Can You Negotiate Salary During a Lateral Move? Market Data

Dear Wei H.,

Lateral Salary Negotiation: The Market Reality

Salary negotiation during lateral moves is absolutely possible, but the dynamics vary dramatically based on firm size, market demand, and your specific practice area. The key is understanding where flexibility exists and how to position yourself effectively.

BigLaw vs. Mid-Market Compensation Structures

Am Law 100 firms typically operate on lockstep or modified lockstep systems, leaving limited room for base salary negotiation. Many follow the Cravath scale or similar benchmarks, which you can verify using our Cravath scale calculator. However, these firms often have flexibility in:

• Signing bonuses (which can vary significantly based on seniority and market conditions)
• Class year placement (bumping you up a year can mean significant compensation differences)
• Guaranteed bonuses for the first year
• Accelerated partnership track consideration

Mid-market and boutique firms generally offer much more negotiation flexibility on base compensation.

Practice Area Demand Creates Leverage

Current market conditions heavily favor certain specialties. Privacy and data security laterals often command premiums in many major markets. In high-demand areas, firms are much more willing to negotiate:

• California employment law: PAGA expertise remains in demand (note: employment laws change frequently, verify current requirements), with wage & hour specialists seeing strong demand
• Tech transactions: AI and fintech practices are expanding rapidly, especially in Seattle where Amazon, Microsoft, and Meta drive massive corporate work
• Financial services: Charlotte's booming market, anchored by Bank of America and Wells Fargo, creates premium opportunities for banking lawyers

Geographic Market Variations

Location significantly impacts negotiation dynamics. In emerging markets like Charlotte's growing legal market has led many firms to recruit from DC, Atlanta, and NYC. This lateral demand often translates to enhanced packages and negotiation flexibility.

Conversely, in established markets with deep talent pools, firms may have less incentive to stretch on compensation.

Your In-House Advantage

Your corporate counsel background actually provides several negotiation advantages. Firms value in-house experience for client development potential and practical business perspective. Position this experience as:

• Direct client relationship management
• Business-focused legal advice
• Understanding of corporate decision-making processes
• Potential for referral business from your current network

Strategic Negotiation Approaches

Multiple offers create leverage. When you have competing opportunities, firms become more flexible on all compensation components. Don't just focus on base salary - consider the total package including bonus potential, partnership timeline, and practice development support.

Timing matters. End-of-year moves may coincide with budget planning, potentially creating opportunities for enhanced packages. Similarly, firms with specific hiring targets may offer premiums to close candidates quickly.

Non-monetary value adds. If base salary flexibility is limited, negotiate for business development allowances, CLE budgets, bar admission fee coverage (check requirements with our bar reciprocity tool), or accelerated vacation accrual.

Setting Realistic Expectations

While negotiation is possible, understand market constraints. A third-year associate can't negotiate to fifth-year compensation without corresponding experience justification. However, if you're returning to practice after developing specialized expertise in-house, firms often show flexibility in class year placement.

Research target firms' recent lateral moves and compensation trends. Firms experiencing revenue growth may be more open to competitive packages than firms facing revenue pressures.

The Bottom Line on Lateral Negotiations

Most successful lateral negotiations focus on the total compensation package rather than just base salary. Your strongest position comes from demonstrating specific value - whether through specialized expertise, client relationships, or unique experience that addresses the firm's strategic needs.

Remember that salary is just one component of your career move. Consider practice group stability, partnership prospects, and cultural fit alongside compensation when evaluating opportunities.

Note: All compensation figures cited are approximate market estimates based on publicly available data and may vary significantly by firm, market, and individual circumstances. Verify current figures directly with firms or recruiters.