General Counsel and the Board: Building Lasting Influence

In July we asked whether the GC seat is becoming a launchpad to the CEO role. In August we looked at how far the remit has grown. This month, James Franklin looks at how General Counsel turn that remit into lasting influence with the board.

Most advice to General Counsel on influence with the board stops at “be commercial, pick your moments, bring solutions.” Any GC who has held the seat for a year or two already does this instinctively. However, the most effective GCs go further. They are trusted partners to the CEO and valued advisors to the board. At the same time, they protect the company’s long-term interests.

This balance matters more as the remit expands. Today, GCs cover AI, regulatory change and enterprise risk on top of the legal function. As a result, their influence depends on the relationships they build across the top of the organization.

This is especially true in Financial Services. The GC of a bank, insurer or asset manager sits across the issues boards care about most. These include regulatory exposure, conduct risk, financial crime, operational resilience and technology risk. Regulators also expect boards to challenge and evidence their oversight. That is why directors increasingly want a legal perspective they can rely on directly.

How General Counsel Build Trust With the Board

The 2026 ACC Chief Legal Officers Survey drew on more than 1,000 legal leaders across 43 countries. It found that 84% of CLOs now report to the CEO, up from 79% a year earlier. Only 1% report formally to the board. Yet more than half (52%) communicate with the board directly. In fact, that is where much of a General Counsel’s influence with the board is built.

The CEO relationship is the foundation. Earlier ACC analysis shows why. Among CLOs who report to the CEO, 70% are almost always consulted on business decisions. For those who report elsewhere, the figure falls to 46%.

The strongest General Counsel then build a direct relationship with the board. This does not compete with the CEO. Instead, a GC the board trusts strengthens the whole leadership team. The board can then take the executive’s plans forward with confidence.

For US Financial Services firms, this is particularly valuable. Directors’ oversight responsibilities have come into sharper focus in recent years. Bank regulators have also long set clear expectations for how boards oversee risk management. A GC trusted by both the executive team and the board gives directors greater confidence. It also helps the board evidence its oversight to regulators.

A Voice the Board Seeks Out

The most influential GCs rarely wait to be invited. Instead, they become a natural part of how the board works. They attend board and committee sessions regularly. They prepare well on the issues directors care about most. And they give a clear, candid view when the stakes are high.

Many US companies still combine the Chair and CEO roles. In that case, a strong relationship with the lead independent director is one of a GC’s most valuable assets. It gives the board a trusted legal perspective. It also gives the CEO a GC whose advice carries weight with directors.

AI: Where General Counsel Can Lead

AI is the clearest example of the opportunity. CLOs are increasingly expected to lead AI adoption. The 2026 survey also shows that CEOs expect legal leaders to become fluent in it. In Financial Services, AI already shapes credit decisions, fraud detection, client communications and compliance monitoring. Executive teams want to move with speed. Boards, on the other hand, want confidence that oversight is keeping up.

This is where General Counsel with real influence on the board stand out. They can support the business to move quickly. At the same time, they give the board a clear view of how the business is managing the risks.

Board Experience as a Leadership Asset

A growing number of senior GCs now hold board roles of their own. Most serve as independent directors at other organizations. This ties directly to the leadership pipeline we explored in July. Sitting on the other side of the table shows a GC what directors need from their advisors. For Financial Services GCs, regulatory and risk experience is highly valued on boards across the sector.

The GCs who do this well usually choose board roles outside their own organization. This keeps their responsibilities clear. They then bring that broader perspective back to their day job.

A Seat in the Strategy Cycle

That 70% versus 46% gap shows the value of early involvement. The most effective GCs join the strategy conversation from the outset. They do not limit themselves to deal and contract review. They also show the business what early involvement delivers: faster decisions, greater confidence and better outcomes.

What This Means for Law Firms

For Law Firm partners advising Financial Services clients, the GC’s standing with the board matters. A GC trusted by the board is the route through which outside counsel’s advice reaches decision makers. Firms that understand what boards ask of their GC are best placed to support them.

Law Firms are also a vital talent pool for future in-house leaders. Lawyers considering a move into a regulated firm should value board exposure as much as technical depth. Often, the ability to explain complex regulatory advice to directors sets the strongest candidates apart.

How General Counsel Build Board Trust From Day One

For General Counsel, influence with the board is easiest to establish at the start of a role. The conversations that shape how a GC works with the CEO and board often happen during the appointment. In regulated Financial Services firms, those conversations deserve particular care.

For boards, CEOs and HR leaders

• Involve the lead independent director or nominating and governance committee in the GC appointment.
• Look for candidates who have built trust beyond their direct reporting line. Strong candidates also engage confidently with regulators as well as directors.
• Set out board access, executive session attendance and the reporting line clearly in the role specification and offer.

For GCs, Heads of Legal and lawyers moving in-house from a Law Firm

• Ask how the GC works with the board today. Find out whether you will meet independent directors during the process.
• Understand what the business and the board most want from the role in its first year.
• If you are a deputy or senior counsel, look for chances to present to the board and its committees. Board-ready successors stand out.

“The General Counsel we see thriving have built strong relationships with both the CEO and the board. US boards increasingly want that from day one. In the Financial Services searches we run, board access is now part of the offer stage conversation. The strongest candidates raise it early.” James Franklin, Managing Director, Head of Legal, Danos Group

The Takeaway for General Counsel and the Board

Speaking commercially, picking your moments and bringing solutions are the foundations of the role. However, the most effective General Counsel go further. They hold the trust of the CEO who champions them and the board that governs. They also protect the company’s long-term success.

In Financial Services, board oversight is under constant scrutiny. That makes this combination especially valuable. General Counsel who get it right build lasting influence with the board. They become the advisor the CEO and board turn to first when a decision really matters. And, as we saw in July, boards increasingly look to them when choosing their next leaders.

If this is a conversation your board or leadership team should be having, we would welcome the chance to talk. Please contact James Franklin at jfranklin@thedanosgroup.com.

Sources: ACC Annual Chief Legal Officers Survey 2026, presented by FTI Consulting; earlier ACC CLO Survey analysis on reporting lines and consultation.