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GC Compensation Survey Best-Paid Sectors: Media, Money & Tech

Media edged out financials as the highest-paid sector for GCs when it comes to cash compensation in 2019. But when it comes to serious money – stock and options – technology and tech-heavy businesses are where the action is. Alan Braverman, GC of The Walt Disney Co., took the top slot with just over $8 million ($1.7M in salary and 6.3M in non-equity incentive comp). Eric Grossman, CLO of Morgan Stanley, fell to #2 after a few years in the top slot. But don’t weep too hard. Grossman still pulled down almost $7 million in cash comp ($1M salary plus a $6 million bonus). Flip to a different metric used by ALM Intelligence to compile the 2020 General Counsel Compensation Report, with stock and stock options woven in, and a different picture emerges. When cash isn’t king, tech muscles everyone else aside. The crown goes to Google’s CLO David Drummond with $133.5 million. (Drummond left Google in December.) The gender pay gap narrowed last year, which is good news, and when it comes to all-in comp, including stock awards, women did especially well: 5 of the top 10 slots, including 3 of the top 4, went to women: Susan Helfrick of Chewy ($30.3 million), Kate Adams of Apple ($25.2 million) and Jennifer Newstead of Facebook ($19.1 million).

Top-Paid by Industry

MEDIA

FINANCIALS

TECHNOLOGY

HEALTHCARE

BUSINESS SERVICES

ENERGY

FOOD, BEVERAGES & TOBACCO

RETAIL

ENGINEERING & CONSTRUCTION

Alan Braverman, Disney, $8,000,061 Top 5 Average: $5.2M

Eric Grossman, Morgan Stanley, $6,938,750 Top 5 Average: $4.9M

Bradford Smith, Microsoft, $4,216,148 Top 5 Average: $3.8M

Thomas Moriarty, CVS, $5,671,833 Top 5 Average: $3.3M

Michael O’Brien, Omnicom Group, $4,100,000 Top 5 Average: $2.7M

Paula Johnson, Phillips 66, $2,224,100 Top 5 Average: $1.9M

Marc Firestone, Phillip Morris, $2,985,188 Top 5 Average: $1.9M

Leigh Harlan, Tiffany, $3,382,005 Top 5 Average: $1.7M

Maxine Mauricio, EMCOR, 2,032,500 Top 5 Average: $1.7M

L. Benjamin Ederington, $1,766,574 Top 5 Average: $1.6M

Top-Paid Women

Laureen Seeger, American Express

Karen Seymour, Goldman Sachs

Wanjiku Walcott, Discover

Laura Schumacher, AbbVie

Kate Adams, Apple

Leigh Harlan, Tiffany

Anne Madden, Honeywell

Jennifer Newstead, Facebook

Sandra Leung, Bristol-Myers $4.5M

$4.5M

$3.8M

$3.6M

$3.6M

$3.4M

$2.7M

$2.6M

$2.6M

Briefly

JAMS announces the addition of Lisbeth M. Bulmash, Esq., to its panel in Dallas.

FTI appoints senior managing director, Myron Marlin, as the head of crisis and litigation communications for the Americas in the strategic communications segment.

Barnes & Thornburg adds

Marcantonio W. Barnes

as a partner in Washington, D.C. to lead corporate practice group.

McGuireWoods advises private investment firm, Summit Park, and its portfolio company, C.A.R.S. Protection Plus, in the sale of C.A.R.S. to Spectrum Automotive

Elizabeth Stephenson joins AlixPartners as a managing director in Los Angeles.

Onna announces the appointment of Michelle Wideman as its first chief customer officer.

Former FINRA senior officer Elizabeth Hogan joins McGuireWoods’ securities enforcement & litigation team in Washington D.C.

JAMS announces the addition of Hon. Alan G. Perkins (Ret.) to its panel in Sacramento.

FisherBroyles announces Lisa A. Marcy has joined the firm in New York and Salt Lake City as a partner.

