BigLaw--> Exit Options = Paycut?

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englawyer
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BigLaw--> Exit Options = Paycut?

Postby englawyer » Thu Apr 30, 2009 6:47 pm

When people leave biglaw for other options (inhouse, business, etc), is there usually a paycut involved? If so, how drastic?

southerngirl84
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Re: BigLaw--> Exit Options = Paycut?

Postby southerngirl84 » Sun May 03, 2009 10:29 pm

Generally, yes there is a pay cut. Usually it is pretty significant. But, this depends on which big law firm you start at, the number of years you worked there, your current salary and the company or business you move to. There are too many variables to give a definitive answer.

But yeah, plan on a pay cut.

A friend of mine is a senior associate at a large New York firm and currently earns 400K. She was offered a position as in-house counsel at a large international investment bank, but they could only offer her 150K. Given the quality of life she would gain by moving to the bank, she is actually considering the offer. But again, this is just one example. I'm sure there are instances where things have happened the other way around.

nepgoon
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Re: BigLaw--> Exit Options = Paycut?

Postby nepgoon » Mon May 04, 2009 12:49 am

When you get shitcanned by your firm you can generally expect to make less while working at Subway. Usually it is pretty significant.

dickfitzwell
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Re: BigLaw--> Exit Options = Paycut?

Postby dickfitzwell » Mon May 04, 2009 12:53 am

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Last edited by dickfitzwell on Fri May 22, 2009 1:27 am, edited 1 time in total.

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underachiever
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Re: BigLaw--> Exit Options = Paycut?

Postby underachiever » Mon May 04, 2009 12:56 am

Yes, you will take a pay cut and sometimes it is huge one (I know one person that lost 1.8 million per year in when they jumped out of BIGLAW and into government work) but most people do it to purse a goal (politics, NGO, nonprofit) or for better quality of life (in house)

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RudeDudewithAttitude
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Re: BigLaw--> Exit Options = Paycut?

Postby RudeDudewithAttitude » Mon May 04, 2009 1:05 am

What about those who leave biglaw to start their own firm? Yeah, there is a major paycut and risk, but this could be extremely satisfying and profitable if you have what it takes. What that is exactly, I don't know.

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Formerbruin
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Re: BigLaw--> Exit Options = Paycut?

Postby Formerbruin » Mon May 04, 2009 1:06 am

If you're an associate making the transition to in-house counsel, you can probably expect a pay cut of about a third to a half. The ceiling is also usually much lower.

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Cavalier
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Re: BigLaw--> Exit Options = Paycut?

Postby Cavalier » Mon May 04, 2009 1:10 am

I assume that after billing big law hours for a few years, a less intensive schedule would seem worth a couple hundred thousand dollars per year, easily.

lsb
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Re: BigLaw--> Exit Options = Paycut?

Postby lsb » Mon May 04, 2009 1:38 am

southerngirl84 wrote:Generally, yes there is a pay cut. Usually it is pretty significant. But, this depends on which big law firm you start at, the number of years you worked there, your current salary and the company or business you move to. There are too many variables to give a definitive answer.

But yeah, plan on a pay cut.

A friend of mine is a senior associate at a large New York firm and currently earns 400K. She was offered a position as in-house counsel at a large international investment bank, but they could only offer her 150K. Given the quality of life she would gain by moving to the bank, she is actually considering the offer. But again, this is just one example. I'm sure there are instances where things have happened the other way around.


I had no idea senior associates could make that much. Is that at all normal or is that salary basically unheard of?

lsb
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Re: BigLaw--> Exit Options = Paycut?

Postby lsb » Mon May 04, 2009 1:45 am

underachiever wrote:Yes, you will take a pay cut and sometimes it is huge one (I know one person that lost 1.8 million per year in when they jumped out of BIGLAW and into government work) but most people do it to purse a goal (politics, NGO, nonprofit) or for better quality of life (in house)



:shock:

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LawandOrder
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Re: BigLaw--> Exit Options = Paycut?

Postby LawandOrder » Mon May 04, 2009 10:31 am

They're called the Golden Handcuffs for a reason.

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englawyer
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Re: BigLaw--> Exit Options = Paycut?

Postby englawyer » Mon May 04, 2009 10:34 am

wow. didn't know inhouse lawyers got paid less than first years. they must not like that very much

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Formerbruin
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Re: BigLaw--> Exit Options = Paycut?

Postby Formerbruin » Mon May 04, 2009 12:44 pm

englawyer wrote:wow. didn't know inhouse lawyers got paid less than first years. they must not like that very much


It's a lifestyle choice. You're going to be working 40-50 hours per week, generally no weekends, and you won't be on call 24/7 when something big goes down. That's what companies hire the big firms for.

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crazycanuck
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Re: BigLaw--> Exit Options = Paycut?

Postby crazycanuck » Tue May 05, 2009 12:23 pm

Formerbruin wrote:
englawyer wrote:wow. didn't know inhouse lawyers got paid less than first years. they must not like that very much


It's a lifestyle choice. You're going to be working 40-50 hours per week, generally no weekends, and you won't be on call 24/7 when something big goes down. That's what companies hire the big firms for.


This.

There is also the small chance to move up and become the GC who get paid as much as partners would. (I think)




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