The Emergence of the CLO Title in Corporate Leadership

Chief Legal Officer role in modern corporations is changing.

The Emergence of the CLO Title in Corporate Leadership

In recent years, a new title has emerged that is reshaping the legal landscape in corporations: the Chief Legal Officer (CLO). This title, once a rarity, is becoming increasingly common, signaling a shift in the perception and role of legal professionals within the business hierarchy.

The Emergence of the CLO Title

The title of Chief Legal Officer suggests a strategic business leader and adviser, a role that extends far beyond the traditional boundaries of legal matters. This is reflected in the growing trend of companies bestowing this title upon their top legal professionals. According to a recent survey by the Association of Corporate Counsel (ACC), 28% of legal chiefs now go by CLO, a significant increase from 21% two years ago and just 10% in 2012.

Disney’s CLO

Disney is one of the companies leading this trend. In December, the company’s board decided to reward General Counsel Horacio Gutierrez for his excellent work with a contract extension, a raise, and a change in title to Chief Legal Officer. This move not only recognized Gutierrez’s contributions but also signaled Disney’s commitment to elevating the role of legal professionals within its corporate structure.

The Expanding Role of Legal Chiefs

The shift in title reflects the reality that the roles of general counsel have broadened significantly. Today’s legal chiefs are not just legal advisers but also trusted advisers to business unit leaders, the C-suite, and the board. They often oversee an array of nonlegal functions. The ACC survey found that 58% of respondents oversee at least three business functions beyond legal, and 27% oversee five or more.

The Power of the Title

Sonya Olds Som, global managing partner of Diversified Search Group, explains that the title of ‘Chief Legal Officer’ can be an alluring carrot for job candidates as it describes an attorney with a corporate leadership role and significant clout. It can even suggest a potential line of succession to the CEO.

However, Som and other recruiters caution that it would be a mistake for candidates to accept or pass on job opportunities based on title alone. There are many general counsels with enormous clout, sometimes far more than someone at another company with the CLO title. Prime examples are Kate Adams, the general counsel of Apple, and Amazon General Counsel David Zapolsky, both of whom rank among the highest-paid executives at their companies.

The Future of the CLO Role

Regardless of title, companies’ top lawyers sit higher in the corporate hierarchy than they once did. The latest ACC survey found 82% of legal chiefs report to the CEO, compared with 64% in the ACC’s 2009 survey.

“There’s been this movement toward looking at general counsel and saying, ‘This is someone who knows our business well, who understands business generally, and can be a real leader internally and externally on issues besides the law,” Som said.

The rise of the Chief Legal Officer title is a testament to the expanding role and increasing importance of legal professionals in the corporate world. As the responsibilities of these roles continue to evolve, so too will the titles and the power they hold. The future of the corporate world may very well be shaped by these legal power players.

Legal.io Logo
Welcome to Legal.io

Connect with peers, level up skills, and find jobs at the world's best in-house legal departments

Legal.io Logo
Welcome to Legal.io

Connect with peers, level up your skills, and find jobs at the world's best in-house legal departments