When a division of insurance giant Axa promoted its general counsel to a CEO role in early July there was a feeling that a wider trend could be afoot.

In the U.S. it is fairly common for general counsel to one day become the chief executive officer, could the same thing be happening in the U.K.?

There are not many examples of similar moves beyond Sean McGovern at Axa and Microsoft U.K.'s CEO Cindy Rose, who was general counsel EMEA at The Walt Disney Company. But several senior lawyers believe there is logic to such appointments.

"I don't see why we shouldn't be considered," says one general counsel at an airport. Another at a U.K. bank admits they've "certainly thought about throwing [their] hat in the ring".

In theory, general counsel could make strong CEO candidates. They have boardroom experience, excellent understanding of risk issues and routinely oversee large complex projects.

Kate Burns, general counsel at online marketplace Notonthehighstreet, says this career transition is commonly discussed among in-house lawyers, as many aspire to other business roles and often "want to take it up a step".

Yet, according to a general counsel of a major U.K. retailer, that they are never looked at when it comes to CEO positions is a "chip on many shoulders", particularly when they are expected to "roll up their sleeves and get on with it" should a business issue arise.

Factors against them

It is thought that factors that play against lawyers taking on a wider role is the lack of financial or marketing background.

Lesley Wan, general counsel at FBN Bank, says relevant skills they may need to develop include a "better understanding of the finances of the company and the big picture". Events that "require the GC to take the lead and be a key player in effectively dealing with an issue or crisis" will allow them to demonstrate a broader skill set.

"This will enable the board and executive management team, to develop trust and confidence in their abilities outside of the law and consider them as a potential candidate for the role of CEO."

But other GCs believe the skill set is already there.

"GCs are quite good at looking at everything, analysing facts and making decisions in pressurised situations", says one. "You can learn the finance bit, so why not? What don't GCs genuinely have?"

Alex Dimitrief — who was hired as General Electric's CEO in 2018 after over two years as general counsel — firmly believes that "GCs are great candidates for CEOs, because of what makes them great GCs".

"General counsel have a sense of organisational justice, doing business with integrity, being the source of confidence and inspiring trust among stakeholders", he says.

Meanwhile, the recent expansion of the general counsel role, which has seen a transition towards a trusted business adviser, also plays in their favour.

Charlotte Butterfield, CEO of LawAbsolute and co-founder of Mentorix — a mentoring initiative for GCs —  argues that the work of GCs is "already far more sophisticated and advanced" than what it was previously. She predicts that, given the current "appetite for progression" in the U.K., floodgates will soon open and the transition from GC to CEO will become more accessible and accepted.

However, the stereotype that GCs are business blockers and lack innovation remains, posing a barrier to this coveted career move.

You can have everything in your toolbox, says one general counsel, but the preconception is that lawyers may not be viewed as visionaries. They label this a "gross misunderstanding", noting that GCs "make big decisions everyday", and that "a good GC will not always say no".

They also suggest many GCs are in fact visionaries, but perhaps suppress their personalities in order to do their jobs.

Tips

A former general counsel of a bank, who was considered for the CEO role in the business succession plan, puts it partly down to his age and partly down to the strong voice general counsel can have in a business. He argues that this internal influence means GCs will certainly have the opportunity for the role.

But even before the interview, Dimitrief urges GCs to be transparent. "Get comfortable very early with saying exactly what you think, instead of what you think people want to hear".

He also suggests that GCs should embrace difficult challenges in order to distinguish themselves favourably and prove they are "more than a lawyer".

"I had a tendency at General Electric and Kirkland & Ellis to rush to difficult situations, because this was where I would add more value", he says.

"When something is easy, it's easy to be in the success story. But when something is hard and you turn that into a plus, you can distinguish yourself."

2019 saw a record rate of  U.S. general counsel being promoted to CEO, but what can a GC expect once in the role? Dimitrief recognises that an obvious challenge is becoming a business leader. Instead of purely legal questions, GCs will now have to "make trade offs that they weren't involved in before", and decide on the "long-term vitality of an enterprise".

However, he emphasises that "not all lawyers are cut out for it". GCs should have a "honest moment of reflection around going from being the enabling function to being the deciding function".

Describing the CEO role as having "stressful" moments, Dimitrief asks GCs to "know their own risk appetite".

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Insurance Giant Promotes General Counsel to UK CEO Role