Tips to prepare for review
For reviewed
For reviewers
WHERE AM I NOW?
Few organizations remain static from year to
year, and successful in-house counsel adapt
accordingly. A yearly review is a good excuse
to take stock and ask non-legal
colleagues for their view of the state
of the organization. For example,
has the past year seen expansion,
perhaps a private company preparing
an IPO, contraction of business,
opening in new market places,
legislative changes? How, on a broad level, has
this affected the organization as a whole? In
particular, understanding how your commercial
and financial colleagues view both the current
landscape and how the legal function fits into
it can be invaluable to determining how to take
the role forward.
Take stock
of where
you are
now
WHAT AM I WORTH?
Inevitably, yearly reviews focus on compensation
issues. As with any discussion or negotiation,
careful research is crucial. For an overview of
compensation trends, The Counsel Network in
conjunction with Ipsos Reid and The Canadian
Corporate Counsel Association periodically
publishes in-house counsel compensation
and career surveys that report and benchmark
compensation-related topics for Canada’s
in-house counsel community. For example,
the 2010 survey showed that base salary
varied widely depending on the type of
organization. On the low end a government/
crown organization paid in-house counsel an
average base salary of $137,000, while on
the most lucrative was the resources/mining
industry, which paid an average base salary
of $173,000. Knowing the exact numbers will
help both sides negotiate a fair salary based
on the industry standards. A recruitment
consultant will also be able to provide “real
time” information on compensation structures
in the local market and the strength of the in-house counsel job market generally.
Depending on the organization, a better
comparator may be the compensation of
BE PREPARED
If you want to make the most of any conversation
regarding performance or compensation, you
should be well prepared. Keep in mind that
most lawyers talk with each other
informally about compensation and
career opportunities and you do not
want to be learning about the market
from them during the yearly review.
Information is power and you want
to make sure you know all you can
about your industry, your organization and the
individual you are talking to.
It’s all
about being
“in the
know”
KNOW YOUR INDUSTRY
Most in-house counsel will compare themselves
to others in the same industry. Therefore,
you should know when yearly reviews happen
at other organizations in your industry so
you can position yours appropriately. You
should also know what the average annual
salary increase and bonus look like at other
organizations in your sector. Lastly, you should
have a good sense of where the industry as a
whole is trending. Is there anticipated growth
or decline? What will be the challenges or
opportunities faced by your industry? Giving
this some thought will allow you to speak to in-house counsel’s concerns about the industry as
a whole and their career progression within it.
KNOW YOUR ORGANIZATION
Be honest with yourself and in-house counsel
regarding your own organization. Highlight
your own competitive advantages but do not
shy away from the down side either. Doing
this helps establish credibility and trust. Every
organization has internal struggles and while
you do not want to shine too much light
on that, you need to address it in a fair and
reasonable manner. There are always trade-offs
and if you want to retain in-house counsel for
the long run, being upfront with them is very
helpful. Be cognizant of your organization’s
position within your industry. Is it a market
leader or is it purposefully positioned near
