Report by Kerwin Details 2025 Discussions on Wage Disputes in the Legal Sector
Navigating Compensation Negotiations: Insights from Kerwin Associates' Report
In a recent report titled "Navigating Compensation Negotiations," legal executive search firm Kerwin Associates offers practical recommendations for legal professionals on evaluating equity value and structuring negotiation asks. The report, which is based on insights from over 300 in-house legal professionals in the U.S., sheds light on current trends and challenges in the compensation landscape for in-house legal professionals.
One of the key findings of the report is the growing disconnect between legal professionals' willingness to negotiate and their access to the information needed to do so effectively. According to the report, 96% of legal professionals have negotiated compensation at some point in their career, yet only 29% spoke with a mentor or peer when evaluating equity value, and 44% relied on company-provided information alone. This lack of information and guidance can lead to a confidence vs. information gap, with some professionals expressing confidence in their negotiation skills but lacking information about the value of equity and its impact on compensation.
Another interesting finding is the disparity in equity negotiation between internal and external transitions. The report states that equity is over 50% more likely to be negotiated during external transitions than internal ones. Mid-level professionals, in particular, rarely negotiate equity and often report not understanding its value. In contrast, executives show a stronger preference for equity during job transitions, with a mean score of 5.9/10, but lean neutral in current roles (mean 5.0/10).
Compensation conversations have moved from backroom discussions to boardroom strategy, according to the report. Legal professionals rate their likelihood to negotiate base salary at 7.8/10, and 54% of respondents negotiated pay in 2021 or 2022. However, only 27% of respondents negotiated on title or level, despite its strong correlation with compensation.
For employers, the report urges a more transparent and proactive approach to internal compensation, treating retention discussions with the same rigor as recruitment. Mid-level counsel strongly prefer cash compensation both in current roles (mean 3.3/10) and new opportunities (mean 4.1/10). The full report, which is available online, aims to help legal departments and professionals navigate today's evolving compensation landscape with clarity and confidence.
In conclusion, the Kerwin Associates' report offers valuable insights into the current state of compensation negotiations for in-house legal professionals. It highlights the importance of access to information and guidance in effective negotiation, the disparity in equity negotiation between internal and external transitions, and the growing trend of compensation conversations moving to the boardroom. Employers are encouraged to adopt a more transparent and proactive approach to internal compensation, and legal professionals are encouraged to seek out guidance and information to navigate the compensation landscape with confidence.
Personal-finance education can be crucial for legal professionals, as the Kerwin Associates' report revealed a lack of information and guidance in evaluating equity value, leading to a potential confidence vs. information gap. Consequently, careers in finance or personal-finance coaching could be beneficial for those seeking to bridge this gap and help legal professionals navigate their compensation negotiations effectively.
