Legal professional compensation negotiations discussed in Kerwin's 2025 report released for public scrutiny
In-house legal professionals in the United States are increasingly active in negotiating their pay, equity, and advancement, as revealed by Kerwin Associates' 2025 report, "Navigating Compensation Negotiations."
The report, which surveyed over 300 US in-house legal professionals, indicates that 96% have engaged in compensation negotiations at some point in their careers. About 54% of respondents have negotiated their base salary directly.
However, the report highlights a growing gap between these professionals' willingness to negotiate and their access to crucial compensation and equity information. This equity knowledge gap and data asymmetry create systemic challenges in negotiations and career advancement.
Kerwin Associates explains that compensation discussions have evolved from informal backroom talks to more formal boardroom conversations, reflecting increased assertiveness and sophistication among in-house counsel. However, systemic problems persist, including:
- Limited access to data on market compensation and equity valuation, which hinders informed negotiation.
- Internal transparency constraints within companies, making it difficult for legal professionals to benchmark or assess fair equity value.
- Ongoing equity gaps, particularly relating to diversity and inclusion within legal departments.
The report offers practical guidance for in-house counsel on assessing the value of equity compensation and structuring assertive negotiation requests. It also urges employers to adopt more transparent and proactive approaches to retention and compensation discussions.
Mid-level professionals, in particular, rarely negotiate equity and often report not understanding its value. Mid-level counsel strongly prefer cash compensation both in current roles and new opportunities. Executives show a stronger preference for equity during job transitions but lean neutral in current roles.
Legal professionals rate their confidence in having enough information for negotiation at just 6.7/10. Interestingly, they rate their likelihood to negotiate base salary at 7.8/10. Just 27% of respondents negotiated on title or level, despite its strong correlation with compensation.
The report also found that equity is over 50% more likely to be negotiated during external transitions than internal ones. This finding underscores the need for employers to address internal transparency issues and provide their legal professionals with the information they need to make informed decisions about their compensation.
For employers, the report urges a more transparent and proactive approach to internal compensation, treating retention discussions with the same rigor as recruitment. The report emphasises that this approach is crucial for attracting and retaining top talent in the competitive legal market.
In conclusion, the 2025 report from Kerwin Associates provides valuable insights into the compensation landscape for in-house legal professionals in the US. The report underscores the need for increased transparency and proactive approaches to compensation negotiations, particularly in the area of equity. By addressing these issues, legal departments can better navigate the current compensation landscape amid evolving priorities and persistent systemic barriers.
[1] This article is based on the findings of Kerwin Associates' 2025 report, "Navigating Compensation Negotiations." For more information, visit www.kerwinassociates.com.
- The Kerwin Associates' 2025 report revealed that mid-level in-house legal professionals in the US, while demonstrating a high confidence in negotiating their base salary, rarely negotiate equity and often have a poor understanding of its value, indicating a need for better personal-finance education in business careers.
- Employers must focus on improving the transparency and proactivity of their compensation discussions, as highlighted by the Kerwin Associates' report, to attract and retain top talent in the competitive legal market, addressing systemic issues in equity negotiation and career advancement.
