2016 Salary Survey (CD8) - The Cowen Group | Legal ... LAW Prediscovery $$ 10 $$ $$ $$ $$

Survey Results ReportThe Cowen Group747 Third Avenue, New York(212) 661 0025www.cowengroup.comContact [email protected]

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Compensation Trends in Legal Technology2016

The Cowen Group is pleased to announce the results from our Tenth Annual Salary Survey.

This year we received 244 responses from law firms, vendors and corporations through a combined methodology of individual reporting by professionals at all levels of employment, as well as team report-ing from Hiring Directors and Human Resources leaders. Over 50 organizations provided compensation information for their ediscovery teams, bolstering and corroborating data received from individual survey respondents. In addition to our online questionnaire, we conducted first-person research and integrated data from candidate interviews and placements at the nation’s top law firms, corporations and service providers.

In addition, this is the first year where we focused significantly on expanding our data collection from various types of organizations within our industry. For the first time we received a statistically significant number of responses from the service provider and mid-law markets (19% each), which allowed us to per-form compensation analysis on these market segments in addition to our traditional reporting on the large law and corporate segments. We also expanded our data collection to include a wider range of positions. For the first time, we were able to report on high/low salaries for a number of additional roles, including customer/client success, data scientists, consultants and forensic professionals.

We predict that approximately 245 new positions will be created in 2017. We see the strongest growth and demand taking place in the vendor/service provider sector with particular emphasis being placed on technical professionals and project managers, as well as growth positions such as data scientists, forensic professionals and customer/client success experts. This survey did not include collection of data on legal operations or practice management professionals, which we predict will be growth areas for the legal sector in 2017 and 2018 as well.

As was the case in 2013 and 2014, median salaries remained relatively flat, with only a 0-2% median increase over 2014 numbers. The standout exception was for eDiscovery attorneys who reported a 16% median increase over base salaries in 2014. We believe this flattening of median salaries can be attribut-ed to one of several factors, including increased reporting from mid-law firms, growing hiring trends for eDiscovery positions in both mid-sized organizations and middle-market geographic locations, and differ-entiation in base salaries between law firm, corporate, and vendor market segments. This growing diver-sification in salaries, can also be seen, in the gap between maximum and minimum salaries, which is the widest range reported in the past 10 years.

Despite an overall trend of flattening compensation, median salaries are continuing to rise in the com-petitive geographic markets of New York, Washington, D.C. and San Francisco, as well as within the Large Law market sector—with Large Law hires commanding a mean 11% increase above the national median in many positions. Our Trends Section shows that geographic location and organization type are the most meaningful influencers of base compensation, out of the factors we considered (including years of expe-rience, tenure, education, and department size).

Executive Summary

1

As compared to base salaries, annual bonuses appear to be increasing steadily across the board. In another notable trend, average bonuses amounted to higher percentages of base salaries this year, as compared to our 2014 report, especially for Manager (approximately $10,080 as compared to $7,660), Director, (approximately $16,100 as compared to $9,890) and Attorney roles (approximately $29,830 as compared to $12,809).

The Certified eDiscovery Specialists (“CEDS”) remained the most commonly held certifications across all titles and roles. The Relativity Certified Administrator (“RCA”) and LexisNexis LAW Prediscovery (“LAW”) were the most widely held technical certification across several positions as well—with the for-mer RCA providing a slightly positive influence on salary in the analyst and project manager roles. We noticed an uptick in respondents who held the Certified Paralegal (“CP”) certification indicating a stronger transfer of talent from more traditional legal support roles into the eDiscovery roles than in prior years. While a primary certification in prior years, we note a decline in the number of respondents holding a Project Management Professional (“PMP”) certification amongst our 2016 respondents.

Thank you to everyone who makes this report and the sharing of real-time relevant industry data and information possible. Information is power and we are honored to be able to provide you this level of detail that provides transparency into compensation trends, assists you in building your teams, and elevates and accelerates your career.

