Law Department Compensation Benchmarking Survey 2014 Edition. Questionnaire. Conducted and Published by: and

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1 Law Department Compensation Benchmarking Survey 2014 Edition Questionnaire Conducted and Published by: and Deadline for Submission: June 4, 2014 Publication Date: August 2014

2 Your participation is vital to the success of this survey. ALM Legal Intelligence thanks you in advance for taking the time to compile and submit your data. Please complete and return this questionnaire as promptly as possible, but no later than June 4, We suggest you retain a copy of your completed questionnaire in case we need to contact you. Your responses will be kept strictly confidential. Access to your completed questionnaire is limited to survey staff. All data reported on in the published survey is presented only in aggregate. Contact Information: ALM Legal Intelligence 120 Broadway, 5 th Floor New York, NY Phone: (888) Fax: (646) Instructions for Optional Electronic Submission of Data You have the option of submitting your responses electronically. connection and Microsoft Excel All that is required is an Internet The electronic survey tool allows you to take the survey online and complete as time permits, and even gives you the ability to upload an Excel worksheet with your individual personnel compensation profile. You can open and close the electronic worksheet as many times as you need, just bookmark the page, enable cookies in your browser, and check the Save & Continue button at any stopping point. If you are interested in completing the questionnaire electronically, please visit our website at: Law Department Compensation Benchmarking Survey Page 2

3 SECTION 1: Participant Information Company Name: Law Department Contact: Title: Address: City: State: Zip Code: Phone: If the person completing this questionnaire is different than above, please complete the following: Contact Name: Title: Phone: Address (if different from above): City: State: Zip Code: 2014 Law Department Compensation Benchmarking Survey Page 3

4 SECTION 2: Organization Data 1. Worldwide revenue during your last complete fiscal year. (If you are a financial institution, provide assets under management; if an insurance company, provide value of premiums.) $,,000,000 Billions Millions 2. Enter your organization s total number of full-time employees in operations served by the law department.,, Millions Thousands Hundreds 3. Enter your organization s NAICS-North American Industry Classification System code. (see page 13) 4. Which one of the following best describes the type of ownership structure for your organization? Publicly-held company (shares are traded) or mutual company Privately-held company Wholly-owned subsidiary Name of parent: Division of a corporation Name of parent: Joint venture Not-for-profit (Hospitals, Universities/Colleges, Charitable organizations) Government (Federal, state, local) Other (please describe) SECTION 3: Law Department Data For the following two questions, please include only U.S. based legal staff employed as full-time equivalent (FTE) salaried lawyers. Please be sure to include the Chief Legal Officer/General Counsel position in your response. Use decimals to represent part-time staff. For example, a lawyer working half time or half-year would equal 0.5 FTE. How many FTE salaried lawyers does your organization currently employ (as lawyers)? 5. Excluding any who are involved primarily in patent, trademark or copyright. 6. Primarily in patent, trademark and copyright work. 7. When are salary increases awarded to the majority of lawyers in the law department? On employee s anniversary date Start of organization s fiscal year Month: Other Month: 2014 Law Department Compensation Benchmarking Survey Page 4

5 8. Which of the following best describes how your organization s law department staff is organized by reporting relationship and geographically? Centralized Decentralized Mixed Reporting Relationship (check one) Centralized, bulk of legal activities and personnel report in a direct line to CLO/GC. Centralized, one lawyer department Lawyers are assigned to operational units, subsidiaries, or divisions. These lawyers report directly to the head of the operational unit and have only an indirect reporting relationship to the organization headquarters. Lawyers are assigned to operational units, subsidiaries, or divisions. However, a CLO/GC controls overall legal policy and planning. Typically the CLO/GC will retain final personnel authority over all lawyers and paralegals. Geographic Location (check one) Majority of personnel physically centralized in one location. Majority of personnel physically dispersed within operational units, subsidiaries, or divisions. Some personnel centralized physically and some dispersed physically within operational units, subsidiaries, or divisions. 9. Are the lawyer positions of your organization included in a Hay Salary Administration Plan? Yes No Don t know 10. Please identify which, if any, of the following factors are used in the annual formal performance evaluation process to determine lawyers' salary and/or bonus compensation components. Factors Individual merit/results Budget responsibility and performance Department performance Company performance Supervision/Management responsibilities Degree of responsibility for outside counsel Practice area expertise or Technical skills/expertise Customer service to business units Teamwork Professionalism (e.g., ethics, attitude, etc.) Other (please describe) 2014 Law Department Compensation Benchmarking Survey Page 5

