21 st CENTURY CHIEF LEGAL OFFICER SERIES Using Data and Building Your Influence April 9, 2018
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1 21 st CENTURY CHIEF LEGAL OFFICER SERIES Using Data and Building Your Influence April 9, 2018 Panelists: Eric J. Dale, Chief Legal Officer, Nielsen, New York, NY Sara Hall, Chief Legal Officer and General Counsel, ALSAC/St. Jude, Memphis, TN Moderator: Justin Connor, Director of Chief Legal Officer and Stakeholder Engagement, ACC, Washington, DC Association of Corporate Counsel
2 Meet the panelists Eric Dale Chief Legal Officer, Nielsen Sara Hall Chief Legal Officer and General Counsel, ALSAC/St Jude
3 About The ACC Chief Legal Officers 2018 Survey Represents input from 1,275 CLOs and GC around the world Discusses the evolution of the CLO role and the driving forces that have ushered in the Age of The Chief Legal Officer Provides insight on what keeps CLOs up at night Contains valuable legal department metrics to help CLOs make data-driven business decisions. Data sourced from the ACC Chief Legal Officers 2018 Survey
4 THE EVOLVING ROLE OF THE CHIEF LEGAL OFFICER
5 The Age of The Chief Legal Officer Business decisions are often legal decisions Reports to CEO Engagement Global Average Africa/Middle East 64% 55% Does not report directly to CEO Reports directly to CEO Asia Pacific (excluding AUS/NZ) Australia/New Zealand 42% 68% Almost always attend board meetings 59% 81% Canada Europe 53% 52% Frequently meet with business leaders to discuss operational issues and risk areas 56% 69% Latin America/Caribbean US 50% 70% The executive leadership team frequently seeks my input on business decisions 47% 65%
6 Top ranked ways CLOs add value to their company today #1 Providing legal advice/managing legal matters #2 Providing input into strategic business decisions #3 Proactively addressing legal/regulatory trends How about in five to 10 years from now? Providing strategic input displaces providing legal advice as the top ranked value-add activity for CLOs. #4 Counseling the CEO The percentage of CLOs ranking proactively addressing legal/ regulatory trends as a top three value-driver rose 38 percentage points since 2013.
7 ISSUES KEEPING CLOS UP AT NIGHT
8 Top Issues for CLOs: Regulations, breaches and privacy Rated extremely or very important Regulatory or governmental changes Data breaches Information privacy 74% 70% 68% Company experienced the following in the past two years Highest percentage of CLOs reporting recent patent troll: Retail industry (36%) Data Breach 27% Highest percentage of CLOs reporting recent breach: Education (45%) Retail (43%) Healthcare (41%) Technology developments 59% Patent troll (NPE) Regulatory investigation Ethics and compliance 56% 15% 29%
9 LEGAL AND BUSINESS METRICS
10 Metrics and Management 28 percent anticipate adding lawyers 56 percent expect increase in budget 63 percent use a combination of hourly billing rates and alternative fee arrangements Median 11 lawyers per US $1billion in company annual gross revenue One in three CLOs intend to increase the amount of work they send to law firms in 2018 (17 percent expect a decrease)
11 Data and Metrics for Business Decisions Law Department Benchmarks A full set of metrics can be found in the full report Legal department spend by company revenue Internal spend as a percent of revenue External spend as a percent of revenue Outside counsel spend as a percent of total spend Lawyers per $1billion in revenue Legal staff per $1billion in revenue Revenue per lawyer Internal spend per lawyer External spend per lawyer Total legal spend per lawyer Total legal spend per legal staff Cost per lawyer hour Number of contracts handled per lawyer Number of contracts handled per legal staff Number of litigation matters handled per lawyer
12 Drill Down Examine metrics based on your department/company profile and make connections among data points most relevant to you Outsourcing work influences staffing and budget Median number of litigation matters handled annually varies dramatically by company annual gross revenue
13 Q&A
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15 Thank you for attending another presentation from ACC s Webcasts Please complete the evaluation form for this program. Your comments and ideas are helpful in planning future programs. If you have questions about this or future webcasts, please contact ACC at webcast@acc.com This and other ACC webcasts have been recorded and are available, for one year after the presentation date, as archived webcasts at For more information about ACC or content in this presentation, please contact: Justin A. Connor Director of Chief Legal Officer & Stakeholder Engagement Association of Corporate Counsel 1001 G St. NW, Suite 300W Washington, DC j.connor@acc.com Direct: Main: Fax: Mobile: Robin Myers Director of Research Association of Corporate Counsel 1001 G Street, NW Suite 300W Washington, DC r.myers@acc.com Tel: extension 396
21 st CENTURY CHIEF LEGAL OFFICER SERIES Using Data and Building Your Influence April 9, 2018
21 st CENTURY CHIEF LEGAL OFFICER SERIES Using Data and Building Your Influence April 9, 2018 Panelists: Eric J. Dale, Chief Legal Officer, Nielsen, New York, NY Sara Hall, Chief Legal Officer and General
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