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100 percent. You’d likely leave biglaw eventually anyway, and the earlier the better so you can shed your firm habits and learn how to become an effective in house lawyer. The drop in salary is likely offset by a great increase in work life balance, and as you’ve probably already learned in biglaw, money doesn’t make you happy - the time to do the things you want to does.
More like 25% in my case for a similar move. I probably wouldn’t have done it for 50% but that’s because of my own circumstances.
Money is a lot of things, but it’s not everything. If you can still live a satisfying lifestyle and it makes sense for your career, it’s eminently reasonable to take the cut. Keep in mind that generally speaking, the longer you’ve been in house, the more difficult it is to move back to a firm, should you decide to.
If you are IP transactional you should not be taking much of a pay cut. Join tech and get paid market between cash and stock.
What’s the total comp package? If you’re getting equity and bonus, then that will help to close the gap on base pay.
I can’t speak to your financial decision, but in-house is great. I stop working at 5:30/6 most nights and rarely put in weekend time. I have FTO and as long as my projects get done timely no one bats and eye at my OOO. The people and culture are fantastic, and every so often you get to see the fruits of your labor.
Just be happy. Literally this is your one life.
Rising Star
I think that cut is pretty standard. Assuming you are still making over 6 figures and not in SF or NYC without student loan debt it should be manageable
Rising Star
That’s why I said not in SF or NYC
Moving in-house was the best professional decision I’ve ever made. While there will undoubtedly be a pay cut, don’t forget to take into consideration other aspects of corporate compensation package and (at least for me) a significant improvement in work-life balance.
Can you comfortably live a lifestyle within that new salary (factoring in that you now have time to spend money) and is the increase in work/life balance worth it? 50% sounds steep, but if you’re going from 100 hrs/wk down to 50 and can still live the life you want, go for it.
I went in-house as soon as I could. I know my law school friends in firms make more money than I do. But my life is not as stressful. I echo a lot of the comments above that when I’m on vacation/after hours/weekends I’m not expected to work or respond to emails. Your sanity is worth something. And firm life won’t be easier if you stay long enough or are lucky enough to make partner, it’ll be the same drudgery.
Echoing the consensus here. I moved in house, took roughly a 40% cut, and it was the best decision I’ve ever made (aside from marrying my wife). Do it and don’t look back.
Most in-house positions involve a substantial pay cut (despite what the internet would have you believe where everyone finds 350k 9-5 inhouse roles as a 3rd year). 50% is step but not unheard of, particularly depending on the accounting method ones uses (i.e. if you're comparing biglaw base+bonus to just base at in-house job for some reason).
If the role allows for growth, or at least the development of a transferable in-house skill set, I would not be super deterred by the substantial pay decrease as long as you are happy with the compensation you'll be receiving.
I work with someone that did that. They worked for big law for 4 years and paid off $190k in that time. Now they’re with me at and in-house gig working 40/50 hrs a week and living the happy life with his wife. I think there’s a high value on work-life balance that comes into it.
I made a similar move with a similar cut in pay. I have loved the extra time with my family. Less money was a bit challenging but for me was definitely worth it. I think I would have regretted much more if I had stayed for the money and missed on a more time with my kids.
I took a 60% pay cut from an AM Law 50 firm to go in house at a progressive mid size company and it was the best decision ever made for my career.
I’m in the final steps of an in house position I will probably take if offered so this is good to hear. Also will be around 50-60% cut, but I really want my weekends back.
I took a pay cut to go in house. The quality of work, relationships, and leadership opportunities coupled with balance have never made me turn back. I’ve had other friends go in house and hate it for a variety of reasons, then go back private practice.
Make a decision that works best for you personally, professionally and financially. And make transitions without burning bridges. Life has a lot of twists and turns, and you never know where you may want to go in the future.
I love my inhouse job but as some others mention, in house is a wide spectrum, some in house jobs sound soul killing and not worth the pay cut to work on uninteresting matters/be viewed as a hated cost center, etc.
But if you’re excited about this actual job and this actual company, that’s good. Don’t expect you’ll be able to come back to biglaw super easily if you’ve been in house a long time, especially if it’s not the type of place that is a biglaw client. But if you hate it and want to switch back in a year or so that’ll probably still be an option.
Can you keep up your current lifestyle with a 50% pay cut ? Will it just be a matter of less savings ? Or will you actually need to make some adjustments ?
Also, not sure how senior you are, but keep in mind the pay reduction is also about all the lockstep raises that you’re no longer going to get. It is what it is, but you may make 50% of comparable biglaw today and only 30% of comparable biglaw in 3 years.
I went in house straight out of law school, so I can’t speak to taking a pay cut, but I have not regretted that decision once. I have now worked for three different software companies and my pay has increased substantially with each move. In addition, if you get with the right company, there are equity incentives and bonuses that make up for some of the difference in pay with a large firm.
The best part for me is work life balance. I am married and we have three young boys and I take them to school and pick them up everyday. My job is flexible hours and I work from home full time (even pre-COVID). At each job I have had flexible time off, so no accrual for PTO necessary, and other great benefits. I usually work from about 8:30 until 4:30, and we have a great, small team.
Not every situation is the same, but for me going in house right away was the best choice I could have made for my family.
Good luck!
Indeed, it does! Thanks!
No. You are lucky to have the financial flexibility to do what you enjoy.
It's not just the pay cut, it's the stock/pension/promotions/ work.
If you are in a group that does interesting stuff, and you get stock, and you can afford it... Do it. I might have to go back to a firm someday, but I would never particularly want to.
Also, partners make shit compared to GCs and they work way more hours. It's just a different pyramid/don't get cushy director gigs, etc