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 that the base will support the standard of living that you want.
Factors which help determine what a company might pay a lawyer include industry, stage, whether the GC is part of senior management, the number of employees, number of facilities, and volume of sales. For example, expect higher salaries in the financial-services industry and lower salaries in retail.