A View From the Coal-Face: Corporate Governance Issues in Charging Out and Incentivising In-House Counsel

Jürg Gassmann, Rechtsanwalt, , Switzerland

Information on a company’s costs and risks is crucial to the individuals responsible for the management of the organisation. The in-house legal function has an obvious role to play in dealing with the legal – statutory and regulatory – risks. Less obvious is management’s ability to leverage in-house counsel’s involvement in the day-to-day operation of the organisation in order to obtain important information on the company’s business (commercial or enterprise) risks. This article considers two scenarios where organisational decisions regarding the in-house lawyer’s internal charge-out or remuneration can support or hinder the company’s business risk management. The two scenarios apply particularly with organisations that frequently submit tender offers or proposals in a competitive situation.

Dr. Jürg Gassmann is an independent practitioner based in Switzerland. Since 2002, he has been acting as ‘outside in-house counsel’ for developers and investors where the business volume does not justify a senior lawyer on staff. He specialises in elect

Providing "outside in-house counsel" advice for venture capital investors, especially in the area of renewable energy and other technology-oriented investments.