Legal Leadership for Businesses—Without the Overhead
Legal expertise isn’t just advantageous for businesses, it’s critical for growth. However, for many companies, the prospect of hiring a full-time General Counsel with a six-figure salary and a benefits package just isn’t in the budget or the scope.
According to the 2024 ACC Law Department Compensation Report, the median cash compensation for a General Counsel or Chief Legal Officer is $414,000, before factoring in long-term incentives. In larger companies, these costs are even higher.
Strategic rightsourcing is gaining traction as companies are increasingly turning to Fractional General Counsel (FGCs) as a flexible and cost-effective solution for their senior-level legal needs.
This growing shift toward FGCs reflects a change in how businesses are accessing senior-level legal expertise, without the added cost or overhead. But beyond cost-savings, an FGC serves as a trusted advisor, building a relationship with your company to understand its unique challenges and opportunities.
What Does a Fractional General Counsel do?
A fractional general counsel is an individual hired by a company on a part-time or flexible arrangement to provide senior-level legal guidance. Similar to the fractional executive roles in other C-Suite functions like CFO, CMO and CTO, an FGC provides strategic legal leadership much like an in-house General Counsel would, but without requiring a full-time salary.
Yet, the FGC is embedded into the company’s operations and acts as an extension of the team and their services may scale based on the company’s needs. This flexibility allows businesses to determine how much legal support they need, while the FGC benefits by having a portfolio of clients and different projects to work on outside of that company.
Fractional General Counsel may provide day-to-day legal support, including:
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M&A
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Overseeing litigation
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Contract negotiations
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Risk management
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Regulatory compliance
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Corporate governance
Key Skills and Experience of a Fractional General Counsel
Former Big Law or Senior In-House Experience
Many FGCs have worked at prestigious law firms, or served as in-house GCs at Fortune 500 companies, bringing a wealth of knowledge and skills to their roles. Due to their background, they might have a deep understanding of complex legal issues, strategic ways to mitigate risk, or the ability to negotiate after years of practice.
Generalists versus Specialists
FGCs call themselves generalists because they can typically provide more generalized support, which is an asset to a growing company. They have knowledge across many different areas from corporate law to employment law.
Business-Minded Approach
FGCs understand the complexities of a business, so they can help companies navigate issues while keeping both legal and business considerations in mind. This strategic partnership can be a huge value-add as the company works with the FGC to find solutions that align with their business objectives.
Who Benefits Most from a Fractional General Counsel?
FGCs are an ideal solution for companies that need senior-level legal expertise, but don’t have the need or budget for a full-time General Counsel. And unlike Big Law firms that provide external support, FGCs become part of the team, offering business-minded legal leadership without the delays and bureaucracy of a bigger firm.
FGCs can ramp their work up or down depending on a company’s needs, saving resources in the long-run. This means businesses can better manage workload fluctuations and budget constraints as needed.
One of the biggest reasons companies seek out FGCs is because they are a flexible alternative to Big Law. Companies can hire the same high-quality talent for a fraction of the cost.
Here are some examples of who might benefit from an FGC:
Small and Mid-Size Companies
For growing businesses that need more than ad hoc legal support but aren’t ready for a full-time GC, an FGC can provide strategic guidance at a cost they can afford.
Start-Ups Scaling Their Operations
As startups grow, they often face challenges in areas such as employment law, contracts, and regulatory compliance. For example, a software company that’s secured its first major enterprise client may need contract structuring, while a manufacturing business expanding into international markets will need help with risk management. In these situations, an FGC can provide day-to-day legal support to help navigate these complexities.
Companies in Transition
Businesses going through massive growth, preparing for funding rounds, or planning acquisitions, face legal challenges that require seasoned legal leadership. The company may not be at a stage where they are ready for a full-time hire.
The Decision Point: Is a Fractional General Counsel Right for Your Business?
An FGC makes the most sense when your company:
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Has reached a level of complexity that requires more strategic legal guidance
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Needs senior-level legal expertise but cannot justify a full-time executive hire
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Is navigating a major change and requires assistance with events, such as an M&A
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Needs to implement legal systems and processes as the business scales
Fractional General Counsel are on the rise as companies embrace flexible talent as part of their resourcing strategy. The FGC model is a solution to a common dilemma which is: how to access flexible, senior-level legal expertise without traditional costs.
This solution changes the entire relationship between businesses and their legal counsel, creating new possibilities for companies at every stage of growth.
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