What’s more stressful: working in-house, or working at a law firm? Conventional wisdom might say that law firm life is more stressful — but that’s not the case for everyone, as recently explained by one of our in-house columnists, Susan Moon.
So in-house lawyers might be more stressed than many people think. But at least they’re getting paid a pretty penny to put up with all these headaches — mo’ problems, mo’ money?
That’s one conclusion to be drawn from Corporate Counsel’s new rankings of the nation’s best-paid general counsel. Conventional wisdom holds that in-house lawyers earn less than their Biglaw counterparts — but top in-house lawyers, the GCs of the nation’s largest companies, earn sums that meet or even exceed Biglaw partner pay….
At our recent Seattle event with in-house counsel — by the way, thanks to all the attendees and to Recommind, our sponsor — I asked the panelists about what they most enjoy about in-house practice. Christi Muoneke of DocuSign and Brad Toney of Classmates Media both discussed the satisfaction they get from working for a single client on interesting issues that call for both legal and business judgment.
Of course, there are many other good things about working as an in-house lawyer (which is why in-house posts are so coveted). Liberation from the billable hour is one big advantage. Healthy pay packages are another.
At junior levels, Biglaw associates who go in-house might take a pay cut (although not necessarily). But many of the top dogs of the in-house world earn amounts that far outstrip average partner pay.
Let’s take a closer look at Corporate Counsel’s recently released rankings of the nation’s best-paid general counsel. Some GCs enjoy pay packages that make Biglaw partners look like paupers….
The Supreme Court’s 2008-2009 Term resulted in many notable decisions, including Ricci v. DeStafano and NAMUDNO v. Holder. It also resulted in some epic romances among the law clerks who ruled the building that year. This edition of Legal Eagle Wedding Watch features an astounding five Supreme Court clerks, all from that steamy OT ’08 class.
With five SCOTUS clerks — plus one former White House counsel — this is sure to be one prestige-drenched competition. Settle in, wedding watchers. Here are your finalists:
Last year, all things considered, wasn’t a bad year for Biglaw. The law firms of the Am Law 100, for example, experienced decent growth. In 2011, for the Am Law 100 as a whole, gross revenue grew by 5.3 percent, revenue per lawyer grew by 1.9 percent, and profits per partner grew by 3 percent. It was a perfectly fine year for partners.
How did their counterparts on the corporate side fare? Alas, not as well, according to Corporate Counsel’s latest compensation survey of the nation’s general counsel. Base pay for GCs in the survey declined by 1.8 percent, to an average of $611,411. Bonuses and nonequity incentive pay slid by an even larger number, 7.7 percent, to an average of $1,125,458. Meanwhile, in terms of non-cash compensation, the average stock award fell by 10.8 percent, to $1,426,325, and the average stock option award dropped by a whopping 18.7 percent, to $732,453.
These are just the top-line figures — which, of course, conceal a lot of individual variability. Let’s take a look at some specific names and numbers, as well as the top ten highest-paid general counsel….
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?
If you are considering a virtual law practice, you know that many of today’s solo firms started that way. But why are established, multi-attorney law firms going virtual?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Reduces malpractice risk
Enables you to gather the best attorneys to fit the firm, regardless of each person’s geographic location
Leverages mobile devices and cloud technology to enable on-the-spot client and prospect communication
Transitioning in-house is something many (if not most) firm lawyers find themselves considering at some point. For many, it’s the first step in their career that isn’t simply a function of picking the best option available based on a ranking system.
Unknown territory feels high-risk, and can have the effect of steering many of us towards the well-greased channels into large, established companies.
For those who may be open to something more entrepreneurial, there is far less information available. No recruiter is calling every week with offers and details.
In sponsorship with Betterment, ATL and David Lat will moderate a panel about life in-house and we’ll hear from GCs at Birchbox, Gawker Media, Squarespace, Bonobos, and Betterment. Drinks, snacks, networking, and a great time guaranteed. Invite your colleagues, but RSVP fast, as space is limited.
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.
It’s that time of year again when JDs are starting to apply for 2L summer jobs and 2L summers are deciding which practice area to focus on.
For those JDs with an interest in potentially lateraling to or transferring to Asia in the future, please feel free to reach out to Kinney for advice on firm choices, interviewing and practice choices, relating to future marketability in Asia, or for a general discussion on your particular Asia markets of interest. This is of course a free of cost service for those who some years in the future may be our future industry contacts or perhaps even clients.
For some years now Kinney’s Asia head, Evan Jowers, has been formally advising Harvard Law students with such questions, as the Asia expert in Harvard Law’s “Ask The Experts Market Program” each summer and fall, with podcasts and scheduled phone calls. This has been an enjoyable and productive experience for all involved.