Executive Summary (Continued)

19%Corporations

4% Government

36%Large Law

22%Mid-Law

19%Service Provider

TOTAL

244RESPONSES

AVERAGE

7¼YEARS AT CURRENT ORG

AVERAGE

13YEARS OF EXPERIENCE

eDiscovery DirectorseDiscovery ManagerseDiscovery Project ManagerseDiscovery AttorneyseDiscovery Specialists/AnalystseDiscovery ConsultantsC-Suite ExecutivesSales ProfessionalsClient/Customer SuccessData ScientistsDirectors of HostingDirectors of Forensics

Respondent Demographics Respondents by Title

Respondent Experience

The Cowen Group | 2016 Salary Survey Report

2

3 2 12 3

20 New Hires

2

5 New Hires1 2

13 3 37 7

60 New Hires

14 16 51 5

86 New Hires

11

11 New Hires

5 2 3 2

12 New Hires

2 4

6 New Hires

3 21 10 4

38 New Hires

7

7 New Hires

New Positions in 2017Expected to Add in 2017 Large Law Mid-Law Vendors Corporations

eDiscovery Specialist/Analyst

eDiscovery Project Manager

eDiscovery Consultant

eDiscovery Manager

Data Scientist

eDiscovery Director

Forensic Professional

eDiscovery Attorney

Customer Success


3

Compensation Trends

2008 2009 2010 2011 2012 2013 2014 2016

$72k - $100k

MEAN

MINLOWMEDHIGHMAX

$77,193

$45,000$71,500$90,000

$100,250$118,000

$85k$88k

$90k$76k

$79k $86.5k$90k $90k


$93k - $118k

MEAN

MINLOWMEDHIGHMAX

$105,200

$70,000$92,625

$105,000$118,000$225,000

$93.5k$77.3k

$99.8k $100k$105k $106.5k

$120.7k$105k


$100k - $175k

MEAN

MINLOWMEDHIGHMAX

$140,000

$85,000$100,000$145,000$175,000$300,000

$131k$140k

$145k $138k$150k $140k $143k

$145k

eDiscovery Manager

$150k - $229k

MEAN

MINLOWMEDHIGHMAX

$188,208

$105,000$150,000$197,000$228,875$380,000

$205k$227k

$236k $230k$245k

$190k $193k $197k

eDiscovery Director

$105k - $173k

MEAN

MINLOWMEDHIGHMAX

$156,956

$90,150$105,000$145,000$172,500$425,000

$125k$145k

eDiscovery Attorney

This line graphs below demonstrates the historic change of base salaries over the past 8 years. Up until 2014, this graphic reported solely on data from AmLaw firms. This year our numbers include salaries across large law, mid law, corporate and vendors. It is our interpretation that the inclusion of multiple organization types is contributing to overall mean and median salaries remaining relatively flat, while increasing the range between max and min on each position.

How to read this graph: The max represents the highest reported salary. The majority of respondents’ salaries fall between the low (25%) and high (75%). The median falls in the middle of the salary distribution. The mean provides the average salary and min the lowest reported salary for each position.


4

Compensation Trends (Continued)

EVENCompared to 2014Compared to 2014

3% to 6%Median Expected

2017 Increase

5.8%Average 2015 Bonus PTO Days per Year by Tenure

151311975 17 19 21 23 25 273 291

12

27


13%Compared to 2014Compared to 2014


2017 Increase


151311975 17 19 21 23 25 273 291

15

20


1.4%Compared to 2014Compared to 2014


2017 Increase


151311975 17 19 21 23 25 273 291

1023

eDiscovery Manager

2.1%Compared to 2014Compared to 2014


2017 Increase


151311975 17 19 21 23 25 273 291

45

13

eDiscovery Director

16%Compared to 2014Compared to 2014


2017 Increase

19%Average 2015 Bonus PTO Days per Year by Tenure

151311975 17 19 21 23 25 273 291

21

10

eDiscovery Attorney


5

Compensation OutlookAdditional positions reported this yearWe included additional titles in our salary survey this year to reflect a wider range of roles across our industry, as well as emerging positions. As we are initiating the collection of data for these titles, we are only reporting the max to min range that respondents provided due to a lower initial sample size. We anticipate providing a more robust analysis on these roles in future salary surveys.

Data Scientist $69,000 – $114,000

Forensic Analyst/Specialist $75,000 – $81,250

eDiscovery Consultant $109,000 – $164,000

Director of Forensics $128,000 – $187,500

Director of Hosting $192,500 – $227,500

Client/Customer Success $114,475 – $173,750

Sales Professional $95,000 – $195,000

Anticipated increase in base salaryMost participants expect to receive at least a cost of living increase in 2017 (1-3%), with 37% of the market expecting a more meaningful increase (between 4-10%) in base salary. Whether these antic-ipated increases will be realized depends significantly on the larger economy in the next 4 months.

