Compensation Trends by Legal Specialty
/How to determine the perfect package to hire lawyers with in-demand skills
As unemployment remains at historically low rates, law firms and legal departments continue to face a tough hiring market. Staying on top of compensation trends is essential to recruiting and retaining top talent.
It’s no secret that the average lawyer earns enough to maintain a more than comfortable lifestyle. With a mean salary of $141,890, law ranked among the top 20 professions with the highest pay on U.S. News & World Report’s 2019 Best Jobs rankings.
But that number is also misleading, as lawyer compensation varies greatly by industry, specialty, location, education, experience, and the size of the company or law firm that’s hiring – with some specialized practice areas earning considerably more than the mean. The U.S. Bureau of Labor Statistics (BLS) reports that the mean average wage in 2018 for lawyers who specialize in securities and commodities was $200,210, for instance, while lawyers working for state governments averaged $92,270.
Lawyers paid by corporations can achieve better pay than those working at law firms – especially if a candidate achieves a general counsel position or stock options in a tech company poised for an IPO. The average starting salary for in-house counsel is $91,750, compared to $70,500 for a first-year associate at a law firm, according to the Robert Half 2019 Legal Salary Guide. The biggest law firms are an exception, however, with starting salaries that can reach $190,000.
Lawyers who practice in San Francisco, Manhattan, and Washington, D.C. also generally earn much more than their counterparts in smaller markets – coming in at 41 percent, 40.5 percent, and 33 percent higher than the national average respectively, according to the Robert Half Salary Guide. Market demand influences compensation trends as well, and law firms or corporations looking to hire lawyers with coveted skills should be prepared to pay a premium to land a superstar.
In today’s market, that generally means senior attorneys who specialize in litigation and commercial law, or certain niches like financial services or technology. Unique market conditions are also increasing demand for other specialties: retiring Baby Boomers are generating a need for more tax and estate lawyers, for instance, and new government regulations are driving demand for attorneys with data privacy and compliance administration expertise.
In the current candidate-driven job market, superstar candidates know their value and, chances are, they’re being courted by multiple employers. If your compensation package doesn’t meet or exceed what your competition is offering, they won't take a second look at your open roles.
Before you create a proposal for positions you’re hiring, take a look at these compensation trends across law specialties. While these numbers are only a market average and many other factors will help determine individual offers, they can serve as a starting point for creating a compensation strategy that aligns with what job candidates want for in-demand specialties.
Compensation trends for 7 in-demand practice areas
In-house counsel. A growing number of lawyers are exchanging the partnership track at large law firms for the better hours and lower stress that often accompany in-house counsel positions at organizations. At the same time, job opportunities are increasing as legal departments bring more work in-house.
With jobs that require them to advise organizations on broad aspects of the law, it’s no surprise that general counsels rank among the highest-paid attorneys in the U.S. – with salaries that significantly increase with the size of the company. Legal specialties that may be covered by in-house and general counsels include tax, contract, accounting, and securities law, as well as gathering and analyzing evidence for legal proceedings—almost any type of legal issue may come across their desk.
The Robert Half Salary Guide lists average earnings for an in-house lawyer with 4-9 years of experience at $110,000. And while the average for those who achieve general counsel is $169,250, those numbers can easily reach seven figures at large, multinational corporations, including base salary, bonuses, stock options, and other perks.
Compensation also varies by industry, with lawyers working for companies in scheduled air transportation; industrial machinery manufacturing; beer, wine, and distilled alcoholic beverage merchant wholesalers; electronic component manufacturing; and cable and other subscription programming earning the highest salaries.
Corporate law. Larger deal volumes, mergers and acquisitions, and new product development are leading to high demand for corporate lawyers who possess the transactional skills to help businesses and corporations get deals done. These lawyers specialize in matters of corporate governance, mergers and acquisitions, commercial transactions, securities law filings and advice, and complex contracts. While the mean salary for corporate lawyers is $156,710, attorneys who structure deals for large companies generally rank among the highest-paid attorneys with salaries that stretch into seven figures.
