O’Melveny & Myers just announced associate bonuses for its offices in California and Washington, DC. One of the tipsters who sent us the memo is not pleased:
Attached is the memo that O’Melveny & Myers associates just received. The figures for the “class bonus” appear to be far below the standard bonus at other comparable firms such as Gibson Dunn.
Memo after the jump. Update: Based on the reactions thus far, this announcement is not going over very well. But maybe OMM is okay with that. Opines one commenter: “Expect a big exodus. It’s probably what they are hoping for.”
Colorado judge Grafton M. Biddle has been the subject of a prior ATL shout-out. But he has never been officially named a Judge of the Day. We think it’s about time.
From the Rocky Mountain News:
A former Douglas County judge who had an affair with a prosecutor that included a rendezvous in his chambers and in the women’s courthouse showers was suspended for three years Monday.
Grafton M. Biddle’s punishment comes almost a year after he resigned his judgeship in a short Dec. 18 letter signed simply, “With regrets,” that gave no reason for his decision.
But by then, rumors of his affair with Deputy District Attorney Laurie A. Hurst — who used the last name Steinman at the time — had been circulating in the courthouse.
From one of the paper’s online commenters:
“Just another black mark on the Colorado Judicial System…… Would this be prostitution??? You know, lawyers have billable hours for everything they do… Screw the judge or screw the neighbors… Someone is paying the price for getting screwed, and an attorney is involved.”
A 33-year-old woman was charged with fourth-degree sexual assault Saturday after allegedly groping a man playing Santa Claus at the Danbury Fair mall.
Sandrama Lamy, 33, of Danbury, is charged with fourth-degree sexual assault, according to Danbury Detective Lt. Thomas Michael.
She sounds like a total…. ho ho ho.
Details leading up to the alleged fondling are sketchy. “I don’t know what the deal was. It was just bizarre,” the mall Santa told a reporter…
The mall Santa told police that Lamy touched him inappropriately while sitting on his lap. “The security officer at the mall said Santa Claus has been sexually assaulted,” Michael said.
Put Ms. Lamy on the “naughty” side of the ledger.
2007 has not been a great year for mall Santas. Earlier this month in Missoula, Mont., a mall Santa was assaulted with a pumpkin pie. Meanwhile, a department store Santa in Australia claims he lost his job earlier this month because he said “Ho, ho, ho.” (His bosses had asked him to say “Hi, hi, hi.”)
“Santa Tim” Connaghan is the president of RealSantas.com and teaches hundreds of people a year how to be Santas. He said the Danbury Fair mall incident, if true, is one of kind. Santas usually have to worry about kids tugging beards and teens throwing pennies from the mall rafters.
“I’ve had some very nice ladies sit on my lap,” Connaghan said.
So far, we’ve received about 1,000 responses to yesterday’s ATL / Lateral Link survey on bonuses.
So far, we’ve discovered that around 40% of associates receiving bonuses think their bonus is too low, which is just slightly higher than the percentage of associates who think their hourly rates are too high. Coincidence?
Since over a third of you still don’t know what your bonuses will be, we’re going to leave the survey open for the rest of the week. Please fill it out if you haven’t already done so. To access it, click here.
In the meantime, we’re going to post the national results and breakdowns on a city by city basis. Since we have the most responses from New York, that’s where we’ll start. See the results after the jump.
Many of our Lawyers of the Day tend to be solo or small-firm practitioners from non-major cities. Not so with today’s honoree, Joseph Collins. He’s a partner at Mayer Brown, one of the country’s biggest and most prestigious law firms, and he maintains offices in Chicago and New York.
From an article by Nathan Koppel in the Wall Street Journal (subscription; but also covered at the Law Blog):
In a rare case of a lawyer being charged in connection with the alleged wrongs of a client, Chicago lawyer Joseph Collins was indicted today on fraud and other charges in connection with the 2005 collapse of commodities and derivatives firm Refco Inc.
Federal prosecutors in Manhattan on Tuesday announced 11 counts against Mr. Collins, of the law firm Mayer Brown LLP, in connection with legal work he did for Refco, including documenting a series of “round trip loans” between related entities and outside investors that Refco completed to shift bad debt off its books from the late 1990s to 2005. The discovery of the transactions led to one of the swiftest collapses in Wall Street history.
Phillip Bennett, the former chief executive of Refco, and others have been indicted in connection with the Refco collapse.
“Acting hand-in-hand with Bennett, Collins made affirmative misrepresentations, material omissions, and told deceptive half-truths, all to assist Bennett’s scheme to steal more than $2.4 billion from potential investors,” the indictment said.
Yikes. And the indictment is coming out of the S.D.N.Y. — those guys are badass.
Neither Mr. Collins nor the firm got back to the WSJ in time to comment. But we were able to get a statement from Mayer Brown. Check it out, after the jump.
We’ve heard complaints from numerous associates claiming that their law firms are using vague bonus policies to lowball them on bonuses. While we understand why these associates are upset, we can’t say we’re surprised. The whole point of a bonus policy that contains an element of discretion is the ability to pay some associates less than others — for whatever reason, justified or not.
This is why we regard only a lockstep, non-hours-based match of the Cravath year-end and special bonuses as a “true match.” If a firm reserves the right to tailor associate bonuses — based on billable hours, quality of performance, or any other factor — expect the firm to exercise it.
So we don’t expect to write much about how firms are using slippery bonus memos to pay low bonuses (although we will bring you the results of yesterday’s bonus survey). The intricacies of an individual law firm’s bonus policy tend to be of interest only to people at that particular firm.
We are, however, interested in bright-line distinctions. For example, what firms have rejected special bonuses entirely? It turns out there are a few of them. Last week we received this info:
DLA Piper litigation associates in New York just left a “Coffee Meeting” with Joe Finnerty III, head of New York litigation. He “unofficially” announced that the bonus structure and amount will be exactly the same as last year and that there will be no market “special bonuses.”
