How do in-house salaries compare to salaries at major firms?
While many large firms have continued to employ a lockstep compensation system, attorney compensation at a corporation is much less predictable. In recent years, general counsel compensation at large companies has increased substantially. Still, overall, in-house legal salaries have not kept pace with the dramatic salary inflation that has occurred at major firms. Many lawyers leaving private practice can expect to take a pay cut when they move in-house. In a corporation, it is not uncommon for the highest-paid lawyers to receive a high percentage of incentive-based compensation. In more established companies, attorneys might receive a year-end bonus of 30 percent or more. In earlier-stage companies, attorneys might expect to receive a significant grant of stock options in lieu of a large base. While there is certainly a large potential financial upside associated with going in-house, understand that only a few lucky winners will ever see substantial gains from their options. Make sure
