FIRST

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Well, they did choose to go to Reed Smith.... Kudos to you who still have jobs.

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first

FIRST

TTT. Next post! S&C announce yet?

Why not assume all large firms will force attrition, freeze pay and go with the current "market" bonus and just report on the firms that surprise us?

Is Reed Smith the first to hit the layoff / freeze / no bonus trifecta?

How many stories like this will we see today?

Any news on the TPW dissolution story from yesterday?

WHERE CAN I CALL IN TO VOTE THE 'BUTT CHEEK' POSTER OFF THE BLOG? CAN WE HAVE A COUNCIL MEETING OR SOMETHING?

Why not assume all large firms will force attrition, freeze pay and go with the current "market" bonus and just report on the firms that surprise us?

...

"The lesson, as always, if your firm recently picked up a bunch of Thelen attorneys, or a bunch of Heller attorneys, things are not going well."

Covington?

Butt cheek poster = most annoying poster in history of ATL. History of internet.

serious comment here.

are all of these firms doing so poorly (slashing attorneys, reduced/no bonuses, etc.) because these firms got way too big too fast? the salaries at 160k?

clearly, the top of the top will be able to manage. but with SO many news of layoffs, etc. is it the case that the majority of these firms could not sustain this drive towards high salaries/headcount? and at what point can the economy be truly considered the reason for all of the news?

finally, what is to come of the law firm world now? will firms start to break off in order to become manageable? will firms slash salaries all around?

"are all of these firms doing so poorly (slashing attorneys, reduced/no bonuses, etc.) because these firms got way too big too fast? t"

Ya think?

if not for the 160 push last year, there would be no layoffs this year.

9,

Why?

I enjoy the Skaddenfreude -- watching other people in BigLaw bitch about layoffs, freezes, and no bonuses.

Did you all seriously think that the good times would continue forever?

It gives me great pleasure to watch from the sidelines in a recession-proof industry.

~In House Counsel

18 -

it wouldn't surprise me to see a bunch of spin-off firms. why would profitable partners/groups stick around biglaw when they could leave and hang their own shingles?

Yeah I too enjoy seeing these whiny over paid punks get what's coming. NY to 190!

please...no more of these pay freeze posts...they are killing me...

19 - I am not so sure. I bet a lot of the layoffs are because X group of associates were no longer needed/busy, and not because that last little bit of salary put the firm over the edge.

I don't think an idle jr. associate at 145K would last significantly longer than an idle jr. attorney at 160K.

FIRST

FIRST

Ponch!?!?! Where are you???

20 needs to be pulled over by the Douche Patrol.

posted earlier

major layoffs at gunderson dettmer today. they were going to layoff the people last week but the day they were supposed to lay them off on ended up being the day of one of the christmas parties, so they pushed it back to today. THe affected associates are getting 3.5 months of severence...and do not have to work, which kind of sucks since they won't be able to say they're lateraling as opposed to being fired.

20 - there are no truly "recession-proof" industries, just those that weather recessions better than others. Any industry that involves people paying money for goods or services is not recession-proof.

25= EPIC FAIL

18: I think a part of it was the bump to 160k. If you remember, the 160 bump came as a result of the rush to be first. Only a year prior, 1st years were at 125. Then 135 came, but was short-lived after 145, then a couple of months later NY firms jumped to 160. I think a lot of firms were scared of losing their talent, but didn't really think long term about what effect it would have across the board. By the time they were done with raises, 1st years weer making 35k more a year, and 8th years were making 90k more. Multiply that by the number of associates you have, and that's a crapload of money.

I think the second part is that while the 160 salaries aren't killing firms, they are scared to death that if the salaries continue in effect, the PPP's will freeze, or go down, and they will lose big rainmakers to other firms. In this economy, with Heller and Thelen so recent, a lot of firms are probably bending to pressure from big partners not to let PPP's slip. One way to do that is to freeze salaries, slash bonuses, and start doing performance lay-offs.

Just my two cents.

posted earlier

major layoffs at gunderson dettmer today. they were going to layoff the people last week but the day they were supposed to lay them off on ended up being the day of one of the christmas parties, so they pushed it back to today. THe affected associates are getting 3.5 months of severence...and do not have to work, which kind of sucks since they won't be able to say they're lateraling as opposed to being fired.

BigLaw to TTT!

DITCH READ THE BUTT WEEKS SO I CAN TELL THE JUICY NEWS GUIDES!!!

I have no opinion on this post.

Ed Stimes

NY to 190!

The subject of this post is bullsh*t. I work at RS and I don't know of a single associate who did not get a raise. I am not expecting any changes to the bonus plan either....so if an associate hits a certain hour target, he or she will get a production bonus.

The subject of this post is bullsh*t. I work at RS and I don't know of a single associate who did not get a raise. I am not expecting any changes to the bonus plan either....so if an associate hits a certain hour target, he or she will get a production bonus.

