Over the past several years, we have seen the expansion and growth of the deputy general counsel role, particularly in larger companies as legal departments continue to evolve, and legal leaders in sizable organizations assume more cross-functional responsibilities in the age of the modern general counsel.
The evolution of the deputy general counsel position appears to be a result of the changing global landscape and the increased complexity deriving from the pandemic, and also the highly complex challenges overseas seen in recent years.
These events highlighted the value of sharp, nimble lawyers who also serve as business partners in times of crisis and resulted in a greater reliance on legal counsel as companies navigate this rapidly changing environment.
Whereas lawyers used to be seen as just lawyers, today, they are sought out as business partners, increasing the company's reliance on the legal department overall and enhancing the role of the deputy general counsel.
Deputies often bring stellar training. They're at a point in their career where they have broad expertise in various areas and are poised for continual growth and leadership opportunities. They have become essential to the chief legal officer and general counsel in running the day-to-day aspects of the legal department, and they have served as critical advisers to other executive leaders and the business alike.
These attorneys are often in the line of succession, and obvious choices to follow in the chief legal officer and general counsel's footsteps, and already have large management responsibilities.
They are often lawyers who were once subject matter experts, but who have become strong corporate and commercial generalists and are trusted business partners. They are sought after for their legal and business acumen. They have visibility throughout the company with the C-suite and often with the board of directors.
They are relied on for developing and mentoring other rising stars in their departments, and lead large cross-functional projects as well as many, many other things.
Notably, these lawyers are among a small group with the skills, experience and general counsel-ready qualities that can be very hard to find — and even harder to replace. As a result, they are the most likely to be recruited into another company.
In other words, deputy general counsel are a valuable asset that senior leaders understand they must retain, but are often at risk of losing.
With succession planning on the rise, and the need to have a "ready now" candidate or candidates, the value of the deputy general counsel is becoming increasingly reflected in the recent increases we've seen in their compensation levels.
In Major, Lindsey & Africa's "2024 In-House Counsel Compensation Survey" — which was published in late July and surveyed more than 2,100 lawyers from 46 countries, at companies of a variety of sizes — total cash compensation for attorneys at the managing counsel level, including deputy general counsel and associate general counsel, increased globally by 8% in 2023, from the most recent iteration of the survey two years prior.[1]
Compensation at this level is also projected to increase in 2024. This growth is a nod to the broader responsibilities, including the management component, these deputies assume and for which they should be compensated. It may also be a sign that these candidates themselves recognize their value and are utilizing this as they negotiate compensation packages.
The reality is that this group is the next generation of chief legal officers and general counsel in large multinational companies throughout the globe. So, how do chief legal officers and general counsel retain this top talent?
Keep compensation levels competitive.
In order to retain your top deputy talent, it is critical to maintain competitive compensation levels. Talk to your human resources team, look at benchmarking data, and call your peers to hear anecdotal information about the market.
Do the best you can to secure strong compensation packages for critical players in your department. And make sure to reevaluate compensation for these stars with an emphasis on personal performance, where possible.
Expect compensation for these lawyers to increase over time.
Offer nonmonetary benefits.
If increasing compensation levels is just not possible, think of the many other nonmonetary benefits you might offer to retain your best talent.
That could be flexible work schedules when needed; memberships to social clubs, airline clubs, gyms or wellness outlets; or any other benefits that may be unique to your company or industry, e.g., a car benefit.
Provide expanded responsibilities.
Sometimes for deputies, most of whom have their eye on a chief legal officer or general counsel role, it is not only about money, but is often also about opportunity. Continue providing expanding responsibilities in the legal department and beyond, ensure visibility among the leadership team, and provide new areas for growth and development.
A few ways to do that include the following:
- Bring your deputies into the boardroom, and provide the opportunity to interact with board members.
- Ensure this talent has business experience.
- Vary their experience. If the individual is a corporate lawyer, give them opportunities to manage significant litigation, and if they're a litigator, rounding out their corporate and commercial experience will be key. In that vein, consider offering the individual an international assignment — living and working overseas serving as general counsel of a region, for example.
- Hone their managerial skillset. It's critical that this group of deputy general counsel can point to managing a growing team and continued increase in responsibilities over time.
- Get to know these deputies and their goals. Have conversations with them to align on what they want for future growth in their careers.
Prepare deputy general counsel for your succession.
Place your deputies in the line of succession. Suffice it to say that this is a retention tool and often requires the right compensation level for general counsel-ready talent. In addition to compensation, it's about experience and exposure, and preparing this talent in a meaningful way to step into your role.
Conclusion
Compensation is a complex and evolving topic — one that is a key driver in securing top talent for your organization. Think strategically as to how this trend upward affects your department as a whole, your future hires and your key talent. This will be critical to securing and keeping your best lawyers and ensuring the long-term success of your organization's leadership.
