GCs Are Receiving More of Their Pay in Bonuses, Exacerbating Gender Gap
The growing emphasis on bonuses reflects legal chiefs' growing stature in the C-suite. But the greater subjectivity of bonuses may help explain why men are getting larger ones than women, according to a new study.
May 16, 2023 at 07:38 AM
3 minute read
The original version of this story was published on Corporate Counsel
Bonuses are making up a growing percentage of general counsel pay, according to a new report that found the trend is complicating efforts to wipe out pay disparities between men and women.
"Annual bonuses are typically based upon company and individual performance. While a company's performance is usually determined by objective facts, subjective judgments are common when assessing individual performance. This opens the door to implicit biases that can brew gender inequality into a company's compensation decisions," according to the recently released 2022 In-House Compensation Survey from Major, Lindsey & Africa.
The survey noted that bonuses now represent 40% to 50% of GC compensation in the United States, a sharp increase that reflects GC's rising stature in the C-suite. But men are scooping up significantly larger bonuses than women, according to the survey of more than 3,300 attorneys from 46 countries.
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