We know what Cleary is doing for associate compensation: they are paying Cravath bonuses but have decided against freezing salaries. Is anybody interested in what the partners will be taking home this year? According to AmLaw:
Gross revenue is up roughly 8 percent to $965 million; profits per partner increased about 12 percent to $2.4 million. Revenue per lawyer, however, was basically flat, down less than 1 percent.
$2.4 million in this economy? Where do I sign up?
More on Cleary and money after the jump.
It makes sense that Cleary’s gross revenue is on the rise. Cleary was on the Barclay’s side of the Lehman acquisition, nice work if you can get it.
And for what it’s worth, as far as we know the firm has not conducted mass associate layoffs — stealthily or otherwise — despite revenue per lawyer remaining flat.
Still, some people at Cleary are unimpressed:
Does this not belie the argument that trimming on overhead is forced upon the firms? Why won’t someone come out and say, “We partners just want to make more money. And we now have political cover to do it. Thanks, recession. Thanks, Latham & Watkins. Screw you, associates and staff.”
Something tells me that there are partners willing to say just that, at least in the comments.
I’d rather be the hammer than the nail. Especially at Cleary. In May, we noted:
Cleary Gottlieb Steen & Hamilton managing partner Mark Walker is old-school when it comes to partner compensation. He sees no reason to change Cleary’s seniority-based lockstep scheme, in which the spread between the highest- and lowest-paid partner is less than 3:1. It’s a no-hassle system — no long meetings explaining bonus decisions and no disputes among partners over credit for bringing in business. And it is the foundation of Cleary’s culture, Walker says, which emphasizes the collective over the individual.
THE AM LAW 100: Cleary Revenue, Profits Up [AmLaw Daily]