Layoffs

If You Show Me Yours, I'll Show You Mine(Or: A casual comparison of severance packages.)

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When non-lawyers ask what’s happening in the world of law these days (i.e., what ATL is covering), our first response is usually one word: layoffs. It’s been a dominant theme in our coverage since the fall. Non-lawyers are often sympathetic, but couch their sympathy with, “Well, lawyers get six months of severance, right? Getting fired is like a paid vacation for them.”

Well, not exactly. According to one of Justin’s surveys on the slowdown, three months is actually the market rate for lawyer severance packages at large law firms. That time goes by surprisingly fast in this economy. For many of those laid off in the fall, severance checks will soon stop coming. What’s your plan after severance stops?

One tipster wrote in asking us for more details on the going rates on severance:

Could you somehow publicly give honorable mention to the firms who are treating their associates fairly and with the respect they deserve? It would also be tremendous information for those of us who are in a precarious position. At least we would know what would be reasonable to request if and when we are laid off.

Earlier today, we gave props to McKee Nelson for handling layoffs well (or at least as well as such things can be handled). But not every firm uses lube is kinder and gentler in the dismissal department.

We’ve prepared a (very informal) round-up of the severance packages at various firms, self-reported by affected lawyers. Check out the numbers, after the jump.


Some important explanatory notes:

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1. As noted, this survey is informal (and far from rigorous). The severance package information was self-reported by the dismissed attorneys; we generally have not verified it with official firm representatives (although we do have firm confirmation in a few cases, like McKee Nelson).

2. The information came from lawyers who were victims of forced attrition. Forced attrition encompasses acknowledged layoffs, stealth layoffs, performance-based dismissals, or any other departure from a firm in a less-than-totally-voluntary manner — even if the lawyer may have had to sign an agreement and release of claims making the leave-taking sound voluntary (e.g., a document stating that the departure “will be classified as a resignation,” a la Paul Hastings).

You may see on the list some firms that have not publicly admitted to conducting layoffs. We are not saying that these firms have conducted “layoffs” as such, but it would appear that they have asked at least some of their lawyers to leave. We take no position on how to characterize those departures; as we’ve previously opined, what constitutes a “layoff” may be in the eye of the beholder.

3. There were some conflicting reports for some firms. These are likely due to variations by office, department, seniority, timing (which round or wave the person was in), individual negotiation with the firm, etc.

We’ve tried to figure out and note the reasons for the conflicts, but some are irreconcilable. People at the same firm don’t always get the same deal — e.g., if one is a member of a protected class sitting on a potentially juicy cause of action against the firm, and the other is not.

In light of the foregoing, caveat lector. We emphasize once again the informal, crowdsourced, non-official nature of this survey.

If you have information to add, please email us (subject line: “Severance Watch”). We prefer email to posting in the comments because of the enhanced accountability and ability for us to ask follow up questions of you. We’ll include your information in the next round-up of severance packages. Thanks.

LAW FIRM SEVERANCE PACKAGES FOR ATTORNEYS

Last updated: February 23, 2009

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Firm Severance / Notice
Arent Fox None (3 months notice)
Baker & McKenzie 3 months
Baker Botts 3 months
Bilzin Sumberg 2 months
Bingham McCutchen 3 months
Blank Rome 1 month
Bracewell & Giuliani 2 months
Cadwalader Wickersham & Taft 3 months (1st round); 5 months (2nd round)
Cooley Godward Kronish 3 months
Cox Castle & Nicholson 6 weeks
Davis Polk & Wardwell None (3 months notice)
Dechert LLP 3 months
Dewey & LeBoeuf 3 months
DLA Piper 2 months Varies (2-3 months)
Fish & Richardson 2 months
Fried Frank 3 months
Goodwin Procter 3 months
Greenberg Traurig 2 months
Hogan & Hartson None (3 months notice)
Jones Day None (3 months notice)
Katten Muchin Rosenman None (3 months notice)
Kaye Scholer None (3-4 months notice) Kirkland & Ellis None (3 months notice) Latham & Watkins 3 months
Linklaters 3 months Varies (3-5 months)
Loeb & Loeb 2 months
Mayer Brown 3 months
McDermott Will & Emery 3 months
McKee Nelson 4 months
Milbank 3 months Varies (1-3 months)
Morrison Foerster 2 months Varies (2-6 months)
Morgan Lewis 2 months
O’Melveny & Myers 2 months
Orrick Herrington & Sutcliffe 5 months (1st round of layoffs; 2 months thereafter)
Paul Hastings 3 months
Pillsbury 2 months
Reed Smith 2 months
Schiff Hardin 3 months
Shearman & Sterling 1 month Varies (1-2 months)
Sonnenschein Nath & Rosenthal 2.5 months None (2.5 months notice)
Squire Sanders 3 months
Sutherland 3 months
Troutman Sanders 3 months
White & Case 3 months
Willkie Farr & Gallagher 4 months Varies (4-6 months)
Wilson Sonsini 2 months 3 months
Winstead None (1 month notice)
WolfBlock 2 months

Earlier: Associate Life Survey: How Would You Manage the Slowdown?

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