In-house legal jobs are growing in prestige. As our very own Mark Herrmann recently noted, in-house lawyers were once viewed as “the folks who couldn’t succeed at real jobs,” namely, jobs at firms. But that’s no longer true today, Herrmann argued, citing the trend of Biglaw partners leaving their firms for gigs as corporate counsel.
What is behind the growing allure of in-house jobs? Sure, the work is interesting and exciting, and yes, bossing around outside counsel is fun. But improving pay packages also play a role. As you can see from the rankings of America’s best-paid general counsel, GCs at top companies can take home millions.
And those rankings, by Corporate Counsel, focus on cash compensation. In-house lawyers can make many multiples of their cash comp through stock.
Take Vijaya Gadde, Twitter’s general counsel. She became GC less than a year ago, but she already owns tens of millions in TWTR shares, as revealed in recent reporting about the end of Twitter’s IPO lockup period….
* The shutdown has shuttered the Nuclear Regulatory Commission. I’m not really comfortable living without those regulators. [Breaking Energy]
* Don’t bother Goldman Sachs’s general counsel with your silly little questions. [Dealbreaker]
* The decisions you make in your twenties are rarely life-threatening. So get out there and make some atrocious life-decisions, kids! [Legal Cheek]
* Lawyer sent to prison for plotting to help a client hide jewels. That sounds way dirtier than it is. [ABA Journal]
* In scary news, Adrian Peterson’s 2-year-old son was brutally beaten. [TMZ]
* In case you missed our round-up, here are ten more highlights from a recent interview with Justice Scalia. He’s apparently a big Duck Dynasty fan, which explains a lot. Video embedded after the jump… [Bloomberg Law via YouTube]
Which GC took home the most cash in 2010? For the first time, the winner was a woman.
Corporate Counsel just released its annual list of the highest-paid general counsel in the land. On the whole, the news is good: “If last year’s GC Compensation Survey showed the aftereffects… of the deepest trough of the recession, this year’s results show that chief legal officers made steady gains and recovered some momentum.”
This year there was at least one surprise: a winning woman. For the first time since the inception of the survey in 1994, the highest-paid general counsel on the list was a female attorney.
Who topped the list, and how much did she make? Let’s take a look….
In May 2006, then-Judge J. Michael Luttig made major news in the legal world by resigning from the U.S. Court of Appeals for the Fourth Circuit to become senior vice president and general counsel of aerospace giant Boeing. Luttig served as a Fourth Circuit judge for almost 15 years, during which time he reigned as the #1 feeder judge, sending almost all of his clerks into Supreme Court clerkships, and came extremely close to becoming a justice himself.
Luttig’s resignation from his life-tenured Fourth Circuit judgeship came as a shock to many (and was viewed by some as “taking his toys and going home,” after he got passed over for the SCOTUS seats that ultimately went to John Roberts and Samuel Alito). But Luttig, who’s only 56 — he was appointed to the Fourth Circuit at the tender age of 37 — seems to be enjoying the new challenges of serving as GC of a large public company.
During his four years at Boeing, Luttig has given its in-house ranks a major makeover. He has brought in some top talent, including at least four Supreme Court clerks: John Demers (OT 2005/Scalia), Grant Dixton (OT 2000/Kennedy), Brett Gerry (OT 2000/Kennedy), and Jake Phillips (OT 2004/Scalia). Is there any in-house legal department with more former Supreme Court clerks than Boeing? Don’t forget to count Luttig himself, who clerked for Chief Justice Burger (OT 1983), after clerking for then-Judge Scalia on the D.C. Circuit.
UPDATE: Boeing boasts at least eight (8) SCOTUS clerks. Here are three who were inadvertently omitted from the original version of this post: Bertrand-Marc Allen (OT 2003/Kennedy), Lynda Guild Simpson (OT 1984/Powell), and Eric Wolff (OT 2000/Scalia).
