Thinking of Becoming A General Counsel? Keep This In Mind

The governments across the globe are increasingly revising their regulations and coming out with new legal as well as compliance norms that organizations need to adhere to in order to meet the requirements.

The regulations related to the cross-border insolvency as well as virtual currencies like cryptocurrencies are the prime examples of changing regulatory scenario.

The dynamic legal environments have not only raised the regulatory risks, but also the penal consequences for the companies, if they are on the wrong side of the law. As a result, the role of an in-house general counsel (GC) is increasingly becoming crucial and attractive.

The GC, the most senior person on the legal team in an organization, understands the business requirements and guides the team to effectively manage the ongoing and upcoming challenges. Due to their expertise, the GCs also command a higher remuneration.

The remuneration of GCs in major organizations, multinational corporations and start-ups are nowadays mostly at par with equity partners of law firms, enticing the lawyers to take the plunge as a GC.

However, there are certain pros and cons that the lawyers must be aware of before becoming a GC.

Read on to find out…

ADVANTAGES

• GCs get an insider view of how the businesses are being run as they are close to the decision makers in the organizations.

• Increasingly complex and more sophisticated practice than private practice, as GC is the first line of defense in several crucial legal developments.

• Better regulated working hours versus law firms due to the single organization and the legal team.

• Direct exposure for advice and decisions at the boardroom level.

• Less stress and pressure due to lack of billable hours and partner track.

DISADVANTAGES

• Perceptions of the quality of the practice and of the practitioners can vary widely.

• Barring a few major corporations and conglomerates, resources are usually not as great as in a large firm. Hence, the GC has to rely on the organizations for crucial assignments.

• There’s a sense of isolation due to fewer colleagues to consult on ideas as the legal department works in a very regulated environment within the organization.

• Career is tied to the fortune of the organization, or the sector, where the GC has worked so far. As a result, the GC rarely gets chance to switch the sector, while changing the job.

JOURNEY TOWARD THE GOAL

The goal of becoming a GC, or the legal head, of an organization requires one to have extensive experience of working in different verticals, technical legal expertise, and a good communication skill, among others.

The aspiring lawyers who want to become GCs should strive to gain as much vast experience as possible before taking the plunge of becoming an in-house counsel.

Things to do while moving toward the goal:

Not Just Law Graduate

Increasingly, one has to acquire an additional degree to secure a job in a decent legal department. These degrees could be Company Secretary (CS), Master of Laws (LLM), and post graduate diploma in subjects such as intellectual property rights (IPR), capital markets, taxation, environmental laws, banking regulations, arbitration and conciliation. These may help one to enter into a particular industry or sector.

Law Firm Experience

It is always advisable to start a career with a law firm, preferably in a litigation team, or joining a chamber of a counsel, to sharpen the process knowledge. Initial litigation experience helps to take a rational legal decision as one becomes aware of the applicability of the laws. The quantum of initial experience required to become a GC depends on the sector, or the type of organization, one is looking to join as in-house counsel.

Building Networking Skills

Whether joining law firms or becoming an in-house counsel, networking is indeed a crucial skill one needs to develop to grow in the career. When one joins a legal department of an organization, the networking is even more important to know the environment better. Networking for in-house includes knowing people from across the function within the organization, as well as within the industry where one is planning to grow in the future.

Grabbing Leadership Opportunities

For in-house legal practitioners, it is always good to grab any new leadership opportunity that comes on their way without thinking of key result areas. Being a part of the team that works towards POSH Training, or formulating human resources (HR) guidelines are some such initiatives. In addition, being a part of corporate social responsibility (CSR) as well as environmental, social, and governance (ESG) committees would not only help in gaining knowledge of several practical aspects of operations, but also aid in the building your own ecosystem within the organization.