The dynamic roles of attorneys on the helm of authorized departments have grown in worth, with common whole compensation rising by $148,000 in 2023, in response to the Law360® Pulse 2024 Compensation Report: General Counsel.
Our report examined the compensation of normal counsel and chief authorized officers at firms within the S&P 500 primarily based on filings to the U.S. Securities and Alternate Fee for fiscal yr 2023. Rankings had been calculated by each whole compensation worth (sum of wage, bonus, inventory and choices awards, non-equity incentive plans and all different compensation) and whole money (wage plus bonus).
The data shows that pay packages for prime company normal counsel have continued to remain robust, with inventory awards and different advantages boosting compensation to properly over $12 million for all of the S&P 500 authorized chiefs within the prime 10.
Key Takeaways from GC Compensation Analysis
Right here had been a number of the key takeaways from our analysis:
- High GC earner at Alphabet
The highest paid GC within the S&P 500 final yr was Kent Walker at Alphabet, who obtained whole compensation of $27.3 million, adopted by Apple’s Kate Adams ($26.9 million), Blackstone’s John Finley ($17.9 million), Reserving Holdings’ Peter Millones ($15.5 million) and Broadcom’s Mark Brazeal ($15.4 million). Inventory awards made up the most important portion of whole compensation for the highest 10 highest-paid GCs, seven of whom additionally had the most important inventory awards, however two authorized chiefs had the excellence of constructing it onto the highest 10 listing in each whole comp and whole money: Kathryn Ruemmler of Goldman Sachs ($13.3 million whole, $7.3 million money) and David Hyman of Netflix ($13.6 million whole, $4 million money). There may be a variety of compensation amongst prime GCs, with a $15 million pay hole between first and 10th place amongst S&P 500 authorized chiefs.
- Communications sector leads the best way
The communications providers sector once more topped the list of industries with the highest-paid GCs and chief authorized officers, with a media whole compensation of $9.3 million. The second-highest sector was power ($5 million), adopted by financials ($4.5 million), healthcare ($4.3 million) and data know-how ($4.2 million). Our analysis discovered that healthcare, info know-how and shopper discretionary sectors noticed a slight lower in median whole compensation from the earlier yr — with healthcare seeing the most important drop ($400,000).
- Gender pay hole combined
There have been 156 males and 100 ladies GCs whose compensation packages had been analyzed in our report, with males averaging greater than ladies in whole compensation, however ladies averaging greater than males in whole money. On common, males earned $5 million in whole compensation vs. $4.6 million for ladies; whereas ladies averaged $893,000 in whole money vs. $829,000 for males. Solely two out of the highest 10 highest-paid GCs are ladies: Kate Adams of Apple and Kathryn Ruemmler of Goldman Sachs.
- Alums of prime regulation faculties earn extra
Our report recognized a constant distinction in common compensation between GCs who graduated from prime regulation faculties and those that didn’t. Of the GCs at S&P 500 firms whose pay was disclosed, 103 graduated from regulation faculties within the prime 14 ranked by U.S. Information & World Report and 152 graduated from non-“T14” regulation faculties. Graduates of T14 regulation faculties earned a median of $5.3 million vs. $4.5 million for alumni of non-T14 faculties, though whole money was barely greater for non-T14 college grads ($875,000 vs. $827,000). Harvard Regulation Faculty educated the best variety of GCs named in S&P 500 firm filings (21), adopted by Georgetown College (15) and the College of Virginia (12).
The report additionally famous that company attorneys are sporting many hats that transcend the normal GC position of offering authorized recommendation. This elevated versatility and worth to their govt groups as enterprise counselors has been rewarded by rising compensation for these authorized chiefs at S&P 500 firms.
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