Litigation. With so much at stake, litigation attorneys representing clients during criminal and civil litigation are among the highest-paid legal professionals—though this can vary widely. Rising caseloads related to commercial matters are creating high demand for attorneys who specialize in these areas, and those with experience in labor and employment are highly marketable. Nearly 60 percent of job opportunities at law firms over the next two years are expected to fall within litigation, according to the Robert Half Salary Guide.
While the average salary is $160,000, the nation’s top litigation attorneys earn millions while public interest lawyers who work on behalf of the government, non-profit organizations, or indigent clients earn considerably less. In 2018, the median pay for experienced lawyers in civil legal services was $69,400, and experienced public defenders earned a median compensation of $96,400, according to the ABA Journal.
Intellectual property. Law firms, legal departments, and government entities are competing to hire IP attorneys focused on obtaining and enforcing patents and other protections. IP law is one of the hottest practice areas in the U.S. as wealth creation shifts from “traditional” industries with hard assets like steel and oil to companies that rise and fall on the value of their intellectual property such as telecommunications and technology. As companies continue to seek ways to make money off innovative ideas – and commit enormous resources to protecting their intellectual property – the Robert Half Salary Guide predicts that demand for IP specialists will remain strong.
The average salary for an intellectual property attorney is $170,136 in 2019, but compensation can easily stretch into the millions depending on an attorney’s expertise and clients. While intellectual property law protects an inventor’s or business’ legal rights relating to their discoveries, innovations, patents, and trademarks, most IP attorneys specialize in a particular sector or area.
Tax. The complexities of the new tax code combined with Baby Boomers retiring en masse has demand for attorneys who specialize in tax law on the rise. The BLS reports an annual mean wage of $184,940 for lawyers who specialize in tax.
Real estate. Booming real estate markets across the nation are leading to booming demand for real estate attorneys. The Robert Half Salary Guide lists real estate as one of the most in-demand practice areas, with law firms seeking lawyers who can help manage continued growth in the commercial and residential real estate markets and help property owners comply with federal, state, and local laws. Real estate attorneys handle all aspects of real property, from ownership of land and buildings to landlord-tenant contracts and construction deals. The BLS reports a median wage of $172,100 for real estate law.
Government. Government lawyers prosecute people accused of crimes or violations, represent the government in lawsuits, and advise governing bodies on a variety of legal issues, including tax, environment, discrimination, consumer protection, and justice. While many lawyers shun the lower pay these jobs typically offer, about 12 percent of law school graduates seek out government jobs every year, answering a “calling to serve.” For the graduating class of 2017, only working for large law firms or in a business/industry held greater appeal.Lawyers employed at the federal level can easily demand six figures, with an annual mean salary of $140,790, while state attorneys fall well below the average mean at $92,270, according to the BLS. Surprisingly, local governments pay slightly higher with a median of $106,120.
Privacy and data security. Privacy concerns caused by the Internet of Things (IoT) and other emerging technologies, new data privacy regulations around the world that threaten heavy fines against non-compliant companies, and an exploding number of data breaches have law firms and legal departments scrambling to hire attorneys who specialize in privacy and data security. Legal departments are especially interested in legal professionals who can support risk assessments, data privacy, and cross-border data transfer initiatives. Experts who can help create cybersecurity policies, procedures, and training programs are also in high demand. The median salary of a privacy counsel in 2019 is $130,911.
The right compensation for superstar candidates
In today’s fiercely competitive legal market, offering the right compensation package is key to attracting the most talented job candidates. But the legal field is as broad as it is diverse – and determining compensation for lawyers with in-demand skills can be a challenge. Many factors from candidate experience to geographic location will also influence the package you provide.
Understanding the compensation trends driving the legal specialty you want to hire will help you create a combination of pay and perks that lures the best candidates to your law firm or company.
Carrington Legal Search is devoted to finding the ideal candidates for our clients’ recruitment needs. We have particular expertise in the Financial Services (banking, insurance, investment management, etc.) and Technology verticals. To make our nationwide network work for you, get in touch at 512-627-7467 or email carrie@carringtonlegal.com.