General Counsel Compensation Jumps 25 Percent Since 2019, Reflecting Rising Demand for Legal Expertise

The latest findings from Equilar's 2024 General Counsel Pay Trends report highlight a remarkable 25 percent increase in compensation for general counsel since 2019, underscoring the escalating demand for legal expertise in major corporations. Featuring analysis from BarkerGilmore, the report reveals that the median total compensation soared to $3.3 million in 2023, fueled primarily by substantial rises in stock awards and performance incentives.

October 7, 2024 – According to Equilar‘s 2024 General Counsel Pay Trends report, compensation for general counsel has skyrocketed nearly 25 percent since 2019, reaching a median total of $3.3 million in 2023. The report, based on an analysis of the Equilar 500 — the 500 largest U.S. companies by revenue — reveals that the median total compensation for general counsel during the five-year period grew to $3.3 million in 2023, from $2.6 million in 2019. The study also features commentary from BarkerGilmore.

While each component of general counsel compensation rose in value during the study, stock award and performance incentives saw the largest increases in value, the report found. In 2023, the median value for stock awards was $519,800, marking a 50.8 percent increase since 2019. Median value of performance incentives reached $945,000 in 2023, up 33.7 percent in the same period.

Tenure also impacted pay, with general counsel who served between six to 10 years earning the highest median compensation of $3.7 million in 2023. Conversely, those with more than 20 years of experience earned a median income of $2.7 million last year. “This disparity underscores the fact that many companies are willing to pay a premium for top legal talent, and that younger candidates have been able to command a premium over the past five years,” said John Gilmore, co-founder and partner at BarkerGilmore.

Two Notable Pay Trends: Gender and Value to Organization  

In terms of gender representation, the General Counsel Pay Trends report found that women have climbed the ranks to general counsel positions. From 2019 to 2023, the percentage of women holding Equilar 500 general counsel positions rose by 12.1 percent, increasing to 37.1 percent from 33.1 percent. Over that period, female general counsel pay increased 34.5 percent, versus 18.5 percent for their male counterparts. In 2023, women earned a median compensation package of $3.4 million, surpassing their male counterparts’ median pay of $3.3 million.

“This shift in pay disparity comes as no surprise because so many companies have selected the general counsel position to diversify their executive leadership team,” said Mr. Gilmore. “Women continue to gain representation every year, and in 2023 they held 39 of the top 100 highest-paid general counsel positions.”

Another notable trend, according to Mr. Gilmore, is the increased stature of the general counsel role within Equilar 500 companies. This is reflected in the CEO-to-general counsel pay ratio, which declined to 4.0 from 4.2 over the five-year period, indicating that compensation for general counsel has increased at a higher rate than CEO pay.

Related: BarkerGilmore Assists Bio-Rad Laboratories with General Counsel Search

“Companies are investing in general counsel who not only possess the legal expertise to anticipate, avoid and manage risks but, more importantly, who can provide well-informed opinions and advice on a wide range of business issues,” Mr. Gilmore said. “They demonstrate the wisdom, gravitas and self-confidence to consistently add value and are considered strategic advisors and trusted colleagues at all levels of their organization. That’s why compensation for the general counsel role continues to increase.”


BarkerGilmore’s 2024 Compliance Compensation Report: Rising CCO Pay and Gender Pay Gaps Highlight Industry Trends

As a compliance professional, how does your compensation benchmark against that of your peers? How can your organization leverage compensation to create a competitive advantage within its compliance department? To answer these questions, BarkerGilmore has released its 2024 Compliance Compensation Report. The report reflects changes in chief compliance officer (CCO) total compensation, factoring in salary, bonus, and long-term incentives; the type of organization (public, private, non-profit); and the organization’s revenue.

“CCO compensation continued to rise over the past year,” said John Gilmore, managing partner. “We attribute the slowing of salary increases to various factors, including tighter post-COVID corporate hiring budgets, and economic and political uncertainty. While our executive search business experienced a softening of demand for compliance professionals in 2023, we have witnessed a robust turn around in 2024 as positions opened due to internal promotions, resignations, and retirements.”


The key criteria related to a general counsel’s value are not based solely on previous experience or academic credentials, according to Mr. Gilmore. “Instead, it’s largely based on their ability to present themselves as an executive who understands the business, knows the numbers, appreciates the challenges involved, has a history of hiring, mentoring and motivating top talent, and can share stories to demonstrate how they helped to overcome adversity, or leveraged opportunities, to achieve success for their company,” he said. “A strong resume consisting of a prestigious law school, top law firm training and record of accomplishment of in-house leadership may get a candidate to the interview table, but what gets a CEO excited and ultimately determines value are the relevant and compelling stories told by the candidate. Whether the examples involve past commercial successes, litigation wins or regulatory victories, general counsel candidates must be prepared to explain how their influence on a business enabled its goals to be achieved. That’s the individual who companies are willing to bet on and pay top dollar for.”

Related: BarkerGilmore Recruits General Counsel for Synthica Energy

“In short, general counsel candidates must come to an interview well-prepared, have a professional presence, demonstrate the ability to influence others and provide a track record of effective business decisions,” Mr. Gilmore says. “You need to impress decision makers in a confident yet humble manner. That’s how the talent premium is earned.”

General Counsel’s Role with AI

The report also touched on the AI renaissance and what role does the general counsel play in this era. While there is no denying the potential impact of AI on all aspects of business, most companies are taking a measured approach with respect to its adoption, which is a prudent strategy. “Over time, however, general counsel will play a significant role in developing and enforcing AI governance frameworks,” Mr. Gilmore said. “This includes setting policies for ethical AI use, ensuring compliance with applicable legal and ethical standards, and managing risks related to privacy, security, and bias.”

As AI regulations evolve, general counsel will be the primary point of contact with regulators, to ensure that the company is proactive in its compliance efforts and prepared to adapt to new regulatory requirements, according to Mr. Gilmore. “General counsel will also lead efforts to educate the organization about the legal implications of AI, which includes training employees on data privacy, intellectual property issues and ethical AI practices,” he said. “With respect to AI’s impact on recruitment of inhouse legal professionals, the technology allows for the identification of those who may have the skillset necessary, but technology will never be able to turn a high-performing, well-compensated lawyer who is not actively seeking a new position into a viable general counsel candidate.”

“Those are the individuals who can tackle the most complex and sophisticated matters, and they are the candidates our clients want to hire,” Mr. Gilmore said. “AI will never be able to gain their attention. AI will never be able to understand a good prospect’s personal situation, personality, and interests, or to understand what really motivates them, and bring them to the table and close on a new opportunity. Getting to the finish line with the desired outcome will always require a human touch and a lot of finesse gained through years of experience.”

To read the full report click here!

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor  – Hunt Scanlon Media

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