The pay gap between Big Law and Big Tech is narrowing, and lawyers for technology companies are increasingly migrating to law firms to capitalize on this trend.
Gibson Dunn, Freshfields, and Weil Gotshal have recently hired ex-Google and Amazon lawyers.
Beyond salary, job security and diverse client work attract lawyers back to Big Law.
Work-life balance unlikely to improve for those moving to Big Law, however.
Lawyers are increasingly moving from Big Tech to Big Law as the pay gap between the two industries narrows, a Law.com analysis shows. Historically, general counsel at tech firms enjoyed higher salaries, but law firms have been stepping up compensation, making the jump back into Big Law more attractive:
"There's obviously firms who will be paying very well to lure senior legal and in-house counsel" from tech firms, said David Nicol, head of legal recruitment firm Marsden's United States practice.
Attorneys in Big Tech "now see that there's another alternative where they can make a similar salary or compensation at private practice, where before, there was nothing that could really compete with those stock options," longtime legal recruiter Avis Caravello said.
Gibson, Dunn & Crutcher recently hired Google's former chief privacy officer Keith Enright in Palo Alto
Freshfields brought on former general counsel for startup accelerator Y Combinator Nicole Cadman in Silicon Valley and hired former Google competition lawyer Kevin Yingling to its antitrust practice
Weil Gotshal & Manges hired former Amazon antitrust lawyer Jasmine Rosner as a partner
General counsel at tech companies can earn millions of dollars per year, with competitive salaries, bonuses, and stock options.
While the so-called "$20 million club" is shrinking slightly, tech lawyers are still well-paid. Corporate Counsel's recent report on general counsel compensation found that even the lowest-paid of the top 20 highest paid GCs earned roughly $11.1 million. The list is topped by:.
Alphabet general counsel Kent Walker who earned $27.3 million in 2023 (salary was $1 million, the rest was stock options and other awards)
Apple general counsel Kate Adams was paid $26.9 million in 2023 (salary was $1 million, the rest was stock options and other awards)
According to Caravello, there are instances of top general counsel moving to Big Law firms and earning salaries up to $15 million or $20 million annually. But, she stressed, "that's rarified air" for experienced, high-performing counsel, adding that most general counsel aren't paid nearly that much.
While the money is a significant factor, it isn't the only reason lawyers are making the switch, the Law.com analysis shows.
Big Tech's recent waves of layoffs and hiring freezes have raised concerns about job security. The economic downturn has created instability, and tech companies are being cautious about new hires, leaving some legal professionals feeling uneasy about their future.
Law firms offer more varied and stimulating work. Lawyers returning to Big Law are drawn to the challenge of handling diverse client portfolios across industries. In contrast, in-house tech positions may focus narrowly on specific areas like privacy or antitrust, potentially limiting growth.
What recruiters and legal professionals interviewed by Law.com agree on is that the Big Law transition will not come with a better work-life balance, being an equally demanding job as that in tech.
"Private practice is extremely busy, and I don't think anybody is going to dramatically change their quality of life by moving from being a general counsel to a firm as a counselor [or] partner-level candidate," said Kate Reder Sheikh, partner at recruiting firm Major, Lindsey & Africa.