GC and CLO compensation has dropped for the first time in the history of recruiting powerhouse Major, Lindsey & Africa’s survey. The long-term effects of inflation, high interest rates and economic deterioration appear to have reached out and touched the top echelon of the in-house legal world. This is at a time when General Counsel and Chief Legal Officers are facing increasing demands to take on more responsibilities to meet the ever-growing regulatory, compliance and business pressures facing all organizations during this difficult time. It is clear for now that while there are many companies seeking new General Counsel and Chief Legal Officers, the pay picture may no longer be the same as it was in years past. If there is a glimmer of hope in the data, it is that Deputy General Counsel and other rank and file in-house counsel are seeing significant increases in total cash compensation, as companies are making sure that they are attracting and retaining their next generation of leadership.
“For the first time since its survey began in 2012, General Counsel and Chief Legal Officers in the U.S. reported that their total actual cash (TAC) compensation has decreased, by 4% since 2021, to an average of $556,794, according to the 2024 Global In-House Counsel Compensation Survey released today by Major, Lindsey & Africa, the world’s largest legal search firm. As companies grapple with persistent inflation, high interest rates, and other economic headwinds, much of the decline in pay is attributable to precipitous drops in bonuses: GCs and CLOs collectively saw their bonuses fall by 15%, while their base pay increased just slightly, up by less than 1% in the past two years. Despite the role of the GC expanding significantly in scope and responsibility, economic headwinds have forced many in-house legal departments to instead rely more on non-cash incentives, like flexible scheduling and work-from-home opportunities, to attract and retain their top talent. The survey was conducted in association with Western Management Group (WMG), with more than 2,100 attorneys responding from 46 countries…”
Read: Biannual Report Shows GC and Chief Legal Officer Compensation Fell For The First Time in Survey History at MLA