A new survey found that compensation for in-house counsel took a hit in 2020 as a result of the pandemic, with all industries reporting the smallest base salary increases in the last five years.
The survey, conducted by legal recruiting firm BarkerGilmore, also found that while lawyers in consumer, healthcare and life sciences, and professional services industries experienced the smallest increases (3.5 percent or less), those in financial, energy, and technology industries had the highest salary increases on average at 3.7 percent. The average annual salary increase for all in-house legal positions across industries in 2020 was 3.5 percent, down from 4.4 percent in 2019.
Hiring and Compensation Trends
The report also notes that while in-house counsel at healthcare and life sciences companies averaged the lowest annual salary increases, they were still in high demand in the industry. The report attributes increased hiring of legal professionals to problems the pandemic posed for healthcare providers, vaccine development efforts, and what BarkerGilmore calls “the unique regulatory challenges that unfolded over the past year.”
Respondents at all levels had higher total compensation if they graduated from a top 100 law school. Indeed, respondents that went to a top 100 law school had a 10 percent higher total compensation package than respondents with the same law firm experience, but did not attend a top 100 law school.
Similarly, respondents that worked for an “Am Law 100” ranked law firm had higher total compensation packages than those with experience at a law firm ranked outside the top 100 or no prior law firm experience at all. The report also notes that pay for general counsels and managing counsels was most likely to be affected by law firm experience.
“Our clients consistently demand exceptional talent with law firm experience from top ranked law schools,” BarkerGilmore said in the report.
Public vs. Private
Keeping with trends of the last five years, the survey revealed that in 2020 the compensation of those at publicly traded companies is “significantly higher” than at private organizations. With a 52 percent disparity in total compensation, the gap is most significant at the general counsel level.
The survey, which includes approximately 2,500 respondents, was conducted in early 2021 to assess in-house counsel trends for 2020, sent to a random sample of in-house counsel at public and private organizations across the United States. 
Danny Flynn is assistant editor at Compliance Chief 360°.