Anderson Kill announces that Hailey Lennon, former regulatory counsel at Coinbase joined their technology, media and distributed systems group as a shareholder.

ARE YOU READY FOR

The AI debates have been raging for years, and Elon Musk, founder of Tesla and SpaceX, among others, is in the middle of them. While recognizing the benefits of AI, Musk openly worries about whether superintelligence is the beginning of the end for humanity. The concerns about AI have not been lost on general counsel and corporate law departments, who must walk the tightrope between advancing their companies business missions and managing what could be a quantum leap in risk. That’s where Lex Mundi comes in. The worldwide network of leading law firms jumped in in late 2018, working with Cambrian Futures on an AI workshop in Amsterdam for GCs, who clearly were interested. A webinar followed, which led to a working group that developed a checklist designed to serve as a starting point for GCs seeking to get out in front of issues related to the proposed use of AI by companies. Check out the “AI Readiness Checklist for Corporate Legal Functions” at lexmundi.com.

ESG Lands in the Laps of Corporate Boards

According to a recent Board Primer issue by NACD (National Association of Corporate Directors), environmental, social, and governance (ESG) performance has emerged as a board-level issue. While the topic of socially responsible capital markets has been in the air for years – the 2004 “Who Cares Wins” initiative pushed ESG concerns as a component of routine investment choices – NACD’s 2019-20 public company governance survey showed that boards were waking up to the importance of ESG. This led NACD to develop Strategic Oversight of ESG: A Board Primer. “Although ESG is as broad as it is amorphous in scope,” NACD says, “it is not an insurmountable topic for the board agenda.” The primer is a good start. It breaks the topic down into manageable chunks, provides guidance on key terms, and adds some context with a timeline tracing the evolution of ESG from SRI (Socially Responsible Investing) to SVC (Sustainable Value Creation). Check out the Board Primer at nacdonline.org.

ENVIRONMENTAL SOCIAL GOVERNANCE

Climate Change Energy Management Environmental Impact of Product Portfolio Environmental Management Water Use and Sourcing Natural Resources Biodiversity, Emissions Health and Safety Human Rights Human Capital Management Data Privacy Employee Rights Business Ethics Compliance Board Structure Board Compensation Compensation Shareholder Rights Executive Compensation Anti-Corruption, Bribery

GCs Take Note: DOJ Muscles Out Purdue

In announcing the global resolution of its criminal and civil investigations of opioid manufacturer Purdue Pharma and individual Purdue shareholders, the DOJ went as far as it’s gone in many years to drive a stake through the heart of a U.S. business. (The entire package is subject to the approval of U.S. Bankruptcy Court.) It’s worth reading what the DOJ had to say about this incredible settlement: “The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen. “With criminal guilty pleas, a federal settlement of more than $8 billion, and the dissolution of a company and repurposing its assets entirely for the public’s benefit, the resolution in today’s announcement re-affirms that the Department of Justice will not relent in its multi-pronged efforts to combat the opioids crisis.” You can check out the release and the plea and settlement documents here. In a good piece on the settlement, Law360 asks whether the $8 billion deal means GCs and their companies are at greater risk. John Kelly, a former federal prosecutor and managing partner of Bass Berry & Sims Washington, D.C., office, says he does not think so. "This really is an extraordinary settlement in so many ways, from the total value of the penalties to the dissolution of the company," Kelly told Law360. "I do not think this resolution creates a new normal or increased level of risk for general counsel to manage."

The Shifting Cannabis Landscape

In the recent elections that swept President Trump out of the White House and President-elect Biden to its doorstep, another major shift took place – an acceleration of the legalization of marijuana in the United States. As you can see below, the legalization map is complicated, which raises many issues for employers and GCs who must advise their HR teams. No wonder recent studies project an increase in spending on both inside and outside counsel. The work of corporate legal departments never gets easier.

