Law Departments Feeling Pressure of Law Firm Starting Salary Increases: Survey Reports Significant Compensation Increases at Entry Level
(Newtown Square, PA, December 1, 2000) – The latest 2001 Altman Weil Law Department Compensation Benchmarking Survey of U.S. Corporate Law Departments, published in partnership with the American Corporate Counsel Association, shows substantial growth in compensation of recent graduate positions in 2000. Nationally, salaries of recent graduates reportedly grew by 9%. This appears to be a directly related to the rising entry level starting salaries for lawyers in U.S. law firms.
The complete 2001 Altman Weil Law Department Compensation Benchmarking Survey, published in partnership with the American Corporate Counsel Association, is a 520-page report. The report includes compensation data for positions including chief legal officer, deputy chief legal officer, division or group general counsel, managing attorney, high level specialist, senior attorney, attorney, staff attorney, and recent law school graduate. In addition, law department compensation data is reported for Legal Administrators and three levels of paralegal positions.
The 2001 Survey Shows a Significant Increase in Participation
Four hundred and fourteen corporations participated in the 2001 Survey, a 10% increase from 2000. Data includes the compensation of 3,511 lawyers and 1,046 paralegals and administrators.
Who are on top?
Size does matter, and so does geographic location, when it comes to Chief Legal Officer compensation. Chief Legal Officers in California and the Chicago and New York Metropolitan Areas are at the top of the total compensation pyramid. In addition, the highest compensated Chief Legal Officers are in companies with over 20,000 employees.
Industries can also make a significant difference in compensation. High Level Specialists, attorneys with 12 years or more of experience, in the chemical manufacturing, computer/electronic/electrical and other manufacturing industries report the highest average total cash compensation (salaries plus cash bonus)in their category.
Notable Compensation Gains for Lawyers in Law Departments of 25 Lawyers and Under
One of the most significant increases in compensation was among high level specialists, non-management lawyers with 12 or more years of experience. In law departments of 25 or fewer lawyers, this group experienced the most significant total cash compensation (includes salary plus cash bonus) increases of approximately 7% to 10%. Other lawyer categories in mid-sized law departments also experienced increases.
Stock Option Eligibility is Significant Throughout the Organization
Stock options in U.S. Corporate Law Departments were tracked for the second year in the 2001 Altman Weil Survey, reporting the eligibility and value of stock options by position, region, size of company, size of law department and industry. Every category of lawyer, in varying degrees, appears to be eligible for stock options. The higher one climbs the organizational ladder, the greater the possibility for stock option eligibility. 35% of staff attorneys are reportedly eligible for stock options while 60% of Chief Legal Officers are eligible.
The Survey is available from Altman Weil Publications for $545. The publishing firm also offers to Law Departments a Survey of Law Department Performance Metrics, and a monthly newsletter, In-House Practice and Management. Orders and inquiries may be placed by calling 1-888-782-7297.
