THE CCSUNSEL n?House Counsel Compensation Career Report 2020 THE CANADIAN BAR ASSOCIATION DU BARREAU CANADIEN Canadian Corporate Counsel Association Association canadienne des conseillers (eres) juridiques d?entreprises Message from the Executive DEAR COLLEAGUE: We are pleased to present the results of our sixth In-House Counsel Compensation & Career Survey. This report provides employers and in-house counsel with the most up-to-date and robust analysis of in-house and corporate counsel compensation within Canada. We started to publish this data in 2009 because of a dearth of information in the market about inhouse compensation and wanted to provide employers and in-house counsel with benchmark data that would allow them to make informed and prudent decisions with respect to salary and compensation. As knowledge leaders in the legal recruitment field, we are proud that the survey has become an authority and the most relied upon tool for in-house counsel compensation. Who uses the results from this survey? • Organizations that are trying to set competitive pay levels. Analyzing salary, bonus and benefit trends on a yearly basis can be quite challenging and knowing the geographic and market benchmarks can help employers make the best decisions and rationales for their organizations. • Organizations that are trying to attract and retain top talent. Knowing the compensation and career issues which will tip the scale in your favour when recruiting can make the difference between a potential candidate saying yes to your offer or accepting a position elsewhere and help you retain your top talent. • Organizations that require specialized skill sets and specialties. Awareness and insight into a specialized market and knowing the availability of particular skill sets gives you the insight to know you aren’t paying too much or offering too little. • In-house counsel seeking information that will assist them in evaluating their compensation packages. • HR professionals who want to be more informed and involved in the hiring of in-house and corporate counsel. It is our hope that you will find this report useful in helping you to make informed decisions with respect to recruiting and retaining talent for your organization, or when reviewing your compensation as in-house counsel. Please visit thecounselnetwork.com for more information regarding the current hiring environment. Dal Bhathal Sameera Sereda Warren Smith Why Choose The Counsel Network? The Counsel Network provides market-leading, comprehensive talent management services for the Canadian legal professionals’ market. Over the last 30 years, we have earned our reputation and position as Canada’s premier legal talent management firm. We have a high performance, results-oriented culture built on the core values of excellence, leadership, integrity, teamwork and empowering relationships. We conduct our business with the highest level of integrity and ethical standards, both internally and externally. The Counsel Network is known to distinguish itself in the following ways: WE ARE TRUSTED ADVISORS We possess an unparalleled knowledge of the legal market and provide our clients with compelling thought leadership that empowers them to best match their business objectives with their recruitment needs. WE VALUE RELATIONSHIPS We seek long-term, strategic relationships with our clients, who value not only the manner and approach to the services we provide but also value the people we help them recruit. WE ARE DISTINGUISHED IN THE LEGAL FIELD We are proud of our unique status as Canada’s first specialist lawyer recruitment firm and equally proud to subscribe to the Code of Ethics and Standards of Practice of the National Association of Legal Search Consultants (NALSC). WE ARE KNOWLEDGE LEADERS Our success is rooted in systems which create an unparalleled, shared and detailed knowledge of the Canadian legal market, combined with a deep understanding of the business of law, which we proactively share with our clients. We have created one of the largest, if not the largest, recruiting databases in Canada but we believe it is our job to get to know the person behind the resume and will provide you with the best candidates with the best fit for your organization. WE ARE DIVERSE We believe diversity is one of our greatest strengths as a company. We are committed to fostering an inclusive environment for our team and by committing our time and expertise to support diverse causes in business and legal communities across the country. Have a confidential discussion with Canada’s leaders in legal career advice today. DAL BHATHAL Managing Partner 416.364.6654 dal@thecounselnetwork.com SAMEERA SEREDA Managing Partner 403.444.1763 ssereda@thecounselnetwork.com WARREN SMITH Managing Partner 604.643.1711 wsmith@thecounselnetwork.com CONTENTS 3 Introduction 4 Executive Summary 6 Respondent Profile 12 In-House Counsel at Work 30 Comparability and Change in Compensation 35 In-Depth Look at Provinces 63 National Trends in In-House Counsel Compensation 76 Benefits 85 Satisfaction with Work and Loyalty to Employer 94 Diversity Introduction Background Bramm Research was commissioned by The Counsel Network in partnership with the Canadian Corporate Counsel Association (CCCA) to conduct the 2020 In-House Counsel Compensation & Career Survey. The purpose of this study is to report and benchmark compensation and career-related topics for Canada’s in-house counsel community. Similar studies were conducted in 2018, 2016, 2012, 2010 and 2009. The survey was conducted prior to the Covid-19 pandemic and its results were released in May. The survey asked over 100 questions covering the following topics: • Demographic data • Compensation - Base salary - Bonuses - Stock options - Benefits • Satisfaction with various components of the compensation package • Hours of work and work-life balance • Satisfaction with career mobility Page 3 • Change in size of the organization’s legal department over the past two years • A series of diversity questions including Indigenous background, race/ethnicity and sexual orientation Methodology Survey invitations were sent out via email by Bramm Research to 7,630 in-house counsel on January 14, 2020. The fieldwork closed on February 28, 2020. A total of 1,141 respondents took part in this survey. This represents a response rate of 15%. A variety of sectors, job roles and regions took part in the survey. Given the number of respondents and the response rate, we are confident that the results are based on a representative sample of in-house counsel. With a total sample of 1,141, the margin of error is plus or minus 3 percentage points at the 95% confidence level. If, for example, 50% of the respondents say that they receive a particular benefit, then we can be reasonably sure (19 times out of 20) of an accuracy within +/- 3 %. This means that a total census of all inhouse counsel would reveal an answer of not less than 47% and not more than 53%. EXECUTIVE SUMMARY Executive Summary Introduction National Average Base Salary The 2020 In-House Counsel Compensation & Career Survey was commissioned by The Counsel Network in partnership with The Canadian Corporate Counsel Association (CCCA). This is the sixth wave of this research. Previous studies were conducted in 2018, 2016, 2012, 2010 and 2009. The survey was conducted prior to the COVID-19 pandemic. In 2020, the national average base salary stands at $167,500, which is slightly higher when compared to the $163,000 reported in 2018. Based on organization type, we note that the average base salary for in-house counsel in both publicly-quoted and privately-owned companies is higher than government or Crown corporation in-house counsel. The final sample population consisting of 1,141 respondents provides a good cross section of in-house counsel. Respondents are located in all major cities across Canada and include a variety of sectors and titles. Geographically, a very large portion of respondents come from Ontario (38%), Alberta (24%) and British Columbia (21%). These three provinces comprise 83% of the total sample. Sixty-nine percent of respondents live in the major cities of Toronto, Calgary, Vancouver, Edmonton, Montreal and Winnipeg. There is no change in the total figure of the same cities, which in 2018 also was 69%. Both Ontario and Alberta report average base salaries that are above the national average. This is consistent with the results in 2018. Looking more closely at Alberta, we see that the average base salary has declined in Calgary but increased in Edmonton. In comparison to 2018, approximately the same percentage of in-house counsel work for privately-owned companies (35%) and publicly-quoted companies (30%). Crown corporations and government comprise 13% each. Not-for-profit organizations make up 10% of the sample. When it comes to organization size, in-house counsel is divided across three tiers of company size, i.e., those with less than 1,000 employees, those between 1,000 and 5,000 employees, and those with 5,000 or more employees. The percentages working for the three tiers remain relatively consistent when we compare 2020 and 2018. The majority of in-house counsel (44%) work for companies with less than 1,000 employees. The percentage of in-house counsel working for medium-sized companies stands at 25%. Thirty percent are employed by large-sized companies. Around a quarter (24%) of respondents have spent six to ten years in practice followed by 32% of those who spent over 10 years. The average number of years in practice is 14.3. There were only slight changes in the breakdown compared to 2018. Page 4 Salaries in British Columbia and Quebec are slightly below the national average. The average base salary in Atlantic and Central Canada continue to lag behind the national average. Industry Trends Consistent with the previous survey, financial services and insurance continues to be the sector most represented by in-house counsel. This declined slightly (3%), from 18% in 2018 to 15% in 2020. The oil & gas industry and government are the next two most represented sectors. Oil & gas declined slightly from 8% to 7%, while government grew from 10% to 11%. This year, we see the highest average base salaries are being paid to those employed by resources/ mining/forestry ($224K), manufacturing/automotive/ aerospace/chemical ($193K), oil & gas ($190K), real estate ($180K), retail/hospitality, food and beverage, consumer products ($174K), construction ($173K), information technology ($170K). The largest gains in annual base salaries from 2018 to 2020 are in resources/mining/forestry (up $31K), manufacturing/automotive/aerospace/chemical (up $28K), and financial services/insurance (up $15K). The most substantial downward shifts in annual base salaries from 2018 to 2020 are in pharmaceuticals/ medical (down $13K), construction (down $10K), and oil & gas (down $6K). EXECUTIVE SUMMARY Gender Satisfaction This year, for the second time, female participants outnumber men (51% female compared to 46% male). On average, the salary of female in-house counsel is lower than their male counterparts. This year, 34% of in-house counsel are very satisfied with work-life balance, and 40% are somewhat satisfied, for a combined total of 74%. This is a slight increase compared to 2018. In 2020, the average male base salary stands at $177,000, which is $19,000 higher than the average female base salary of $158,000. This gap remains the same as reported in 2018. Satisfaction with career mobility within the organization demonstrated a slight improvement. In 2018, 31% were very or somewhat satisfied, while in 2020, this figure grew to 35%. We note substantial gender differences at the higher wage levels. For example, 30% of males have a mean salary over $200,000 compared to 19% of females who earn that amount. Respondents show the greatest level of satisfaction with their benefits (70%), followed by their incentive program (59%). Slightly less (55%) say that they are very/somewhat satisfied with their base salary. Women are paid less than men at all job role levels. For Senior Counsel, the male-female gap is the smallest ($3,000) to the male’s advantage. At the GC Executive Level, the male advantage is $23,000. This difference is larger in 2020 than 2018. One factor that partially explains the salary discrepancy between males and females relates to an analysis of gender and sector. When we compare the differences in base salary across the five sectors, we see that base salaries are the lowest for government, Crown corporations and not-for-profits. These sectors employ the highest proportion of females. Legal and Managerial Work When it comes to managerial work, it is not surprising that those with higher seniority positions at the Executive or Director Level spend more of their time on managerial work, at 38% and 31%, respectively. In comparison, Legal and Senior Counsel spend 11% and 14% of their time on managerial work, respectively. The percentage of in-house counsel doing managerial work declined. The percentage of in-house counsel doing managerial work declined for Crown corporations, government, and publicly-quoted companies. For all five categories of organizations, the percentage of time spent on managerial work is tightly grouped within the 18% to 26% range. Page 5 Future Outlook We continue to see a majority of in-house counsel (48%) reporting increases in the size of their legal departments as opposed to decreases (8%). With regards to optimism, we see small increases regarding the future of their organization’s legal department and their professional future with the organization. Diversity Seventy percent of respondents agreed to provide answers to a series of self-identification questions. Just under one-quarter (23%) of this group are Racialized lawyers. Lawyers who are Racialized report a mean salary that is $12K below that reported by non-Racialized Lawyers. As well, they are less represented at the two highest job titles: Executive Vice-President Legal (1% Racialized vs 3% non-Racialized) and Vice-President Legal (4% Racialized vs 8% non-Racialized). In part, this disparity may be explained by the small sample size and the fact that persons who are Racialized also have a much lower number of years in practice (10.6 years vs 15.5 years). Persons with disabilities (5%) report a mean salary that is $18.5K less than able-bodied. This may be a function of the workplace. Persons with disabilities are more highly represented in government and financial services, which both have lower reported mean annual base salaries. Respondent Profile A total of 1,141 counsel participated in the 2020 In-House Counsel Compensation & Career Survey. The provincial and regional breakdowns are shown below. MB 3% AB 24% Page 6 West 45% Central 6% Ontario 38% Quebec 5% Atlantic 5% Cities Sixty-nine percent of respondents live in the top six major cities of Toronto (24%), Calgary (17%), Vancouver (13%), Edmonton (7%), Montreal (5%) and Winnipeg (3%). This is not surprising since in-house counsel are most likely to work in the entities’ head office, which are most often located in the larger urban centres. We see the biggest change in Vancouver, which dropped from 16% (2018) to 13% (2020). 