Hmm. Did the firm not get paid enough for the Mitchell Report?
And today we received this info:
I’m an associate at McDermott, Will & Emery in the Boston office. We have all just heard through department heads that not only will the firm not issue special bonuses this year, but bonuses this year will be less than half of years past and well well below market.
For example, a 6th year associate (class of 2001) billing between 2000 and 2100 hours will get approximately $5,000. eedless to say, this is less than a first-year associate gets for simply showing up at any other firm. There is not a large or probably even a midsize firm in Boston whose bonuses are anywhere near this low.
We’re guessing that DLA Piper and McDermott, Will & Emery are not alone in nixing special bonuses. Many of the firms that have remained mum until now probably have no plans of paying special bonuses, a la Cravath.
And to be perfectly (and brutally) honest, does it make sense for firms with profits per partner that are a fraction of Cravath’s to pay bonuses at Cravath levels? Of course associates want bigger bonuses. But they also want jobs.
Nevertheless, we have no doubt that many of you are unhappy about your firm’s bonus policy. Feel free to engage in bonus bitchery in the comments. Thanks.
We thought the whole point of Ave Maria Law School, founded by Domino’s pizza founder Thomas Monaghan, was that with enough money, you can do whatever you want. E.g., establish a very conservative, Catholic law school, and not care if the liberal legal academy raises its eyebrows — ’cause you could buy and sell them, several times over.
So doesn’t it defeat the whole point if Ave Maria requires funding from sources beyond Monaghan’s pile of pizza dough? From Julie Kay’s article in the National Law Journal:
Got $20 million? If so, you could have a law school building named after you.
Ave Maria School of Law is selling naming rights to the new law school facility it’s building in southwest Florida.
“We’d like to find someone who would want the opportunity to have their name associated with the school, to help us with the construction costs,” said Dean Bernard Dobranski. He said the school is rapidly moving forward with its controversial plan to relocate from Ann Arbor, Mich., to Ave Maria, Fla., and has even obtained architectural renderings of the new school.
Ave Maria is already in turmoil: controversy over its move from Michigan to Florida, lawsuits filed by three professors who claim they were wrongfully terminated, an ongoing investigation by the American Bar Association. A suggestion that Tom Monaghan’s coffers are not infinite could not come at a worse time.
Meanwhile, in other Domino’s news, they’re trying to return to the glory days of their 30-minute delivery guarantee — without getting sued. Delivering delicious pizza in under half an hour is a noble mission. We wish them the best of luck.
P.S. Tom Monaghan no longer owns the pizza chain. He sold his controlling interest to Bain Capital in 1998 for about a billion dollars, which he plowed into launching Ave Maria University. Ave Maria still looks to move, puts name on block [National Law Journal] Domino’s Pizza and the Law [WSJ Law Blog] Will a Twist on an Old Vow Deliver for Domino’s Pizza? [Wall Street Journal]
Veteran litigator Joseph Russoniello, recently nominated to serve as U.S. Attorney for the Northern District of California, previously served as senior counsel in the San Francisco office of Cooley Godward Kronish. If he’s confirmed, which is looking likely, one would expect him to take a big pay cut as he moves from private practice to government service. The current Attorney General, Michael Mukasey, earned $1,993,367 over 21 months while at Patterson Belknap; now, as AG, he takes home $186,600 a year.
But Joe Russoniello won’t be taking such a huge pay cut. A reader observes:
Buried at the end of a Recorder article (subscription) about a DOJ report about Joe Russoniello’s possible conflicts or interest due to his $1.5 million stock portfolio is Joe’s last year’s compensation from Cooley Godward. This is the part that I found interesting. Why? Because it’s so low.
What do you think Cooley Godward was paying the ex-U.S. Attorney to serve as counsel to the firm? Half a million? A million? No…. $244,802!
In light of that paycheck — which, while handsome by normal standards, is a pittance by Biglaw ones — we hope that Russoniello’s Cooley gig was super-cushy, with minimal billing required. His paycheck is pretty much equal to that of a third-year associate at Cravath, all in (base of $180,000, year-end bonus of $45,000, and special bonus of $20,000). But how many Cravath third-years can claim to have served as U.S. Attorney in a major city for eight years, as Joseph Russoniello did (1982-1990)? Fighting Crime May Not Pay [The Recorder (subscription)] Taking Stock of The DOJ’s Next Targets [Legal Pad]
The New York State Board of Law Examiners has confirmed to me that they will hear appeals regarding the July 2007 exam. That exam was plagued by malfunctioning software for those that submitted essays on laptop computers, only to see all or part of the answers disappear. The BOLE subsequently said that they approximated the answers if they were incomplete, based on how the examinees did on other answers. Those grade approximations were subsequently called into question based on an anonymous tip in this blog.
As part of a nationwide tour, Above the Law is coming to the great city of Chicago.
Join preeminent law firm management consultant Bruce MacEwen, Katten Muchin Chicago managing partner Gil Sofer, and JPMorgan Chase & Co. assistant general counsel Jason Shaffer for a panel discussion (sponsored by Pangea3) on the evolutionary and market forces bearing down on the law firm business model. Come on by Thursday, November 20, at 6 p.m., for thought-provoking discussion, food, drink, and networking.
Space is limited and there will be no on-site registration, so please RSVP
Average law school debt for graduates of private universities hovered around $122,000 last year. With only 57% of new attorneys actually obtaining real lawyer jobs, recent graduates have a lot to consider when it comes to managing their student loan payments. Thanks to our friends at SoFi, today’s infographic takes a look at student loan debt, including the possible benefits of refinancing for JDs…
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.