ARTICLE
The role of the GC in India has undergone a significant transformation over the past few years. Traditionally viewed as legal advisors confined to the periphery of corporate decision-making, GCs in India now find themselves at the very forefront of strategic decision-making, risk management, and corporate governance. This evolution reflects the growing complexity of legal challenges faced by Indian businesses and the increasing importance of legal expertise in driving organisational success. In today's dynamic business environment, GCs are no longer confined to providing legal opinions and drafting contracts. They are strategic advisors who actively participate in shaping the business strategy, identifying opportunities and mitigating risks. By collaborating closely with senior management and other business functions, GCs contribute to the formulation and execution of corporate strategies, ensuring legal compliance and minimising legal exposure. In particular:
Over the past two years or so, I have noticed a distinct increase in demand for senior and general counsel from established Indian multinationals, the plethora of start-ups that have sprung up across the country and US and European multinationals looking to expand or enter the Indian market. This has led to considerable wage inflation with candidates generally unwilling to move for anything less than a 30% uplift in their total compensation.
Whilst the increase in compensation for GCs is welcome, I still encounter a number of MNCs looking for their first-time GC hires in India and entering the market with an outdated assumption of what they can pay (a notion that I tend to dispel rather quickly when I inform them that our minimum fee to handle the search can be more than the annual salary on offer!). Additionally, there are still a significant number of GCs who still report to the CFO and/or do not have a seat on the leadership team which, given both the challenges and opportunities the current climate presents, is clearly not in line with what should be best practice.
In summary, there are very positive developments for the GC community in India, and I look forward to witnessing further growth over the coming years!