Thacher Proffitt & Wood Staff Get The Shaft
Thacher Proffitt & Wood has been struggling for some time. A memo sent by managing partner Paul Tvetenstrand to TPW staff the Wednesday before Thanksgiving provides the latest evidence of the firm's faltering state:
From: Paul D. TvetenstrandTo: Non-legal staff
As you are aware. The past year has posed many challenges for the firm given the downturn in the economic climate which has affected our clients and ultimately the firm. Unfortunately given this continuing downturn the firm will not be able to pay any bonuses or year end service awards this year. We truly appreciate the contributions each of you has made in these trying times and we wish we were able to recognize each of you as you deserve.
Paul
I'm not at all sure why TPW tried to bury this information within the Thanksgiving news cycle. Did they think TPW staffers were not going to notice? Maybe they were thinking of maintaining their industry reputation, but most people who have been paying attention already know that TPW is in serious trouble.
More TPW back story after the jump.
ATL has documented all of TPW's recent woes. Once you get beyond the "process story" concerning the timing of this announcement, the economics of the decision seem pretty obvious. The firm is losing partners, closing offices, and firing associates. Staff bonuses would seem ridiculous given the financial state of the firm.
Industry wide, this probably isn't going to be a year where support staff receive bonuses or end-of-the-year service rewards.
But does this move open the door for TPW to dole out zero in associate bonuses? Probably. TPW was already on the dissolution watch list, and this announcement is really just a confirmation of the firm's struggles.
You'd imagine that most TPW associates (and staff) aren't worried about their year-end bonus; they are worried about having jobs after the new year.
(0) 
Nope
Is the terrible grammar in the memo from TPW or from Elie? I have a guess...
first
HAVE ANY LITIGATION BOUTIQUES ANNOUNCED (E.G., QUINN, BOIES, KEKER)?
Texas bar results have been posted, and they are BIG.
Fried Wood and Shaft have all been let go.
Thelen attornies being picked up by duane morris??? Story???
http://www.philly.com/philly/business/today/
you got scooped by philadelphia business today?
And scooped on DPW bonuses by Amlawdaily. Oof.
"But does this move open the door for TPW zero out bonuses to associates?"
ENGLISH. DO YOU SPEAK IT?
LIFE. DO YOU HAVE ONE?
DPW following STB and Cravath's half-Skadden!!!!
2, no need to guess. call me crazy but memo from TPW probably means terrible grammar from TPW.
Texas bar results are only big because they have to overcompensate.
Elie must be out to lunch. AmLaw announced it nearly 40 minutes ago.
http://amlawdaily.typepad.com/amlawdaily/2008/12/davis-polk-late.html
Texas bar results are huge because they can be.
12, I'd hope that Elie just copied and pasted, but you never know... I'd also hope that the managing partner at a firm as large as TPW would write in complete sentences.
-2
"But does this move open the door for TPW zero out bonuses to associates?" Uh, what?
"You'd imagine that most TPW associates (and staff) aren't worried about their year-end bonus, they are worried about having a job after the new year." - Subject/verb agreement, anyone? Comma splice?
Texas tries to make their bar results look big, but when women see them, they laugh and hold up their pinkies.
I thought Thelen folded a long time ago?
19- Thelen did fold. That's not news. The news is that Duane Morris in NYC picked up 19 members of the Thelen construction practice.
So Thelen =\= TPW?
Here is a shorter version of the memo that conveys the same message:
To: Non-legal Staff,
Please leave.
Paul
Those guys ripped people off on bonus when times were good, and Paul T (along with the rest of TPW) is a moron, who cannot write in complete sentences.
Thelen:TPW :: UPenn State, Philadelphia : Penn State State college. Take as you will
Word among those unfortunate enough to still be at TPW is that the firm will run out of cash and wind up business no later than February. Pretty astounding that it has held together as long as it has (though I suppose it's not as if all those securitization lawyers have much in the way of job offers). Thacher's respectable, but by no means world-class, banking/regulatory practice will probably spin off in one or two chunks to a mid-sized firm that wants to expand its S&L and thrift business (I've heard Lowenstein Sandler and Cullen and Dykman mentioned as possibilities). Its insurance litigation practice is also theoretically viable as a unit, but I've heard no rumors of suitors. Otherwise, the firm is geared to support mortgage securitization, which just ain't happening right now and probably won't be happening for the foreseeable future.
Damned shame. Nice bunch. Too many eggs in one basket.
21, TPW = Thacher Proffitt & Wood (per post's caption). Where exactly do you see "Thelen" here?
Staff at MoFo got shafted as well. No bonus for MoFo staff either.
ugh, just dissolve already.
ugh, just dissolve already.
I almost went to TPW... the day I was considering accepting the offer, was the day the news broke that a bunch of partners had left....
that was close.
are the people that stupid at tpw they are closing the firm at the end of Jan 2009
People are not stupid at TPW. Mainly pioneers are left, those who have been with the firm for years and are willing to just stick it out until the end since they've been there for so long. Even though the writing is on the wall it's been stated what's bad is that the executives haven't held not one meeting with the support staff to at least verbally let them know what's going on. Not one since this entire downfall began. All the staff sees is people being laid off and offices closing after they were assured that this would not happen but no one is saying a word to the staff. That is so unprofessional. The Partners are walking around, closing doors, looking suspect, trying to be on the hush. At least give the staff some common courtesy. If they're closing, being acquired whatever the case may be, just say so already. For some reason they are still trying to uphold their reputation. It's over, face reality already, everyone knows.
Paul Tvetenstrand should close down the Short Hills office (it only exists because it's down the street from his home) and use the saved money to pay the support staff their bonuses. Perhaps a few associates also could be saved that way. Just saying...
These guys only became an LLP in 2004. At the time they were flush with cash and many of the older (and denser) partners argued against the change from a traditional partnership. If they end up keeping their houses they'll be thanking their lucky stars that wiser heads prevailed.
I guess the annual client party at Tavern on the Green is cancelled. Too damned bad. That was a great party (even if the last one turned into an impromptu job fair).
They still won't tell staff whether or not they will get paid for unused days. Take what you're entitled to now while you still can. The ludicrous statement supervisors are using is that they have to pay you because it's in the handbook - LOL.