Reverse Perk Watch: McDermott ‘Sends a Message of Desperation’
Given the crazy layoffs news today, a law firm cutting back on perks might seem like small beans. But with many perks, it’s not about the particular thing being offered (or taken away) it’s about what the perk says about the firm, its culture, and in some cases its financial health.
It looks like McDermott Will & Emery is taking away coffee in its Chicago office. Here’s the email from the head of the firm’s Chicago office:
These are difficult times for our business and legal communities. We, like all law firms, are looking at expenses that can be pared without diminishing the quality of the legal services that we provide to our clients.Effective immediately, we are suspending our coffee services in the 45th floor lobby. We will, of course, continue to provide coffee and drink carts for client meetings. We will also continue to have the Flavia coffee service available on each of our attorney floors and will provide coffee to our clients in our 44th floor reception area.
We are also suspending, effective immediately, our evening food services. Lou and Walt are working on alternatives and will present those alternatives to you in the very near term..
If you have any questions, please call me.
George
Fair enough.
But after the jump, we see that other MWE partners were not all that happy with cutback.
Another partner thought that the coffee cutback sent the wrong message:
George, I know this will save some dollars but they are small dollars. For the small savings I think this is a mistake. To me it sends a message of desperation.Regards
Unfortunately, he sent that message to the entire firm, instead of just the head of the office.
(Side Note: Shouldn’t email have a warning message when you hit “reply all.” Like, “All can be defined as ‘every member or individual component of.’ Are you sure you want to reply to ALL????”)
Many MWE people then sent the whole email thread to ATL (thanks!), but a couple of tipsters put the email in historical context:
Notice that [MWE Chairman] Harvey Freishtat is cc’ed. Harvey is undergoing increasing pressure at McDermott to resign from the chairman post due to his penny-wise pound foolish financial strategies. Although he has been at the helm a long time, rumor has it that this is his final year — he is a money-grubbing GREEDY person who is going to be responsible for the implosion of McDermott in 2009 if he is not removed immediately.
On second thought, maybe MWE attorneys have been getting too much caffeine.
McDermott has already been through layoffs and a salary freeze. Hopefully they are now more prepared to take on the challenging environment of 2009.
Earlier: Nationwide Layoff Watch: McDermott Will & Emery Cuts 60
The Next Wave of Cost Cutting: The Pay Freeze




Comments
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Maybe they're trying to stealthily kill off the attorneys by keeping Flavia around. It tastes like it's been filtered through somebody's jockstrap.
they also cancelled their Holiday party (which was to be hosted in March instead of December to save money)
you have a job. stop complaining. suck it up and go to starbucks.
Pablo Picasso was never called an asshole.
we also cancelled our holiday party (which we traditionally hold in March instead of December to save money)
Prediction: Regardless of the quality of their work product, the only summer associates that will be getting offers this summer are those who are good-looking . . . Looks like I am screwed!!!
Guys at my high school used to stop providing complimentary coffee all the time. It was no big deal.
But for some reason the school closed a few weeks later...
FYI, microsoft outlook does have a "are you sure you want to reply all" function.
not to mention our half-latham severance packages
Pretty soon you'll have to provide your own toilet paper
Pretty soon you'll have to provide your own toilet paper
"BYOTP"
i liked the writing in this post. the reply all warning msg and the too much caffiene comment in particular. nice.
what's next to go? internet access? cleaning services? free bathrooms?
MWE- willing to cut everything but the partners who are not bringing in the work
save money on coffee? how about keeping the shi^^y coffee and save money (NYC office) by relieving MWE of the equity and non-equity partners who drink all the coffee but forget to put their money into the can (i.e. don't and never had a client). MWE's priorities are all out of wack.
Flavia is the worst. I'd rather be at L&W.
We should dedicate a whole post to "reply all" stories.
Flavia coffee = TTT of caffeine
Flavia coffee = TTT of caffeine
priceless!
associates, starting monday BYOC (bring your own clients)
I am still glad I accepted MWE over Latham. I can afford my own coffee.
"crazy layoffs news"? What'd I miss?
Brother, can you spare a cup of joe?
"crazy layoffs news"? What'd I miss?
Coffee is for closers.
This is the stupidest thing I've ever read. It costs what, probably 20-30 cents per head per day for a coffee tray? They're going to lose that much productivity from the time the associates and staff are standing in line at Starbucks instead of geting to work. Not to mention it'll piss everybody off.
Will work for coffee.
