[ by Larry Goldfarb ]

In a surprising development, more general counsels are cracking the top ranks at public companies in recent years, with some elbowing aside operations executives for a place among the five highest-paid positions disclosed in proxy statements.  The gains come as general counsel are taking on a more strategic role at some companies, working directly with chief executives on business goals as well as legal issues and mapping out future risks.

"Sometimes the GCs will be paid more than the president of a business unit," said Cynthia Dow, an executive search consultant for Russell Reynolds Associates Inc.  The biggest rewards go to in-house lawyers with a seat at the management table. According to a report to be released Monday by compensation researcher Equilar Inc., the median pay for general counsel who report directly to chief executives was $1.55 million—more than twice that of those further down the corporate hierarchy, whose median pay was $760,000.

Meanwhile, companies are beefing up their compliance teams, often filling top posts with former prosecutors and attorneys who may have represented big companies but have limited in-house experience. These internal programs seek to identify corruption and other problems before regulators do, and can serve as insurance policies to limit fines and other penalties. Some operate independently of in-house legal departments, although collaboration is the norm.

"The growth and the job security is, for better or worse, in compliance," said Cameron Findlay, general counsel for medical technology company Medtronic Inc.

For further information, please read [WSJ, 11/5/12].