6 11. Do the law department's business clients provide any type of input into performance evaluations affecting lawyer compensation? Yes, formal input Yes, informal input No input 12. Has your organization implemented any changes in the last year regarding the use of broad-based stock options in rewarding employees? Yes No 13. If yes, what change did you make regarding the method of rewarding individuals with broad-based stock options? (check one) More restricted stock More base salary More cash bonus Combination of the above Other (please specify) SECTION 4: Individual Salary Data Provide background and salary information for each lawyer employed by your organization in the U.S. Please read the following instructions and definitions before completing the grid sheet on pages 10 and 11. INSURANCE COMPANIES: Please provide background and salary information for lawyers employed in central headquarters location only. COLUMN B: COLUMN C: COLUMN D: COLUMN E: COLUMN F: COLUMN G: COLUMN H: COLUMN I: COLUMN J: Enter the individual s position code, using the classification codes provided on page 12. Omit any individual whose position code does not fit one of the positions listed. Enter the number of years in this position within your organization. Please round to the nearest whole number. If less than one year, enter 1. Enter the actual year in which the employee was first admitted to the Bar of any jurisdiction. Please enter four digits, 1999, Enter the employee s annual base salary, as of March 1, Please round to the nearest whole number. Enter the amount of any cash bonus for 2013 performance, regardless of time of payment. Enter 0 if no bonus. Do not include the value of stock options, long-term incentives, profit sharing or retirement plan contributions. (Please round to the nearest whole number.) Enter the employee s target percent for the short-term incentive or bonus award (associated with expected individual, team, and/or corporate performance) for Express as a percentage of annual base salary. For each lawyer position listed, enter a code indicating their legal practice area specialty. Use the legal specialty classification codes provided on page 13 of the questionnaire. Gender (M = Male; F = Female). Check if the employee is employed less than full-time. COLUMN K: Check if the employee was hired after March 1, Law Department Compensation Benchmarking Survey Page 6

7 COLUMN L: COLUMN M: Enter the U.S. Postal zip code identifying office location for individuals employed at a branch or other office location. You need not identify the zip code if it is the same as the zip code provided in the participant information section. Enter 2013 compensation in the form of LTI, or long-term cash plan incentives. If the employee was ineligible to receive long term incentives, please leave blank. The valuation captures the LTI cash program only. Stock options are broken out in the following columns. Long term cash plans are usually a form of deferred compensation that establishes an income stream in the form of cash over time For the following four columns (Columns N through Q), if the employee was eligible to receive compensation in the form of non-qualified stock options (NQSO) or incentive stock options (ISO), please indicate the following details. Do not include qualified defined contribution plans such as ESOPs, profit sharing plans, and eligible individual account plans. Incentive stock option (ISO): A stock option that qualifies for favorable tax treatment (no tax at exercise and long-term capital gains treatment, if shares are held for one year after exercise and two years after grant before sale) and which meets other rules as specified by legislation. The applicable section of the Internal Revenue Code is Section 422. Non-qualified stock option (NQSO): A stock option that does not qualify for special tax treatment under Section 422 of the IRC or which is designated by the company as not being an ISO. Also called a Non-statutory stock option. COLUMN N: Enter the number of shares granted between 3/1/13 and 3/1/14. COLUMN O: COLUMN P: COLUMN Q: Enter the exercise price of the shared granted. Enter the fair market value (FMV) of the day of the ISO or NQSO grant. FMV is the stock price, usually measured as the simple average of the high and low market prices of a share of a company's stock on a recognized stock exchange on a particular day. Enter the vesting period of shares granted, expressed in months (e.g. 3 years = 36 months). Vesting refers to the point in time when a stock option or stock appreciation right becomes exercisable. For the remaining five columns (Columns R through V), if the employee was eligible to receive compensation in the form of restricted stock, please indicate the following details. Restricted stock: Stock is given (or sold at a discount) to an employee, who is restricted from selling or transferring it for a specified time period (usually three to five years). The executive receives dividends, but must forfeit the stock if he/she terminates employment before the restriction period ends. If the employee remains in the employ of the company through the restricted period the shares vest, irrespective of employee or company performance. COLUMN R: Enter the Grant Type (1= Restricted Stock, 2= Performance Units). Performance Units are contingent on performance against set objectives often over several years. COLUMN S: Enter the number of shares or units granted between 3/1/13 and 3/1/14. COLUMN T: COLUMN U: COLUMN V: Enter the price per unit of the shared granted. Enter the date of grant. Enter the restriction period of shares granted, expressed in years. This is the number of years continuous tenure required from the date of award of shares to the removal of all restrictions on the award Law Department Compensation Benchmarking Survey Page 7

