General counsel in the US are less trusted by senior management than are chief financial officers (CFOs), a survey has revealed, and appear to inspire less confidence than their UK counterparts.


A survey of more than 60 chief executive officers (CEOs) at Fortune 500 companies, commissioned by US firm Dickstein Shapiro Morin & Oshinsky and Corporate Legal Times magazine, revealed that 44% of CEOs regard the CFO as the person they most trust on their team. Just 21% said they placed the most faith in general counsel.



Less than one-fifth of CEOs said they left the selection of outside lawyers entirely to the general counsel, while almost a quarter said they had considered outsourcing the legal function entirely.


Only 19% of respondents were completely satisfied with their general counsel's use of outside counsel, while 73% said they were somewhat satisfied. Some 14% said they considered their lawyer relied too heavily on external counsel.


Chris Arnull, associate general counsel at global accountancy firm KPMG, said: 'The more commercial role of lawyers in the US can be a two-edged sword. In the UK, lawyers have not generally managed to get onto the board, but they are more trusted for their integrity and professionalism.'


He added: 'The fact that so few general counsel are given full responsibility for choosing external counsel in the US is part of the trust issue. General counsel do not necessarily stay in a company indefinitely and CEOs may be concerned that they are looking for close relationships with firms for when they leave. In the UK it is recognised that lawyers are best placed to know when firms' claims about expertise are justifiable.'


Legal budgets in the US look set to rise at a steady pace according to the survey, with almost half of CEOs anticipating growth of 1-15% over the next year. A quarter of respondents said they did not plan to increase the budget at all, while 5% expected an increase of 15-30%.