Total cash compensation for top lawyers at U.S. companies has jumped by an average of 15% since 2020, driven partly by higher bonuses as companies fight to retain in-house legal talent in a competitive market, according to a survey released Wednesday.
General counsel and chief legal officers in the U.S. reported average total cash compensation of $578,446 in the survey of in-house pay by legal recruiting firm Major, Lindsey & Africa. That figure, which includes base salaries and bonuses, increased from $503,078 in 2020.
The reported amounts include the survey respondents' base salaries in 2022 and bonuses paid in 2021, according to the report.
The amounts don't include stock options or other fringe benefits, which can account for a significant portion of senior lawyers' compensation, particularly at tech companies.
The survey, conducted in partnership with Western Management Group, is based on 3,300 respondents in 46 countries.
In addition to top company lawyers, average pay has also increased since 2020 for nearly all other in-house legal positions surveyed in the U.S. and globally, including chief compliance officer and other in-house legal leadership roles.
"The market has been extremely competitive for talent in the in-house world," said Melba Hughes, a partner and executive director of in-house counsel recruiting at Major, Lindsey & Africa.
She said pay, including bonuses, is often an important tool to recruit prospective in-house hires.
In the U.S., bonuses can now make up 40% to 50% of a chief legal officer's total compensation, aligning with other C-suite members whose bonuses are tied to the company's financial performance, the report said.
While compensation is increasing overall, a gender pay gap persists for top company lawyers, including noticeable differences in bonuses, the survey said.
Male general counsels' base salaries globally are 6% higher than females', it found. But last year, men in those roles made 18% more in bonuses paid out.
The target bonuses for male general counsel this year are 43% greater than for females in the role, the report said. Target bonuses can differ from what is paid out at the end of the year, Hughes said.
The report said gender biases can affect bonus assessments tied to individual performance more than assessments tied to company performance, which is more objective.
The gender compensation gap in legal departments in the U.S. and globally is greatest for the most senior department positions, the report said.
For some positions in the U.S., however, including regional general counsel roles, women reported higher compensation than men.
