Counsel Corner: GCs Shouldn’t Settle for Less—How to Negotiate for Equal Pay with Other Executives

Early in her GC career, a recruiter told Jan Kang to expect only 20% of the stock options granted to a CFO at the same company. This meeting highlighted how, particularly at the time, employers viewed GCs as non-essential rather than integral to the company's success.

Kang, who is now the GC at 3Degrees Group and Founder of the Women's General Counsel Network, says things have improved since then. “In the annual WGCN survey, we ask how the respondent’s compensation compares to other members of the executive team. 43% said they were in the top quartile for cash compensation, and 27% said they were in the top quartile for equity compensation,” she said.

But there is still a significant pay gap between GCs and other executives. Many GCs I’ve spoken with estimate they are paid 10-35% less than their peers in the C-Suite — and given their access to compensation information, they’re likely well aware of this disparity.

Recent research from The L Suite also found that the average cash compensation difference between CLOs and CFOs is about 8%, but the gap in equity compensation is far more striking: CFOs receive an equity percentage that’s 45-75% higher than their legal counterparts. (Note: L Suite members have access to comprehensive benchmarking data to help navigate these differences — learn more about member benefits.)

If you’re in this situation, read on for advice from GCs and other legal career experts on how to prove the value you bring to an organization and advocate for compensation in line with the rest of the C-Suite.

Key Takeaways:

• Find opportunities to add tangible business value across functions and demonstrate your impact not just on the company, but on its bottom line.

• Look for ways to quantifiably tie your legal accomplishments to key business metrics, such as revenue growth or easing the path for future expansion.

• Include industry benchmarks, especially ones that align with how your CEO approaches compensation and thinks about the market.

• Remember that compensation goes beyond base salary, so consider asking for other perks to bridge the gap as well.

Collaborate Across the Company to Move the Business Forward

“Attaining equitable compensation as a GC is possible when leadership views legal as a value driver, key business partner, and core to the organization,” said Nabilah Irshad, former Chief Legal Officer. “If legal is viewed as a ‘back office’ or ‘department of no,’ it makes this task more difficult.”

In fact, some suppose that part of the reason for the narrowing pay gap is the expectation that modern GCs serve the dual role of both legal and business executive. They can often seamlessly contribute their strategic ability and legal knowledge to human resources, ESG, government relations, government affairs, corporate development, safety, security, compliance, and more. “GCs are in a position to become trusted advisors to the CEO and Board and to demonstrate their strategic value at the highest levels,” said Kang.

To cement your impact on the organization as a whole, Irshad suggests proactively helping other teams drive success and move the business forward. For example, you might look for ways legal can:

• Negotiate terms to make accounts receivable smoother for the finance team

• Shorten the sales cycle through streamlined contracts and processes

• Structure strategic partnerships for the marketing team

• Offer legal guidance on new product launches and ensure IP is protected

• Provide insights that speed M&A or fundraising deals

The goal here, Irshad explained, is to “demonstrate legal’s role in every department’s success, showcasing that legal is woven into the fabric of the organization, holistically protecting it as well as clearly driving it to reach its financial and performance goals.”

These efforts should also help you develop deeper relationships with key players across the company, which Jennee DeVore, General Counsel at Simple HealthKit, shared can be pivotal in substantiating a case for higher pay. “These supporters can advocate for the GC by offering testimony or insights during compensation negotiations, reinforcing the argument for alignment with C-Suite compensation standards,” she said.

Plus, working on impactful, cross-department initiatives like this will give you plenty of fodder as you work on the next step.

Quantify Your Impact on Business Goals

The key to higher pay as a GC is to align your department's quantifiable value with the CEO’s view of business growth, shared Klinton Miyao, General Counsel, Chief People Officer and Corporate Secretary at Human Interest.

“While minimizing lawsuits or regulatory risk is undeniably important, this value must resonate with the company’s core business goals,” Miyao explained. You’ll want to highlight specific achievements where your expertise contributed to long-term business value, ideally with some hard data to back it up.

Revenue is obviously a strong metric to align yourself with, and the proof may be easier to find than you think. “For instance, by implementing efficient payment terms and invoice practices, a GC can expedite the revenue recognition process, shorten sales cycles, and enhance cash flow. Streamlining contract processes also directly impacts revenue, contributing to the company’s financial success,” said DeVore.

