THE PROCTER & GAMBLE COMPANY
Ms. Deborah P. Majoras
Chief Legal Officer and Secretary
“The law firms I value the most are those firms that are willing to partner with our in-house lawyers in every sense of the word — who are willing to add their strengths to ours in a complementary
way to achieve the best possible outcome for our client, and who are
willing to be bold and creative in sharing the risks and rewards of
representing a great company like Procter & Gamble.”
“A key lesson learned is that we will not change the game on incentive-based retention structures unless and until in-house and outside
counsel trust each other to share both the upside potential of big wins,
and the downside risk of losses. At P&G, we want the best outside
counsel in the world to prefer to work with us on our matters because
they find our work challenging, exciting, and rewarding … and we rise
and fall together.”
PROCTER & GAMBLE LAW DEPARTMENT
Our law department includes 600 people, including 350 in-house lawyers in
approximately 40 countries around the world.
OUTSIDE COUNSEL SPEND
About $50 million
PERCENTAGE OUTSIDE COUNSEL SPEND CURRENTLY ON A VALUE BASIS
Over 70 percent of the spending –– for our top 12 matters globally –– is currently covered by some sort of value-based fee structure. In some places around the world, such as Latin America and China, almost all of the litigation is
handled using value-based fee structures.
PERCEN TAGE ON A VALUE-BASIS TO: INCREASE, DECREASE OR S TAY THE SAME?
Increase; as firms and in-house counsel get more expertise on how to structure value-based fees, the amount of
matters handled using value-based fee structures will go up.
TYPES OF VALUE-BASED FEE STRUCTURES CURRENTLY IMPLEMENTING
The law department’s preferred firms have been asked to generally implement value-based fee structures to handle
the company’s legal work, reserving hourly rate fee structures for those matters where no other structure makes sense.