22% 23% 24% Toronto Calgary 16% 17% Vancouver 13% Industry Edmonton Both privately-owned and publicly-quoted organizations are 5% represented in this study. Montreal 4% Consistent with the previous two 5% surveys, financial services continue 4% Winnipeg 3% to be the sector most represented 3% by in-house counsel. It declined 3% slightly (3%), from 18% in 2018 to4% Mississauga 4% 15% in 2020. The oil & gas industry and 3% Regina 1% two most Government are the next 1% represented industries. Oil & gas 2% declined to 7% from 8%, while Halifax 0% Government grew0% from 10% to 11%. 2% 2% Ottawa St. John's 1% 1% 1% Saskatoon 1% 1% 1% Fredericton 1% 1% Victoria Richmond Burnaby 0% 7% 7% 7% 4% 1% 1% 1% 1% 1% 2% 2% 2% 3% 8% Other 9% 2016 Page 7 2018 2020 13% 16% 16% 20% I n d u s t r y B o Metropolitan t cities h p r Other citiesi v a t e l y o w n e d a n ublicly-quoted. It grew Both priva telyowne d and publi clyquot ed orga nizati ons are repre sente d in this 26% 74% 69% 69% 31% 31% 2016 2018 2020 Industry Both privately-owned and publicly-quoted organizations are represented in this study. Consistent with the previous surveys, financial services/insurance/banks industry continues to be the sector most represented by in-house counsel. It declined slightly (3%), from 18% in 2018 to 15% in 2020. The oil & gas industry and government are the next two most represented industries. Oil & gas declined from 8% to 7%, while government grew from 10% to 11%. 16% Financial services/Insurance/Banks 15% Oil & gas 7% 7% Government 4% 4% 4% 4% Utility Real estate 4% Transportation Services 2% Mining Medical 2% 2% Engineering 2% 2% Telecommunications Sports & entertainment 1% 1% Retail Pharmaceuticals 1% Manufacturing Crown corporation Resources Media Hospitality 0% Food & beverage Consumer products Chemicals 0% Automotive Agriculture Aerospace Restaurant/Food service Gaming Page 8 0% 0% 0% 10% 11% 5% 3% 3% 3% 3% 5% 5% 3% 3% 3% Construction 8% 3% 3% 3% 3% 3% 3% IT 11% 4% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 2016 2018 2020 18% Organization Type and Size The percentage of in-house counsel working for privately-owned companies stands at 35% vs 30% working for publicly-quoted companies. The percentage working for publicly-quoted companies has declined somewhat over the past three surveys. Crown corporations and government comprise 13% of the sample each. Not-forprofits represent 10%. When it comes to organization size, in-house counsel is divided across three tiers of company size, i.e., those with less than 1,000 employees, those between 1,000 and 5,000 employees, and those with 5,000 or more employees. The percentages working for the three tiers remain relatively consistent when we compare 2020 and 2018. The majority of in-house counsel (44%) work for companies with less than 1,000 employees. The percentage of inhouse counsel working for medium-sized companies stands at 25%. Thirty percent are employed by large-sized companies. 33% 34% 35% 35% 33% 30% 10% 12% 13% 13% 12% 13% Government Crown corporation 10% 10% 10% Not-for-profit 2016 41% 42% Privately-owned 2018 2020 44% 32% 26% 27% 25% < 1,000 employees 1,000 to < 5,000 employees 2016 Page 9 2018 2020 30% 30% > 5,000 employees Publicly-quoted Title and Position* In-house counsels were asked to provide their current title. The range of titles held by in-house counsel is rather expansive. As a result, several titles have been grouped together to simplify analysis. The five grouped titles are detailed in the table below. 32% 33% 32% Legal Counsel 18% 19% 19% Senior Counsel 17% General Counsel 14% 8% 9% 9% Director of Legal/Legal Manager 6% 6% Vice President Legal 8% 3% 4% 4% Associate General Counsel Assistant General Counsel 2% 2% 2% Executive Vice President Legal 2% 2% 2% Corporate Secretary 17% 1% 1% 0% Other 8% 10% 11% 2016 2018 2020 * Some titles have been combined to create five grouped categories. These combined categories are shown below along with base sizes. Titles Base sizes General Counsel at Executive Level – Combines Executive VP Legal and VP Legal 2016 n=75; 2018 n=73; 2020 n=119 General Counsel at Director Level – Combines General Counsel and Director of Legal/Legal Manager 2016 n=245; 2018 n=207; 2020 n=316 Assistant and Associate General Counsel have been combined into one category 2016 n=54; 2018 n=50; 2020 n=63 Senior Counsel 2016 n=176; 2018 n=171; 2020 n=222 Legal Counsel 2016 n=308; 2018 n=300; 2020 n=377 Page 10 IN-HOUSE COUNSEL AT WORK Gender and Age In 2020, females slightly outnumber males at 51% and 46% respectively. (This year, 3% of our respondent base did not wish to identify their gender). The average age of in-house counsel is 43. The majority (67%) of in-house counsel are aged 35 to 54. 51% 49% 51% 49% 48% 46% Male Female 2016 2018 2020 42% 42% 42% 26% 25% 25% 18% 21% 21% 13% 12% 25 to 34 years 35 to 44 years 2016 Page 11 45 to 54 years 2018 2020 10% 55 + years IN-HOUSE COUNSEL AT WORK In-House Counsel at Work Size of Legal Department The median size of the legal department amongst those participating in this survey is five. This is consistent with 2018. As one might expect, the size of the legal department is a function of size and type of organization as well as the industry. We are using median as our descriptive statistic on this chart because it is less influenced by some of the extremely large numbers reported. Number of lawyers 44% 43% 44% 31% 31% 31% 19% 20% 20% 1 to 4 lawyers 5 to 10 lawyers 2016 2018 11 + lawyers 2020 Change in Size of Legal Department In 2020, 41% of in-house counsel report that their legal department has remained the same size since 2018. Forty-eight percent increased in size over the past two years. The percentage of those that dropped in size is 8%. This drop is most frequently mentioned in Alberta (14%). The highest likelihood of reporting increases in size of legal departments is Legal Counsel at 55%, followed by Assistant/Associate GS at 52%. The likelihood of an increase in size of the legal department is highest with Crown corporation (50%) and publicly-quoted (50%). More than half (58%) of not-for-profit companies remain the same. Number of lawyers in legal department 41% 42% Increased 43% 44% 41% Stayed the same Decreased 8% 14% 12% 2016 Page 12 48% 2018 2020 IN-HOUSE COUNSEL AT WORK 55% 52% 48% 47% 47% 43% 40% 47% 32% 31% 15% 9% Legal Counsel 9% Senior Counsel 10% 6% Assistant/Associate GC Increased GC Director Level Stayed the same GC Executive Level Decreased 58% 50% 43% 39% 37% 36% 50% 49% 45% 37% 17% 9% 7% 8% Privately-owned Publicly-quoted 3% Government Crown corporation Not-for-profit Increased Stayed the same Decreased Office Location We asked two questions about office location. Specifically, we asked if the respondent worked in an open space or in an office. In a follow-up question, we asked if they were co-located or centralized in their location. We see that the majority (79%) are located in an office and centralized at their location (74%). 72% 84% Centralized in my location In an office 74% 79% 28% 16% Co-located In an open space 26% 21% 2018 Page 13 2020 2018 2020 IN-HOUSE COUNSEL AT WORK Reporting Structure On average, our sample of in-house counsel tell us they have 2.2 direct reports. Half of those surveyed (50%) do not have any direct reports. This percentage has increased from the 47% reported in 2018. Of the 50% of respondents who do have direct reports, the greatest percentage have two to four reports. When split out by primary role, it is clear that the number of direct reports increases for more senior positions. Number of reports 44% 47% 50% 24% 15% 15% 0 21% 23% 17% 17% 12% 1 2 to 4 2016 2018 5+ 2020 Mean numberof reports(including 0) 5.8 5.8 4.8 4.4 3.8 3.6 3.3 2.6 1.2 0.5 0.6 0.4 Legal Counsel 0.9 0.8 Senior Counsel Assistant/Associate GC Director Level GC Executive Level GC 2016 Page 14 2.8 2018 2020 15% IN-HOUSE COUNSEL AT WORK PAST EMPLOYMENT AND TENURE Tenure in Private Practice This year, 84% of in-house counsel report working in private practice before going in-house. The average tenure in private practice is 5.0 years. The greatest percentage of respondents (33%) had spent more than five years in private practice before going in-house. The next highest (32%) spent three to five years in private practice. The number of years spent in private practice is highest with the GC Director Level (6.2 years), followed by the Assistant/Associate GS (6.0 years) and GS Executive Level (5.9 years). The lowest number is with Legal Counsel at 2.9 years. Years spent in private practice 11% 13% 0 years 17% 21% 22% 1 to 2 years 18% 23% 3 to 5 years 33% 32% > 5 years 32% 33% 45% 2016 2018 2020 Mean number of years spent working in private practice 5.0 5.8 5.7 6.7 6.0 6.2 6.2 6.5 5.9 5.9 4.9 5.0 4.0 3.2 2.9 Legal Counsel Senior Counsel Assistant/Associate GC 2016 Page 15 2018 2020 GC Director Level GC Executive Level IN-HOUSE COUNSEL AT WORK Tenure as In-House Counsel Fifty-six percent of respondents have spent more than six years working as in-house counsel. The average number of years working as in-house counsel is 8.6. GC Executive Level respondents have an average of 13.4 years of experience, while, at the other end of the spectrum, Legal Counsel have 4.7 years. Those working in the not-for-profit sector have the highest average number of years as in-house counsel at 9.8. This is followed by those working in government sector at 9.1 years. The lowest is for those working in privately-owned companies at 8.4 years. Years spent working as in-house counsel 18% 19% 1 to 2 years 22% 22% 22% 22% 3 to 5 years 27% 26% 24% 6 to 10 years 33% 33% 32% > 10 years 2016 2018 2020 Mean number of years spent working as in-house counsel 13.8 12.1 11.2 9.5 9.4 8.9 11 11.8 12.9 13.4 10.9 8.6 5.1 4.9 4.7 Legal Counsel Senior Counsel Assistant/Associate GC 2016 Page 16 2018 2020 GC Director Level GC Executive Level IN-HOUSE COUNSEL AT WORK 11.4 9.7 9.1 Government 9.7 9 8.9 8.1 Crown corporation 9.5 9.8 Not-for-profit 2016 2018 8.7 8.6 8.4 8.4 Privately-owned 9.5 8.6 Publicly-quoted 2020 Years in practice (year called to the bar to present) Around a quarter of respondents have spent six to ten years in practice, followed by 21% of those who spent 11 to 15 years. The average number of years in practice is 14.3. There were only slight changes in the breakdown compared to 2018. < 2 years 4% 4% 11% 10% 2 to 5 years 25% 26% 6 to 10 years 20% 21% 11 to 15 years 14% 16 to 20 years 21 to 25 years 26 to 30 years > 30 years 10% 7% 7% 5% 6% 2018 Page 17 13% 2020 16% IN-HOUSE COUNSEL AT WORK Tenure with Current Employer More than half (59%) of in-house counsel have spent fewer than five years with their current employer. In general, the more senior the position, the more years of experience with the same employer. At the highest level of GC Executive, individuals average 8.2 years of tenure with their current employer, while at the lowest level of Legal Counsel the average is 3.5 years. Government and not-for-profits have the most years of experience with 6.4 years and 6.3 years, respectively. Publicly-quoted and Crown corporations are close at 5.3 and 5.2 years, respectively Years spent working with current employer 50% 53% < 5 years 59% 5 to 7 years 19% 18% 17% 8 to 12 years 19% 17% 14% 13 to 15 years 16 + years 5% 4% 4% 7% 8% 6% 2016 2018 2020 Mean number of years with current employer 8.8 8.1 6.4 7.8 7.7 7.1 6.9 5.6 5.2 7.8 8.2 6.4 3.9 3.8 3.5 Legal Counsel Senior Counsel Assistant/Associate GC 2016 Page 18 2018 2020 GC Director Level GC Executive Level IN-HOUSE COUNSEL AT WORK 7.7 7.6 7.3 6.4 6.7 6.5 6.1 6.3 6.0 5.2 Government Crown corporation Not-for-profit 2016 Page 19 2018 5.5 5.1 Privately-owned 2020 5.7 6.1 5.3 Publicly-quoted IN-HOUSE COUNSEL AT WORK JOB CONTENT Proportion of Legal Work On average, in-house counsel spend two-thirds (66%) of their time on purely legal work. Forty-two percent of respondents say they spend 75% or more of their time on purely legal work. Generally, the more senior the position, the less time spent doing purely legal work. The GC Executive Level spend the least amount of time (49%) on purely legal work. Privately-owned and Crown corporations spend approximately two thirds of their time on purely legal work. Government and publicly-quoted organizations are relatively higher percentages: 68% and 73%, respectively. Generally, the proportion of time spent on purely legal work increases with the number of employees. Proportion of purely legal work < 25% 7% 6% 7% 16% 17% 17% 25% to < 50% 32% 33% 34% 50% to < 75% 44% 43% 42% 75% + 2016 74% 73% 73% Legal Counsel 72% 76% 75% Senior Counsel 2018 70% 67% 66% Assistant/Associate GC 2016 Page 20 2020 2018 2020 59% 59% 61% GC Director Level 58% 53% 49% GC Executive Level IN-HOUSE COUNSEL AT WORK 66%67% 73% Government 66% 63%65% Crown corporation 59% 2018 68% < 1000 67% 65%65%63% 67%66%68% Privately-owned Publicly-quoted 2020 68% 69% 70% 70% 61% 1000 to < 5000 2016 Page 21 60% Not-for-profit 2016 62% 62% 64% 2018 2020 5000 + IN-HOUSE COUNSEL AT WORK Legal Activities and Tasks We asked respondents to tell us what legal activities and tasks they performed. This was accomplished by providing a list of activities and asking the respondent to check all that apply. Responses to the question have been ranked in the chart below. 