Compensation Policies Critical To Address Gender Pay Gap At GC-Level

There is good news, and certainly some bad news, when it comes to the gender pay gap. The good news is that a recent report by Russell Reynolds Associates found that 67 percent of the 43 lawyers named general counsel (GC) of Fortune 500 (F500) companies last year were women — marking the first time women outpaced men in these appointments. This comes a year after women made up almost half of those named to the top legal spot of said companies. And more good news—the study found that 38 percent of general counsel appointees were ethnically diverse, another first.

The numbers are encouraging, indicating that women are making important strides in the legal industry and business community. However, as women continue to work toward greater equality in the workplace, there is one glaring area where equity is unfortunately still not a reality—compensation.

It’s no secret women have historically made less than men, many entering what we may consider the “modern workforce” well behind their male counterparts. Yes, the wage gap has narrowed in some countries. But now the bad news. Since 1979 in the United States, for example, women earned 62 percent of what men did. When compared to numbers from the US Bureau of Labor Statistics 2022 report, we find that full-time female employees earned only 82.9 percent of what full-time male employees earned. Progress, it seems, is slow and the gap, any gap in my opinion, remains too big.

A Few Ideas to Consider

It takes an intentional, robust, and comprehensive approach to make a meaningful difference when it comes to driving equity at all levels of your organization. At ACC, we strive to foster an environment that is inclusive in every way, and therefore adopted several policies related to compensation.

1. Prohibit HR from asking questions concerning current salary during the interview process. Different organizations have different internal pay structures, not to mention varying ways of defining positions, organizational levels, and more. These questions can often lead to continued wage disparities and potentially deny a candidate the salary that has been determined for that position.

2. Regularly benchmark employee salaries against market to ensure you remain competitive, especially as it relates to tenured employees.  In collaboration with Quatt Associates, ACC conducts a competitive analysis of staff salaries every three years. This analysis includes historical salary data for each employee, as well as market data based on the position and time in said position.

3. Once a “best offer” base salary is shared with a candidate for employment, do not authorize HR to engage in counter negotiations.

Your best offer should be competitively based on market data, as well as aligned with your internal salary structures, which ensures balance and equity across the organization.

4. Consider unconscious bias training for all leaders and staff. ACC provided a two-part unconscious bias training for all ACC staff and the board of directors. This training included a session on common biases and methods to combat them, and a strategically focused session based on ACC’s organizational goals.

It’s no secret that better business outcomes are achieved through a diversity of thought and perspective. When women are included in these spaces – just as when people of color, various sexual orientation, or physical ability are as well – a more complete perspective can be brought to the table. To achieve that, diversity, equity, and inclusion cannot remain buzz words – they must come to life within our policies, practices, and procedures. Invest in those checks and balances to ensure that your company attracts the best and the brightest or lose out to companies who get it. Equal pay for equal work is a significant part of that equation and cannot be a catchphrase, it must be the reality.

“The total compensation values reported in ACC’s 2022 self-reported survey included only base salaries and short-term incentives/cash bonuses and did not capture long-term incentive valuations.”