And Luttig has given his net worth a makeover, too. At the time of his May 2006 resignation, federal circuit judges earned $175,100 a year. As executive vice president and general counsel of Boeing — the country’s largest aerospace and defense company, #28 on the Fortune 500 — he makes millions.
Luttig no longer has to worry about covering college expenses for his two kids (which he cited in his resignation letter as a reason for leaving the bench). And this past May, he and his wife, Elizabeth Luttig, bought a fabulous second home in beautiful Kiawah Island, South Carolina.
How much did Mike Luttig pay for his new place? And how does the price tag compare to his in-house compensation at Boeing?
Corporate Counsel has released its annual list of the highest-paid general counsel in the land. The trend this year is a leveling-off, says Corporate Counsel, thanks to the recession and the belt-tightening that results from a greater transparency for executive compensation. The party slows down when the lights come on.
These GCs still managed to do well for themselves. At the top of the list is Russell Deyo, of Johnson & Johnson. The Georgetown ’75 grad has been with the company for 25 years, having joined in 1985 as a regular old staff attorney. His salary is a mere $831K, but he rakes in millions in bonus money.
Who topped the list, and how much are they making?
Last November, we scrutinized the compensation of one of America’s best-paid in-house lawyers: Gregory Palm, general counsel of Goldman Sachs. There was some nit-picking from readers about the precise size of his (pay) package, reflected in the various updates appended to the post, but there was unanimity on the main point: serving as Goldman’s top lawyer is a path to riches.
Over the weekend, the New York Times published a long, interesting, behind-the-scenes look at the negotiations between Goldman and the SEC that culminated in the bank’s $550 million settlement — negotiations in which Greg Palm played a leading role. For some good commentary on Louise Story’s article, check out Larry Ribstein (who sees the case as a strike suit that just happened to be brought by the SEC).
What we found most intriguing about the NYT piece — which weighed in at a hefty 3,200 words, as noted by the WSJ Law Blog — was the delicious dish about Gregory Palm’s pay….
Over the weekend, the New York Times had an interesting article about compensation for Wall Street bankers. The article explained how, due to criticism from the public and from Congress, banks shifted employee comp away from cash and towards stocks and options. This shift was supposed to align pay with performance, averting an AIG situation of rewarding failure.
Now, thanks to the recovery in bank shares — fueled in part by generous government bailouts, and not necessarily the brilliant performance of bank employees — these stock and option grants are turning out to be super-lucrative. Here’s an interesting excerpt:
Goldman Sachs, for instance, sharply cut nearly all bonuses it paid last year but gave some executives more options than usual.
The company gave its general counsel, for example, 104,868 stock options and 14,117 shares in December, when the bank’s stock was around $78.
Now the bank’s shares have more than doubled in value, making that stock and option award worth nearly $12 million, according to Equilar, an executive compensation research firm in Redwood Shores, Calif.
Sullivan & Cromwell partners, eat your hearts out. Not only does Goldman GC Gregory Palm get to boss you around, he also makes more money than you do.
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past seven years. You can reach them by email: email@example.com.
Things have changed recently in Korea – a few of our US and UK client firms are looking, very selectively, for a lateral US associate hire. Until just recently, there was not much hiring like this going on in Korea, since US and UK firms started opening offices there. We have already placed two US associates in Korea in the past month at top firms. Most of the hiring partners we work with in Korea do not actively work with other recruiters.
If you are a Korean fluent US associate in London, New York or another major US market, 2nd to 6th year, at a top 20 firm, with cap markets or M&A focus (or mix), or project finance background, and you are interested in lateraling to Korea to a top US or UK firm, please feel free to reach out to us at firstname.lastname@example.org or email@example.com. Our head of Asia, Evan Jowers, was just in Korea recently, and Evan and Robert Kinney will be in Korea in a few weeks. We are in the process of helping several firms open new offices in Korea (a number of which are interviewing our partner level candidates) and also helping existing offices there fill openings.
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