86% 89% 84% 86% 80% 81% 79% 80% Preparing/ drafting/ analyzing legal documents Advising on legal aspects of internal policies Advising or liaising with external legal team Leading or participating in negotiations 70% 71% 63% 69% 68% 68% Drafting internal legal opinions Presenting/ providing legal advice to board or c suite Legal research 50% 49% Drafting written submissions on legal issues 39% 37% Giving oral submissions on legal issues None of these Page 22 2% 1% 2018 2020 IN-HOUSE COUNSEL AT WORK Proportion of Managerial Work When it comes to managerial work, it is not surprising that those with higher seniority positions at the Executive or Director Level spend more of their time on managerial work, at 38% and 31%, respectively. Legal and Senior Counsel spend 11% and 14 % of their time on managerial work, respectively. The percentage of in-house counsel doing managerial work declined for Crown corporations, government, and publicly-quoted companies. For all five categories of organizations, the percentage of time spent on managerial work is tightly grouped in the 18% to 26% range. Proportion of work that is managerial 66% 66% 68% < 25% 23% 21% 20% 25% to < 50% 50% to < 75% 75% + 7% 9% 8% 4% 4% 3% 2016 2018 2020 40% 33% 33% 30% 26% 38% 31% 25% 20% 19% 12% 11% Legal Counsel 12% 14% Senior Counsel Assistant/Associate GC Director Level GC Executive Level GC 2016 38% 2018 2020 35% 30% 30% 22% 24% 23% 19% Government 26% 28% 24% 24% 20% 18% Crown corporation Not-for-profit 2016 Page 23 36% 2018 Privately-owned 2020 18% Publicly-quoted IN-HOUSE COUNSEL AT WORK Managerial Activities and Tasks As with legal activities, we also asked respondents to tell us about their managerial activities and tasks. These activities are listed in the chart below. Management meetings with other leaders/executives 73% 73% 71% Corporate strategizing 73% 67% Staff development 70% 59% Leading team/staff meetings 59% 59% Reporting 58% 56% Performance management 53% 43% Financial management/budgeting/accounting 39% 36% Staff time management Other None of my tasks are managerial Page 24 34% 5% 5% 1% 1% 2018 2020 IN-HOUSE COUNSEL AT WORK WORK HOURS Full-Time/Part-Time Work Almost all (96%) of in-house counsel work full-time. This is essentially unchanged from 2012 to 2020. Of the few part-time employees, the largest percentages were recorded by those working at not-for-profits, female counsel, and those 55 years of age or more. 96% Full-time 97% 96% 2% Part-time - 4 days 2% 2% 1% Part-time - 3 days 1% 1% 1% Other 0% 1% 2016 2018 2020 Percentage working full-time – by age 99% 99% 97% 25 to 34 years 97% 96% 96% 96% 95% 35 to 44 years 45 to 54 years 2016 Page 25 98% 2018 2020 IN-HOUSE COUNSEL AT WORK Hours of Work per Week The reported number of hours in an average work week is 46.4. This is down slightly from the 47.3 hours reported in 2018. Government, not-for-profits and Crown corporations have the shortest average work week. In-house counsel for privately-owned, publicly-quoted and profit companies report the longest hours. More than two-thirds (72%) of the respondents work between 40 to 54 hours a week. The more senior the position, the more hours worked. For GC Executive Level, hours steadily increased from 2012 to 2018, but slightly declined from 52.8 in 2018 to 51.3 in 2020. Hours per week 8% 8% < 40 hours 10% 20% 40 to 44 hours 24% 28% 21% 21% 21% 45 to 49 hours 50 to 54 hours 28% 27% 23% 55 to 59 hours 9% 8% 60 + hours 11% 11% 11% 13% 2016 2018 2020 48.8 45.6 44.8 44.1 45.1 45.1 45.6 43.6 Government 47.6 48.5 48.0 46.2 43.5 Crown corporation Not-for-profit 2016 Page 26 49.0 48.2 2018 Privately-owned 2020 Publicly-quoted IN-HOUSE COUNSEL AT WORK 52.0 52.6 48.7 49.1 46.7 46.5 45.7 44.2 44.0 Legal Counsel 47.7 47.7 45.4 Senior Counsel 2016 Page 27 51.3 49.8 49.3 Assistant/Associate GC 2018 2020 GC Director Level GC Executive Level IN-HOUSE COUNSEL AT WORK Changes in Hours of Work per Week For the majority of respondents (60%), the hours of work per week remain unchanged. Twenty-five percent of inhouse counsel saw hours per week increase. This is slightly lower than 2018, which in turn was lower than 2016. Just 10% saw their hours of work decrease. On a percentage basis, fewer in-house counsel in not-for-profits (20%) saw an increase in their hours per week, whereas the government sector saw an increase (24%). Twenty-seven percent of Crown corporation in-house counsel saw their hours slightly decrease. Privately-owned and publicly-quoted counsel both experienced a minor decline in hours and in 2020 got 26% and 25%, respectively. Of those who saw their work week increase, the highest percentage (28%) is Alberta, followed by Ontario (26%), British Columbia (24%) and Quebec (21%). Atlantic Canada and Central Canada both saw 18% increases. Change in weekly hours of work over the past two years 27% Increased 26% 25% 59% Stayed the same 58% 60% 11% Decreased 12% 10% 2016 Page 28 2018 2020 IN-HOUSE COUNSEL AT WORK Hours increased over past two years 32% 26% 28%27% 24% 24% 27%27% 25% Privately-owned Publicly-quoted 24% 20% 18% Government 28%27% 26% Crown corporation Not-for-profit 2016 2018 2020 69% 65% 64% 59% 58% 26% 28% 24% 18% British Columbia 21% 16% 11% 9% 8% Alberta Increased Page 29 58% Central Stayed the same Ontario Decreased 18% 10% Quebec 10% Atlantic COMPARABILITY AND CHANGE IN COMPENSATION Comparability and Change in Compensation Comparability of Compensation within an Organization In 2020, 47% agree or strongly agree their compensation is comparable with others in the organization. This is slightly higher compared to 44% in 2018. The percentage of in-house counsel that agree/strongly agree that their compensation is comparable varies from region to region. The highest percentage of agreement is in Alberta (55%) and British Columbia (50%). Atlantic Canada and Central Canada are essentially tied at 45% and 46%, respectively. Ontario follows at 42%, and Quebec is the lowest at 39%. 2016 2018 2020 Strongly agree 12% 14% 14% Tend to agree 32% 30% 33% Neither agree or disagree 15% 17% 17% Tend to disagree 10% 13% 11% Strongly disagree 4% 4% 4% Don’t know 25% 23% 22% By region – strongly/tend to agree 62% 50% 47%47% 55% 51% 48% 51% 46% 42% 36% 34% British Columbia Alberta Central 2016 Page 30 Ontario 2018 2020 42%42% 39% Quebec 49%48% 45% Atlantic COMPARABILITY AND CHANGE IN COMPENSATION Comparability of Compensation to External Organizations In 2020, 29% of in-house counsel tend to agree or strongly agree their compensation is comparable. These percentages are similar to 2016 (23%) and 2018 (26%). The remaining respondents are noncommittal, disagree or don’t know. We note that respondents are more likely to disagree rather than agree that their salary compares favourably with external organizations. The percentage of in-house counsel that agree/strongly agree that their compensation is comparable varies from region to region. The highest percentage (38%) of agreement is in Quebec. This is followed by Alberta (30%), Atlantic and Central Canada (both at 29%). British Columbia and Ontario are at 27%. 2016 2018 2020 Strongly agree 2% 3% 3% Tend to agree 21% 23% 26% Neither agree or disagree 13% 15% 14% Tend to disagree 23% 24% 24% Strongly disagree 9% 10% 8% Don’t know 32% 25% 26% By region – strongly/tend to agree 38% 28%27% 30% 28%29% 29% 24% 21% 24% 21% 24% 18% British Columbia 24% 17% Alberta Central 2016 Page 31 29% 28% 27% Ontario 2018 2020 Quebec Atlantic COMPARABILITY AND CHANGE IN COMPENSATION Areas in which Compensation is not Commensurate We looked at those areas where compensation is thought not to be commensurate with colleagues. This was asked of those who disagreed that their compensation was commensurate with colleagues either within their organization or in similar organizations. In both cases, salary is the key discrepancy. Mentions of options/shares and benefits came in a distant second and third place, respectively. The importance of salary is highlighted by another question that we asked. It focused on the relative importance of various factors when evaluating a compensation package. In the table below, we note that salary is of primary importance, benefits are judged to be of secondary importance and options/shares are ranked to be of tertiary importance. With colleagues within organization 95% Salary 92% 28% Benefits 27% 25% Options/ shares Other aspects 30% 16% 12% 2018 2020 With colleagues in similar organizations 96% 95% Salary 32% 31% Benefits 36% 35% Options/ shares Other aspects 18% 11% 2018 Page 32 2020 COMPARABILITY AND CHANGE IN COMPENSATION Relative Importance of Factors when Evaluating Compensation Package Most important Secondary importance Tertiary importance Salary 84% 6% 2% Benefits 7% 61% 24% Options/Shares 4% 22% 47% Other 5% 7% 14% Sources of Information about Industry Compensation When it comes to assessing how their compensation compares to others in their industry, a large majority (75%) of in-house counsel rely on their peer network. This year we again included the survey itself (listed below as TCN/CCCA compensation survey) as a source of information. Fifty-seven percent mentioned this source. This is followed by HR teams and advisors at 19%, and recruitment firms and newsletters at 12%. 71% 70% 75% Your peer network 0% TCN/CCCA compensation survey 45% 57% 25% Recruitment firms/newsletters 16% 12% 21% 18% 19% Your Human Resources team/advisors 19% Other reports Have never sought compensation information Page 33 11% 13% 11% 8% 7% 2016 2018 2020 COMPARABILITY AND CHANGE IN COMPENSATION Base Salary Increase in the Past Year Slightly more than one-fifth (21%) of respondents report no increase in their base salary over the past year. This percentage is slightly lower than 2018 (22%). The largest percentage (32%) saw their base salary increase by less than 3% in the past year. This percentage approximates levels seen in the previous two waves of the survey. Fifteen percent of in-house counsel received an increase of 3% to < 5%. Twelve percent saw an increase of 5% to < 10%, followed by 11% who enjoyed an increase of 10% or greater. 38%37% 32% 24% 22%21% 17% 15%15% 12% 10% 9% 11% 7% 7% 2% 3% 1% < 0 (decrease) 0% 0.1% to < 3% 3% to < 5% 2016 2018 5% to < 10% 10% + 2020 Changes to Benefits During Past 12 Months Respondents were asked about changes to their benefits package during the past 12-month period. Twenty-five percent report an increase in out-of-pocket costs for benefits. This percentage has been relatively stable over the previous two surveys. The largest increase is voiced by those employed by publicly-quoted companies. Those seeing a decrease in benefits coverage declined from 16% in 2018 to 12% in 2020. Again, the largest decrease is noted by those working for publicly-quoted companies. Government Total Experienced in past 12 months (% yes) Crown corporation Not-for-profit Privately-owned Publicly-quoted 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 Increase in out-of-pocket costs for benefits 33% 30% 25% 37% 25% 19% 27% 22% 23% 35% 29% 23% 30% 26% 24% 39% 38% 29% Decrease in benefits coverage 16% 16% 12% 9% 11% 9% 10% 9% 11% 15% 13% 9% 14% 12% 12% 22% 24% 13% Page 34 In-Depth Look at Provinces This section provides key compensation statistics by provinces. In some cases, where provincial numbers are small, information has been collapsed into a region. There are several things to note when benchmarking salaries to the information in this section: • There may not be an exact match between the positions presented here and one’s current job title. However, the profile statistics of each position can determine whether a reasonable comparison can be made. • Due to some limitations of sample size, not all cross tabulations of province and industry are provided. However, the remainder of the report explores further compensation statistics at the national level. Overall, these statistics are not absolute but should be viewed in conjunction with the rest of the variables presented in this report. Page 35 IN-DEPTH LOOK AT PROVINCES National Average Base Salary In 2020, the national average base salary stands at $167,500. This is slightly higher than the $163,000 recorded in 2018. The chart below indicates the extent to which a province or region varies from the national average. For example, the overall average salary in both Ontario and Alberta are slightly above the national average. Average salaries in the Central region and the Atlantic provinces fall below the national average. ‐5% British Columbia 0% 0% 4% AB 2% 2% 2016 - $165k ‐9% Central 2018 - $163k ‐17% ‐13% 2020 $167.5k 4% 5% ON 2% ‐4% QC Atlantic Page 36 0% 0% ‐13% ‐13% ‐12% IN-DEPTH LOOK AT PROVINCES FOCUS ON ATLANTIC CANADA Mean Distribution of Base Salary in Atlantic Canada 2016: $143,000 In 2020, the mean base salary for in-house counsel in Atlantic Canada is $146,500. This is a relatively higher compared to 2018 (for comparison: 2016: $143,000, 2018: $141,000). 2018: $141,000 2020: $146,500 20% < $100K $100K to < $120K 17% 9% 14% $120K to < $140K 23% 22% 16% 14% 13% $140K to < $160K 6% $160K to < $180K $180K to < $200K 27% 20% 4% 0% 24% 7% 4% 4% $200K + 18% 18% 2016 2018 20% 2020 Compensation Package by Position – Atlantic Canada Base salaries in 2020 range from $119,000 for Legal Counsel and Senior Counsel to $187,500 for General Counsel. Counsel (Legal + Senior Counsel) General Counsel* 2016 2018 2020 2016 2018 2020 Average base salary ($) $126,000 $116,500 $119,000 $166,000 $181,000 $187,500 Target bonus/Incentive 12% 20% 13% 22% 22% 34% Maximum target amount 13% 15% 18% 34% 23% 37% Actual bonus/Incentive 13% 21% 12% 24% 13% 18% *Includes EVP Legal, VP Legal, General Counsel and Director of Legal/Legal Manager Page 37 IN-DEPTH LOOK AT PROVINCES Base Salary Increase in Atlantic Canada vs Canada Relative to the rest of Canada, a somewhat larger percentage of in-house counsel in the Atlantic provinces had increases that ranged from 0.1% to less than 3%. 