Securities lawyers in today's legal market: Where did the reserve bench go — and how can companies rebuild it?

Steven Henry of Major, Lindsey & Africa discusses changes in securities law practice that have led to a thinning bench of securities lawyers available to work in-house and offers steps companies can take to attract and retain top-tier securities counsel.

Two decades ago, the legal market for securities lawyers was deep, stable, and well-supplied. Law firms and public companies alike maintained robust benches of attorneys with expertise in securities regulation, corporate governance, and capital markets. If a public company needed to hire, it could choose from a wide pool of well-trained candidates — many of whom had cut their teeth at top firms and were ready to step in-house.

Today, that landscape looks very different. The bench has thinned considerably, and demand for securities talent far outpaces supply. Companies are feeling the squeeze — and not just public ones. Private companies preparing for IPOs, SPAC transactions, or complex financings are also competing for the same limited pool of lawyers.

But while the pipeline is constrained, companies are not without options. There are strategic, actionable steps they can take to attract and retain top-tier securities counsel. It starts with understanding how we got here.

In 1997, there were more than 6,500 publicly traded companies in the U.S. Today, that number hovers around 4,700 — a near 30% decline. The reasons are well-documented: Sarbanes-Oxley increased the regulatory burden, private equity offered attractive alternatives to public markets, M&A consolidation reduced the number of standalone entities, and IP-heavy companies increasingly opted to stay private.

This contraction had a downstream effect on law firms. As the volume of routine securities work declined, firms pivoted toward higher-growth areas — private equity, M&A, and tech transactions. Securities work became more specialized, and fewer associates were trained in it. The result: a generation of lawyers with limited exposure to public company advisory work, and a diminished pipeline for in-house securities roles.

While it remains true that most securities lawyers still begin their careers at law firms, there are more companies now hiring earlier in the pipeline, sometimes even directly out of law school, though more commonly after a few years of firm experience. This change acknowledges the talent shortage companies have faced over the past few years and evolving preferences among younger lawyers who want to work closer to the business with more manageable hours and long-term leadership opportunities.

Over the past decade, securities teams at public companies have also evolved along with these changes. To support earlier hires — especially amid increased regulatory complexity, IPO activity, and governance pressures — companies are taking steps to expand securities lawyers' roles. Many are building stronger training and onboarding programs and offering more competitive compensation to attract law firm attorneys in-house.

The role of the securities lawyer has gradually evolved from a purely technical function to one of strategic importance. Today, they serve not only as legal experts but also as key business advisors, working closely with executive teams, finance, and investor relations. Their work increasingly supports broader corporate responsibilities and long-term growth initiatives to ensure a company's decisions are strategically advantageous as well as compliant.

Once securities lawyers land in-house, they tend to stay. Their roles are high-impact, high-visibility, and often deeply embedded in the company's strategic and governance functions. Many are already on track for GC succession, making them unlikely to entertain lateral moves — even for significant compensation.

This creates a retention challenge for companies. Even when a company is willing to pay top dollar, the pool is shallow and the best candidates are often already spoken for.

Despite the headwinds, companies have meaningful levers they can pull to make securities roles more attractive and sustainable:

1. Compensation that reflects market realities

Securities lawyers are among the most highly compensated legal professionals. While the median salary for U.S. lawyers is around $145K, securities counsel routinely earn base salaries in the high $200Ks, with cash bonuses ranging from 25% to 45%. All-in compensation often exceeds $400K.

To compete, companies should consider creative compensation structures — especially long-term incentives (LTIs), equity grants, performance-based awards, and vesting schedules that align with retention goals. These tools can add meaningful value without inflating short-term budgets and often make the difference in closing a candidate.

2. A clear path to leadership

Securities lawyers sit at the nexus of legal, finance, and strategy. They manage board governance, interface with investor relations, and oversee disclosure. Their exposure to high-level business issues makes them natural candidates for GC succession.

To attract great candidates, companies should be explicit about this potential path during recruitment. Signaling that the role is part of a broader leadership trajectory costs nothing and can be a powerful draw for top talent.

3. Proximity to decision-makers

Access to the C-suite and Board is another differentiator. While securities lawyers may not be ultimate decision-makers, their ability to contribute to leadership conversations and influence strategy is highly valued. Offering this exposure not only enhances the role's appeal but also accelerates the lawyer's development and business acumen.

The demand for securities lawyers is not limited to public companies. Private companies preparing for IPOs or navigating complex financings also need seasoned securities counsel. These lawyers handle Reg D offerings, investor disclosures, governance structuring, and pre-IPO readiness. Their expertise is critical — and increasingly scarce.

The market for securities lawyers is fundamentally out of balance. Demand is high. Supply is low. Compensation is rising. And the traditional training pipeline has narrowed.

For companies — especially those with public reporting obligations — this means rethinking how they recruit, retain, and develop securities talent. It is no longer enough to post a job and hope for the best. Success requires a strategic approach: competitive compensation, a clear path to leadership, and meaningful engagement with the business.

The bench may be thin, but with the right strategy, companies can build it back up.