Report on 2025 Compensation Discussions in the Legal Field Released by Kerwin
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The recently published report "Navigating Compensation Negotiations" by Kerwin Associates sheds light on the shifting landscape of compensation negotiations among U.S. in-house legal professionals. The report highlights several key findings, including persistent equity gaps, data asymmetry, and evolving priorities among in-house counsel.
Key findings include:
- Equity gaps: There remain significant disparities in compensation outcomes, particularly affecting underrepresented groups within legal professions.
- Data asymmetry: There is an imbalance in available compensation information between employers and legal professionals, complicating negotiations and potentially disadvantaging candidates or employees.
- Shifting priorities: The report notes a change in what legal professionals value most in compensation packages—beyond salary alone—including benefits, flexibility, and career development opportunities.
Practical recommendations for legal professionals and employers:
- For legal professionals: Be proactive in preparing for negotiations by gathering relevant market data to reduce information gaps, understand your own priorities beyond base pay, and approach negotiations with a well-defined strategy given the moderate likelihood and openness to negotiate.
- For employers: Increase transparency around compensation data and structure packages that reflect changing priorities—such as flexibility and equity considerations—to attract and retain top talent while addressing existing equity disparities.
The report indicates that compensation conversations have moved from backroom discussions to boardroom strategy, with a notable 96% of legal professionals having negotiated compensation at some point in their career. However, equity is over 50% more likely to be negotiated during external transitions than internal ones. Only 27% of respondents negotiated on title or level, despite its strong correlation with compensation.
Interestingly, legal professionals rate their likelihood to engage in compensation negotiations fairly high, at 7.8 out of 10, but only 29% of professionals spoke with a mentor or peer when evaluating equity value. Meanwhile, mid-level counsel strongly prefer cash compensation both in current roles (mean 3.3/10) and new opportunities (mean 4.1/10), and often report not understanding the value of equity.
Executives show a stronger preference for equity during job transitions (mean score 5.9/10) but lean neutral in current roles (mean 5.0/10). In the past two years (2024 and 2025), 54% of respondents negotiated pay.
The report emphasises the importance of informed, strategic negotiation and a broader view of total compensation to create fairer outcomes and meet the evolving expectations of legal professionals. Kerwin Associates produced the report to help legal departments and professionals navigate today's evolving compensation landscape with clarity and confidence.
The full report is available online for those interested in learning more about these findings and practical recommendations for legal professionals and employers.
- In the shifting business landscape, it's crucial for legal professionals to strategize their personal-finance matters, considering the significance of evolving compensation priorities and equity gaps highlighted in the Kerwin Associates report.
- Employers need to prioritize transparency in their compensation practices, aligning their business strategies with the demand for fairness, flexibility, and equity considerations as highlighted in the Kerwin Associates report to attract and retain top-tier careers in the legal sector.