Sheep nailing to Prop 8!!

So will K&L Gates wait until the new year to announce the same, or will they do it tomorrow? I believe that Kalis is required by law to do exactly what Reed Smith does except when it relates to raising salaries.

JUICY NEWS GUIDES, WHY NOT, SMELL IT?

I call serious bullshit on people who say the move to $160k is what's driving the layoffs. Think about it: the raise translated to $15k per associate.

"The average Am Law 100 firm has 778 lawyers, 183 equity partners, gross revenue of $645 million, revenue per lawyer of about $828,000 and profits per partner of $1.315 million." [from law.com, 2008]

Using these numbers, the raise was 1.4% of gross revenue and 1.8% of RPL. If that was seriously what drove these firms to the brink, then they had no business giving the raise in the first place.

What is really causing these problems:
1) the economy is in the shitter, so we are generating fewer billables, especially in corporate
2) the legal job market is in the shitter, so the partners know they have all the leverage in the world. If they cut your salary tomorrow to $100k, would you quit? For many/most, I doubt it.
3) even if firms wanted to be more egalitarian and not cut headcount and overhead, their rainmaking partners would walk (read the elastic tournament), leaving the firm in even worse shape.

Guys in my high school used to post about BUTT CHEEKS IN ALL CAPS. It was no big deal.

TPW to RIP?

Nice to see some real responses. anyway before i jinx this...

If youre at a firm slashing attorneys and you are in corporate, and you're asked to move to commercial litigation - would you do so for the security/hours? say you're a 2nd-4th year - a point where you feel you've invested just enough to be skilled in corporate. going to court, drafting pleadings, research etc. not your cup of tea, but at least would give you a little more security. that would be worth it no?

Call me crazy, but isn't the market terribly down? Aren't we in a recession/depression? I thought THAT had something to do with the layoffs, but then again, that's just me.

This article is not entirely true. People got raises and people will get bonuses if they meet certain hours thresholds, the first one being 2050. If you billed 2200 this year and , your going to get much closer to a Skadden bonusb than any other firm.

This blog is not as "newsworthy" as you think.

Gentlemen at the legal preparatory academy with which I was once affiliated frequently became employed by limited liability partnerships, the purpose of which was to engage in the practice of law. It came to pass that certain of these limited liability partnerships came to to a time when their financial performance was considered most unsatisfactory by the limited partners of the same, upon which said limited partners caused the employment and benefits of certain income-producing employees of the limited partnerships to cease, or otherwise to be reduced, in a manner viewed by the afflicted gentlemen as most unseemly. These occurrences led to the rending of garments, the gnashing of teeth, wailing, and other assorted biblical expressions of woe, but were not viewed as particularly significant the limited partners perpetrating the deed.

This article is not entirely true. People got raises and people will get bonuses if they meet certain hours thresholds, the first one being 2050. If you billed 2200 this year and , your going to get much closer to a Skadden bonus than any other firm.

This blog is not as "newsworthy" as you think.

This is my first ATL comment so bare with me, but why is it cool to be "first" (or "firsty", or any nails-against-a-chalk-board-annoying variation thereof)? Seriously.

Cutty: The game done changed.
Slim Charles: Game ain't changed. Just got more fierce.

List of firms who have not yet announced lay-offs (open or stealth), and have either promoted associates or not yet announced a pay-freeze:

Vault Firm
1. Wachtell
2. Cravath (half-bonus)
3. Sullivan & Cromwell
4. Skadden (full bonus; promotion confirmed)
5. Davis (half-bonus)
6.
7.
8. Cleary (half-bonus)
9. Weil
10. Kirkland
11. Covington
12. Debevoise (half-bonus)
13. Paul, Weiss
14. Williams and Connolly
15. Sidley Austin
16. Gibson Dunn
17. Wilmer Cutler
18.
19. Shearman & Sterling (? layoffs) (half-bonus)
20. Arnold & Porter

Looks like the V20 is still pretty safe except, shockingly, Latham (overrated at V7), Simpson, and White and Case.

I hope I get laid off. Because then I can spend more time doing this --

http://www.youtube.com/watch?v=2-jVU5Lqxx0

YES! The buttcheeks guy got banned. I had not realized that.

42 - Just a nit, but the raises translated to more than $15k for some associates. The jump in pay was $15k for the first three class years, $20k for the next two, and $25k for the next two. Not that your point doesn't still stand, but remember that not everyone at a firm is a first year.

29

As I said, I enjoy eating popcorn on the sidelines while watching the panic and fear emanating from many of you associates.

If my job is threatened, then the Earth might as well get sucked into a black hole. I'm betting that's not the case and that I'll be fine.

You, on the other hand, will not.

Enjoy the interesting times as the Chinese say.