1% 11–14% Increase

7–10% Increase

6%

31%Expect 4–6% Increase

53%Expect 1–3% Increase

9% Remainthe Same


66

New York SA PM M D A

Washington SA PM M D A

Philadelphia SA PM M D A

Boston SA PM M D A

Connecticut SA M D A

Geographic Trends

Chicago SA PM M D A

San Francisco SA PM M D A

Minneapolis SA PM M D A

Denver PM M D A

Kansas City SA M A

Atlanta PM M D A

Los Angeles SA PM M D A

Specialist/ Project Firm-wide Firm-wide eDiscoveryLocation Analyst Manager Manager Director Attorney

National Median $90k $105k $145k $197k $145k

New York 87.3k -3% 132.4k +26% 175k +21% 274.5k +39% 206.5k +42%

Chicago 73.4k -18% 124.5k +19% 137.3k -5% 163k +17% 178k +23%

Washington, DC 99.5k +11% 121.7k +16% 170.3k +17% 225k +14% 201.4k +39%

Philadelphia 76.9k -15% 115k +10% 158k +9% 173k -12% 155k +7%

San Francisco 92.5k +3% 119.8k +14% 131.3k -9% 208.9k +6% 158.5k +9%

Minneapolis 60k -33% 78.7k -25% 125.8k -13% 216k +10% 96.8k -33%

Denver 70k -33% 77k -47% 70k -64% 112k -23%

Boston 65k -28% 117.5k -19% 147.5k -25% 150k +3%

Connecticut 75k -17% 116.3k -20% 190.5k -3% 180k +24%

Kansas City 61.8k -31% 110k -24% 140.5k -3%

Atlanta 98.5k -6% 106.7k -26% 234.3k +19% 130k -10%

Los Angeles 92.5k +3% 129.3k +23% 142k -2% 203.4k +3% 197.2k +36%

Based on survey results, geography has the strongest impact on base compensation. Professionals based in New York, Washington, as well as major metro areas based on the West Coast tend to command a greater base salary than the nationwide median. The map and chart below provide a detailed comparison between the nationwide median base compensation and each metropolitan area displayed.


7

VENDORS

CORPORATE

MID-LAW

LARGE LAW +6%

+4%

-15%

-24%

VENDORS

CORPORATE

MID-LAW

LARGE LAW +10%

-5%

+12%

-7%

GOVERNMENT

VENDORS

CORPORATE

MID-LAW

LARGE LAW

+3%

-11%

-5%

+1%

EVEN

VENDORS

CORPORATE

MID-LAW

LARGE LAW +11%

-12%

-2%

+20%

GOVERNMENT

VENDORS

CORPORATE

MID-LAW

LARGE LAW

-3%

-7%

+6%

EVEN

+2%

Organizational TrendsThe graph below provides a detailed comparison of the nationwide median base compensation to the median for each organization type. These survey results are supported by what we see anecdotally in the market. For example, vendors and service provider clients have more leeway to hire entry level analysts and specialists resulting in a lower median salary. In addition, Directors who manage large P&L’s at for profit organizations like vendors and law firms command higher salaries overall than their counterparts at mid-law and corporations.

eDiscovery Specialist/Analyst National median: $90,000

eDiscovery Project ManagerNational median: $105,000

eDiscovery ManagerNational median: $145,000

eDiscovery DirectorNational median: $197,000

eDiscovery AttorneyNational median: $145,000


8

Other FactorsEducationThere was a weak correlation among education and compensation for three positions. The information that we received for the remainder of the survey did not reflect noteworthy educational impact on salary.

A project manager with a BA/BS makes 2% more than one with an AA/AS A project manager with a JD makes 22% more than one with a BA/BS A project manager with a JD makes 3% more than one with a MA/MS

A manager with a BA/BS makes 13% more than one with an AA/AS A manager with a JD makes 11% more than one with a BA/BS A manager with a PhD makes 4% more than one with a MA/MS

A director with an AA/AS makes 43% less than one with a HS Diploma/GED A director with a BA/BS makes 60% more than one with an AA/AS A director with a JD makes 6% less than one with a BA/BS A director with a MA/MS makes 11% more than one with a JD

CertificationsThe certifications below were the top five certifications across all positions and all organization types. The popularity of each certification is reflected in the size of the graphic below.

