CLO`s growing sphere of influence is confirmed by the increasing number of functions outside the corporate law department that are now subordinate to them. According to the Association of Corporate Counsel`s 2022 Survey of Chief Legal Officers, 88% of CLOs oversee compliance, 54% assume the role of Corporate Secretary, nearly 50% oversee ethics and privacy, 25% oversee ESG factors, and 24% manage business risk. Interestingly, the survey also found that the trend reversed sharply in 2020. As one of a company`s top executives, OCOL is “in the room” with the CEO, CFO and the rest of senior management; and as an entrepreneur, the legal meaning of the CLO is table insertion. “The most important skill a CLO brings is informed business judgment,” said Kodwo Ghartey-Tagoe, executive vice president, general counsel and corporate secretary of Duke Energy, a Fortune 150 holding company. “Legal know-how can be bought.” While CLOs are expected to drive business growth, they still have a duty to ensure that their businesses operate to the highest ethical standards. This can be well summed up by Benjamin W. Heineman Jr., the former general counsel of General Electric, who wrote: “For the statesman-lawyer, the first question is, `Is this legal?` But the ultimate question is, `Is this true?` Because a CLO understands the overall business objectives and mission of the company, a CLO can examine the legal aspects of a business decision through the lens of a successful business. Competent in-house legal talent is an important part of your company`s team, and it`s necessary to find the best legal talent if you expect to be competitive in today`s economy. You can`t afford to make mistakes if you find the right candidate for the position of Chief Legal Officer, Legal Counsel, General Counsel or other key legal positions. In addition to preventing violations of the law, the Attorneys General are expected to provide strategic planning advice to the management team.
In fact, many directors believe that one of the most valuable functions of the General Counsel is to advise the board of directors as well as the management team on business strategy. At Cowen Partners, we take a proactive approach and have a private network from which we can select qualified candidates to meet your needs. Our legal recruitment team can find you the best talent who not only has the right qualifications, but also someone who connects with the management and culture of the company. We are also incredibly punctual. An experienced legal recruitment firm facilitates the entire hiring process with: When hiring a general counsel, you want to make sure you choose someone who not only understands the legal aspects of your business, but can also handle the more strategic aspects of running a business. With that in mind, here are some important features to look out for in a CLO. Environment, social and governance (ESG) are an excellent example. As Secretary General, Ghartey-Tagoe ensures that Duke Energy`s Board of Directors is informed of the Company`s efforts in this important area, including the Board`s update on the Company`s climate initiatives and progress towards the Goals, as well as more formal presentations. “As the custodian of our company`s long-term value, the board`s role as environmental oversight is crucial. Our goal is to achieve net-zero carbon emissions by 2050. The Board trusts duke energy`s management team and myself to help them understand what this means and how we`re going to get there,” said Ghartey-Tagoe.
A general counsel is a more traditional leader in a company. The GC focuses on managing a company`s legal compliance and corporate governance. What executives are beginning to realize is that general counsel can provide better legal advice if they have a deep understanding of the company and the industry. A GC participates in important contract negotiations and regularly makes effective business decisions. Today`s business leaders turn much more to a general counsel than to a legal advisor. Expectations for CMs are high, and these expectations are unlikely to change in the future. When looking for a general counsel, it would be wise to look for a candidate with an interscholastic background in business or someone who has extensive work experience. When looking for a general counsel, most directors and officers are looking for someone with certain key attributes: A crucial CLO is essential to successfully manage the legal aspects of your business. They don`t want someone in the role who thinks about decisions for weeks. You want a confident CLO that can address a legal issue, effectively analyze the benefits and risks, and then move the process forward in a timely manner. The role of General Counsel is also more closely aligned with a high-level lawyer who ensures compliance with the company`s legal obligations. Some of the main tasks of a GC are listed below.
Joanne Caruso, executive vice president and chief legal and administrative officer of Jacobs Engineering Group, a global design, engineering and technology solutions company that works with businesses, cities and governments in 50 countries, says legal skills take a back seat in these conversations. “My role doesn`t just require me to understand the strategy and help with its successful implementation,” says Caruso. “I`m also involved in development.” Some of the responsibilities of the General Counsel are listed below. In-house legal advice is invaluable to a company. They understand the specifics of your business, allowing them to better understand the risks and potential threats your business faces. High-level positions responsible for your company`s legal affairs are all the more important as they oversee the entire company`s legal team. However, if you are interested in a more engaging role for your business that can provide business value in addition to providing legal advice, the Chief Legal Officer is the best choice. CLO`s role has recently gained a lot of momentum, being listed as the sixth fastest leadership title of 2020 with 23% growth, according to Workforce Insights.
While a company`s Chief Legal Officer (CLO) has long been considered one of the leaders in senior management, the pandemic`s shutdown of the global economy has made CLOs the central figures in dealing with an avalanche of unprecedented and unexplored business challenges as they take on new roles in their organizations. Establishing a relationship of trust and transparency between OCOL and the Board of Directors has always been crucial. Boards of Directors rely on OCOL to provide information essential to their ability to carry out their fiduciary and oversight functions. “The Board expects me to provide proactive advice on the business, industry and competition landscape,” says Ghartey-Tagoe. “They expect me to help identify problems before they become legal risks. And at no other time has it been more important than today to educate the board about the rapidly changing and sometimes contradictory regulatory landscape. You may be considering hiring a general counsel or general counsel to handle your company`s legal affairs, but you may not know which position is best for your business.