~In House Counsel

All you idiots who were pushing for 160k a couple years ago don't you wish you hadn't. Don't you wish you hadn't pushed for massive special bonuses last year. And in two years won't you have wished that you didn't disparage firms that froze salaries, once half of the AMLAW 100 associate jobs end up in lay offs and starting salaries go back to 145k.

29

As I said, I enjoy eating popcorn on the sidelines while watching the panic and fear emanating from many of you associates.

If my job is threatened, then the Earth might as well get sucked into a black hole. I'm betting that's not the case and that I'll be fine.

You, on the other hand, will not.

Enjoy the interesting times as the Chinese say.

~In House Counsel

I call bull too. Everybody I know got a raise albeit paltry. As a RSer, I will be making more for next year than a LWer who is my same level. Guess there is a little ray of light in my misery.... ;)

50 I have two firsts under my belt. It's silly, but once you get one, you'll know. Tremendous achievement.
And I don't usually do this grammar thing, but it's bear with me. Bare with me would be something of an awkwardly phrased indecent proposal.

56 YOU are a douche!

I can confirm at least one additional RS associate with no raise - me. 37/38 and 47, back to your bs doc review so you can hit your hours.

Isn't BigLaw just contributing to the economic problems by executing layoffs, freezes, etc.? All of these firms are contributing a self-fulfilling prophecy of difficult economic times by creating a class of people who can no longer afford to invest or consume in the quantities that they did prior to the downturn.

Businesses that are financially capable (not in the sense of continuing to profit insanely, but in the sense that they will not go out of business) should feel obligated to continue paying people enough that those people will be active consumers and investors, thus contributing to positive growth for the overall economy.

the Douche Patrol always gets its man!

40, you are an idiot. Back in the day-read 3-5 years ago-then K&L tended to follow Reed Smith, but that hasn't been the case in years. K&L Gates is, and will remain, the leader with respect to Reed Smith in those markets where the firms are competing. Word is that K&L Gates is going to use their war chest to give pay raises and pay bonuses (in the neighborhood of half-half-Skadden (or 1/4 Skadden), to distinguish itself from Reed Smith.

Did RS pay $160 to first years in the first place? I thought the whole deal was that they paid less, but cost of living in Pittsburgh was less... blah blah blah. Did RS actually match the $160 in NYC?

66--no. Pittsburgh starting is 130.

how is covington doing?

RS is $160 in NY.

This article is untrue. Did ATL even check?

All associates I know received raises -- certainly not in line with last year, but raises nonetheless. Also, the firm is giving bonuses, esp the largest bonus component based on hours. If the firm hits its budget, it will give the profit sharing bonus component. Thus, those who bill on par with other biglaw will receive bonuses larger than the new "market."

ATL -- you really should check the facts.

Thanks 67 and 69.

-66

PS: I wonder where the various associates from RS who have posted that they are or are not getting raises are located...

Calling BS- nice reporting...
RS 2nd year (some raise but not market) and ill take home a nice bonus this year (thank you production bonuse)

RS 2nd year in NY here, too. No raise. Very solid review.

Any word on law schools giving bonuses to 3Ls?

Careful 20, nothing is recession-proof.

70 - Not true. The one RS associate I know got no raise. He was pissed/panicked untill he realized it happend to most other people too.

Never thought I'd see the day where Gibson topped Latham simply by giving lockstep raises at the end of the year.

Never thought I'd see the day where Gibson topped Latham simply by giving lockstep raises at the end of the year.

I am a RS associate in DC, and I got a raise (not much, but a raise) as did everyone else I talked with. Those that hit their hours (I did not) will also get a bonus. Trust me, not defending the firm as I think the way they handled the "stealth" layoffs of lawyers was BS - while claiming there were no attorney layoffs in the US when they announced the staff cuts last week. But all in all, not a bad place to work.

the post says that any firm who took on Thelen attorneys is not doing well. I know Howrey took on Thelen's Construction Litigation group. Does this mean Howrey is in big trouble? Any info would be great. I know they "laid off" 10 people last week, but anything a little more substantial than that?

just because people *said* they got a raise does not mean that they got a raise. They might have just been saving face.

80 - they also took Thelen's chairman, didn't they? might want to watch out!

52--What about Milbank?

RS did give raises.

51 - great wire reference

Does anyone know what's going on at McCarter & English or Cozen O'Connor?

This post is untrue. Not only did many RS associates get at least some raise, it will be news to you that many RS midlevels who billed a not-unreasonable number of hours will get the same or higher (and it could be much higher) bonus than the current Cravath market even for the most senior associates, and that is before the (perhaps slight) possibility of the profit sharing bonus or merit bonus. Senior RSers who billed well will almost certainly get more than the current market, again, before the possibility of the add-ons. It remains to be seen what RS will do next year, as with every firm, but they are sticking with their bonus plan (which was announced early in the year) this year.