We use cookies to collect information about how our website is used and to improve the visitor experience. You can change your browser’s cookie settings at any time. Please review our privacy policy for more information. OK
Some corporate legal leaders were rewarded handsomely in 2020 amid a volatile year for their companies. Bloomberg Law tracked the total annual compensation of legal chiefs in the Fortune 1000 based on company proxy statements in which the top lawyer was a named executive officer.
In an unusual year for executive pay due to COVID-19, some of these 10 lawyers out-earned famous CEO colleagues in terms of annual compensation. Executive compensation packages typically include a base salary, a cash bonus, and equity awards that vest after a few years. For many senior executives, equity and stock can comprise up to 60% of their total compensation.
“It’s important to remember that the number you see in that summary compensation table is not the same thing as what somebody puts in their pocket or into an account,” said Jannice Koors, senior managing director at executive compensation consultancy Pearl Meyer.
Koors emphasized that while cash compensation, like salaries and bonuses, reflects what an executive earned in a given year, the majority of their compensation comprises equity or stock. Equity awards are reported in proxy statements when they are granted but can take anywhere from three to 30 years to vest.
Equity grants can also be tied to multi-year performance metrics, Koors added. If an executive fails to meet those goals down the road, portions of their equity awards may never make it into their personal bank accounts.