An Update on Clifford Chance
Two quick items about Clifford Chance, concerning two favorite topics here at ATL: layoff rumors and bonuses. A tipster at the firm told us:
CC/NY has laid off more structured finance associates in the wake of the six associates laid off last October. At least two more structured finance associates have been laid off in February -- one straight layoff and one "pushed out," i.e., strong-armed to leave -- and there are rumors of more to come in other areas as well (such as M&A)....The morale is low and associates [fear] that the CC/NY of the 2002 Memo vintage has come back. How can a firm which pretends to be one of the New York elite firms resort to layoffs as soon as market has slowed down? This is fantasy.
We contacted the firm, and spoke on the phone with a spokesperson:
"There have not been any layoffs since the six associates affected last October, not in structured finance nor any other practice. There aren't any plans [for layoffs] in any practice area.""I'm not saying that we don't continually monitor our business and work allocation. But we haven't had layoffs in terms in terms of people being asked to leave for economic reasons. The layoffs in October were in direct response to market conditions in a very specialized product area, rather than a trend."
We're inclined to credit the firm on this. A firm that openly acknowledges layoffs, as Clifford Chance did, has more credibility when it denies layoffs than a firm that sheds a suspiciously high number of lawyers, but claims that everything is "business as usual."
But we do have a correction to our prior report that Clifford Chance paid market bonuses, on an across-the-board / lockstep basis. Read more, after the jump.
From a source at CC - New York:
Most associates did not get their full bonuses (both base and special bonuses), and the mean appears to be 50% or less for each of the two bonuses. The management was deceptive in representing that it was going to pay Cravath market bonuses and that the hours would not be a factor. Despite its representation, the firm went out of its way to fabricate reasons to deny associates their full bonuses.... An associate told me that he did not get bonuses simply because some partners felt that he was not friendly enough (even though the quality of his work was beyond reproach).... We do not see how Clifford Chance could compete with fellow Magic Circle firms like Linklaters and Allen & Overy in recruiting.
Another source has similar things to say:
clifford chance is telling associates in their annual review interviews they're not getting the special bonus for performance reasons. except that's not why -- the departments aren't being given enough money to pay special bonuses. this is also reminiscent of shearman laying off people for "performance" reasons.clifford chance pretended to match the bonus structure and run with the big guys. however, it never planned to pay it out except to a select few.
The firm's spokesperson disagreed with the foregoing characterizations of its bonus policy:
The vast majority of associates did receive full market bonsues, including the special bonuses. Bonuses are awarded on a performance basis, so not everyone gets a full bonus in every year. But [the bonus process] was run on the same basis as in the past, and the great majority received the full market bonus.
The firm informed us that bonuses ranged from a $35,000 year end bonus and $10,000 special bonus for the class of 2006, up to a $65,000 year end bonus and $50,000 special bonus for the class of 2000 and senior.
The firm added, in a supplemental statement:
It is vital to us to support our associates in their career development, and to reward their continuing dedication and hard work. The great majority of associates were paid full bonuses, including the special bonus, in January this year, and we were pleased to recognize associates' performance in this way.
Also, CC associates, look on the bright side: at least you're still gainfully employed (and pulling down a six-figure salary). Like many other law firms, Clifford Chance is outsourcing work to India. Will this lead to job cuts down the road? Time will tell.
Diligent and a long way from Chancery Lane [Financial Times]
The Clifford Chance Memorandum from its Associates to its Partners [Lawcost]
Earlier: Associate Bonus Watch: Clifford Chance Matches (For the Survivors)
Nationwide Layoff Watch: Clifford Chance
(25) Comments
That place sucks anyway.
Third Tier Loo.
" A firm that openly acknowledges layoffs, as Clifford Chance did, has more credibility when it denies layoffs than a firm that shedds a suspiciously high number of lawyers, but claims everything is "business as usual.""
Lat really hates O'Melveny.
We are all screwed.
Clifford Chance has gone to crap since Linklaters took over NYC!!!!
