GC Pay Is Up for Many but More in Some Sectors Than Others: Survey
While most GCs have been getting raises, the money varied based on the size of the company and the industry in which it operates.
October 29, 2018 at 02:08 PM
4 minute read
The original version of this story was published on Corporate Counsel
Paychecks got bigger last year for many of the top lawyers and executives at some of the nation's largest companies—though some groups have been receiving larger pay bumps than their colleagues, according to a new study.
General counsel received a larger percentage increase than their bosses, though CEOs were paid much more to start: The total median pay for CEOs who work for Equilar 500 companies, a revenue-based index of publicly traded companies in the U.S., increased 3.5 percent from 2016 to 2017, while general counsel at those same companies saw a 6.7 overall pay increase.
But CEOs at companies with between $10 and $20 billion in revenue made four times more than their GCs.
That's according to Equilar's latest “General Counsel Pay Trends” study, which is based on SEC filings from fiscal year 2016 to 2017.
The biggest takeaway from the study is that compensation “increased substantially” for general counsel from the previous year, when they saw a more modest overall pay increase of about 4 percent, according to Robert Barker, a managing partner at executive search consulting firm BarkerGilmore. He contributed to Equilar's report.
“It has to do with the fact that the economy is doing well and GCs are being asked to do more,” Barker said. “They're taking on additional roles in the company, such as government affairs and chief administrative officer.”
While most GCs have been getting raises, the size of the company and the industry in which it operates had a lot to do with how much they received, with GCs at smaller companies getting larger percentage increases.
The average overall pay for GCs at smaller companies with less than $5 billion in revenue grew by nearly 22 percent. GCs at larger companies had more modest pay increases: 6.6 percent at businesses with $10 to $15 billion in revenue and 0.9 percent at companies with more than $20 billion in revenue.
GCs at the larger companies unsurprisingly earned more than their colleagues at smaller operations, however: Median total compensation at companies with revenue greater than $20 billion was $4.5 million, nearly $2 million more than the median pay at companies with revenue between $10 and $20 billion.
Meanwhile, top lawyers at companies with revenue between $5 and $10 billion saw their total median compensation fall by 3.3 percent.
What's behind that development is not exactly clear. But the study notes that “determining the actual worth of a general counsel is not cut and dry. Several factors including leadership ability, internal equity, scope of responsibility, industrial sector, sophistication of legal challenges, regulatory concerns, strength of internal relationships and shareholder return all come into play.”
Things were brighter in the basic materials sector, where GC pay jumped more than 27 percent. Top lawyers for tech and industrial companies also saw overall pay increases of 26 and 25 percent, respectively.
But continuing the best-of-times worst-of-times trend, pay for GCs in the utilities and financial sectors declined by 16.4 percent and 6 percent, respectively.
Larger companies tied more compensation to performance incentives. The largest companies with more than $20 billion in revenue gave their GCs almost twice as much in performance incentives than companies in the $10 to $20 billion revenue realm.
“Companies with a revenue greater than $5 billion tend to grant anywhere from $275,000 to $300,000 in stock awards to their GCs, while companies with below $5 billion in revenue grant about half that amount,” the study states.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllPlaintiffs Seek Redo of First Trial Over Medical Device Plant's Emissions
4 minute readIn Lawsuit, Ex-Google Employee Says Company’s Layoffs Targeted Parents and Others on Leave
6 minute readPaul Weiss’ Shanmugam Joins 11th Circuit Fight Over False Claims Act’s Constitutionality
Trending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250