Hundreds of thousands of dollars to relocate a new general counsel

In the fall of 2006, San Francisco-based utility PG&E paid $337,296 to relocate its new general counsel. Hyun Park, from Allegheny Energy in Pennsylvania. This item, from Portfolio, June, 2008 at 36, witnesses to the high costs law departments incur – or some budget in the company incurs – when the department relocates a person (See my post of April 8, 2008: costs to move a lawyer to another city.).

Even so, lawyers in legal departments are moved from time to time as the needs of the department change (See my post of June 14, 2007: save money by relocating to a lower-cost city; June 7, 2006: BHP and its relocated lawyers; Oct. 10, 2005: ex pat pay and relocations; May 26, 2007: Royal Dutch Shell and its relocation of lawyers; May 14, 2005: turnover costs of lawyers includes relocation of replacements; and July 25, 2007 #3: Saks relocation of legal department.).

The legal department ought to absorb those costs in its budget if it believes it should state a total cost to the company of the department.