Every time I hear some news article about a TTT Magic Circle firm I think of bad teeth and "british invasion". What kind of loser American lawyer would work for a Magic Circle firm? One step up from unemployment.
"associates [fear] that the CC/NY of the 2002 Memo vintage has come back."
The CC/NY of the 2002 memo vintage, like sexy, never left, so associates who chose to work there anyway shouldn't be complaining now.
Why does John McCain start EVERY sentence with the phrase, "My Friends,".
This is so bad! I'm terrified of losing my job. This is the worst economic downturn in like 30 years!
God help us all!
Why does Obama start every sentence with "Uh.. uh.. uh.."
Why doesn't Hillary release her tax returns?
CC associates need to stop bitching. That place sucks, period. It always has. It is a horrible place to work and EVERYONE is well aware of that.
The associates at CC chose to go there, and unless they are idiots and did not do their homework, they openly walked into that situation.
It is your own fault.
No one I know at CC received a full market bonus. There was always some reason with partners explaining "we really fought for you, but we lost."
No one I know at CC received a full market bonus. There was always some reason with partners explaining "we really fought for you, but we lost."
I'm a CC/NY associate in litigation. I received a full bonus, but was told I wasn't receiving any special bonus - for specious reasons. But voila -- when bonuses were paid, half of the special bonus appeared in my check along with full regular bonus. So, where was the error? In giving it, or getting told I wasn't getting it? I, of course, subscribe to the later.
I don't know who CC thinks he/she is, but if you haven't worked here, then clearly your argument is baseless. I don't find that this place "sucks" as you so eloquently put it. Within my first year, I spent a good portion of time abroad in another office, got to do much travel on the firm's behalf, had all the "perq"s people speak of like client contact and time with partners. More socializing and camaraderie among the associates might help a bit, but its no sweatshop.
Everyone in my group got a full bonus and and a full special bonus. People on this site crack me up: they love to tear things down when they have absolutely no valid information. I happen to think CC is a great place to work--friendly people, top-notch clients, etc. As the dollar continues to decline and the economy continues to drop, it'll be interesting to see who doesn't layoff attorneys. It's happening everywhere for many different reasons, all of you should know better than to think otherwise.
I agree with 4:12. This economy is getting ugly. All of the major firms will start laying people off -- it's virtually inevitable at this point.
Only a matter of time before Lat is posting daily about another firm laying off 10 associates.
I'm a 2L summering at a V-20 and, I'm not going to lie, I'm extremely nervous, as are many of my peers.
I don't think people recognize how bad things will get. Personally, I only see a handful of firms (read: the V5) surviving this.
sweet - then they can all conflict each other out and they'll be room for more firms...
Nobody knows where this economy is exactly going. Every day we get news that points one way or the other, but none in the same direction. Every time we get some fresh information, the news blows it up. It can get really ugly and if it does, we will see people get laid off. There is also the chance that it won't be THAT bad and all of you who keep yelling that the sky is falling will learn to shush.
How do you know that every one in your group get full bonuses? You may have (lucky you), but I know that most people in my group has not, and most are unhappy. Given the culture, it will be matter of time that the firm will lay off more people in M&A and Financial Products groups. The firm is lying between its teeth that it has not laid off any since last October due to market conditions. They call thel layoff slack performers, but this is but another way of pushing people away when market has slowed.
CC Insider
Someone should really call CC on this. They're totally lying on both fronts -- lay offs and bonuses. The former has happened and the latter was not paid in full to the "vast majority." That CC is being dishonest can't be that difficult to validate, come on. It's perfectly obvious in my group.
Someone call them on it -- ATL? CC doesn't suck by the way -- I've no complaints, except for this HUGELY bizarre twist of dishonesty. It's so easy to prove they're lying.
C'mon CC... Say it ain't so!!!!
9:09 is nuts - what good news? Do you watch nothing but Kudlow or something, and not talk to anyone in your firm who does/did finance?
The credit markets are broken and that is hitting people like a sledgehammer.