What are KPIs? These are essentially performance targets. For example, how many new customers a partner takes into account each year, how much revenue they generate for the company, or how many customers are retained. Only two general counsels have won more than $6.33 million in cash compensation: Disney`s Alan Braverman ($8 million) and Morgan Stanley`s Eric Grossman ($6.94 million). Meanwhile, 38 Am`s law firms had earnings per stock partner that exceeded the general counsel`s average cash compensation of $2.42 million. „A fun thing happened during the year,“ Jeffrey Lowe, global head of practice at law firm Major Lindsey & Africa, said in an interview with Law360. „The industry has always performed much better than we had hoped. The profits of some large law firms have grown so rapidly that some partners are beginning to wonder about their future: how long will it take them to continue working? The above comparisons mask some important factors. Internally, it is important to note that the highest-paid Advocates General receive a significant portion of their remuneration in the form of equity. Given stock options, some general counsel roles seem much more attractive. For example, if we look again at the 2020 surveys, the number of general counsel surpassing Wachtell`s earnings per partner increases from two to 41. And some of the attorneys general have a total compensation that would exceed that of even the highest-paid rainmaker. For example, Chewy GC Susan Helfrick had a total compensation of $30.3 million (including less than $1 million in cash).
Apple`s GC Kate Adams had a cash compensation of $3.56 million, but her total compensation was $25.2 million. Kane, Macrae`s recruiter, said she helped a San Francisco Bay Area partner double his pay with a lateral move over the past two years. The partner had grown up in poverty and the first thing she did with her new compensation was to „trick“ a Mercedes Sprinter van into traveling with her family, Kane said. The partners are involved in the law firm. Some companies require capital partners to „buy“ in the company with an investment. They have the highest salaries in the company, but their work also carries the greatest risk. A brief note on the sources. For data on General Counsel compensation, we look at the top 100 highest-paid GCs in the 2020 ALM Intelligence GC Compensation Survey. This file is not complete. On the one hand, ALM compiles its data from proxy circulars filed with the SEC so that only publicly traded companies are included. Our source of compensation for Biglaw`s partners is the 2020 edition of the Am Law 200 ranking.
The survey was based on 1,271 responses from partners at Am Law 200 law firms, the country`s best-selling law firms, between July 29 and September 21. Seventy percent of respondents said they expected the COVID-19 pandemic to impact their compensation in 2020. The partners would have earned $8.3 million over the past two years if Latham`s profits had instead risen from the company`s „more modest“ seven-year average of 6.6 percent, according to AmLaw data. In other words, if a partner landed a large client and brought millions to the company, their compensation will be higher than that of the partner who generated only $500,000 in revenue this year. In principle, this type of remuneration actively encourages partners to meet or exceed the company`s objectives. If they do, their incomes will increase. But what about at the upper end of the job? In this article, we look at the salaries of the 100 highest-paid general counsel compared to partners in top law firms (measured by earnings per partner). We believe that an equity partnership based on cash compensation is more lucrative than a general counsel. But the story is more complicated when you consider stock options.
„This is a new phenomenon,“ said Suzanne Kane, a San Francisco-based partner at recruitment firm Macrae Inc. I think we will. They say they will. In other cases, an annual salary will be paid in conjunction with one of the other remuneration models on this list. In addition to industry-wide standardized salaries, employees who work at Biglaw can expect to receive the same annual bonuses and summer bonuses as their peers, based on market bonuses set by major companies.