Introduction
Corporate lawyers are one of the highest-paying professions in the country. According to the Bureau of Labor Statistics (BLS), the median annual wage for lawyers in 2019 was $122,960. But when it comes to corporate lawyers, the numbers can be significantly higher. In this article, we’ll explore how much corporate lawyers make and various factors that influence their salaries.
The Average Corporate Lawyer Salary: A Breakdown by Industry and Location
When looking at corporate lawyer salaries, industry and location play a major role. Here’s a breakdown of some of the top-paying industries and locations for corporate lawyers:
Industries with the Highest Salaries
According to the BLS, the industries with the highest average wages for lawyers include:
- Computer systems design and related services – $149,930
- Securities, commodity contracts, and other financial investments and related activities – $146,840
- Management of companies and enterprises – $145,090
- Oil and gas extraction – $141,380
- Insurance carriers and related activities – $140,240
Locations with the Highest Salaries
In addition to industry, location also plays a big part in determining corporate lawyer salaries. According to the BLS, the states with the highest average lawyer salaries in 2019 were:
- California – $179,260
- New York – $173,550
- Massachusetts – $165,620
- Connecticut – $163,190
- Pennsylvania – $148,120
Exploring the Factors Affecting Corporate Lawyer Salaries
In addition to industry and location, there are numerous other factors that can influence corporate lawyer salaries. Here’s a look at some of the most common:
Education
Most corporate lawyers have advanced degrees in law. According to the American Bar Association (ABA), the average lawyer has a Juris Doctor degree from an accredited law school. This is typically a three-year program in which students take classes such as constitutional law, civil procedure, contracts, torts, and legal writing. Lawyers also need to pass the bar exam in order to become licensed to practice law.
Experience
Experience is another important factor in corporate lawyer salaries. The longer a lawyer has been practicing, the more likely they are to command higher salaries. According to the ABA, the average salary for lawyers with five to nine years of experience was $112,360 in 2018, while the average salary for those with 20 or more years of experience was $184,830.
Specialization
Many corporate lawyers specialize in a particular area of law. For example, some focus on mergers and acquisitions, while others specialize in securities law. Specialization can often lead to higher salaries, as lawyers with specialized knowledge are often in high demand.
Hours Worked
The number of hours a corporate lawyer works can also have an impact on their salary. According to the BLS, the average lawyer worked 50 hours per week in 2019. Those who work more than 50 hours per week may be entitled to overtime pay, which can increase their total compensation.
Job Type
Finally, the type of job a corporate lawyer holds can have an effect on their salary. According to the BLS, lawyers employed by the government typically earn lower salaries than those working for private law firms or corporations. Additionally, lawyers who are partners in a law firm tend to earn higher salaries than associates.
Corporate Lawyers: How Much Do They Really Make?
So, how much do corporate lawyers really make? It’s difficult to give an exact figure since salaries vary greatly depending on industry, location, experience, and other factors. However, according to PayScale, the average salary for a corporate lawyer in the United States is $99,637.
Total Compensation
In addition to a base salary, many corporate lawyers also receive additional compensation in the form of bonuses, stock options, and other incentives. According to the BLS, the average lawyer received an additional $7,400 in bonus pay in 2019. This can significantly increase a corporate lawyer’s total compensation.
Bonuses and Other Benefits
In addition to a base salary and bonuses, corporate lawyers may also receive a variety of other benefits. These can include health insurance, retirement plans, paid vacation days, and more. Depending on the employer, these benefits can add significantly to a corporate lawyer’s total compensation.
What’s Behind the High Pay for Corporate Lawyers?
So why are corporate lawyers paid so well? There are several factors that contribute to their high salaries. Here’s a look at some of the main ones.
Supply and Demand
One of the biggest factors behind the high pay for corporate lawyers is the supply and demand of the profession. According to the BLS, the number of lawyers employed in the United States is expected to grow by 6% between 2018 and 2028, faster than the average for all occupations. This means that there will be more jobs available for corporate lawyers, driving up salaries.
Impact of Technology
Technology is also playing a role in the increased demand for corporate lawyers. As technology advances and businesses become more complex, companies are increasingly relying on corporate lawyers to help them navigate the legal landscape. This is driving up demand for corporate lawyers and pushing up salaries.
Value of Corporate Lawyers
Finally, corporations place a high value on the expertise of corporate lawyers. According to a study by consulting firm Major, Lindsey & Africa, corporate lawyers are seen as “the most valuable strategic advisors” to companies. This means that they can command higher salaries than other types of lawyers.
Corporate Lawyer Salaries: A Closer Look at Bonuses, Benefits, and More
In addition to base salaries, many corporate lawyers receive bonuses and other benefits. Here’s a closer look at some of the most common forms of compensation.
Types of Bonuses
Corporate lawyers may receive bonuses for a variety of reasons, including meeting performance goals or completing projects on time. Bonuses can range from a few hundred dollars to thousands of dollars, depending on the company and the lawyer’s individual performance.
Health Insurance and Retirement Benefits
In addition to bonuses, many corporate lawyers receive health insurance and retirement benefits. These benefits can include medical, dental, and vision coverage, as well as 401(k) matching contributions and other retirement plans. These benefits can add significantly to a corporate lawyer’s total compensation.
Other Benefits
Finally, corporate lawyers may receive a variety of other benefits. These can include paid vacation days, flexible work schedules, and discounts on company products and services. Depending on the employer, these benefits can add significantly to a corporate lawyer’s total compensation.
Conclusion
At the end of the day, corporate lawyers can make very good salaries. According to PayScale, the average salary for a corporate lawyer in the United States is $99,637. However, salaries can vary greatly depending on industry, location, experience, and other factors. Additionally, corporate lawyers may receive bonuses, health insurance, retirement benefits, and other perks. To maximize earnings potential, corporate lawyers should focus on building their skills and expertise in their chosen field.
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