Project ManagementProfessional (PMP)

LexisNexis LAWPrediscovery

Certified eDiscovery Specialist (CEDS)

Relativity CertifiedAdministrator (RCA)


9

eDiscovery Analyst/Specialist

$71,500 – $100,250Base Salary

The roles of Litigation Support Specialist and Analyst carry the most variation in responsibilities across organizations, ranging from entry level positions to professionals with authority and specific technical skills. The Analyst and Specialist titles are both used for technical professionals that specialize in a particular area of litigation support, such as preservation, collection, legal hold, corporate IT environments, processing and culling, trial support, database administration, and other technical roles. In the past, we have seen some consistency with Analyst being an entry-level title, and Specialist being the next step up. Currently these titles are being applied inter-changeably or in reverse, with “Specialist” being the most junior position. Many organizations have levels for these roles, and technolo-gists can progress along Analyst I, II, and III tiers after acquiring specific skills and experiences. This position most frequently falls under the direction of the department Director or Manager, but can be supervised on particular projects by Project Managers.

Technical Specialists and Analysts provide support to the legal team, including but not limited to, data processing and load-ing, database management, data manipulation and conversion, document productions, imaging, and case management and trial technology support. They are often responsible for tracking data, technical troubleshooting, writing custom scripts, and a range of maintenance of administrative functions of various software. At times, this role can assist with the collection and preservation of ESI and help assure compliance with litigation holds and documentation of evidentiary collection.

Technical Analysts and Specialists need strong organizational and technical skills, need to be well versed in operating litigation technology systems, and need to understand key concepts of electronic discovery. More experienced technicians are expected to have exceptional ability to communicate clearly in response to requests for information, and familiarity with client IT environments.

ACEDS Certified eDiscovery Specialist

Understanding/Communicating eDiscovery Best Practices

Certified Paralegal

Complex Problem- Solving Skills

LAW Prediscovery Certification

kCura Relativity Certified Administrator

Project Management

6% Annual BonusAVERAGE

Skills for Success Top Certifications


10

ACEDS Certified eDiscovery Specialist





Project Management

Time Management and Workflow Prioritization


$92,625 – $118,000Base Salary

eDiscovery Project Managers are responsible for the execution of litigation support projects and ensuring the quality and timeliness of each project. This includes coordinating all phases of electronic discovery for a matter, from preservation and collection to production of ESI and beyond (deposition prep and coordinating documents and witnesses for trial in some cases). Project Managers provide in-house eDiscovery support by developing recommendations, plans, cost estimates, budgets, procedures, and specifications for case-specific eDis-covery projects. Project Managers are responsible on a case level for handling multiple projects concurrently and provide solutions to meet the specific matter requirements. Many organizations (especially law firms and corporations) look to their Project Managers to provide technical support as well, ranging from strategic level collection methodologies and effective database design, to loading data into review platforms, running searches, back-end operational support, and utilizing case or project management software.

Most Project Managers are required to have at least 3-5 years of experience in litigation support with advanced knowledge of best-of-breed applications, best practices, and the EDRM as well as an understanding the phases of litigation. The ability to work within scheduling constraints in high pressure situations is critical, as is the ability to handle multiple priorities and work under tight deadlines with minimal supervision. Professionals in this role need excellent communication skills and high emotional IQ to be able to interact with all levels of personnel on a case. Many organizations prefer that project managers have technology certifications (such as a RCA), PMP certifications or six sigma training as a part of their continued career growth.

Project Managers are a hot commodity in the market, valued as high-margin knowledge workers, with many organizations spending time planning how to attract and retain top performers. This is also still an evolving role, and can be either exempt or nonexempt depending on the employer. In the past few years, more companies are in search of the “unicorn project manager,” someone with excellent communi-cation, organization and time management skills, technical prowess, and advisory skills. This demand is elevating the PM role from a liaison between parties to a crucial utility player. Those project managers who can “do it all,” command higher salaries than their counterparts.




11

eDiscovery Manager

$100,000 – $175,000Base Salary

A Firm-wide or Company-wide Litigation Support Manager is responsible for the day-to-day operations of an organization’s electronic discovery/litigation technology department and supervises the provision of services to firm attorneys and clients. This role is charged with development and execution of procedures and workflows, management of department staff, billing for department tasks, selection and management of litigation technology applications, and the oversight of user support and delivery of services.

Typically, a Firm-wide Manager must demonstrate thorough knowledge of industry-standard applications and best practices, the ability to manage multiple requests and assess priorities, and the insight to achieve client solutions under tight deadlines. Effective management skills are a must, including a proven ability to lead and motivate staff. Managers are usually expected to have an accredited degree and at least five to ten years working in the eDiscovery space at a senior level. Some Managers are not required to bill their time, however, more often we are seeing the rise of the “working Managers,” where senior staff are combining operational leadership and individual contribution. Working Managers typically have lower billable requirements than their staff to accommodate for their other responsibilities.