38% 32% 21% 20% 16% 15% 14% 12% 11% 6% 0% 1% < 0% decrease 0% 0.1% to < 3% Atlantic 3% to < 5% 5% to < 10% 10% + Canada 43% 40% 38% 31% 20% 16% 11% 11%11% 16% 14% 11% 11% 6% 0% 2% 3% 0% < 0% (decrease) 0% 0.1% to < 3% 2016 Page 38 3% to < 5% 2018 2020 5% to < 10% 10% + IN-DEPTH LOOK AT PROVINCES Benefits Included in Package – Atlantic Canada The table below provides historical information on the benefits provided to in-house counsel residing in the Atlantic provinces and compares this information to the national numbers. Canada Included in benefits package (% yes) Atlantic Canada 2016 2018 2020 2016 2018 2020 Dental coverage 97% 96% 95% 97% 89% 90% Extended medical coverage 90% 80% 77% 66% 56% 64% Pension/Retirement plan 81% 79% 78% 86% 80% 88% Provincial health care coverage 77% 72% 71% 86% 58% 60% Employee assistance program 76% 81% 80% 83% 78% 88% Additional health spending account 62% 55% 59% 49% 42% 38% Medical/Dental coverage beyond retirement 17% 21% 20% 23% 27% 28% Short-term disability 89% 88% 84% 77% 76% 70% Long-term disability 93% 92% 87% 89% 82% 90% Life insurance 90% 87% 83% 86% 82% 92% Educational credits/Tuition reimbursement 45% 41% 45% 40% 44% 44% Employee referral program 40% 40% 42% 29% 36% 38% Parking allowance 32% 31% 28% 31% 31% 28% Moving expenses 19% 14% 13% 23% 24% 20% Executive health plan 15% 24% 23% 17% 33% 38% Car allowance 16% 15% 12% 14% 20% 14% Subsidized meals 10% 11% 11% 11% 18% 8% Subsidized childcare 2% 4% 3% 6% 2% 0% Personal time off days 50% 57% 62% 40% 58% 66% Flex days 41% 43% 49% 29% 42% 42% Top up for maternity leave 35% 36% 41% 29% 38% 30% Extended parental leave 25% 24% 28% 20% 27% 26% Elder care leave 11% 12% 14% 11% 4% 14% Sabbatical 7% 8% 10% 9% 13% 10% Insurance and retirement benefits Fringe benefits Paid time off Page 39 IN-DEPTH LOOK AT PROVINCES Change in Benefits and Satisfaction with Compensation This year, Atlantic Canada had a similar lower satisfaction in out-of-pocket costs for benefits when compared to all Canada (20% vs 25%). Fewer report a decrease in benefits coverage (2% vs 12%). Compared to all of Canada, respondents in Atlantic Canada are more satisfied with their benefits package (72% Atlantic vs 70% nationally). In addition, Atlantic Canadians are more satisfied with their base salaries (70% vs 55%) and incentive programs. Experienced in past 12 months (% yes) Canada Atlantic Canada 2016 2018 2020 2016 2018 2020 Increase in out-of-pocket costs for benefits 33% 30% 25% 40% 31% 20% Decrease in benefits coverage 16% 16% 12% 11% 9% 2% % Very/Somewhat satisfied Canada Atlantic Canada 2016 2018 2020 2016 2018 2020 Benefits package 74% 70% 70% 66% 60% 72% Incentive program 61% 56% 59% 68% 66% 74% Base salary 53% 50% 55% 57% 54% 70% Page 40 IN-DEPTH LOOK AT PROVINCES FOCUS ON QUEBEC Distribution of Base Salary in Quebec Mean The mean base salary for in-house counsel in Quebec in 2020 is $167,000. < $100K 2018: $162,500 6% 7% 5% $100K to < $120K 2020: $167,000 15% 9% $120K to < $140K 15% 13% 22% 15% 18% $140K to < $160K 20% 22% 15% $160K to < $180K $180K to < $200K 2016: $159,000 17% 16% 6% 7% 7% 20% $200K + 2016 2018 24% 25% 2020 Compensation Package by Position – Quebec In 2020, base salaries ranged from $122,500 for Legal and Senior Counsel to $189,000 for General Counsel. General Counsel respondents in Quebec reported an increase compared to $184,500 two years prior. Counsel (Legal + Senior Counsel) General Counsel* 2016 2018 2020 2016 2018 2020 Average base salary ($) $126,000 $133,500 $123,000 $181,000 $184,500 $189,000 Target bonus/Incentive 16% 17% 20% 24% 27% 27% Maximum target amount 23% 17% 20% 36% 42% 28% Actual bonus/Incentive 24% 15% 9% 31% 22% 26% *Includes EVP Legal, VP Legal, General Counsel and Director of Legal/Legal Manager Page 41 IN-DEPTH LOOK AT PROVINCES Base Salary Increase in Quebec vs Canada Ten percent of Quebec respondents saw no increase or an actual decrease compared to 22% of their colleagues across the country. Quebec in-house counsels most frequently saw an increase from 0.1% to less than 5%, the same as in Canada as a whole. Within Quebec, the percentage of those who had 0% salary increase grew from 7% in 2018 to 10% in 2020. 41% 32% 21% 20% 18% 15% 12% 10% 10% 11% 0% 1% < 0% (decrease) 0% 0.1% to < 3% Quebec 3% to < 5% 5% to < 10% 10% + Canada 55% 42%41% 28% 22% 20% 18% 13% 10% 2% 4% 4% 4% 0% < 0 (decrease) 0% 0.1% to < 3% 2016 Page 42 9% 10% 9% 7% 2018 3% to < 5% 2020 5% to < 10% 10% + IN-DEPTH LOOK AT PROVINCES Benefits Included in Package – Quebec The table below provides historical information on the benefits provided to in-house counsel residing in Quebec. The table also compares this information to the national numbers. Total Quebec Included in benefits package (% yes) 2016 2018 2020 2016 2018 2020 Dental coverage 97% 96% 95% 93% 83% 90% Extended medical coverage 90% 80% 77% 84% 61% 53% Pension/Retirement plan 81% 86% 83% Provincial health care coverage 77% 72% 71% 75% 72% 71% Employee assistance program 76% 81% 80% 80% 80% 85% Additional health spending account 62% 55% 59% 67% 48% 48% Medical/Dental coverage beyond retirement 17% 21% 20% 22% 24% 16% Short-term disability 89% 88% 84% 91% 89% 75% Insurance and retirement benefits 79% 78% 82% Long-term disability 93% 92% 87% 93% 91% 82% Life insurance 90% 87% 83% 96% 87% 85% Fringe benefits Educational credits/Tuition reimbursement 45% 41% 45% 49% 35% 39% Employee referral program 40% 40% 42% 53% 44% 61% Parking allowance 32% 31% 28% 31% 28% 25% Moving expenses 19% 14% 13% 31% 11% 12% Executive health plan 15% 24% 23% 31% 39% 39% Car allowance 16% 15% 12% 29% 26% 21% Subsidized meals 10% 11% 11% 15% 9% 21% Subsidized childcare 2% 4% 3% 6% 17% 15% Personal time off days 50% 57% 62% 51% 59% 57% Flex days 41% 43% 49% 27% 33% 61% Top up for maternity leave 35% 36% 41% 38% 33% 28% Extended parental leave 25% 24% 28% 33% 28% 31% Elder care leave 11% 12% 14% 7% 11% 7% Sabbatical 7% 8% 10% 11% 12% Paid time off Page 43 7% IN-DEPTH LOOK AT PROVINCES Change in Benefits and Satisfaction with Compensation Similar to Canada as a whole, the percentage of those who reported an increase in out-ofpocket costs for benefits in Quebec dropped from 37% in 2018 to 23% in 2020. The same trend was observed in with respect to decreases in benefits coverage: 28% in 2018 and 13% in 2020. Quebec respondents continue to be slightly less satisfied with their benefits package and incentives programs than the country as a whole, but more satisfied with their base salary (63% Quebec vs 55% nationally). Canada Quebec Experienced in past 12 months (% yes) 2016 2018 2020 2016 2018 2020 Increase in out-of-pocket costs for benefits 33% 30% 25% 36% 37% 23% Decrease in benefits coverage 16% 16% 12% 26% 28% 13% % Very/Somewhat satisfied Canada Quebec 2016 2018 2020 2016 2018 2020 Benefits package 74% 70% 70% 66% 61% 66% Incentive program 61% 56% 59% 55% 54% 57% Base salary 53% 50% 55% 60% 54% 63% Page 44 IN-DEPTH LOOK AT PROVINCES FOCUS ON ONTARIO Distribution of Base Salary in Ontario The mean base salary for in-house counsel in Ontario is $171,000, which is $3,500 more than the national average. It does represent another small decrease from 2018, which had also happened between 2016 and 2018. We note an increase of $3,000 in Toronto – a swing back up toward the level in 2016. Ottawa numbers are increased over both 2018 and the high-water mark from 2016. Mean overall 2016: $172,000 8% < $100K 2018: $171,500 10% 9% $100K to < $120K 8% 2020: $171,000 11% Mean GTA 10% $120K to < $140K 2016: $173,500 12% 15% 14% $140K to < $160K 15% 2018: $172,000 2020: $172,500 16% $160K to < $180K 13% 12% 11% $180K to < $200K Mean Toronto 17% 17% 2016: $176,000 2018: $170,000 18% 2020: $173,000 Mean Ottawa 2016: $164,000 14% 2018: $146,500 22% 23% $200K + 2016 2018 2020: $169,500 27% 2020 Compensation Package by Position – Ontario Base salaries range from $123,500 for Legal Counsel to $227,000 for GC Executive Level. Senior Counsel Legal Counsel General Counsel at Director Level* General Counsel at Executive Level** 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 Average base salary ($) $118,000 $134,500 $123,500 $160,000 $160,000 $163,500 $209,000 $186,000 $201,500 $215,000 $230,000 $227,000 Target bonus/Incentive 21% 15% 15% 22% 21% 20% 30% 25% 31% 37% 40% 41% Maximum target amount 20% 26% 26% 35% 32% 27% 44% 37% 45% 69% 69% 64% Actual bonus/Incentive 19% 11% 17% 28% 20% 21% 30% 31% 33% 43% 47% 44% * General Counsel Director Level – Combines General Counsel and Director of Legal/Legal Manager ** General Counsel Executive Level – Combines Executive VP Legal and VP Legal Page 45 IN-DEPTH LOOK AT PROVINCES Base Salary Increase in Ontario vs Canada Overall, base salary increases in Ontario reflect the national trends. Slightly more respondents across all Canada compared to Ontario province were frozen at their current salary: 21% vs 16%. With respect to year-over-year changes in Ontario, more respondents reported receiving a raise of 5% or higher in 2020. Twenty-five percent reported receiving such a raise, vs 15% in both 2016 and 2018. 34% 32% 21% 17% 16% 15% 13% 12% 12% 11% 5% to < 10% 10% + 1% 1% < 0% (decrease) 0% 0.1% to < 3% Ontario 3% to < 5% Canada 44% 43% 34% 19% 17%16% 18%17%17% 13% 7% 9% 12% 8% 6% 1% 2% 1% < 0 (decrease) 0% 0.1% to < 3% 2016 Page 46 2018 3% to < 5% 2020 5% to < 10% 10% + IN-DEPTH LOOK AT PROVINCES Benefits Included in Package – Ontario The table below provides historical information on the benefits provided to in-house counsel in Ontario compared to the national numbers. Included in benefits package (% yes) Total Ontario 2016 2018 2020 2016 2018 2020 Dental coverage 97% 96% 95% 96% 99% 95% Extended medical coverage 90% 80% 77% 86% 81% 75% Pension/Retirement plan 81% 78% 82% 84% 76% Provincial health care coverage 77% 72% 71% 74% 67% 67% Employee assistance program 76% 81% 80% 73% 85% 81% Additional health spending account 62% 55% 59% 53% 51% 50% Medical/Dental coverage beyond retirement 17% 21% 20% 19% 21% 21% Short-term disability 89% 88% 84% 88% 91% 84% Insurance and retirement benefits 79% Long-term disability 93% 92% 87% 91% 93% 88% Life insurance 90% 87% 83% 88% 87% 82% Fringe benefits Educational credits/Tuition reimbursement 45% 41% 45% 48% 49% 50% Employee referral program 40% 40% 42% 39% 40% 41% Parking allowance 32% 31% 28% 18% 18% 19% Moving expenses 19% 14% 13% 12% 12% 11% Executive health plan 15% 24% 23% 17% 22% 21% Car allowance 16% 15% 12% 18% 17% 14% Subsidized meals 10% 11% 11% 13% 13% 13% Subsidized childcare 2% 4% 3% 1% 3% 4% Personal time off days 50% 57% 62% 59% 62% 69% Flex days 41% 43% 49% 33% 40% 45% Top up for maternity leave 35% 36% 41% 35% 37% 44% Extended parental leave 25% 24% 28% 24% 23% 30% Paid time off Elder care leave 11% 12% 14% 12% 12% 14% Sabbatical 7% 8% 10% 5% 4% 10% Page 47 IN-DEPTH LOOK AT PROVINCES Change in Benefits and Satisfaction with Compensation In 2020, Ontario respondents reported a decline in out-of-pocket costs for benefits vs previous years., but on par with the national rate of 25%. In Ontario, satisfaction with base salary, benefits and incentive programs is very close to the national level. Canada Experienced in past 12 months (% yes) Ontario 2016 2018 2020 2016 2018 2020 Increase in out-of-pocket costs for benefits 33% 30% 25% 33% 33% 25% Decrease in benefits coverage 16% 16% 12% 15% 17% 13% Canada % Very/Somewhat satisfied Ontario 2016 2018 2020 2016 2018 2020 Benefits package 74% 70% 70% 69% 70% 69% Incentive program 61% 56% 59% 62% 57% 56% Base salary 53% 50% 55% 56% 48% 57% Page 48 IN-DEPTH LOOK AT PROVINCES Trends by Industry in Ontario The top six sectors employing in-house counsel in Ontario are: 1. Financial Services/Insurance 2. Government 3. Information technology 4. Pharmaceuticals/Medical 5. Retail/Hospitality/Food and Beverage/Consumer Products 6. Manufacturing/Automotive/Aerospace/Chemical Of the top six sectors, Retail/Hospitality/Food and Beverage/Consumer products have the highest base salary, followed by Manufacturing/Automotive/Aerospace/Chemical. $202 $193 in $K $187 $167 Retail/ Hospitality/ Manufacturing/ Food and Automotive/ Beverage/ Aerospace/ Consumer Chemical Products Information technology Financial Services/ Insurance $159 $146 Pharmaceuticals/ Medical Government Focus on the Financial Sector in Ontario Within the financial services sector in Ontario, base salaries range from $118,500 for Legal Counsel to $214,000 for GC Executive Level. Although Director Level GCs reported the highest average salary, there were outliers driving up that average. The median salaries were $187,000 for Director Level and $210,000 for Executive Level. Salaries at three of the four levels reported increases, with the exception being Senior Counsel. Legal Counsel General Counsel at Director Level* Senior Counsel General Counsel at Executive Level** 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 Average base salary ($) $115,500 $107,500 $118,500 $154,500 $158,000 $156,000 $174,500 $177,000 $216,000 $183,000 $204,500 $214,000 Target bonus/Incentive 18% 12% 16% 21% 17% 20% 43% 35% 44% 41% 35% 40% Maximum target amount 21% 15% 19% 40% 36% 27% 52% 42% 64% 82% 68% 85% Actual bonus/Incentive 16% 11% 17% 34% 22% 23% 34% 53% 47% 53% 43% 81% * General Counsel Director Level – Combines General Counsel and Director of Legal/Legal Manager ** General Counsel Executive Level – Combines Executive VP Legal and VP L Page 49 IN-DEPTH LOOK AT PROVINCES FOCUS ON CENTRAL CANADA Distribution of Base Salary in Central Canada Mean 2016: $150,500 In 2020, the mean base salary for in-house counsel in Central Canada (Manitoba and Saskatchewan) is $146,000, which is $21,500 below the national average. This represents an $11,000 increase from the base salary reported in 2018 for Central Canada and is more in line with 2016. 20% 19% 16% $100K to < $120K 12% 18% 22% 2% 17% $140K to < $160K 19% 14% 7% 10% 10% $160K to < $180K $180K to < $200K 2020: $146,000 14% < $100K $120K to < $140K 2018: $135,000 3% 10% 7% $200K + 22% 16% 8% 2016 16% 2018 2020 Compensation Package by Position – Central Canada Base salaries range from $122,000 for combined Legal and Senior Counsel to $178,500 for General Counsel at the Director and Executive Levels. Counsel (Legal + Senior Counsel) General Counsel* 2016 2018 2020 2016 2018 2020 Average base salary ($) $128,000 $112,000 $122,000 $176,000 $176,000 $178,500 Target bonus/Incentive 15% 11% 16% 31% 24% 23% Maximum target amount 31% 19% 21% 41% 43% 30% Actual bonus/Incentive 13% 13% 21% 34% 27% 20% *Includes EVP Legal, VP Legal, General Counsel and Director of Legal/Legal Manager Page 50 IN-DEPTH LOOK AT PROVINCES Base Salary Increase in Central Canada vs Canada Compared to the rest of the country, we see a greater percentage in Central Canada receiving an increase of 10%+ (16% in Central Canada vs 11% nationally). 33% 22% 32% Central 21% Canada 16% 15% 12% 9% 0% 9% 11% 1% < 0% (decrease) 0% 0.1% to < 3% Central 3% to < 5% 5% to < 10% 10% + Canada The 16% of Central Canadians reporting an increase of 10% or more is higher than in either 2018 (6%) or 2016 (7%). 