Report reveals US general counsel compensation has risen by 25 percent

All components of general counsel pay increased, with stock awards and incentives rising the most
Report reveals US general counsel compensation has risen by 25 percent

General Counsel compensation has risen nearly 25 percent in the US since 2019, according to Equilar's 2024 General Counsel Pay Trends report, which features commentary form BarkerGilmore.

The report, which analyzed the 500 largest US companies by revenue, found that the median total compensation for General Counsel increased from US$2.6 million in 2019 to US$3.3 million in 2023.

The report highlighted that all components of general counsel compensation have seen growth, but stock awards and performance incentives experienced the most significant increases. The median value of stock awards surged 50.8 percent over the five-year period, reaching US$519,800 in 2023. Similarly, the median value of performance incentives grew 33.7 percent, rising to US$945,000 in 2023.

Tenure also played a role in compensation trends. General counsel who had served between six to ten years earned the highest median compensation of US$3.7 million in 2023, while those with more than 20 years of experience earned a median of US$2.7 million. John Gilmore, co-founder and partner at BarkerGilmore, noted, “This disparity shows that companies are willing to pay a premium for top legal talent, and younger candidates have been able to command higher salaries over the past five years.”

The report also identified notable trends related to gender and the increasing importance of the general counsel role within major companies. The percentage of women in general counsel positions within the Equilar 500 rose from 33.1 percent in 2019 to 37.1 percent in 2023, marking a 12.1 percent increase. During this period, female general counsel saw their pay rise by 34.5 percent, outpacing the 18.5 percent increase for their male counterparts. In 2023, women earned a median compensation of $3.4 million, slightly surpassing the $3.3 million median for male general counsel.

John Gilmore emphasized that the increase in female representation and pay aligns with corporate efforts to diversify executive teams. “Women now hold 39 of the top 100 highest-paid General Counsel positions,” he said.

Additionally, the report pointed to the increasing strategic value of general counsel in corporate leadership. The CEO-to-general counsel pay ratio declined from 4.2 to 4.0 over the past five years, indicating that general counsel pay has increased at a faster rate than CEO pay. Gilmore explained that companies are investing more in general counsel who not only manage legal risks but also offer strategic business insights and advice.