Community Perspectives: What do you do when your dream job comes with a more-or-less untenable salary?

In-house legal professionals discuss what they do with a job offer for a dream job if the salary is not ideal.

I'm a 6th year Associate at a V10. Has anyone received a “dream job” in-house offer with a salary that is more or less untenable? The offer I have is $150k/year with a potential for discretionary annual bonus of 10-20%. There are option grants on the table as well but the company has only had a seed round and so the value proposition is unclear, but the biggest temptation here is to be part of something exciting with a longer horizon than BigLaw (excluding the partner track). This is less than 40% of what I am making now, although theoretically the equity could become something massive (or it could flop). Although this is not totally untenable, my savings will be next to zero until the student loans are paid down in 2-3 years. Not to mention the risk that it doesn’t work out and I have exited BigLaw.

People who were in similar situations - did you regret it?

I am tempted to wait another 2-3 years, and hope for a better paying option down the line, although in a potentially less exciting role.

General Counsel Responses:

It’s rare to find an in-house position that doesn’t require at least a 30% cut, but am I reading this to say you’d be taking a 60% cut? That’s tough, maybe negotiate up to where it’s a 50% cut if they’re open to it.
I would evaluate whether the equity (and potential upside) is worth the reduction in cash compensation. Do you believe in the business plan and the capability of the management team to execute? When I joined, I took a 25% reduction in base salary (from an AGC spot at a bigger tech company) in favor of a much higher target bonus and equity. I don’t regret it, but the financial value of equity in startups can be fairly volatile. You will have fewer regrets if you focus on the long-term potential rather than day-to-day (or month-to-month) swings in value. Also, consider the experience gained in the role, even if the company flops. Perhaps this will position you for a better next role, even if the financial rewards don’t pan out this time around. Your mileage may vary on all of this. I’m assuming from your description that you're in a private firm with plenty of career ahead of you.

Counsel Responses:

Doesn’t that make it not a dream job? Alternatively, if you’re currently in BigLaw, 40% is “untenable”? Really? I took about a 50% cut. No equity. And am comfortable (though a subsequent promotion helped). Sounds like you’re potentially getting a better deal, if you believe in the company enough to gamble on the equity.
For what it's worth, I rushed to pay off my loans and I maybe regret it a little versus buying property or having some of that money in the market during that time. So if that’s the plan, maybe take a second look at the numbers. If it doesn’t work out, would you *want* to go back to BigLaw? It's easier to get another in-house job once you have the first one. Alternatively, you should try to stay on good terms with a couple of partners.
Outside of certain sectors (e.g. FAANG), if you’re a BigLaw 6th year I’d expect you to take about a 50% pay cut and for that resulting number not to significantly change over the next 2-3 years. A 60% cut is obviously bigger, but they’re potentially making up for it with the equity, which again is unusual outside of certain sectors.
Stay in BigLaw until you’ve paid off your loans and gathered enough cash for a down payment. Accept a job that pays you (1) enough in salary to cover the mortgage and living expenses and (2) enough in equity so if the company takes off you’re compensated for the gamble.

Attorney and Associate Responses:

I just moved in-house as a 4th year in BigLaw. My total compensation is actually more than my base pay at the firm and my new job does not require any nights and weekends. I’m doing what I enjoyed the most at BigLaw and I think this is a dream job. (I'm in Southern California and I work in a medical company).