Recreational & Medical

Medical Only Low-THC Products

No Cannabis Law JAMS announces the addition of Lisbeth M. Bulmash, Esq., to its panel in Dallas.

FTI appoints senior managing director, Myron Marlin, as the head of crisis and litigation communications for the Americas in the strategic communications segment.

Barnes & Thornburg adds Marcantonio W. Barnes as a partner in Washington, D.C. to lead corporate practice group.

McGuireWoods advises private investment firm, Summit Park, and its portfolio company, C.A.R.S. Protection Plus, in the sale of C.A.R.S. to Spectrum Automotive

Elizabeth Stephenson joins AlixPartners as a managing director in Los Angeles.

Onna announces the appointment of Michelle Wideman as its first chief customer officer.

Former FINRA senior officer Elizabeth Hogan joins McGuireWoods’ securities enforcement & litigation team in Washington D.C.

JAMS announces the addition of Hon. Alan G. Perkins (Ret.) to its panel in Sacramento.

Lorie Lazarus and Peter Balance join Stroock as partners in Los Angeles.

Lex Machina, a LexisNexis company, expands on the company’s New York state court analytics.

Akin Gump advises Meritage Group in its acquisition of tire retailer Les Schwab.

OpenText™ announces Enfuse On Air, a digital conference format for investigative reports.

Clifford Chance advises Watford Holdings Ltd. On pending US$700 million acquisition by Arch Group Capital Group Ltd.

Samantha Fugagli joins McNees as an associate in their Harrisburg office.

Wolters Kluwer ELM

Solutions receives patent for AI-powered legal bill review technology, LegalVIEW® BillAnalyzer.

Deanna Oppenheimer

and Simon Paris to join the Thomson Reuters board of directors, effective November 11, 2020.

Kimberly Y. Chainey is named to the position of executive vice president, global general counsel with Aptar.

Nuix and H5 announce a partnership to streamline the classification of corporate data.

SUBMIT YOUR ANNOUNCEMENTS TO

editor@ccbjournal.com

Required Reading Too busy to read it all? Try these books, blogs, webcasts, websites and other info resources curated by CCBJ especially for corporate counsel and legal ops professionals.

WHITE PAPER: U.S. Government

This 22-page white paper, which sports an almost impenetrable title, “Information on U.S. Privacy Safeguards Relevant to SCCs and Other EU Legal Bases for EU-U.S. Data Transfer after Schrems II,” prepared by the Department of Commerce, Department of Justice, and the Office of the Director of National Intelligence, provides a roadmap to the trove of public information about privacy protections related to government access to data for national security purposes. The focus is on issues of concern to the EU Court of Justice (ECJ) in Schrems II (Data Protection Commissioner v. Facebook Ireland and Maximillian Schrems), which upheld Standard Contractual Clauses (SCC) as a basis in EU law for transferring personal data to non-EU countries. The ECJ put the onus on companies transferring data to analyze U.S. law related to intelligence agencies access to data, which is what makes this white paper so valuable.

PODCAST: In House Warrior

Okay, so this is not technically reading, but this daily podcast, moderated by Washington communications guru Richard Levick in partnership with CCBJ, provides keen insight for GCs on topical issues. Recent editions include: “The Burford View of Litigation Finance,” with David Perla, Co-COO of litigation finance powerhouse Burford Capital, talking about the rise of litigation funding and its significantly increased use by corporations and defense law firms as a tool for growth and expansion, and “The New Detectives – The Emerging Power of eDiscovery,” with Hunter McMahon, COO of IDS, talking about the growing power of eDiscovery and how its focus on “just the facts” and its ability to find needles in haystacks makes a dramatic difference in resolving legal disputes. You can find these and other In House Warrior podcasts at levick.com/podcasts.

Contributors

Thanks to the law firms, technology companies, alternative legal service providers, management consultants and other supporters of corporate law departments who share their insights and expertise through the CCBJ network. Your participation is appreciated.

