%.  Ask them what it is they want and then listen hard to the answer.”
‍~ Sterling Miller, CEO of Hilgers Graben PLLC
Ten Things: How to Negotiate – Practical Tips for In-House Counsel

Negotiating your salary can be tough, even for experienced in-house counsel. You’re used to advocating for your company, but when it comes to your own pay, it’s a different game. Here are some common challenges you might face:

#1 Research your market value

Before you negotiate, know your market value. Use resources like the SpotDraft salary report to see what others in similar in-house counsel roles are earning. This knowledge will help you set realistic expectations and make a strong case during your negotiation.

#2 Pick the right time to negotiate

Timing is crucial in salary negotiations. The best times to bring up a raise are during performance reviews, after you’ve completed a successful project, or when you’re transitioning to a new role. These moments are when your contributions are most visible and appreciated.

#3 Build a strong case with your achievements

Document your achievements and quantify your contributions. Show how your work has directly benefited the company, such as by saving money or improving efficiency. Align your value with the company’s goals to make a compelling case for a salary increase.

#4 Look beyond salary—negotiate the whole package

When negotiating, don’t focus only on salary. Consider other aspects of your compensation, like bonuses, equity, and benefits. You can also negotiate for more vacation days, flexible work hours, or professional development opportunities. These elements can add significant value to your overall compensation package.

Also read: Salary Negotiation Guide

$5 Practice your negotiation skills

Confidence is key when negotiating. Practice your approach with a mentor or colleague to build confidence and refine your strategy. This preparation will help you handle objections and stay focused during the negotiation.

Also read: Strategic Salary Negotiations

Download SpotDraft’s salary report to ease your research

SpotDraft’s salary report helps you understand your market value, giving you a clear foundation for your negotiations. This report shows what in-house counsel earn at different experience levels and in various industries, so you can confidently ask for the pay you deserve.

Ready to take the next step in your career? Download SpotDraft’s salary report now and remove the guesswork from your next negotiation.