44% 43% 33% 25% 22% 16% 15% 16% 14% 9% 0% 2% 7% 6% 0% < 0% (decrease) 0% 0.1% to < 3% 2016 Page 51 10% 10% 9% 3% to < 5% 2018 2020 5% to < 10% 10% + IN-DEPTH LOOK AT PROVINCES Benefits Included in Package – Central Canada The table below provides historical information on the benefits provided to in-house counsel residing in Central Canada (Manitoba and Saskatchewan). The table compares this information to the national numbers. Included in benefits package (% yes) Total Central Canada 2016 2018 2020 2016 2018 2020 Dental coverage 97% 96% 95% 99% 96% 99% Extended medical coverage 90% 80% 77% 93% 80% 81% Pension/Retirement plan 81% 79% 78% 95% 94% 93% Provincial health care coverage 77% 72% 71% 75% 65% 64% Employee assistance program 76% 81% 80% 77% 82% 90% Additional health spending account 62% 55% 59% 80% 63% 77% Medical/Dental coverage beyond retirement 17% 21% 20% 19% 22% 13% Short-term disability 89% 88% 84% 90% 84% 84% Long-term disability 93% 92% 87% 100% 86% 87% Life insurance 90% 87% 83% 96% 92% 93% Educational credits/Tuition reimbursement 45% 41% 45% 59% 53% 52% Employee referral program 40% 40% 42% 36% 35% 36% Parking allowance 32% 31% 28% 40% 43% 42% Moving expenses 19% 14% 13% 27% 16% 25% Executive health plan 15% 24% 23% 10% 22% 22% Car allowance 16% 15% 12% 18% 10% 6% Subsidized meals 10% 11% 11% 7% 12% 13% Subsidized childcare 2% 4% 3% 0% 6% 1% Personal time off days 50% 57% 62% 59% 51% 64% Flex days 41% 43% 49% 49% 49% 54% Top up for maternity leave 35% 36% 41% 34% 37% 42% Extended parental leave 25% 24% 28% 30% 26% 32% Elder care leave 11% 12% 14% 18% 12% 23% Sabbatical 7% 8% 10% 8% 4% 10% Insurance and retirement benefits Fringe benefits Paid time off Page 52 IN-DEPTH LOOK AT PROVINCES Change in Benefits and Satisfaction with Compensation In Central Canada, the percentage reporting increases in out-of-pocket costs for benefits (16%) and decreases in coverage (7%) are lower than both the previous years for this region as well as Canada as a whole in 2020. Despite having a base salary below the national average, 55% report satisfaction with salary, which is equal to the national rating. Central Canadians are more satisfied than their national counterparts with respect to both their benefits package and their incentive program. Experienced in past 12 months (% yes) Canada Central Canada 2016 2018 2020 2016 2018 2020 Increase in out-of-pocket costs for benefits 33% 30% 25% 40% 28% 16% Decrease in benefits coverage 16% 16% 12% 14% 18% 7% % Very/Somewhat satisfied Canada Central Canada 2016 2018 2020 2016 2018 2020 Benefits package 74% 70% 70% 84% 78% 81% Incentive program 61% 56% 59% 52% 48% 71% Base salary 53% 50% 55% 43% 57% 55% Focus on the Financial Sector in Central Canada Financial services/insurance continues to be the number one employer of in-house counsel. The base salary within this sector is $124,500. This represents an increase over 2018 but is still not back to the salaries reported in 2016. in $K $159 $115 2016 Page 53 2018 $124.5 2020 IN-DEPTH LOOK AT PROVINCES FOCUS ON ALBERTA Distribution of Base Salary in Alberta The mean base salary in 2020 for in-house counsel in Alberta is $171,500, which is an increase from $166,000 in 2018. The mean base salary in Calgary declined from $178,500 in 2018 to $175,000. In Edmonton, the trend is reversed – the mean base salary increased from $142,000 in 2018 to $164,500 in 2020. Mean Alberta 4% < $100K 2016: $171,000 8% 4% 2018: $166,000 8% $100K to < $120K 8% 2020: $171,500 10% Mean Calgary 2016: $175,000 $120K to < $140K 14% 17% 18% 2018: $178,500 2020: $175,000 Mean Edmonton $140K to < $160K 16% $160K to < $180K $180K to < $200K 10% 18% 2016: $159,000 18% 2018: $142,000 17% 18% 19% 2020: $164,500 13% 14% $200K + 20% 2016 2018 23% 25% 2020 Compensation Package by Position – Alberta Base salaries range from $132,500 for Legal Counsel to $254,000 for General Counsel at the Executive Level. Senior Counsel Legal Counsel 2016 2018 2020 2016 2018 Average base salary ($) $141,000 $131,000 $132,500 $167,500 $176,000 Target bonus/Incentive 15% 15% 18% 19% 23% Maximum target amount 23% 21% 25% 61% Actual bonus/Incentive 16% 13% 16% 22% 2016 2018 2020 $204,000 $210,500 $192,000 21% 27% 23% 37% 27% 49% 21% 19% 24% * General Counsel Director Level – Combines General Counsel and Director of Legal/Legal Manager ** General Counsel Executive Level – Combines Executive VP Legal and VP Legal Page 54 General Counsel at Director Level* 2020 $172,500 General Counsel at Executive Level** 2016 2018 2020 $242,000 $255,000 $254,000 28% 62% 58% 56% 31% 37% 93% 96% 94% 19% 27% 60% 51% 66% IN-DEPTH LOOK AT PROVINCES Base Salary Increase in Alberta vs Canada Compared to Canadians as a whole, far more Albertans saw no increase in their base salary: 21% vs 31%. However, the number experiencing a salary freeze is actually down from 2018, when the number was 37%. Because of this, proportionally fewer Albertans received salary increases, with the percentage being lower across all four categories compared to Canada. 32% 31% 26% 21% 14% 15% 11% 12% 11% 7% 2% 1% < 0% (decrease) 0% 0.1% to < 3% Alberta 3% to < 5% 5% to < 10% 10% + Canada 37% 31% 28% 31% 26% 26% 18% 13% 6% 8% 4% 9% 11% 6% 7% 7% 2% < 0% (decrease) 0% 0.1% to < 3% 2016 Page 55 14% 3% to < 5% 2018 2020 5% to < 10% 10% + IN-DEPTH LOOK AT PROVINCES Benefits Included in Package – Alberta The table below provides historical information on the benefits provided to in-house counsel residing in Alberta. The table also compares this information to the national numbers. Included in benefits package (% yes) Total Alberta 2016 2018 2020 2016 2018 2020 Dental coverage 97% 96% 95% 97% 98% 98% Extended medical coverage 90% 80% 77% 93% 76% 77% Pension/Retirement plan 81% 79% 78% 79% 79% 79% Provincial health care coverage 77% 72% 71% 74% 71% 70% Employee assistance program 76% 81% 80% 82% 85% 85% Additional health spending account 62% 55% 59% 77% 77% 79% Medical/Dental coverage beyond retirement 17% 21% 20% 13% 18% 19% Short-term disability 89% 88% 84% 94% 93% 93% Long-term disability 93% 92% 87% 95% 94% 91% Life insurance 90% 87% 83% 90% 90% 85% Educational credits/Tuition reimbursement 45% 41% 45% 39% 26% 34% Employee referral program 40% 40% 42% 47% 38% 43% Parking allowance 32% 31% 28% 44% 43% 40% Moving expenses 19% 14% 13% 21% 14% 13% Executive health plan 15% 24% 23% 12% 22% 21% Car allowance 16% 15% 12% 10% 11% 8% Subsidized meals 10% 11% 11% 4% 5% 8% Subsidized childcare 2% 4% 3% 3% 2% 2% Personal time off days 50% 57% 62% 42% 55% 61% Flex days 41% 43% 49% 59% 61% 62% Top up for maternity leave 35% 36% 41% 30% 32% 37% Extended parental leave 25% 24% 28% 18% 18% 25% Elder care leave 11% 12% 14% 10% 16% 13% Sabbatical 7% 8% 10% 5% 6% 7% Insurance and retirement benefits Fringe benefits Paid time off Page 56 IN-DEPTH LOOK AT PROVINCES Change in Benefits and Satisfaction with Compensation In Alberta, increases in out-of-pocket costs for benefits remained similar to previous years, although the national rate fell. Decreases in benefits coverage told a similar story. Experienced in past 12 months (% yes) Canada Alberta 2016 2018 2020 2016 2018 2020 Increase in out-of-pocket costs for benefits 33% 30% 25% 30% 33% 31% Decrease in benefits coverage 16% 16% 12% 18% 17% 16% % Very/Somewhat satisfied Canada Alberta 2016 2018 2020 2016 2018 2020 Benefits package 74% 70% 70% 78% 68% 70% Incentive program 61% 56% 59% 64% 58% 60% Base salary 53% 50% 55% 56% 46% 48% Trends by Industry in Alberta The top four sectors employing in-house counsel in Alberta are: 1. Oil & gas 2. Government 3. Financial services/insurance/banks 4. Utilities Corresponding base salaries are indicated in the chart below. Oil & gas saw a decline in base salaries this year, while financial services/insurance/banks, utilities and government all saw increases. in $K $183 $195 $191 $173 $153 Oil & gas $143 $151 Government/ Crown corporation $155 $156 Financial services/Insurance 2016 Page 57 2018 2020 $160 $144 Utilities $154 IN-DEPTH LOOK AT PROVINCES Focus on Oil & Gas Sector in Alberta In Alberta’s oil & gas sector in 2020, the average base salary for Legal Counsel is $140,000. The average base salary for GC Director Level is $200,500 This represents a drop in base salaries from 2018 for both groups. Legal Counsel General Counsel at Director Level* Senior Counsel 2016 2018 2020 2016 2018 2020 2016 2018 2020 Average base salary ($) $150,000 $145,500 $140,000 $172,500 $193,000 $192,500 $227,000 $225,500 $200,500 Target bonus/Incentive 17% 17% 18% 23% 27% 24% 26% 30% 36% Maximum target amount 29% 27% 25% 94% 49% 34% 94% 45% 44% Actual bonus/Incentive 17% 16% 14% 26% 27% 19% 25% 24% 34% * General Counsel Director Level – Combines General Counsel and Director of Legal/Legal Manager Page 58 IN-DEPTH LOOK AT PROVINCES FOCUS ON BRITISH COLUMBIA Distribution of Base Salary in British Columbia Mean British Columbia The mean base salary for in-house counsel in British Columbia is $167,00, which is $500 lower compared to the national average. Mean base salaries in Vancouver are slightly higher (by $2,500) than the province as a whole. 2016: $156,000 2018: $163,000 2020: $167,000 < $100K 5% Mean Vancouver 8% 2016: $159,000 7% $100K to < $120K 8% 2018: $166,500 17% 13% 2020: $169,500 $120K to < $140K 26% 18% 19% 12% $140K to < $160K 18% 12% 13% $160K to < $180K 21% 16% 10% 11% 11% $180K to < $200K 14% $200K + 2016 2018 19% 22% 2020 Compensation Package by Position – British Columbia In 2020, the average base salary for Legal Counsel in British Columbia is $126,000 and the base salary for GC Executive Level is $287,250. Legal Counsel General Counsel at Director Level* Senior Counsel General Counsel at Executive Level** 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 Average base salary ($) $121,000 $126,000 $126,000 $140,000 $147,000 $153,500 $179,000 $188,000 $189,500 $270,000 $229,500 $287,250 Target bonus/Incentive 14% 15% 20% 34% 17% 19% 30% 25% 25% 53% 35% 58% Maximum target amount 20% 22% 31% 43% 19% 25% 42% 37% 36% 78% 62% 77% Actual bonus/Incentive 13% 16% 23% 38% 18% 18% 31% 21% 28% 49% 32% 66% * General Counsel Director Level – Combines General Counsel and Director of Legal/Legal Manager ** General Counsel Executive Level – Combines Executive VP Legal and VP Legal Page 59 IN-DEPTH LOOK AT PROVINCES Base Salary Increase in British Columbia vs Canada Twenty-three percent of in-house counsel in British Columbia received 5% to 10%+ increases compared to only 21% of in-house counsel nationally. 33% 32% 23% 21% 14% 15% 12% 10% 0% 13% 11% 1% < 0% (decline) 0% 0,1% to < 3% 3% to < 5% British Columbia 5% to < 10% 10% + Canada 36% 33% 29% 23% 23% 20% 14% 14% 13% 2% 13% 9% 10% 3% 0% < 0% (decrease) 0% 0.1% to < 3% 2016 Page 60 13% 12% 10% 2018 3% to < 5% 2020 5% to < 10% 10% + IN-DEPTH LOOK AT PROVINCES Benefits Included in Package – British Columbia The table below provides historical information on the benefits provided to inhouse counsel residing in British Columbia. The table also compares this information to the national numbers. Included in benefits package (% yes) Total British Columbia 2016 2018 2020 2016 2018 2020 Dental coverage 97% 96% 95% 98% 96% 96% Extended medical coverage 90% 80% 77% 97% 93% 90% Pension/Retirement plan 81% 79% 78% 74% 69% 73% Provincial health care coverage 77% 72% 71% 86% 84% 85% Employee assistance program 76% 81% 80% 70% 71% 71% Additional health spending account 62% 55% 59% 51% 44% 57% Medical/Dental coverage beyond retirement 17% 21% 20% 17% 22% 18% Short-term disability 89% 88% 84% 86% 84% 83% Long-term disability 93% 92% 87% 95% 93% 87% Life insurance 90% 87% 83% 90% 82% 78% Educational credits/Tuition reimbursement 45% 41% 45% 47% 43% 47% Employee referral program 40% 40% 42% 35% 44% 38% Parking allowance 32% 31% 28% 36% 37% 29% Moving expenses 19% 14% 13% 19% 14% 14% Executive health plan 15% 24% 23% 14% 23% 19% Car allowance 16% 15% 12% 16% 13% 11% Subsidized meals 10% 11% 11% 11% 12% 9% Subsidized childcare 2% 4% 3% 2% 3% 1% Personal time off days 50% 57% 62% 40% 48% 51% Flex days 41% 43% 49% 31% 33% 34% Top up for maternity leave 35% 36% 41% 41% 41% 44% Extended parental leave 25% 24% 28% 32% 30% 25% Elder care leave 11% 12% 14% 9% 13% 15% Sabbatical 7% 8% 10% 12% 13% 12% Insurance and retirement benefits Fringe benefits Paid time off Page 61 IN-DEPTH LOOK AT PROVINCES Change in Benefits and Satisfaction with Compensation The percentage of in-house counsel that saw increases in out-of-pocket costs for benefits is slightly lower in British Columbia than nationally (20% and 25%, respectively). Seven percent of British Columbian in-house counsel saw a decrease in benefits coverage compared to 12% nationally. The percentage of British Columbian respondents who are very/somewhat satisfied with their benefits package is at the same level as in-house counsel nationally. By a relatively small margin, slightly more in-house counsel in British Columbia are very/somewhat satisfied with their incentive program when compared to colleagues nationally (61% vs 59%). Experienced in past 12 months (% yes) Canada British Columbia 2016 2018 2020 2016 2018 2020 Increase in out-of-pocket costs for benefits 33% 30% 25% 35% 22% 20% Decrease in benefits coverage 16% 16% 12% 13% 11% 7% % Very/Somewhat satisfied Canada British Columbia 2016 2018 2020 2016 2018 2020 Benefits package 74% 70% 70% 82% 74% 70% Incentive program 61% 56% 59% 59% 53% 61% Base salary 53% 50% 55% 48% 53% Trends by Industry in British Columbia The top two sectors employing in-house counsel in British Columbia are financial services/insurance and government/Crown corporations. Both sectors show steady gains in base salaries from 2016 to 2020. in $K $140 $152 $166 $128 Financial services/ Insurance 2016 Page 62 $137 $140 Government/ Crown corporation 2018 2020 5 52% National Trends in In-House Counsel Compensation This section describes the trends and averages in compensation among all respondents as well as subgroups of respondents. If these figures are being used to compare and benchmark compensation, it is important to consider the appropriate subgroup for comparison, as there are large discrepancies depending on various demographic or background factors. This section details the differences in base salary as well as incentives by gender, industry, employer type, age, tenure, job role, etc. Page 63 NATIONAL TRENDS IN IN-HOUSE COUNSEL COMPENSATION BASE SALARY BY TYPE OF EMPLOYER The average salary for