It can also be valuable to tally up the dollars saved thanks to successful litigation avoidance, favorable contract negotiations, regulatory fines minimized, or reduced spending on outside counsel by using a platform like Lawtrades.

If you're working at a pre-revenue company, focus on ways you impact growth enablement and fuel the company’s “rocketship” potential. According to DeVore, this might include:

• Securing patents or other IP: “Support this IP portfolio with analysis on its ongoing tangible value to the company,” such as future funding, partnerships, or product development, advised DeVore.

• Establishing governance and compliance frameworks: These activities are crucial for “fostering an environment conducive to exponential growth and building trust and credibility with potential investors, partners, and customers,” said DeVore. Measure the future revenue streams these activities helped lay the groundwork for.

Finally, make sure you’re talking about these achievements, both by regularly updating your CEO and peers on your progress and creating a comprehensive report before going into a salary negotiation. “By framing your role as integral to the company’s financial health — whether it’s through revenue growth, cost savings, or strategic expansion — you position yourself as a business driver along with revenue-generating executives,” said Miyao.

Use Benchmarking Data and Your Negotiation Skills

Benchmarking data can be a valuable tool for demonstrating if your compensation doesn’t align with industry norms. “Using industry benchmarks, including The L Suite’s compensation report, is what makes the narrative a no-brainer for CEO and CFO,” said Irshad, adding that these comparisons can help them make an objective decision.

But what you don’t want to do is march into a salary negotiation with the first benchmark you find that’s higher than your existing pay and demand more. As with any negotiation, it takes a little more tact.

Miyao said that you’ll want to ensure the information you’re pulling aligns with your company’s and CEO’s compensation philosophy and a market definition that they recognize and respect. “Some CEOs value traditional data sources, like Radford or peer-group benchmarking, while others may look to emerging platforms like Pave, Comptryx, or a16z's portfolio data for tech companies,” he shared.

It’s also worth working with the HR or finance teams to understand internal pay scales and performance metrics that impact compensation to ensure you aren’t making an ask that’s out of line with broader company norms.

Finally, don’t lean too heavily on the benchmarks when making your case. “When GCs focus only on market data, they risk framing their role too narrowly,” explained Miyao. “Instead, combine data-driven comparisons with qualitative examples of your leadership, influence, and impact on key business decisions.”

Negotiate Beyond Base Pay

If there’s truly no wiggle room on base pay, all is not lost. “When navigating salary negotiation, it's essential to remember that compensation extends beyond the figures on your paycheck,” said DeVore.

In my experience, there are several non-monetary incentives that can help bridge the compensation gap for GCs, including:

• Career development opportunities, such as leadership training, mentorship programs, executive coaching, or even L Suite memberships for you and your team

• Guaranteed department budget and hiring capabilities, granting you the autonomy to assemble your team and resources in a way that enhances your job success

• Other forms of compensation, such as stock options, performance-based bonuses, or 401(k) matching

• Flexible work arrangements, such as the opportunity to work remotely, additional paid leave, flex hours, or even wellness benefits

• Contractual terms, such as an extended severance agreed up front

If you aren’t sure what to prioritize, talk to peers or recruiters for ideas of the types of benefits being offered elsewhere, then consider what’s important for you to have work satisfaction and work-life balance. “For some, a more flexible schedule or being fully remote may be key and for others it may be the budget to hire staff or outside counsel. Title could be important,” Kang said, sharing that she once negotiated for a CLO title after being hired as a GC when she saw that everyone else on the executive team was at the C-Level. “For me, it was more about having my role being viewed on par with the others and signaling that the company valued the legal department.”

Ultimately, negotiating for higher pay as a GC is “about crafting a comprehensive portrait of value,” said DeVore — both the value you provide to the company, and the ways they can make you feel valued in return.

Want more resources and support to help you maximize your value as a GC? Lawtrades provides flexible, on-demand legal staffing and strategic insights tailored to help GCs succeed.

Want to build new connections that can grow your influence and career? The L Suite members are a valuable resource — apply for membership today.

About The L Suite

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For more information, visit lsuite.co.