8 (A) (B) (C) (D) (E) (F) (G) (H) (I) (J) (K) (L) Line # Position Code Years in Position Year Admitted to Bar Salary as of 3/1/14 ($) Cash Bonus Awarded for 2013 ($) STI or Bonus Target Percent (%) Specialty Code Gender if Parttime if Hired after 3/1/13 Zip Code of Office Location Law Department Compensation Benchmarking Survey Page 8

9 (M) (N) (O) (P) (Q) (R) (S) (T) (U) (V) ISO or NQSO Stock Options Restricted Stock Line # Long-Term Incentive Cash Plan Paid Out ($ value) # Shares Granted Exercise Price ($) Vesting Period (months) Fair Market Value on Day of Grant ($) Grant Type (1= Restricted; 2= Perform.) # Shares or Units Price per Unit ($) Date of Grant Restriction Period (years) (photocopy additional pages as needed) 2014 Law Department Compensation Benchmarking Survey Page 9

10 POSITION CODES FOR USE IN INDIVIDUAL SALARY GRID (COLUMN B) Code 00 CHIEF LEGAL OFFICER/GENERAL COUNSEL Heads corporate legal function for the parent organization, or heads subsidiary of foreign-owned organization if there is a separate Board of Directors. Department may be either centralized or decentralized. 10 DEPUTY CHIEF LEGAL OFFICER An individual who shares law department-wide management responsibilities with, and reports to, the Chief Legal Officer, and who acts for him or her during absences. Supervises more than one Managing Attorney. (Requires at least three levels of management in the department.) This position does not exist in many departments. 20 DIVISION (OR GROUP) GENERAL COUNSEL This person may report in a solid line to either the CLO/GC or Deputy CLO of the parent corporation or to the Manager or President of a subsidiary or major operating unit organized by product (not by legal specialty). Responsible for law departmental budget or operating unit legal budget. Generally responsible for departmental human resources/employment matters. Usually supervises subordinate lawyer-managers. 31 MANAGING ATTORNEY Exercises management supervision over several salaried lawyers, including responsibility to effectively recommend promotion or retention. Usually heads a group of lawyers organized along lines of legal specialization or organization components. Usually performs legal work. May act for the Chief Legal Officer, if absent, in departments with two levels of management. 32 HIGH LEVEL SPECIALIST An experienced, high-level legal specialist considered being on a dual ladder career track comparable to a managing position in an important phase of the organization s legal work. This person regularly deals with members of senior management on legal problems in his/her area of expertise. May train less experienced attorneys, but is not a supervisor in the sense that he/she does not recommend continued employment, salary adjustments or promotions. May be assigned other attorneys on a case-by-case basis. Generally has 12 or more years of experience. 41 SENIOR ATTORNEY Requires eight or more years of experience. This position includes all lawyers not on a management or high-level specialist level. The senior attorney may train and supervise less experienced lawyers on a day-to-day basis. May report to any level of management, depending on departmental organization, but most often reports to a Managing Attorney or Division Group Counsel. 42 ATTORNEY Requires four or more years of experience. This position may train, but is unlikely to supervise, less experienced lawyers on a day-to-day basis. Work performed requires independent judgment and often involves direct client contact. 43 STAFF ATTORNEY Entry-level attorney with at least one year of experience. This position would not supervise or train other lawyers. Generally performs routine legal work and is closely supervised by more experienced attorneys. Also see Code 50, Recent Law School Graduate. 50 RECENT LAW SCHOOL GRADUATE An individual who graduated from law school within the past year and who is employed in a professional capacity, irrespective of admission to practice in an appropriate jurisdiction Law Department Compensation Benchmarking Survey Page 10