all in-house counsel surveyed is $167,500, which is slightly higher compared to $163,000 reported in 2018. Based on organization type, we note that the average base salary for in-house counsel in both publicly-quoted and privately-owned companies is higher than government or Crown corporation in-house counsel. Trends by Industry The following chart provides salary information on the top sectors that employ in-house counsel. This year, we see the highest average base salaries are being paid by resources/mining/forestry ($224K), manufacturing/ automotive/aerospace/ chemical ($193K), oil and gas ($190K), real estate ($180K), retail/hospitality/food and beverage/consumer products ($174K), construction ($173K), and information technology ($170K). Top 12 sectors represented by in-house counsel (in $K) The largest gains in annual base salaries from 2018 to 2020 are in resources/mining/forestry (up $31K), manufacturing/automotive/aerospace/chemical (up $28K), and financial services/insurance (up $15K). The most substantial downward shifts in annual base salaries from 2018 to 2020 are in pharmaceuticals/medical (down $13K), construction (down $10K), and oil and gas (down $6K). $150 $149 $164 Financial services/Insurance $142 $138 $143 Government/Crown corporation $181 $196 $190 Oil & gas $164 $160 $170 Information technology Retail/ Hospitality/ Food and Beverage/ ConsumerProducts $178 $173 $174 Manufacturing/ Automotive/ Aerospace/ Chemical $176 $165 $172 $183 $173 Construction $150 $153 $156 Utility $185 $172 $180 Real estate $207 $193 Resources/Mining/Forestry $151 Pharma/Medical $177 $164 $150 $150 $162 Media/Gaming/Entertainment 2016 Page 64 $193 2018 2020 $224 NATIONAL TRENDS IN IN-HOUSE COUNSEL COMPENSATION BASE SALARY BY EMPLOYMENT HISTORY, AGE AND TENURE We continue to see a positive correlation between years in private practice and salary. That is to say, the higher the number of years in private practice, the higher the salary as in-house counsel. Average Base salary Number of years in private practice 2016 2018 2020 None $133,500 $131,000 $129,500 1 – 2 years $144,500 $150,500 $156,000 3 – 5 years $165,500 $166,000 $173,000 > 5 years $182,000 $181,500 $186,500 Trends by Age Generally, the older the person, the higher the salary. The exception to this occurred in 2018 when those 55+ earned less than their 45 to 54-year-old counterparts. This year, those in the 25 to 34-year-old group received an average annual base salary of $120K, while those 55+ received an annual base salary of $203K. … in $K $250 $200 $200 $162 $155 $150 $100 $190 $181 $211 $203 $175 $150 $120 $118 $115 $50 $25 to 34 35 to 44 2020 25 to 34 years 35 to 44 years 45 to 54 2018 45 to 54 years 55+ 2016 55 + years 2016 $118,000 $155,000 $190,000 $211,000 2018 $127,000 $156,500 $196,000 $186,000 2020 $120,000 $162,000 $200,000 $203,000 Page 65 NATIONAL TRENDS IN IN-HOUSE COUNSEL COMPENSATION Trends by Tenure with Employer The trends by tenure with employer show results similar to the previous table of trends by age. In the 2016 and 2018 surveys, the longer the person worked for a given organization, the higher the salary. There was an increase for base salary across all groups compared to 2018. $218 $191 $193.5 $170 $169 $200 $180 $198 $187.5 $148 $149 $153 < 5 years 5 to 9 years 10 to 14 years 2018 2016 < 5 years 5 to 9 years 10 to 14 years 15 + years 2016 $148,000 $170,000 $191,000 $198,000 2018 $149,000 $169,000 $193,500 $187,500 2020 $153,000 $180,000 $1200,000 $218,000 Page 66 15+ years 2020 NATIONAL TRENDS IN IN-HOUSE COUNSEL COMPENSATION BASE SALARY BY GENDER Trends by Gender This year, female participants outnumber men (51% female compared to 46% male). On average, the salary of female in-house counsel is lower than their male counterparts. In 2020, the average male base salary stands at $177,000, which is $19,000 higher than the average female base salary of $158,000. This salary gap has not changed since 2018. Gender differences are particularly apparent at the higher wage levels. For example, 30% of males have a mean salary of $200K+, while only 19% of women receive this level of pay. Males – mean $177,000 5% <$100K 10% <$100K 10% 7% 8% $100K to <$120K 6% $100K to <$120K $120K to <$140K Females – mean: $158,000 12% 10% 16% 2016 2018 7% 8% 15% 15% 2016 Males Females Difference 2016 $165,000 $178,500 $152,000 -$26,500 2018 $163,000 $173,000 $154,000 -$19,000 2020 $167,500 $177,000 $158,000 -$19,000 20% 11% 30% 2020 23% 21% 14% 15% 16% $200K+ Total mean salary Page 67 14% $180K to <$200K 26% 26% $200K+ 17% $160K to <$180K 12% 13% 13% $180K to <$200K 18% $140K to <$160K 15% 16% 14% $160K to <$180K 15% 13% 12% $120K to <$140K 16% 15% 18% $140K to <$160K 10% 9% 11% 2018 2020 19% NATIONAL TRENDS IN IN-HOUSE COUNSEL COMPENSATION Salary by Job Role and Gender As we can see from the charts below, women are paid less than men at all job role levels. The smallest gap in salaries exists for Legal Counsel and for Senior Counsel ($3,000 and $6,000 respectively). The largest salary gaps exist for GC Director Level and GC Executive Level ($20,000 and $23,000 respectively). In both cases, the salary gap has increased since 2018. In comparison to 2018, the gap in salaries has decreased for Senior Counsel and Assistant/Associate GC. Males (in $K) Females (in $K) $130 $125 $127 Legal Counsel $159 $162 $164 Senior Counsel $204 $194 $201 GC Director Level $260 $239 $246 GC Exec Level 2016 Page 68 2018 2020 $151 $155 $161 Senior Counsel $185 $182 $198 Assistant/ Associate GC $125 $124 $121 Legal Counsel $164 $165 $189 Assistant/ Associate GC $175 $178 $181 GC Director Level $201 $222 $223 GC Exec Level 2016 2018 2020 NATIONAL TRENDS IN IN-HOUSE COUNSEL COMPENSATION Tenure by Job Role and Gender We note that in 2020 men are spending more time as GC Executive Level than previously. The result is that for Legal Counsel, Senior Counsel and GC Executive Level, men and women spend relatively similar amounts of time in each position. At the GC Executive Level in 2018, males spent an average of 7.8 years compared to females at 7.9 years. In 2020, male and female tenure remain essentially identical (8.4 and 8.6, respectively). Males Females 3.8 3.8 3.1 Legal Counsel 5.7 Senior Counsel 5.5 Assistant/ Associate GC 5.3 GC Director Level 6.8 2016 Page 69 9.5 2020 7.6 7.6 Assistant/ Associate GC 4.5 8.7 8.3 7.8 8.4 2018 7 6.8 Senior Counsel 7 7.5 6.5 GC Exec Level 4 3.8 3.6 Legal Counsel GC Director Level 5.7 10.1 6.4 GC Exec Level 2016 6.8 7 2018 2020 7.9 8.6 NATIONAL TRENDS IN IN-HOUSE COUNSEL COMPENSATION Gender and Sector One factor that partially explains the salary discrepancy between males and females relates to an analysis of gender and sector. On the first chart we see that a higher percentage of females are inhouse counsel for government, Crown corporations and not-for-profits. In comparison, a slightly higher percentage of males are employed by publicly-quoted companies. The second chart shows the differences in base salary across the five sectors. We note lower salaries in the three sectors where females are over-represented. Looking at the third chart below, we see males earn a higher base salary in all sectors. 74% 53% 51% 45% 52% 48% 50% 44% 44% 23% Government Crown Corporation Not-for-profit Male Privately-owned Publicly-quoted Female in $K $143 $150 $154 Government Crown Corporation Not-for-profit $174 $182 Privately-owned Publicly-quoted in $K $191 $184 $148 $139 Government $156 $158 $151.5 $145 Crown Corporations Not-for-profit Male Page 70 Female $164 Privately-owned $172 Publicly Quoted NATIONAL TRENDS IN IN-HOUSE COUNSEL COMPENSATION SHORT-TERM AND LONG-TERM INCENTIVE PROGRAMS Short-Term Incentives Short-term incentive plans are available to 93% of in-house counsel in publicly-quoted companies. There were no changes for privately-owned companies, which remains at 83%. The not-for-profit sector is next at 45% and Crown corporations follow at 39%. In 2020, government use of incentive programs stands at 14%, which is lower compared to 22% in 2018. 97% 96% 93% 83% 83% 83% 60% 44% 20% 22% 39% 38% 42% 45% 14% Government Crown corporation Not-for-profit 2016 2018 Privately-owned Publicly-quoted 2020 Bases of Bonus/Incentive Program Experienced in past 12 months (% yes) Total Government Crown corporation Not-for-profit Privately-owned Publicly-quoted 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 Organizational performance 91% 90% 90% 91% 50% 40% 94% 81% 86% 91% 69% 69% 91% 93% 91% 95% 95% 97% Individual performance 88% 89% 88% 94% 96% 100% 94% 91% 95% 79% 86% 92% 79% 84% 85% 94% 94% 92% Team performance 49% 48% 48% 49% 36% 50% 62% 54% 54% 49% 58% 45% 58% 46% 47% 46% 50% 49% Specific project based 21% 22% 22% 21% 23% 5% 32% 19% 27% 33% 25% 33% 33% 22% 22% 17% 22% 18% Page 71 NATIONAL TRENDS IN IN-HOUSE COUNSEL COMPENSATION Bonuses by Sector Looking at maximum bonus compared to target bonus in the graph below, we see that for publicly-quoted companies, the 46% maximum is much higher than the 29% target. Privatelyowned companies have a maximum of 39% and a target of 27%. Crown corporation maximums exceed the target but not by such a wide margin. For government and the not-forprofit sector, the maximum and target are virtually identical. In the case of actual bonus compared to target bonus, we see a close alignment for government, Crown corporations and not-for-profit organizations. 46% 50% 45% 39% 40% 35% 29% 30% 25% 20% 22% 15% 8% 10% 5% 15% 27% Maximum Bonus 14% Target Bonus 7% 0% Government Crown corporation Not-for-profit Privately-owned Publicly-quoted 46% 50% 45% 39% 40% 35% 29% 30% 30% 25% 20% 23% 15% 15% 25% Maximum Bonus 8% 10% 13% 5% 0% 29% 6% Government Page 72 Actual Bonus Crown corporation Not-for-profit Privately-owned Publicly-quoted NATIONAL TRENDS IN IN-HOUSE COUNSEL COMPENSATION Bonuses by Title Looking at bonuses by job title, we note that the gap between the target bonus and maximum bonus increases by seniority. In the case of GC Executive Level, the maximum bonus is 63% vs a target of 43%. Actual and target bonuses are virtually identical for all job titles. 70% 63% 60% 45% 50% 39% 40% 43% 32% 26% 30% 27% 20% 16% 10% 28% Maximum Bonus 20% Target Bonus 0% Legal Counsel Senior Counsel Assistant/Associate GC Director Level GC Executive Level GC 50% 43% 45% 44% 40% 35% 27% 30% 25% 29% 20% 20% 24% 16% 15% 17% 10% 28% 20% Actual Amount Target Bonus 5% 0% Legal Counsel Page 73 Senior Counsel Assistant/Associate GCGC Director Level GC Executive Level NATIONAL TRENDS IN IN-HOUSE COUNSEL COMPENSATION Stock Options On average, 28% of in-house counsel in privately-owned companies have stock options. This is up from 25% in 2018. Stock options in publicly-quoted companies remained at 52% in 2020. Stock options for GC Executive Level increased to 44% from 40% in 2018. For the Legal Counsel and Senior Counsel roles, stock options slightly decreased. 50% 22% 25% 52% 52% 28% Privately-owned Publicly-quoted 2016 2018 2020 51% 44% 40% 33% 34% 29% 28% 20% 20% 28% 25% 24% 22% 17% Legal Counsel Senior Counsel Assistant/Associate GC 2016 2018 % yes Type of plan 2016 2018 2020 Restricted stock plan 49% 48% 47% Performance share plan 29% 28% 32% Share appreciation rights 11% 11% 9% Phantom share plan 11% 8% 10% Page 74 27% GC Director Level 2020 GC Executive Level NATIONAL TRENDS IN IN-HOUSE COUNSEL COMPENSATION Long-Term Incentive Plans Long-term incentive plans continue to be the most popular in publicly-quoted companies. In 2020, 46% of in-house counsel at publicly-quoted companies are eligible for such plans, a percentage that is at the same level as 2018. Eighteen percent of in-house counsel at privatelyowned companies receive long-term incentives, on par with 2018 but down from 23% in 2016. For Crown corporations, eligibility increased from 4% to 8%. The not-for-profit percentage remains the same. In 2020, the maximum potential long-term incentive for the GC Executive Level rose to 89%. For GC Director Level, the maximum potential decreased to 57% from 71%. For Assistant/ Associate GC the maximum increased to 38%. % eligible for long-term incentive plan) 56% 47% 46% 23% 19% 18% 8% 3% 1% 2% Government 4% 4% 2% Crown corporation 5% 5% Not-for-profit 2016 2018 Privately-owned Publicly-quoted 2020 Maximum potential long-term incentive (% of base salary) 89% 76% 71% 58% 29% 26% 28% Legal Counsel 31% 32% 26% Senior Counsel 57% 38% 32% 25% Assistant/Associate GC 2016 Page 75 82% 2018 GC Director Level 2020 GC Executive Level BENEFITS Benefits As noted in 2018, nearly all in-house counsels receive both medical and dental coverage as well as short and long-term disability and life insurance. Total Included in benefits package (% yes) 2016 2018 2020 Dental coverage 97% 96% 95% Extended medical coverage 90% 80% 77% NA NA Insurance and retirement benefits Disability/Life insurance NA Pension/Retirement plan 81% 79% 78% Provincial health care coverage 77% 72% 71% Employee assistance program 76% 81% 80% Additional health spending account 62% 55% 59% Medical/Dental coverage beyond retirement 17% 21% 20% Short-term disability 89% 88% 84% Long-term disability 93% 92% 87% Life insurance 90% 87% 83% Educational credits/Tuition reimbursement 45% 41% 45% Employee referral program 40% 40% 42% Parking allowance 32% 31% 28% Moving expenses 19% 14% 13% Executive health plan 15% 24% 23% Car allowance 16% 15% 12% Subsidized meals 10% 11% 11% 2% 4% 3% Personal time off days 50% 57% 62% Flex days 41% 43% 49% Top up for maternity leave 35% 36% 41% Extended parental leave 25% 24% 28% 11% 12% 14% 7% 8% 10% Fringe benefits Subsidized childcare Paid time off Elder care leave Sabbatical Page 76 BENEFITS Benefits Package by Sector While dental and extended medical coverage is generally provided across all sectors, we do note a slight erosion this year in extended medical coverage. For example, in the privately-owned sector, reported extended medical coverage has gone from 77% in 2018 to 75% in 2020. Among publicly-quoted companies, coverage has decreased from 80% in 2018 to 77% in 2020. Government Included in benefits package (% yes) Crown corporation Not-for-profit Privately-owned Publicly-quoted 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 Dental coverage 99% 97% 95% 98% 95% 98% 93% 97% 96% 97% 95% 93% 97% 98% 97% Extended medical coverage 91% 85% 82% 87% 78% 80% 87% 86% 78% 92% 77% 75% 92% 80% 77% Disability/Life insurance NA NA NA NA NA NA NA NA NA