CLOs as Strategic Advisors: Global Growth and Opportunity

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A global majority (79 percent) of CLOs report directly to the CEO in their companies, according to the newly released 2025 ACC Chief Legal Officers Survey, highlighting the growing strategic ownership of top-ranked lawyers within their organizations.

While the global trend has remained remarkedly stable, oscillating between 75 percent and 80 percent over the past seven years, there are stark differences by region. This year, 83 percent of CLOs in the US said they report directly to the CEO, compared to 73 percent of CLOs in Europe and in Asia. In Australia, only 57 percent of CLOs say they have a direct reporting line to the company’s CEO, a significant decline in recent years.

This direct reporting setup can have noticeable results: CLOs who report directly to the CEO are more likely to attend board meetings, meet with business leaders at their organization to discuss operational issues and risk areas, and be sought by executive leadership team for input on strategic business decisions. 

Though Australian CLOs have seen a decline in reporting to the top-most executive officer of their companies, they remain ahead of the pack when it comes to a reporting line to the board of directors. A majority of CLOs globally have a reporting line to the board of directors (54 percent), a result that has remained consistent in the last four years — but in Australia, more than two-thirds (68 percent) of CLOs reported such access.

When further exploring the relationship between the board and the legal department, a majority of CLOs said that legal is considered a trusted advisor to the board (57 percent), and a quarter said that the legal department provides semi-regular updates to the board on legal, compliance, and risk matters (28 percent). However, 15 percent of respondents said that the legal department is struggling to establish itself as a regular contributor to board discussions and decisions.

[ACC Members: Download the Europe and Australia supplements for more regional insights and guidance.] 

Business acumen and industry knowledge are the top two areas that CLOs believe their CEOs want them to develop further, with one third of participants reporting those areas (34 percent each). Third comes financial acumen, with 29 percent and a noticeable 5-point increase compared to last year’s survey.

Leadership (28 percent) and risk management (26 percent and a 3-point increase) are also on the list for development, while areas like new market expansion, business development, and crisis management skills are around the 20-percent mark and show moderate increases compared to the results observed last year.

This signals the CLOs are likely understanding that CEOs expect them to be more decisively involved in business strategy and corporate growth. CLOs have also remained adamant that lawyers in their teams develop their business acumen skills, with almost six-in-ten participants saying that this is a critical skill for in-house counsel (59 percent).

For more information on the importance of the CLO’s Seat at the Table, read CLO Survey Says: Having a Seat at the Table Matters.

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