When interviewing for a general counsel (GC) position, it’s natural to aspire for a direct reporting relationship with the CEO. Such an alignment often enhances the perceived influence and importance of the legal function within the organization. However, a direct link to the CEO isn’t always feasible due to a variety of factors, not the least of which is the sheer number of direct reports the CEO may already manage. The CEO might already have 11 direct reports, making it impractical to add more without overburdening their schedule, transforming their day into a series of 1:1s and performance reviews, and detracting from time spent running the company.
While having a direct line to the CEO is desirable—often enhancing job titles and pay—it shouldn’t be viewed as a dealbreaker. Rob Chesnut, who has written about this issue extensively, suggests more nuanced thinking; being a direct CEO report isn’t the sole factor determining a GC’s success. The legal function’s strategic importance to the company should be honestly assessed. For companies deeply entrenched in regulatory challenges or litigation, a GC reporting to the CEO might be essential. But for others, access and respect may matter more than formal hierarchical structure (Bloomberg Law).
The relationship dynamics within the executive leadership team and the decision-making processes also play critical roles. Ensuring the legal team is valued and the GC has direct access to the CEO and board can often overshadow the formal reporting line. Chesnut advises that being part of an executive leadership team, having regular 1:1s with the CEO, and possibly holding a title such as Chief Legal Officer, may more effectively reinforce the GC’s influence within the company.
Understanding why certain roles report directly to the CEO, while others do not, can provide further context. The allocation of direct reports might not always reflect the current strategic priorities but could be an outcome of incremental decisions made over time. Selecting a reporting line to the COO or CFO that best supports legal’s strategic role might often be more beneficial than a token title on an organization chart.
Legal professionals considering GC roles should weigh these factors carefully. Access to top leadership, respect within the organization, and a supportive reporting line can collectively create a conducive environment for a successful tenure—even if that means not reporting directly to the CEO.
To read more from Rob Chesnut on this topic, visit Bloomberg Law.