NA NA NA NA NA Pension/Retirement plan 99% 95% 97% 85% 93% 97% 68% 92% 86% 81% 68% 65% 81% 79% 75% Provincial health care coverage 79% 77% 77% 81% 77% 80% 76% 70% 61% 75% 72% 70% 77% 68% 70% Employee assistance program 90% 90% 88% 87% 88% 87% 69% 87% 89% 67% 71% 72% 80% 84% 74% Additional health spending account 60% 63% 62% 72% 64% 70% 56% 43% 50% 52% 49% 53% 70% 60% 64% Medical/Dental coverage beyond retirement 28% 36% 33% 27% 39% 29% 21% 22% 17% 13% 14% 14% 13% 17% 16% Short-term disability 88% 90% 86% 90% 89% 88% 87% 93% 81% 86% 83% 79% 93% 93% 91% Long-term disability 96% 94% 88% 98% 93% 92% 95% 93% 90% 90% 88% 84% 94% 96% 91% Life insurance 91% 92% 87% 94% 84% 88% 89% 88% 81% 89% 81% 76% 90% 91% 89% Educational credits/Tuition reimbursement 48% 38% 37% 50% 41% 50% 46% 47% 51% 47% 48% 47% 43% 35% 41% Employee referral program 19% 31% 25% 35% 38% 30% 23% 24% 27% 45% 43% 46% 50% 46% 54% Parking allowance 28% 31% 28% 40% 33% 36% 37% 22% 24% 29% 33% 29% 32% 31% 26% Moving expenses 27% 13% 13% 19% 13% 13% 17% 13% 11% 19% 14% 13% 19% 15% 15% Executive health plan 10% 29% 19% 27% 17% 16% 21% 16% 16% 13% 25% 25% 17% 25% 26% Car allowance 9% 7% 2% 11% 9% 10% 12% 13% 6% 21% 18% 18% 21% 16% 11% Subsidized meals 9% 10% 5% 7% 8% 6% 10% 13% 9% 14% 13% 14% 8% 10% 14% Subsidized childcare 1% 2% 2% 1% 3% 4% 2% 1% 2% 3% 4% 2% 3% 5% 4% Personal time off days 63% 62% 63% 49% 64% 68% 58% 62% 75% 47% 57% 59% 46% 49% 58% Flex days 53% 63% 57% 44% 53% 55% 51% 45% 51% 34% 38% 42% 39% 38% 47% Top up for maternity leave 49% 40% 44% 46% 54% 62% 37% 45% 43% 24% 26% 29% 37% 36% 43% Extended parental leave 43% 38% 40% 37% 37% 36% 35% 26% 29% 17% 21% 22% 20% 17% 26% Elder care leave 21% 21% 21% 12% 16% 18% 15% 15% 28% 11% 10% 9% 7% 10% 10% Sabbatical 20% 12% 16% 8% 16% 13% 9% 6% 12% 4% 5% 5% 6% 6% 11% Insurance and retirement benefits NA Fringe benefits Paid time off Page 77 BENEFITS Benefits Package by Title Benefits packages change with growing seniority. Car allowance is in the single digits for Legal Counsel but becomes more common as one climbs the corporate ladder. Legal Counsel Included in benefits package (% yes) Senior Counsel Assistant/Associate GC GC Director Level GC Executive Level 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 Dental coverage 97% 97% 94% 96% 98% 96% 98% 96% 98% 97% 95% 95% 97% 96% 98% Extended medical coverage 88% 76% 74% 89% 85% 80% 92% 69% 82% 93% 80% 80% 89% 86% 74% NA NA NA NA NA NA NA NA NA NA NA NA NA Insurance and retirement benefits Disability/Life insurance NA NA Pension/Retirement plan 85% 80% 80% 90% 86% 88% 89% 79% 79% 75% 76% 74% 68% 75% 72% Provincial health care coverage 77% 72% 69% 77% 66% 73% 69% 69% 73% 78% 72% 74% 76% 86% 71% Employee assistance program 74% 76% 75% 78% 87% 84% 79% 83% 87% 72% 81% 83% 88% 83% 87% Additional health spending account 64% 59% 58% 70% 60% 68% 71% 52% 60% 54% 46% 55% 65% 54% 62% Medical/Dental coverage beyond retirement 14% 18% 21% 21% 29% 22% 19% 17% 16% 21% 19% 21% 20% 28% 16% Short-term disability 86% 86% 82% 92% 92% 90% 94% 92% 92% 90% 87% 82% 92% 93% 89% Long-term disability 93% 92% 87% 92% 95% 90% 94% 90% 89% 93% 90% 87% 99% 94% 89% Life insurance 89% 87% 80% 90% 86% 88% 90% 88% 90% 92% 85% 84% 93% 85% 86% Fringe benefits Educational credits/Tuition reimbursement 44% 39% 41% 40% 31% 38% 46% 35% 36% 50% 48% 51% 56% 50% 56% Employee referral program 41% 37% 37% 46% 47% 48% 42% 38% 45% 34% 41% 41% 45% 42% 47% Parking allowance 26% 21% 17% 28% 33% 24% 39% 21% 42% 38% 40% 36% 49% 46% 41% Moving expenses 18% 11% 12% 15% 13% 14% 17% 15% 18% 22% 19% 14% 31% 15% 18% Executive health plan 6% 15% 20% 8% 16% 12% 15% 25% 27% 23% 29% 27% 43% 60% 43% Car allowance 6% 6% 4% 9% 13% 4% 23% 23% 10% 24% 16% 20% 43% 40% 36% Subsidized meals 9% 9% 10% 5% 13% 11% 8% 8% 11% 13% 12% 12% 16% 11% 15% Subsidized childcare 2% 4% 4% 1% 4% 4% 2% 0% 3% 3% 3% 2% 3% 7% 2% Personal time off days 48% 62% 61% 52% 56% 68% 52% 38% 66% 50% 54% 58% 52% 63% 65% Flex days 42% 48% 47% 49% 44% 51% 44% 27% 57% 35% 41% 50% 39% 49% 50% Top up for maternity leave 42% 37% 45% 40% 41% 44% 31% 31% 57% 31% 32% 34% 24% 39% 37% Extended parental leave 29% 23% 29% 23% 24% 24% 25% 21% 39% 23% 25% 28% 31% 22% 30% 15% 15% 9% 12% 13% 10% 2% 16% 7% 13% 14% 15% 11% 13% 8% 11% 8% 9% 10% 4% 4% 8% 5% 8% 11% 8% 4% 5% Paid time off Elder care leave Sabbatical Page 78 13% 10% BENEFITS PENSION/RETIREMENT PLANS Pension and retirement plans are offered to most in-house counsel (78%), but privately-owned companies are least likely at 65% to offer such plans. The public sector is more generous in this regard, with 97% of government and 97% of Crown corporations offering such plans. In 2020, 60% of all organizations offered a matching program for RRSP savings. The average percentage of savings being matched is at 22% in 2020. Government Total 2016 2018 Crown corporation Not-for-profit Privately-owned Publicly-quoted 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 78% 99% 95% 97% 96% 93% 97% 85% 92% 86% 68% 68% 65% 81% 79% 75% Included in benefits package (% yes) Pension/Retirement plan 81% 79% Does your retirement plan consist of (% yes) (Respondents with pension/retirement plan in benefits package) Pension 74% 73% 78% 94% 98% 97% 90% 93% 97% 68% 67% 86% 62% 57% 65% 71% 69% 75% RRSP savings 64% 58% 60% 47% 35% 29% 40% 39% 39% 64% 57% 60% 74% 68% 73% 73% 68% 78% Pension structure (Respondents with pension in retirement plan) Defined benefit plan 59% 56% 52% 83% 83% 81% 74% 71% 71% 58% 69% 50% 36% 38% 27% 44% 41% 37% Defined contribution plan 45% 44% 48% 17% 17% 19% 26% 29% 29% 42% 31% 50% 64% 63% 73% 56% 59% 63% RRSP Savings Plans Government Total 2016 2018 2020 Crown corporation Not-for-profit Privately-owned Publicly-quoted 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 47% 35% 29% 40% 39% 39% 64% 57% 60% 74% 68% 73% 73% 68% 78% 13% 20% 24% 42% 41% 51% 41% 55% 74% 85% 87% 73% 73% 72% Does your retirement plan consist of (% yes) RRSP savings 64% 58% 60% Organization offers a matching program (Respondents with RRSP savings in retirement plan) % yes 61% 66% What % of your RRSP savings are being matched by your organization? (Percentages on this table represent the percent of RRSP savings being matched by the respondent’s organization) Page 79 68% 10% Mean 2016 29% 2018 29% 2020 22% BENEFITS CAR AND PARKING ALLOWANCE Whether one receives a car and parking allowance is largely dependent on job role and sector. In dollar terms, for average annual car allowance, GC Executive Level receive the highest, at just under $15,000, followed by GC Director Level at $10,596. Car allowance for GC Director Level increased from 16% in 2018 to 20% in 2020. Across the sectors, government, Crown corporations, and privately-owned and publicly-quoted organizations are all roughly equally likely to offer parking allowance, falling into the 24% to 36% range. Parking allowance in the not-forprofit sector has increased from 22% in 2018 to 24% in 2020. Privately-owned and publicly-quoted companies are more likely to offer car allowance than the other sectors. Publicly-quoted provision of car allowance declined from 16% in 2018 to 11% in 2020. Across the country, Central Canada saw the biggest reduction in average annual car allowance, dropping from $13,200 in 2018 to $6,400 in 2020. In 2020, Quebec had the highest dollar level in the country for average annual car allowance. Included in benefits package (% yes) Legal Counsel Senior Counsel Assistant/Associate GC GC Director Level GC Executive Level 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 Parking allowance in benefits package (% yes) 26% 21% 17% 28% 33% 24% 39% 21% 42% 38% 40% 36% 49% 46% 41% Average annual parking allowance ($) $2,400 $2,091 $1,903 $2,810 $2,115 $1,886 $5,313 $1,765 $3,892 $2,143 $2,647 $3,120 $2,003 Car allowance in benefits package (% yes) 6% 6% 4% 9% 13% 4% 23% 23% 10% 16% 20% 40% 36% $8,874 $6,364 $15,171 $9,683 $8,832 $8,800 $8,489 $9,511 Average annual car allowance ($) Included in benefits package (% yes) Government Crown corporation $2,680 24% $8,633 $12,457 Not-for-profit $3,088 43% $10,252 $10,596 $14,066 Privately-owned $10,929 $14,922 Publicly-quoted 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 Parking allowance in benefits package (% yes) 28% 31% 28% 40% 33% 36% 37% 22% 24% 29% 33% 29% 32% 31% 26% Average annual parking allowance ($) $4,000 $1,643 $ 1,524 $1,536 $1,396 $2,911 $2,292 $2,138 $ 2,059 $1,939 $ 2,276 $2,945 $2,556 Car allowance in benefits package (% yes) 9% 7% 2% 11% 10% 12% 13% 6% 18% 18% 16% 11% $5,433 $2,650 NA $5,339 $5,550 $8,714 $7,620 Average annual car allowance ($) Page 80 9% $10,083 $2,157 21% $10,800 $11,582 $8,258 $3,997 17% $10,212 $13,911 $13,150 $14,483 BENEFITS Average annual car allowance Atlantic Average annual parking allowance $13,649 $11,414 $12,697 Quebec Ontario $13,200 Central $10,203 $9,694 $9,153 $10,926 $8,516 $8,832 British Columbia 2016 2018 2020 $998 $760 $691 $2,284 $2,328 Quebec Ontario $6,400 Alberta Atlantic $12,211 $11,023 $13,098 $8,125 Central Page 81 $16,125 $6,642 $8,832 $3,767 $1,782 $1,539 $1,404 $1,176 $1,536 $1,437 $3,868 $3,096 $3,315 Alberta $2,430 $1,998 $2,266 British Columbia 2016 2018 2020 BENEFITS VACATION, FLEX AND PERSONAL TIME OFF DAYS The provision of personal time off days grew from 57% in 2018 to 62% in 2020. The provision of flex days, maternity leave, extended parental leave and sabbaticals experienced a slight increase. Entitlement to vacation days is relatively static when compared to 2016 and 2018. As expected, those who spend more years with an organization enjoy greater vacation time. For paid personal time off days, privately-owned companies offer more paid personal time off days than the other sectors. The number of paid flex days saw a large jump in 2020 for privately-owned and not-for-profit organizations. Paid Time Off and Leave Included in benefits package (% yes) 2016 2018 2020 Personal time off days 50% 57% 62% Median number of personal time off days 4.0 4.0 6.2 Flex days 41% 43% 49% Median number of flex days 8.0 8.0 8.0 Top up for maternity leave 35% 36% 41% Extended parental leave 25% 24% 28% Sabbaticals 7% 8% 10% Vacation Days 26.3 25.6 26.5 19.6 19.8 20.9 < 5 years 21.0 23.2 22.7 22.7 22.2 22.7 5 to 9 years 10 to 14 years 2016 Page 82 2018 2020 15+ years BENEFITS Paid Personal Time Off Days 10.0 9.4 9.0 7.6 8.0 7.0 6.0 9.0 6.0 5.6 6.3 5.0 8.2 6.4 6.5 5.4 5.3 5.8 5.4 5.2 4.0 4.0 3.0 2.0 1.0 0.0 2016 Government Crown corporation Not-for-profit Privately-owned Publicly-quoted 2018 2020 Paid Flex Days 36.0 34.0 32.0 30.0 28.0 26.0 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 32.6 21.7 19.2 17.4 15.0 12.5 12.5 12.0 10.6 10.0 8.4 8.0 6.0 9.2 2016 2018 Government Page 83 21.2 Crown corporation Not-for-profit Privately-owned Publicly-quoted 2020 BENEFITS ADDITIONAL BENEFITS Those responding to the survey were asked to identify benefits that they would like to see offered. The top benefits identified continue to be different types of work arrangements and insurance related requests. Work arrangements/Time off NET 19% Health/Fitness NET 9% Maternity leave salary (top up) 5% Health spending account 7% Flex days/time 7% Fitness/gym program/club membership/improved gym 3% Sabbatical/leave of absence 3% Other health/fitness 0% Child care 3% Personal/sick days 3% Transportation/Travel NET 8% Vacation 1% Parking allowance/reimbursement 4% Paternity leave salary (top up) 1% Car allowance 3% Other work arrangements/time off 1% Transit allowance 1% Other transportation/travel 1% Bonus/Incentive NET 4% Bonus/(performance) incentive plan 3% Other bonus/incentive 1% Educational/Development NET 2% Educational/tuition support/reimbursement 2% Professional development assistance/support 0% Insurance NET 16% Extended health care plan (EHC)/better health care benefits 3% Better (full) dental coverage 3% (Full) Vision/eye care 3% Executive health plan/benefits 3% Better coverage (unspecified) 1% Orthodontics 1% Other insurance 3% Pension/Retirement NET 8% Better pension/retirement plan (incl. defined pension) 5% Better post-retirement benefits plan 2% Page 84 SATISFACTION WITH WORK AND LOYALTY TO EMPLOYER Satisfaction with Work and Loyalty to Employer SATISFACTION WITH WORK-LIFE BALANCE This year, 34% of in-house counsel are very satisfied with work-life balance and 40% are somewhat satisfied, for a combined total of 74%. This is a slight increase compared to 2018. 71% 33% 74% 71% 40% 38% 34% 31% 2016 2018 Very satisfied Somewhat satisfied 40% 2020 Combined very/somewhat satisfied Regionally, those in Central Canada and Atlantic Canada have the highest likelihood of saying they are very satisfied with work-life balance. Central Canada reported the biggest gain in very satisfied, going from 35% in 2018 to 49% in 2020. Atlantic Canada, British Columbia, Ontario, Quebec, and Central Canada all had a rise in satisfaction compared to 2018, while only Alberta showed a slight decline from 35% to 33%. Those who have been with their organization for fewer than five years show higher levels of satisfaction than their colleagues with longer tenure. As well, those with progressively more senior titles show lower levels of satisfaction. Those at the GC Executive Level show the lowest satisfaction level. Finally, we see that those employed by government, Crown corporations and not-for-profits are more likely to be very satisfied with their work-life balance. % who are very satisfied 49% 43% 33% 32% 34% 35% 33% 43% 43% 35% 35% 34% 33% 30% 28% 24% 25% 15% British Columbia Alberta Central 2016 Page 85 Ontario 2018 2020 Quebec Atlantic SATISFACTION WITH WORK AND LOYALTY TO EMPLOYER 39% 36% 38% 28% <5 years 43% 32% 29% 28% 25% 5 to 9 years 25% 28% 10 to 14 years 29% 30% 15+ years 46% 44% 35% 33% 31% 28% 26% 28% 26% 28% 27% 21% 21% 14% Legal Counsel Senior Counsel 44% 40% 39% 38% Government Assistant/Associate GC Director Level GC Executive Level GC 46% 41% 41% 40% 36% 31% 29% 33% Crown corporation Not-for-profit 2016 2018 Privately-owned 29% 30% 25% Publicly-quoted 2020 Long working hours are usually associated with lower satisfaction with work-life balance. Sixty-six percent of those working fewer than 40 hours a week are very satisfied on this measure. The percentage drops dramatically for those working more than 55 hours a week. 66% 53% 39% 17% <40 Page 86 40 to 44 45 to 49 50 to 54 10% 55 to 59 5% 60+ SATISFACTION WITH WORK AND LOYALTY TO EMPLOYER Satisfaction with Career Mobility within Organization Satisfaction with career mobility within the organization demonstrated a slight improvement. In 2018, there were 31% of those who were very or somewhat satisfied, while in 2020 this figure grew to 35%. 