In larger organizations (especially at service providers), Managers typically report up to a Director, but in smaller organizations (especially law firms) they might report to the Managing Partner, Head of Litigation, or C-level officer, such as the CIO, CPO, or COO.


Skills for Success Top CertificationsACEDS Certified eDiscovery Specialist

Certified Paralegal





Time Management and Workflow Prioritization


12

eDiscovery Director

$150,000 – $228,875Base Salary

A Firm-wide, or Company-wide Director is responsible for the oversight of their organization’s ediscovery or litigation support services function, strategic planning and execution, budgeting and financial management (department profitability), utilization of resources, allocation of workload, leadership of staff and talent development, the overall quality in the delivery of services, innovation and growth, risk management, and business development.

In comparison to Managers, Directors typically have a larger staff, distributed nationally, and an organization structure that includes an intermediate level (managers, senior PMs, etc.) to manage various parts of their team. Directors also have accountability for company strategy and vision, and take ownership of the financial performance of their group. Frequently, Directors have responsibilities for several departments or functions, including litigation technology operations, project management teams, litigation paralegals (in a law firm), conflicts and new business intake (in a law firm), client success, consulting teams, cyber-security or information governance policy and support.

Directors must have complex problem-solving skills, strong verbal and written communication skills, intellectual curiosity, a high business IQ and financial acumen, the ability to manage up (to officers and boards), down (to staff) and out (to clients and vendors), well developed political, social and emotional IQs, and a deep understanding of eDiscovery best practices. Some organizations look for Directors who have past technical subject matter expertise, which allows them to connect intellectually with their team, serve as a point of escalation for clients, and lean into projects or matters as necessary.


Skills for Success Top CertificationsACEDS Certified eDiscovery Specialist





Verbal Communication


13

eDiscovery Attorney

$105,000 – $172,500Base Salary

The eDiscovery Attorney role can vary widely between organizations, particularly with service providers, where Attorneys play more of a consultative, business development and thought leadership role. This description focuses primarily on the role of the eDiscovery Counsel, Associate or Senior Attorney within a law firm or corporate environment, where responsibilities are more consistent across organizations. Typically, an eDiscovery Attorney in these organizations may have one of two primary roles, that of a Senior Project Manager/Consultant, or that of an eDiscovery litigator. The former is more common than the latter. All eDiscovery Attorneys are responsible for advising and counseling clients and case teams on discovery strategy, tactics and organization, maintaining up-to-date knowledge on relevant case law and regulations, and training/educating their peers on best practices for eDiscovery matters. Attorneys with this specialization are also responsible for drafting and responding to discovery requests, interviewing custodians and witnesses, spearheading the eDiscovery element of meet and confer conferences, drafting briefs and motions on dispositive discovery issues, vendor selection and management, developing and implementing preservation plans, issuing and tracking legal hold notices, preparing review protocols, overseeing and directing review teams, preparing for depositions, and in some cases negotiating with opposing counsel or arguing discovery motions in courts.

In some organizations, eDiscovery Counsel/Attorneys have expanded their experience and specialization in one of several areas, most commonly information governance, or analytics, predictive coding and other forms or technology assisted review. Attorneys in this space take ownership of the discovery process, shepherding cases through the various phases of discovery, including the ultimate use of productions in depositions, motion practice and trials. Professionals play a key role in working with case teams to develop the facts of the case, estimating costs and timetables for the discovery phase, and create and execute upon project planning, scheduling, deployment of resources and technical requirements. eDiscovery Attorneys often assist in relevancy scoping and provide analytical advice to teams for getting to information faster and more efficiently. Attorneys often directly interface with clients, serving as the expert in electronic evidence, and sitting in all crucial planning meetings.

Most firms and corporations require eDiscovery Attorneys to have at least 5 years or more of hands-on experience coordinating the eDiscovery phases of complex litigation, as well as experience practicing as a substantive litigator. Some organizations require additional technical experience, fluency with review platforms and other eDiscovery tools, or a background in process-driven management as well. It goes without saying that all eDiscovery Attorneys must have outstanding written and verbal communication skills, as well as substantial knowledge of eDiscovery rules, case law, and best practices.

There were no clear certification trends reported by eDiscovery Attorneys.





Ability to Mangage Up to Superiors


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Documents

2016 Salary Survey (CD8) - The Cowen Group | Legal ... LAW Prediscovery $$ 10 $$ $$ $$ $$