Female general counsel at large US companies took home more in compensation than their male peers last year, according to a study from Equilar.
The research finds that women general counsel received a median $3.2 mn in compensation last year, almost 8 percent more than their male counterparts. It is the second time since the research began in 2018 that top female in-house lawyers have been awarded more than men, the other year being 2020.
Although there have been annual fluctuations in compensation, over the study period female general counsel have seen a total 46.8 percent increase in pay, compared with 14 percent for their male colleagues over the same time, according to Equilar. Median total compensation among male general counsel in 2018 was $2.6 mn compared to $2.2 mn among women general counsel.
‘Female general counsel contribute to legal and governance matters by bringing diverse perspectives, advocating for gender-inclusive policies, attracting diverse talent, ensuring legal compliance and actively participating in social responsibility initiatives,’ the report authors write. ‘Their presence also serves to mitigate legal and reputational risks associated with gender-related issues and enhance stakeholder relations, including those with investors [that] prioritize diversity and inclusion.’
Among all general counsel in the sample, median total compensation has increased by almost 20 percent between 2018 and 2022, rising from $2.6 mn to $3.1 mn in 2022. But the increase of 1.7 percent from $3 mn in 2021 to $3.1 mn in 2022 was the smallest year-over-year gain during the study period.
There are mixed trends within the different components of total compensation. Between 2021 and 2022, base salary for general counsel rose by 4.6 percent from a median $575,000 to $601,300, the research shows. Annual cash targets increased by 4.1 percent from $487,500 to $507,400, while performance incentives rose by 8.7 percent from a median $771,800 in 2021 to $838,700 in 2022. But stock awards rose by just 0.8 percent from 2021 to 2022, from $445,700 to $449,300, according to Equilar.
INDUSTRY AND REVENUE RANKINGS
Ranked by industry, the energy sector saw the highest growth in median general counsel compensation between 2021 and 2022, increasing from $3 mn to $4.2 mn. Consumer-cyclical companies saw an almost 20 percent drop from $2.9 mn to $2.3 mn in 2022, the survey finds.
‘A rise in general counsel compensation across various sectors indicates increasing demand for top legal talent, particularly in sectors grappling with complex legal and regulatory environments,’ the authors state. ‘Higher general counsel compensation can also reflect the growing importance of legal expertise in corporate decision-making and risk management.’
Ranked by company revenue, general counsel at the smallest companies in the study – with revenues of less than $900 mn – were awarded the largest increase in compensation at 8.8 percent. General counsel at firms with revenue of between $7.1 bn and $10 bn saw the largest decrease in median compensation, falling by 7.7 percent from $2.6 mn to $2.4 mn between 2021 and 2022.
The research is based on SEC filings of 179 Equilar 500 companies for the last five fiscal years. The Equilar 500 comprises the 500 largest US-headquartered companies by reported revenue that are listed on Nasdaq, the NYSE or NYSE American.
Ben Maiden
Ben Maiden is the editor-at-large of Governance Intelligence, an IR Media publication, having joined the company in December 2016. He is based in New York. Ben was previously managing editor of Compliance Reporter, covering regulatory and compliance...
