Men general counsel continue to receive higher compensation than women legal chiefs, though women are achieving greater pay equity in other legal department positions.
The median total compensation for GCs who are men was $573,000 in 2022 compared to $546,000 for women GCs, a 5% gap, according to a report from executive search firm BarkerGilmore.
The legal and compliance search firm’s 2023 In-House Counsel Compensation Report breaks pay into three main categories: base salary, cash bonus and long-term incentive pay.
Bonus pay was the area in which there was the greatest disparity between men and women general counsel.
The median cash bonus reported by men GCs was $130,000 compared to $115,000 for women GCs, a 13% percent gap.
This gap is smaller than the 22% difference in bonuses reported in the BarkerGilmore compensation report released last year.
Additionally, the most recent disparity in bonus pay came during a year in which such pay across legal department positions fell 23%.
Base pay among legal chiefs in 2022 was much more equitable. Men GCs reported a median base salary of $322,000 and women GCs reported a median of $316,000.
Men general counsel also edged women in long-term incentive pay with a $121,000 average compared to a $115,000 average for women.
BarkerGilmore is not the only search firm which tracks in-house compensation that has found bonus pay to be a major factor in the disparity between GC pay among men and women.
While men GCs earned 6% higher base salaries on average than their women counterparts in 2021, their actual bonuses were 18% larger, according to a report from Major, Lindsey & Africa.
In the firm’s 2022 Global In-House Compensation Survey, Major, Lindsey & Africa highlighted that bonuses are usually based on both individual and company performance. It then noted that while a company’s performance is typically determined by objective facts, subjective judgments are common when the performance of individuals is assessed.
“This opens the door to implicit biases that can brew gender inequality into a company’s compensation decisions,” the Major, Lindsey & Africa report said.
Other in-house positions
The recent BarkerGilmore report found that women holding legal department positions below the GC-level receive pay similar to or above what men in those posts make.
For example, the median total compensation for women in managing counsel positions last year was $370,000 compared to $368,000 for men in those roles.
Women in those positions on average received $5,000 more in base salary and $3,000 more in long-term incentive pay, while men received $6,000 more in bonus pay.
The BarkerGilmore report defines managing counsel as those who have at least one direct report and/or possess 10 years of experience.
Meanwhile, the median total compensation for men in senior counsel roles was $256,000 in 2022 compared to $252,000 for women in those positions.
Men reported an average base pay that was $9,000 higher than women, though women on average received $4,000 more in bonus pay and $1,000 more in long-term incentive pay.
The BarkerGilmore report features information from a combined 3,800 general counsel, managing counsel and senior counsel who participated in the online survey in March 2023.
Major, Lindsey & Africa has also found that women have achieved greater pay equity at positions below the legal chief-level.
For example, women in the U.S. holding regional/country general counsel roles reported making an average of $434,941 in total actual cash compensation in 2021 compared to $425,649 for men in those posts.