11 SPECIALTY CODES FOR USE IN INDIVIDUAL SALARY GRID (COLUMN H) Non-Litigation Codes Litigation Codes 100 Administrative/Legislative/Regulatory 200 Anti-trust 101 Banking 201 Bankruptcy 102 Bankruptcy 202 Collections 103 Collections 203 Commercial/Contract 104 Commercial/Contracts 204 Copyrights/Trademarks 105 Copyrights/Trademarks 205 Education 106 Education 206 Insured Defense 107 Employee Benefits (ERISA) 207 Self-insured Defense 108 Employment (FLSA, ADA, ADEA) 208 Employee Benefits (ERISA) 109 Environmental 209 Employment (ADA, ADEA, FLSA) 110 General Business 210 Environmental 111 Health Care 211 Health Care 112 Insurance 212 Intellectual Property 113 Intellectual Property 213 International 114 International 214 Labor/Collective Bargaining (Mgmt.) 115 Labor/Collective Bargaining (Mgmt.) 215 Labor/Collective Bargaining (Union) 116 Labor/Collective Bargaining (Union) 216 Maritime 117 Maritime 217 Natural Resources (oil, gas, coal, timber) 118 Mergers/Acquisitions 218 Patents 119 Municipal Finance 219 Personal Injury 120 Natural Resources (oil, gas, coal, timber) 220 Products Liability 121 Patents 221 Real Estate 122 Real Estate 222 Securities 123 Securities 223 Taxation 124 Taxation 224 Trusts/Estates/Probate 125 Trusts/Estates/Probate 225 Workers Compensation 126 Utilities 226 Other Litigation Specialty 127 Other Non-Litigation Specialty 227 Multiple Litigation Specialties 128 Multiple Non-Litigation Specialties 300 Generalist--both Non-Litigation and Litigation Specialties 2014 Law Department Compensation Benchmarking Survey Page 11

