Got an offer for an in-house counsel position that is perfect in every way except for compensation, which is gonna be a 40% cut. Am I making a huge mistake?

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The main things to think about
1) Can you afford the pay cut?
2) Will the change give you the quality of life you want?

If the answer to those questions is yes, then make the move. The money will come, but time isn't something you can get back.

I took a pay cut to go from a mid size firm to the federal government and I don't regret it. I make a decent salary, but most importantly I'm able to actually take time off to spend with my family and friends (which is important to me).

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This is great advice! I would just add one more thing to think about: will the new role put you in a better position for what you’re trying to achieve with your career? This is slightly broader than just a quality of life question.

I was stuck in a narrow practice area that Ill -suited me. I went in-house in a new area of the law that I enjoyed. I thrived, worked hard, and can’t imagine going back. The pay got better and better as I gained experience and got into management. It’s probably still less than at a firm, but I enjoy my work, the people, I have time for my family and interests, and we’re not in danger of starving or getting evicted. One day I want to be an executive director of a legal aid group and the experience I’m getting now will prepare me more than the last gig ever could. Good luck!

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Class year? Geography? Are you including a non-guaranteed firm bonus?

Ifyou're a 7th year in market-paying big law you'd be at 400k (515k including bonus), 60% of which would be 240k (or 309k) which is a steep cut but totally doable assuming you don't have high fixed expenses.
A third year would be making 250k (or 307.5k), 60% of which is 150k (or 184.5k), which is a lot lower and perhaps difficult to live off of.

If the new gig definitely offers better work life balance and standard advancement opps, I'd consider taking it.

Seattle rent and home prices are brutal AGC2, so if they want to buy a home, yes

Pretty normal pay cut. I looked at in-house jobs after my third year and was put off by the pay cut. Three years later, I’m making the jump after coming to terms with the fact that ~95% of the time you’re going to have to take a 25-50% paycut from biglaw scale.

It’s always been like that, and it always will be like that. The golden handcuffs…

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