As Chief Legal Officers Face More Pressure, Pay Rises and External Hiring Grows

Chief Legal Officers (CLOs) are increasingly among companies’ top-paid executives, reflecting the role’s growing importance.

From 2022 to 2025, the share of CLOs named among the five highest-paid executives within companies increased by 10% in the S&P 500. And during the same timeframe, median CLO compensation grew by 27%, from $3.3 million to $4.2 million.

Moreover, as the demands on CLOs intensify, companies are casting a broader net to find talent: From 2022 to 2025, the share of externally hired CLOs rose from 50% to 58%.

“The CLO role continues to expand in visibility and value as legal, regulatory, and governance risks become more central to business strategy. The rise in external hiring suggests boards are prioritizing fresh perspectives and specialized experience as they navigate an increasingly complex risk landscape,” said Ariane Marchis-Mouren, coauthor of the report and senior researcher at The Conference Board.

These findings come from a new report by The Conference Board in collaboration with ESGAUGE and the legal search firm Major, Lindsey & Africa. Findings are based on public disclosure data from 2022 to 2025.

CLO compensation

Climbing the economic ladder: More CLOs are now among firms’ five highest-paid executives.

• S&P 500: From 2022 to 2025, the number of CLO NEOs (Named Executive Officers) increased by 10%.
• Russell 3000: Increased by 11% over the same period.

CLO pay increases with company size, widening the gap between large-cap and smaller firms.

• S&P 500: From 2022 to 2025, median compensation rose by 27% from $3.3M to $4.2M.
• Russell 3000: Rose by 11%, from $1.9M to $2.1M.

External hiring

The tables have turned: External hires are now more likely to become CLOs than insiders.  

• S&P 500: From 2022 to 2025, the share of external hires increased from 50% to 58%.
• Russell 3000: Increased from 50% to 60%.

Turnover

Does performance drive turnover? CLO turnover is nearly the same across performance tiers.

• S&P 500: CLO succession in the top three quartiles is 11.4%, compared to 11.9% in the bottom quartile.
• Russell 3000: Succession in the top three quartiles is 8.3%, compared to 9.9% in the bottom quartile.

“CLO turnover is relatively steady regardless of company performance, which signals this is not a role managed on short-term results. Boards are taking a longer view when evaluating CLO performance—placing a premium on judgment, trust, stability, and deep familiarity with the business when it comes to their top legal advisor,” said Lee Udelsman, Managing Partner at Major, Lindsey & Africa.

CLO turnover stays within a narrow range but fluctuates year to year.

• S&P 500: From 2022 to 2025, succession rate saw an uptick from 11.5% to 11.6%.
  • However, there was a peak in 2024 (14.2%).
• Russell 3000: Decreased from 14.2% to 8.7%.

Tenure

CLO roles continue to favor experience, with average age slightly increasing.

• S&P 500: From 2022 to 2025, the average CLO age increased from 55 to 56.
• Russell 3000: Increased from 53 to 54.

CLO tenure is declining at large companies, suggesting shorter time in the role.

• S&P 500: From 2022 to 2025, average CLO tenure decreased from 7.4 years to 6.6 years.
• Russell 3000: Slightly decreased from 6.6 years to 6.5 years.

“The CLO role today goes far beyond traditional legal oversight. CLOs have become key strategic partners to CEOs and boards, helping companies navigate everything from enterprise risk and regulatory complexity to governance challenges and geopolitical uncertainty. The trends we’re seeing—from rising compensation to greater emphasis on experience—reflect how central the role has become to business strategy,” said Brian Campbell, Leader of The Conference Board Sustainability & Governance Center.

Gender

Progress loses momentum: Women CLO representation has seen little movement.

• S&P 500: From 2022 to 2025, the share of women CLOs inched up from 39.7% to 40.1%.
• Russell 3000: Share grew modestly from 33% to 35%.

Male and female CLO pay remains closely aligned, including at large companies.

• S&P 500: Women CLOs earned $3.8M at the median, compared to $4.2M for men CLOs.
• Russell 3000: Women and men earned the same at the median ($2.1M).