Compensation Study Reveals In-House Counsel Expected Carry Value at Private Equity Firms

Download BarkerGilmore’s 2023 Report to See Average Private Equity and Portfolio Company Salary Data

BarkerGilmore, a boutique executive search firm recognized for helping companies build world-class legal and compliance departments nationwide in multiple industries and practice areas, has released its 2023 Private Equity and Portfolio Company In-House Counsel Compensation Report. The data was collected from a random sample of private equity and portfolio company professionals throughout the United States via an online survey administered in March 2023.

“As the private equity space continues to grow, we are seeing consistent demand for lawyers and compliance officers at both the firm and portfolio company level. This is generating a noticeable impact on compensation and responsibilities for these professionals,” said John Gilmore, Founding Partner of BarkerGilmore. “BarkerGilmore’s report emphasizes the opportunities and rewards for General Counsel, Chief Compliance Officers, Managing Counsel, and Senior Counsel as they navigate the realm of private equity, serving as legal experts and strategic business advisors.”

Key trends revealed by the report include:

Private Equity Firm

General Counsel:

• Once a private equity firm’s AUM exceeds $1B, General Counsel compensation and carry eligibility increase significantly.
• At funds surpassing $10B in AUM, General Counsel enjoy annual median compensation of $1.19M, with a significant 90% of them eligible for carry, and an expected carry value of $9M.
• Among General Counsel at PE firms, the majority (83%) have additional responsibilities beyond legal, with 85% serving as Chief Compliance Officer and 44% acting as Corporate Secretary.

Chief Compliance Officer:

• Chief Compliance Officers at funds exceeding $10B in AUM earn an annual median compensation of $538K, with 40% qualifying for carry and an expected carry value of $3M.
• Carry eligibility for Chief Compliance Officers ranges from 25% at sub-$1B AUM funds to 40% at $10B+ AUM funds.
• Among those surveyed, Chief Compliance Officers are most inclined to pursue new job opportunities based on compensation, with 40% indicating a high or very high likelihood.

Managing Counsel:

• While 30% of Managing Counsel at funds with less than $1B in AUM receive carry, this doubles to 60% for those at funds with greater than $1B in AUM.
• At funds surpassing $10B in AUM, Managing Counsel annual median compensation is $535K, and an expected carry value of $1.8M.

Senior Counsel:

• The percentage of Senior Counsel receiving carry varies slightly between 33%-36% depending on the PE firm’s AUM size.

Portfolio Companies

General Counsel:

• The General Counsel’s median salary at portfolio companies scales slightly with revenue, ranging from $284K at firms with under $500K in revenue to $357K at firms exceeding $5B+ in revenue.
• The General Counsel’s total compensation is most impacted by the cash bonus and LTI, with those at portfolio companies with $5B+ in revenue earning a median of $1.4M.
• Eighty-one percent of General Counsel at portfolio companies report to the CEO.
• General Counsel at portfolio companies are likely to serve as Corporate Secretary (72%) and Chief Compliance Officer (53%).

Managing Counsel:

• Long-term incentive for Managing Counsel at portfolio companies is most likely to be in stock options and RSUs.

Senior Counsel:

• Senior Counsel at portfolio companies are unlikely to have LTI.

To view the complete study, visit the 2023 Private Equity and Portfolio Company In-House Counsel Compensation Report.

About BarkerGilmore

Founded in 2006, BarkerGilmore is a boutique executive search, coaching, and advisory firm dedicated to building high-performing and diverse legal and compliance teams that drive business success.

Our distinguished team of professionals, including renowned General Counsel and Chief Compliance Officers, alongside expert executive search consultants, sets us apart. The combined national reach, established industry relationships, and proven CustomFit^SM assessment process ensure we excel in executing the most demanding and high-profile searches. Our team’s broad industry experience empowers us to assist clients in recruiting and developing top-tier talent effectively.

We measure our success by our high client satisfaction rates, exceptional search completion rates, strong diversity track record, and impressive stick rates.