General counsel compensation has surged nearly 25% since 2019, according to Equilar’s 2024 General Counsel Pay Trends report, which features commentary from BarkerGilmore. The report, based on an analysis of the Equilar 500 — the 500 largest US 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.
While each component of general counsel compensation rose in value during the study, stock awards and performance incentives saw the largest increases. In 2023, the median value for stock awards was $519,800, marking a 50.8% increase since 2019. Median value of performance incentives reached $945,000 in 2023, up 33.7% 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. According to John Gilmore, co-founder and Partner at BarkerGilmore, “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.”
TWO NOTABLE PAY TRENDS: GENDER AND VALUE TO ORGANIZATION
In terms of gender representation, women have climbed the ranks to General Counsel positions. From 2019 to 2023, the percent- age of women holding Equilar 500 General Counsel positions rose by 12.1%, increasing to 37.1% from 33.1%. Over that period, female General Counsel pay increased 34.5%, versus 18.5% 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,” according to Gilmore, “because so many companies have selected the General Counsel position to diversify their executive leadership team. 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 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.
Gilmore said, “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. 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.”
Learn more at equilar.com.