12 U.S. NAICS Codes and Titles 1100 Agriculture, Forestry, Fishing and Hunting 1110 Crop Production 1120 Animal Production 1130 Forestry and Logging 1140 Fishing, Hunting and Trapping 1150 Support Activities for Agriculture and Forestry 2100 Mining 2110 Oil and Gas Extraction 2120 Mining (except Oil and Gas) 2130 Support Activities for Mining 2200 Utilities 2210 Utilities 2211 Electric Power Generation, Transmission/Distribution 2212 Natural Gas Distribution 2213 Water, Sewage and Other Systems 2300 Construction 2360 Construction of Buildings 2370 Heavy and Civil Engineering Construction 2380 Specialty Trade Contractors Manufacturing 3110 Food Manufacturing 3120 Beverage and Tobacco Product Manufacturing 3130 Textile Mills 3140 Textile Product Mills 3150 Apparel Manufacturing 3160 Leather and Allied Product Manufacturing 3210 Wood Product Manufacturing 3220 Paper Manufacturing 3230 Printing and Related Support Activities 3240 Petroleum and Coal Products Manufacturing 3250 Chemical Manufacturing 3251 Basic Chemical Manufacturing 3252 Resin, Synthetic Rubber, and Artificial/Synthetic Fibers and Filaments Manufacturing 3253 Pesticide, Fertilizer, and Other Agricultural Chemical Manufacturing 3254 Pharmaceutical and Medicine Manufacturing 3255 Paint, Coating, and Adhesive Manufacturing 3256 Soap, Cleaning Compound, and Toilet Preparation Manufacturing 3259 Other Chemical Product and Preparation Manufacturing 3260 Plastics and Rubber Products Manufacturing 3270 Nonmetallic Mineral Product Manufacturing 3310 Primary Metal Manufacturing 3320 Fabricated Metal Product Manufacturing 3330 Machinery Manufacturing 3340 Computer and Electronic Product Manufacturing 3341 Computer and Peripheral Equipment Manufacturing 3342 Communications Equipment Manufacturing 3343 Audio and Video Equipment Manufacturing 3344 Semiconductor and Other Electronic Component Manufacturing 3345 Navigational, Measuring, Electromedical, and Control Instruments Manufacturing 3346 Manufacturing and Reproducing Magnetic and Optical Media 3350 Electrical Equipment, Appliance, and Component Manufacturing 3360 Transportation Equipment Manufacturing 3370 Furniture and Related Product Manufacturing 3390 Miscellaneous Manufacturing 3391 Medical Equipment and Supplies Manufacturing 3399 Other Miscellaneous Manufacturing 4200 Wholesale Trade 4230 Merchant Wholesalers, Durable Goods 4240 Merchant Wholesalers, Nondurable Goods Retail Trade 4410 Motor Vehicle and Parts Dealers 4420 Furniture and Home Furnishings Stores 4430 Electronics and Appliance Stores 4440 Building Material and Garden Equipment and Supplies Dealers 4450 Food and Beverage Stores 4460 Health and Personal Care Stores 4470 Gasoline Stations 4480 Clothing and Clothing Accessories Stores 4510 Sporting Goods, Hobby, Book, and Music Stores 4520 General Merchandise Stores 4530 Miscellaneous Store Retailers 4540 Nonstore Retailers Transportation and Warehousing 4810 Air Transportation 4820 Rail Transportation 4830 Water Transportation 4840 Truck Transportation 4850 Transit and Ground Passenger Transportation 4860 Pipeline Transportation 4870 Scenic and Sightseeing Transportation 4880 Support Activities for Transportation 4910 Postal Service 4920 Couriers and Messengers 4930 Warehousing and Storage 5100 Information 5110 Publishing Industries (includes software) 5120 Motion Picture and Sound Recording Industries 5150 Broadcasting (except Internet) 5160 Internet Publishing and Broadcasting 5170 Telecommunications 5180 Internet Service Providers, Web Search Portals and Data Processing Services 5190 Other Information Services 5200 Finance and Insurance 5210 Monetary Authorities - Central Bank 5220 Credit Intermediation and Related Activities 5221 Depository Credit Intermediation 5222 Nondepository Credit Intermediation 5223 Activities Related to Credit Intermediation 5230 Securities, Commodity Contracts, and Other Financial Investments and Related Activities 5240 Insurance Carriers and Related Activities 5241 Insurance Carriers 5242 Agencies, Brokerages, and Other Insurance Related Activities 5250 Funds, Trusts, and Other Financial Vehicles 5300 Real Estate and Rental and Leasing 5310 Real Estate 5320 Rental and Leasing Services 5330 Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) 5400 Professional, Scientific, and Technical Services 5410 Professional, Scientific, and Technical Services 5411 Legal Services 5412 Accounting, Tax Preparation, Bookkeeping, and Payroll Services 5413 Architectural, Engineering, and Related Services 5414 Specialized Design Services 5415 Computer Systems Design and Related Services 5416 Management, Scientific, and Technical Consulting Services 5417 Scientific Research and Development Services 5418 Advertising and Related Services 5419 Other Professional, Scientific, and Technical Services 5500 Management of Companies and Enterprises 5600 Administrative and Support and Waste Management and Remediation Services 5610 Administrative and Support Services 5620 Waste Management and Remediation Services 6100 Educational Services 6200 Health Care and Social Assistance 7100 Arts, Entertainment, and Recreation 7200 Accommodation and Food Services 8100 Other Services (except Public Administration) 9200 Public Administration 9900 Nonclassifiable 2014 Law Department Compensation Benchmarking Survey Page 12

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