Why Do GCs Reporting to CEOs Make More?

One of the big conclusions drawn by Equilar in their 2010 General Counsel Pay report was that GCs who report to the CEO make significantly more than their counterparts who don\’t. Rees Morrison examined this disparity, and came up with a few theories:

• Direct reporters are more likely to be older, have more experience, and therefore, command a higher salary.
• Direct reporters may lead numerous functions, while non-direct reporters may only lead one or two.
• A hierarchy has emerged in big corporations: one out of three GCs are non-direct reporters, meaning that they\’re at least one rung below someone else, and therefore paid less.

These facts may be cold comfort to the GC who\’s making significantly less than his or her directly-reporting counterpart. If that\’s the case, they may want to keep in mind an Equilar finding from last year:  CEOs promoted internally tend to make less than those who switch companies to become CEO. If this also holds true for the GCs who directly report to them, a job change might start to seem like a good idea.