Shahzad Bashir is the president and CEO of Morae Global Corporation. As CEO, he is responsible for the vision and strategy of Morae, as well as providing leadership in hopes of transforming the legal industry for the sake of Morae's clients. Bashir has three decades of experience in legal and financial consulting services. This experience includes the development of business strategies, law department structuring and more. Pg. 28

Ken Crutchfield is the president and general manager of Wolters Kluwer Legal & Regulatory U.S. He leads the Legal Markets group and is responsible for setting the vision and strategic approach with a focus on developing leading digital products. His group aims to provide legal professionals across a wide range of markets with expert content and analysis and leading workflow solutions. Pg. 49

Adam Hilkemann is a partner with Akin Gump. He has great experience with private equity funds, hedge funds and hybrid funds pursuing a variety of investment strategies. Hilkemann also represents both established and emerging fund sponsors in fund structuring and investor negotiations. Pg. 18 Donna Hoffman is the Louis Rosenfeld Distinguished Scholar and professor of marketing and the co-director of the Center for the Connected Consumer at the George Washington School of Business in Washington, D.C. Her current research is focused on using conceptual, empirical and computational approaches to understand consumer experiences with AI. Pg. 54

Tara Jones is a legal services manager with Verizon Media. Verizon Media serves as a division of Verizon Communications for its media and online businesses. Jones has a strong focus in e-discovery. Pg. 46

Kim Keenan is a neutral with JAMS. She has had a long career as a nationally known trial lawyer, mediator and in-house counsel. She has also been recognized for her leadership with multiple multicultural social justice organizations. Keenan has served as a mediator in the United States District Court for D.C. as well as for D.C. Superior Court’s Multi-Door Dispute Resolution Program. Pg. 38

Cynthia Mabry is a partner with Akin Gump. Her practice observes capital markets, securities, mergers and acquisitions, and general corporate matters. Mabry represents public and private entities, investors and underwriters in capital markets and during financial transactions, including offerings of equity and debt securities. Pg. 42 Cort T. Malone is a shareholder in the New York and Stamford offices of Anderson Kill and practices in the insurance recovery and the corporate and commercial litigation departments. He is an experienced litigator, focusing on insurance coverage litigation and dispute resolution. Pg. 13

Vivian C. Michael is an attorney in Anderson Kill’s New York office where she concentrates her practice in insurance recovery. Vivian has helped to recover millions of dollars in insurance assets under liability and property insurance policies sold to banks, government entities, not-for-profits, Fortune 500s, medical practices and small businesses. Pg. 13

Alice O’Donovan is an associate with McGuireWoods in their business and securities litigation department. She works on a diverse range of disputes ranging from the high court to the court of appeal. Pg. 16

Hon. David B. Saxe (Ret.) is a neutral with NAM (National Arbitration and Mediation). Prior to joining NAM, he served as an associate justice, New York State Appellate Division, First Department, for almost 20 years, and he is a highly honored and respected member of New York’s legal community. Pg. 32 Stephanie J. Sprenkle, of counsel in the McNees real estate practice group, where she assists purchasers and sellers in the acquisition and disposition of real property and the development of real estate. She represents tenants and landlords with respect to commercial leasing and financial institutions and borrowers regarding real estate. Pg. 25

Cristin Traylor serves as discovery counsel for McGuireWoods. She oversees a team of discovery lawyers, litigation project managers and legal assistants who provide experienced assistance and strategic advice to clients. Traylor also manages the Richmond Document Review Center. Pg. 16

Mark Wallin, of counsel with Barnes & Thornburg in Chicago, focuses his practice on defending employers in complex workplace class and collective actions in state and federal court. Wallin also defends employers in class action, multi-plaintiff and single plaintiff discrimination litigation by the EEOC and private plaintiffs. Pg. 23

Peter Wozniak is a partner with Barnes & Thornburg in their Chicago office. He represents clients across numerous industries, including transportation and logistics, restaurants, retail, manufacturing and temporary staffing. Pg. 23

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