Nationwide Start Date Watch: Sonnenschein
We’re a little late in passing along this news, which is from last month. But when it comes to coverage of certain topics, like start dates and layoffs, we aim for completeness.
An article in Crain’s Chicago Business focuses on delayed start dates at major law firms in the Windy City. Most of the news in the piece was previously broken by ATL. See, e.g., Seyfarth Shaw; DLA Piper.
But there’s one nugget of news:
With starting attorney salaries reaching $160,000 a year, delaying new-hire dates is one way to trim expenses. Sonnenschein Nath & Rosenthal LLP, which has 186 attorneys in Chicago and a substantial real estate practice, pushed back starting dates for seven lawyers by two months, to mid-November, a spokeswoman says.
So add Sonnenschein to the list of firms that have delayed start dates for incoming associates. Just like no-offering summer associates, pushing back starting dates is less than ideal. But as we wondered on Friday, such measures may be the lesser of multiple evils (with lawyer layoffs as a greater evil — although some firms have done both).
P.S. Lee Miller might want to coordinate better with his public-relations team. The DLA Piper PR folks previously explained that the change in start dates was made “to provide a uniform start date across all our offices… [and] to have a uniform orientation process.” But Miller tells Crain’s that it’s the economy, stupid:
“Any firm that isn’t careful in this economy is nuts,” says Lee Miller, joint CEO of DLA, Chicago’s eighth-biggest law firm. Mr. Miller says the firm also plans to cut next summer’s recruiting class by as much as one-fifth. “The transactional practices are slower, mirroring the economy, and the capital markets are in turbulent times,” he says.
P.P.S. Today, of course, is Labor Day. Is anyone reading?
Update / Correction: The Sonnenschein start date news was first reported by Bloomberg News on August 5, in a very interesting article on partner pay. As Lindsay Fortado reported, the firm pushed back start dates for 20 of its 24 incoming first-year associates from September to November 15. (The seven lawyers referenced in the Crain’s article appear to be Chicago associates; the firm-wide number appears to be 20.)
Tougher times on the docket [Crain’s Chicago Business]
Wall Street Lawyers Ask Bank, Can You Spare $250,000? [Bloomberg News]
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FIRST!!!
Seventh.
FIST!
third.
sorry i am going off topic but
Cravath, Swaine & Moore vs Davis Polk & Wardwell.
Cravath, all the way. Davis is in decline and coasting on its past reputation.
DPW used to be in the top 5 in PPP year in, year out. Not any more. CSM is always #2 to Wachtell (except for the year that Wiley topped Wachtell, when CSM was #3).
Just beware of the bed bugs:
http://www.abovethelaw.com/2008/03/cravaths_achilles_heel_bedbugs.php
Of course were reading, Lat.
Of course we're reading.
WUSTL 1L
Bristol Palin is pregnant
pepper hamilton in Philly has a delayed start date until sometime in late Sept
# 5 what about the lifestyle ?
Looks like sonnenschein's at it again
I am reading and working. Good times in Austin, Texas!
I am reading and working. Good times in Austin, Texas!
Delaying start-dates is a big hit to new graduates who were counting on the income. For a law firm to spring something like this on incoming associates shows a real callousness. And how much is it really necessary? It might save a few hundred thousand dollars, but partners should be able to go home about a thousand dollars poorer each rather than pass off the hardships on the new law students who committed to joining the firm on the understanding that the start date would be in early Sept.
14 - Shut up! A delayed start date is better than the alternative - withdrawing the offer. Also, several firms traditionally have a November start date.
We are reading! (and bored).
14, you have a lot to learn about being an associate. I doubt you will last two years.
Any chance that come mid-November Sonnenschein just tells them they don't have jobs?
11 - While this is obviously part of a pattern, my understanding is that the decision to move these start dates back at Sonnenschein happened at the same time as the layoffs. This is not new news... I heard about this in May.
14 - It's obviously not ideal, but it's better than having no offer. I've heard that Sonnenschein did offer some assistance on a case by case basis.
17- What would be the point in that? If they didn't want these people, they would just can them up front.
People always say how lawyers are bad managers, and this just proves it. Do the math -- by delaying start dates for 13 associates for a month, firms maybe save $200k. They will spend at least that much in marketing and recruiting and PR and hiring huge numbers of summers to compensate for lower yields and restore their reputations.
Heck, they'll probably spend that much just in those silly gifts they give out at OCI -- they'll feel compelled to give you "really cool" crap to send a "signal" that the firm is stable again. Partners should think more than 3 weeks down the road. The cardinal rule is, if you're gonna trim headcount, do it BIG and BOLDLY -- none of this one-month delay crap that only hurts morale and saves little money. The marginal hit to reputation isn't much different than if they just withdrew offers entirely -- at least that's the case in 2008 with ATL and the internet around. Thanks Lat!
Kirkland's bonuses pwn
Sonnenschein to out of business in six months.
What haven't they tried? Shorten summer, layoff without severence, withdraw offers, move start date...
The summer class at Pillsbury's San Fran office is in for a similar rude awakening. Cutting the summer program was only the first step; enjoy starting work next December!
This is ridiculous. Everything I've heard about Sonnenschein has been nothing but slime. Rescinded offers, layoffs, office closings, shortened summer programs, no-offers to summers, delayed start dates.... This has got to be the most godforsaken crumbhole in Big Law! I'd rather go public interest than work there.
all of this negativity is just part of the LIEberal media trying to make President Bush's economy seem weak, and hurt President Bush's soulmate, John McCain (R - Pow).
firms that had summer associate classes 50% higher than ever before are well managed! i read it here just a few months ago....
How many Sonnenschein 2008 summers no-offered?
DLA Piper plans to cut next year's recruiting class by one-fifth? How about this year's recruiting class? Multiple offices no-offered a very large percentage of this year's summer class.
Well-said 19! If a firm is so desparate to save about $200k by pushing back start dates - despite the large loss to reputation and morale - then it is in serious trouble....