Major, Lindsey & Africa recently released their 2024 In-House Counsel Compensation Survey, which offers a detailed look into the current state of in-house legal compensation globally. The report sheds light on the factors driving changes in pay, bonuses, and overall compensation packages. The report surveyed 2,100 lawyers from 46 countries (with 82% from North America) in the winter and spring of 2024.
Here are 7 key takeaways from the report:
- North American CLO vs GC compensation. In 2024, in North America, Chief Legal Officers (CLOs) will earn 22.71% more in average total target cash compensation than General Counsel (GCs). This is a slight decrease from 2023 when North American CLOs earned 25.10% more than GCs in average total actual cash compensation.
- Public vs. private companies. Lawyers at publicly traded companies receive significantly higher compensation, especially in bonuses. In 2024, bonus targets for CLOs and GCs at publicly traded companies will be 51% and 53% higher than those for privately owned companies, respectively.
- Top industries for CLO/GC compensation. For GCs in 2024, the highest-paid industries based on average cash compensation are Medical Devices ($723,302), Financial ($698,077), Advertising / Publishing / Media ($619,351), Real Estate ($645,692), and Consumer Products ($595,998). For CLO in 2024, the highest-paid industries are Travel / Leisure / Hospitality ($1,237,156), Entertainment ($907,786), Energy / Public Utility ($889,785), Restaurant / Food Service ($853,857), and Aerospace / Defense ($770,559).
- The rise of the Chief Compliance Officer (CCO). Legal and compliance functions have been closely linked for years, with the Chief Ethics & Compliance Officer often reporting to the CLO. However, companies are increasingly making the compliance function independent from Legal, positioning it as a peer to the Legal function. CCOs in highly regulated industries like financial services, healthcare, and life sciences have become essential, and their growing compensation reflects their increasing importance. The average total target cash compensation for CCOs is almost $693,000 for 2023-2024, a 49% increase from the 2021-2022 survey.
- Gender pay disparities. Gender pay disparities remain significant at the top, with male GCs earning 28% more in average total cash compensation than their female counterparts globally. This gap is smaller at the CLO level, where male CLOs earn 14% more on average than female CLOs. Although men still earn higher pay in most mid-level roles, the difference has narrowed to single digits and even favors women in some Assistant GC positions.
- Retention efforts. Corporate leaders find it tough to keep up with the pay raises and bonuses their competitors offer, especially in today’s climate. This is a big problem for legal teams with long-tenured lawyers, whose salaries can fall behind market rates, which hurts morale and productivity and leads to turnover and loss of valuable knowledge. To retain talent, leaders are offering perks like flexible schedules, remote work, and unique fringe benefits. 59% of in-house attorneys report receiving additional non-cash compensation, such as housing, transportation, and education allowances.
- Inflation’s impact on compensation. In 2023 and 2024, inflation has surged to levels not seen in over a decade. This impacts those with variable pay components, especially bonuses linked to company performance, leading to lower overall compensation during downturns. The volatile economic climate also complicates year-over-year comparisons of equity compensation due to its close ties to stock performance.
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