35% 32% 31% 27% 24% 24% 8% 8% 7% 2016 Very satisfied 2018 2020 Somewhat satisfied Combined very/somewhat satisfied Reasons for Dissatisfaction with Career Mobility Reasons for dissatisfaction with career mobility are summarized in the table below. The three most prominent reasons are little/no room for advancement, few/no opportunities and size of the organization. Reasons for dissatisfaction with career mobility (% yes) Small company/business/department 13% Few/limited openings/positions at a higher level 7% Little/no room for advancement/growth 16% Few/no opportunities 14% No career path/nowhere to go/flat structure 10% Already have reached the highest level/position available 4% Higher positions are filled/someone would have to leave 5% Too much favouritism/sexism/political correctness/age discrimination 4% Would require changing departments/job role/becoming management 4% Not based at the head office/in parent company 2% Poor management/managers 10% Slow growth/poor economic performance 1% Not enough information transparency on how to advance 5% Would require moving/relocating 5% Education/experience requirements 1% Lack of support 1% Budget cuts/downsizing/hiring freeze/uncertain outlook 2% Outside hiring/don't promote internally 1% No opportunities for changing departments/job role 1% Page 87 SATISFACTION WITH WORK AND LOYALTY TO EMPLOYER SATISFACTION WITH COMPENSATION Respondents show the greatest level of satisfaction with their benefits (70%), followed by their incentive program (59%). Slightly less (55%) say that they are very/somewhat satisfied with their base salary. % Very/Somewhat satisfied 2016 2018 2020 Benefits package 74% 70% 70% Incentive program 61% 56% 59% Base salary 53% 50% 55% Satisfaction with Compensation by Position Type GC Executive Level show the highest levels of satisfaction with all three components of their compensation. However, we also note that their level of satisfaction has dropped slightly for base salary and benefits package. In the case of the incentive program, satisfaction increased from 61% to 64%. Legal Counsel % Very/Somewhat satisfied Senior Counsel Assistant/Associate GC GC Director Level GC Executive Level 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 Benefits package 76% 72% 71% 72% 71% 68% 69% 67% 77% 75% 68% 69% 82% 77% 75% Incentive program 57% 50% 54% 55% 58% 63% 72% 56% 61% 64% 59% 59% 78% 61% 64% Base salary 50% 47% 48% 49% 49% 50%  63% 52% 62% 58% 48% 61% 73% 66% 65% Satisfaction with Compensation by Sector In-house counsel in government and Crown corporations are the least satisfied with their base salary, with those working for government being the unhappiest. Government % Very/Somewhat satisfied Crown corporation Not-for-profit Privately-owned Publicly-quoted 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 2016 2018 2020 Benefits package 82% 75% 79% 89% 75% 81% 76% 78% 80% 71% 66% 62% 70% 67% 68% Incentive program 57% 50% 45% 58% 40% 54% 72% 53% 67% 64% 54% 57% 78% 62% 63% Base salary 47% 56% 52% 44% 35% 53% 51% 54% 64% 57% 54% 54% 56% 48% 54% Page 88 SATISFACTION WITH WORK AND LOYALTY TO EMPLOYER Perceptions of Compensation Package Reflecting Performance Forty-eight percent of all in-house counsel responding to this survey strongly agree/tend to agree that their compensation package reflects their performance. % Strongly/tend to agree 49% 48% 44% 42% 40% 39% 7% 8% 5% 2016 2018 Strongly agree 2020 Tend to agree Combine strongly/tend to agree With the exception of government, the belief that compensation reflects performance has increased since 2018 in all sectors. Publicly-quoted, privately-owned and not-for-profit in-house counsels have the strongest belief that compensation reflects performance. Those in Government corporations are the least likely to agree. % Strongly/tend to agree 56% 51% 48% 49% 46% 40% 29% 38% 31% Government 55% 49% 38% 37% 28% Crown corporation Not-for-profit 2016 Page 89 56% 2018 Privately-owned 2020 Publicly-quoted SATISFACTION WITH WORK AND LOYALTY TO EMPLOYER CAREER PLANS Nearly half (46%) of respondents see themselves in the same role over the next two-year period. This is most often the case with government in-house counsel (58%) and least likely (38%) of inhouse counsel in publicly-quoted companies. Respondents working for publicly-quoted companies are most inclined to say that they see themselves having another role within the same organization. Total 2020 Government Crown corporation Not-for-profit Privately-owned Publicly-quoted Remaining in the same role 46% 58% 53% 54% 45% 38% Having another role within the same organization 17% 10% 19% 10% 15% 22% Working in a different organization 20% 16% 15% 16% 24% 21% Other (retirement, sabbatical, private practice…) 4% 2% 4% 6% 4% 3% Don’t know 14% 14% 9% 14% 13% 16% LOYALTY TO EMPLOYER When asked if they would stay with their current employer if they were offered a comparable role with higher pay elsewhere, 14% said they would remain, while 26% said they would not. The majority (60%) said that it depends. 28% 28% 15% 26% 15% 2016 14% 2018 Yes Page 90 60% 57% 56% No It depends 2020 SATISFACTION WITH WORK AND LOYALTY TO EMPLOYER CAREER MOVES For the 60% of in-house counsel who would potentially leave their current employer, these individuals feel the following salary increases would be necessary for them to make a change. Expected Increase for Career Move Expected salary increase 2016 2018 2020 1% to < 5% 1% 3% 3% 5% to < 10% 6% 7% 8% 10% to < 15% 17% 20% 20% 15% to < 20% 22% 23% 20% 20% to < 25% 22% 16% 20% 25% + 21% 21% 21% Don’t know 11% 10% 9% Factors for Career Move A bigger compensation package remains the number one motivator for in-house counsel to consider leaving their current employer. This response, at 37%, is up from 36% in 2018. The second strongest motivator is a promotion. 30% Greater compensation 16% 15% 15% Promotion Greater security and stability 7% 7% Greater responsibility 7% 6% Better quality of work 9% 9% 7% 7% 6% Better cultural fit 6% 4% 5% Opportunity to work in another industry 6% 4% 5% 2016 Page 91 36% 37% 2018 2020 SATISFACTION WITH WORK AND LOYALTY TO EMPLOYER VIEWS TOWARD THE FUTURE In 2020, in-house counsel is slightly more optimistic about the future of their organization’s legal department. Sixty-six percent are very/somewhat optimistic in 2020, on par with 2018 but up from 62% in 2016. Similarly, 58% are very/somewhat optimistic about their professional future with the organization. This is up from 54% in 2016 and 56% in 2018. The future of your organization’s legal department 2016 2018 2020 Very optimistic 23% 24% 25% Somewhat optimistic 39% 41% 41% Neither optimistic or pessimistic 22% 20% 20% Somewhat pessimistic 12% 12% 11% Very pessimistic 3% 3% 3% Don't know 1% 1% 1% Your professional future within your organization 2016 2018 2020 Very optimistic 16% 13% 16% Somewhat optimistic 38% 43% 42% Neither optimistic or pessimistic 26% 23% 22% Somewhat pessimistic 13% 15% 14% Very pessimistic 6% 6% 6% Don't know 1% 0% 1% Page 92 SATISFACTION WITH WORK AND LOYALTY TO EMPLOYER Likelihood of Seeking Another Position A third (33%) of in-house counsel say they are very likely/somewhat likely to seek position in another organization, which is 1% fewer compared to 2018. Twelve percent say it is very likely they will move in the next six months. Similarly, 40% say it is very unlikely they will move, up from 38% in 2018. Respondents from Quebec and Ontario are more likely to seek another position compared to the other regions. Likelihood of seeking a position in another organization in the next six months 51% 40% 38% 8% 13%12% Very likely 21%21% 16% 25% 23% 21% 4% 3% 4% Somewhat likely Somewhat unlikely 2016 2018 Very unlikely Don't know 2020 % very/somewhat likely to seek another position 36% 33% 33% 34% 31% 29% 22% Total Page 93 British Columbia Alberta Central Ontario Quebec Atlantic DIVERSITY DIVERSITY QUESTIONS In the final section of the report, respondents were asked to complete a series of self-identification questions. The completion of these questions was voluntary. Seventy percent of respondents agreed to provide answers. Just over three-quarters (77%) of this voluntary group described their race/ethnicity as Caucasian. A similar percentage (79%) indicated that English is their mother tongue. Three percent identified as Indigenous. *The term ‘Racialized’ is used in this document to express race as a way that groups are socially identified or in which people self-identify. It refers to persons, other than Aboriginal peoples, who are non-Caucasian in race or non-white in colour. Self-identification Race/ethnicity Caucasian Chinese South Asian (e.g., East… Black (i.e., African-… South-East Asian (i.e.,… Latin American, Hispanic Korean Filipino Japanese Arab West Asian (e.g., Iranian,… Other Prefer not to answer 30% Yes - I will selfidentify 70% No - I choose not to self-identify English English and French 79% 2% English and French and Non-official… 0% English and Non-official language French French and Non-official language 5% 3% 0% Non-official language Prefer not to answer 10% 0% Indigenous No 97% Yes, First Nations 1% Yes, Métis 1% Yes, Inuit 0% Prefer not to answer 1% Page 94 77% 6% 6% 4% 1% 1% 1% 1% 1% 1% 0% 5% 0% DIVERSITY Diversity Questions (Cont’d) Almost one-half (45%) of respondents indicated that they had no religion or creed. Five percent report having a disability. Ninety-two percent identify as heterosexual. Religion No religion or creed (including Agnostic,… 45% Christian 38% Jewish Muslim 6% 2% Sikh 1% Buddhist 1% Hindu Eastern Religions Other Prefer not to answer 1% 0% 2% 4% Have a disability Yes 5% No Prefer not to answer 94% 1% Sexual orientation Heterosexual Gay 3% Bisexual 2% Lesbian 1% Other 0% Prefer not to answer Page 95 92% 2% DIVERSITY Diversity and Compensation Persons who are Racialized report a mean salary that is $12K below that reported by respondents who self-report as Caucasian. In part this disparity may be explained by the fact that persons who are Racialized also have a much lower number of years in practice. (10.6 years vs. 15.5 years). As well, they are less represented at the two highest job titles: Executive Vice-President Legal (1% racialized vs 3% Caucasian) and Vice-President Legal (4% racialized vs 8% Caucasian). Total MEAN $167,500 Racialized $170,500 $158,500 Total Caucasian Racialized Less than 2 4% 3% 7% 2 to 5 10% 8% 20% 6 to 10 26% 24% 32% 11 to 15 21% 22% 19% 16 to 20 16% 16% 16% 21 to 25 10% 11% 4% 26 to 30 7% 9% 1% 30 or more 6% 7% 3% Don't know 0% 0% 0% MEAN (years in practice) 14.3 15.5 10.6 Total Page 96 Caucasian Caucasian Racialized Executive Vice President Legal 2% 3% 1% Vice President Legal 8% 8% 4% DIVERSITY Diversity and Compensation Persons with disabilities report a mean salary that is $18.5K less than able-bodied. Workplace appears to factor into this finding. We note that 59% of persons with disabilities work in government or financial services, which both have lower reported mean annual base salaries. Able bodied Person with disability $169,000 $170,500 $152,000 Total Able bodied Person with disability Mean Annual Base Salary Total MEAN Financial services/insurance/banks 15% 15% 32% $163,500 Government 11% 11% 27% $143,000 Page 97 THE COUNSEL NETWORK The Counsel Network is the most respected, connected and powerful lawyer recruitment firm in Canada. We specialize in providing the Canadian legal market with comprehensive, long-term talent management solutions. After 30 years in the business, we remain passionate about achieving the best results for our clients. Our desire to deliver the best experience to our clients and candidates is what drives us to be experts in our field and is demonstrated by our efforts to continually develop our knowledge of the legal market, build strong relationships within the profession and our communities, and uphold our exceptional track record of successful, long-term placements. Our robust knowledge of our clients and their strategic, business and financial goals allows us to provide advisory and talent management services, including retention, succession planning, compensation models, business development, and coaching, all of which complement our traditional recruitment services. The Counsel Network is committed to promoting diversity both within our own team and the greater legal community. We are proud to be a co-founder of the Women in Law Leadership (WILL) Awards and have ongoing relationships with minority-based bar organizations, including the South Asian Bar Association (SABA) of Toronto and the Federation of Asian Canadian Lawyers (FACL). We also regularly attend, support and speak at events for various diversity-based organizations within the legal community. The Counsel Network is honoured to be chosen Preferred Legal Recruiter by the Canadian Lawyer Readers’ Choice Awards. Visit us at: thecounselnetwork.com CANADIAN CORPORATE COUNSEL ASSOCIATION The Canadian Corporate Counsel Association (CCCA) is the leader and voice for in-house counsel in Canada. Their members are lawyers working for public and private companies, non-profits, associations, government and regulatory boards, Crown corporations, municipalities, hospitals, post-secondary institutions and school boards. They also welcome associate members from law firms whose support and expertise enrich their educational programs and events. The Association represents over 5000 in-house counsel from across Canada. We are dedicated to developing the professional skills and enabling the career growth of our diverse membership. Bramm Research Inc. Better Information. Better Solutions. BRAMM RESEARCH Bramm Research has more than twenty years experience providing research services for member-based organizations. Within this sector we undertake market research, from large quantitative surveys to small one- onone qualitative research projects. Our area of specialization consists in conducting member satisfaction/ engagement and compensation and benefit surveys. THEC UNSEL NETW RK THE CANADIAN BAR ASSOCIATION 2020 The Counsel Network Inc. All Rights Reserved. 9 Bramm Research Inc. Better Information. Better Solutions.