This is the stupidest thing I've ever read. It costs what, probably 20-30 cents per head per day for a coffee tray? They're going to lose that much productivity from the time the associates and staff are standing in line at Starbucks instead of geting to work. Not to mention it'll piss everybody off.
They have not canceled the lobster service yet. Take that, SkaddenDC,
21 - mwe layoffs are not over. they will re-evaluate in april. mwe will always find ways to save a penny. agree with 15, there are too many non-equities partners sitting around with no clients coming in.
4 - I love The Modern Lovers as much as the next guy, but how does that line in anyway relate to anything in this post? Or is that just a bit of online Tourette’s?
Sometimes I wonder what Micheal Ray Richardson would think about this if he were a lawyer and not a retired, formerly drug-addicted, basketball player.
This sounds like a reverse perk, unless you work at MWE and have had the coffee, which tastes like sh*t. So, actually management is doing us a favor.
The New Over Class does not need coffee.
This sounds like a reverse perk, unless you work at MWE and have had the coffee, which tastes like sh*t. So, actually management is doing us a favor.
This sounds like a reverse perk, unless you work at MWE and have had the coffee, which tastes like sh*t. So, actually management is doing us a favor.
It is NOT the case that coffee is "expense that can be pared without diminishing the quality of the legal services that we provide to our clients. "
This is petty. Sickening even.
just checking to see if my post button sticks too.
This only sounds like a reverse perk. If you've ever had MWE coffee, you know management is doing us a favor by taking it away.
Ha ha, I get it. reverse Perk.
Sanka
18/19 is spot on...flavia sucks...they should be happy...brew the shit at home and bring a thermos to work...
This is going to make clients run for the (Columbian Coffee) hills when they realize just how bad the finances are at this place.
The sink be shipping.
20-
partners, starting monday it DYODR ("do your own doc review")
1 - hilarious and true
this is supremely embarassing to MWE.
Harvey is under NO pressure to retire for being cheap... he's retiring because he HAS to. He hits the max age for management this year and has to step down according to the partnership agreement. Get your facts straight anonymous tipsters.
SECOND to say "Coffee is for closers!"
and
FIRST to say that a savvy blogger would have worked that into the post.
Jews hate coffee more than Mormons do.
http://www.youtube.com/watch?v=TROhlThs9qY
25: Brilliant! I am guessing that there will be a lot of third prizes handed out in the not-too-distant future.
http://www.youtube.com/watch?v=TROhlThs9qY
everyone should see the furniture in the Chicago office....it's literally from the 70s and 80s
People -- This must be a joke. Someone from McDermott please confirm one way or the other.
Skadden Chicago is the real joke. They do not even have running water. Everyone has a pale and must walk to Lake Michigan for H2O.
1, 18, 33 -
Amen!
25 = clutch Glengarry reference.
Isn't MWE notorious for carrying alot of dead weight non-equity partners? At least that's what I've heard here in Chitown.
Back off already! Over 7% of the state of Illinois is out of work. It's not the firm's fault that clients are generating less work and/or not paying. Move to Michigan or California and see what your employment chances are there. Cutting back on coffee is of such minor importance. If the miniscule dollars they save help keep people employed, so be it.
54, everyone at Skadden Chicago has a "pale" what? pale face? pale shirt on today? this is important information...spill, already.
flavia > k-cups
The really big deal is that the firm used to have free dinner every night at 6:30, and they are not going to do that anymore.
The coffee was nice, but that's not what most associates would be upset about. Maybe it's ok to not give people dinner when there is no work, but this is definitely getting rid of what was a major perk of working late.
53 -- Confirmed. Its the absolute truth.
57 -- Are you an MWE management plant? Get a life.
Back off already! Over 7% of the state is out of work. It's not the firm's fault that clients are generating less work and/or not paying. Move to Michigan or California and see what your employment changes are there. Cutting back on coffee is of such minor importance. If the miniscule dollars they save help keep people employed, so be it.
53 -- Confirmed. Its the absolute truth.
57 -- Are you an MWE management plant? Get a life.
Back off already! Over 7% of the state is out of work. It's not the firm's fault that clients are generating less work and/or not paying. Move to Michigan or California and see what your employment changes are there. Cutting back on coffee is of such minor importance. If the miniscule dollars they save help keep people employed, so be it. Control your anger people; it's nothing personal.
53 -- Confirmed. Its the absolute truth.
57 -- Are you an MWE management plant? Get a life.
Dude - if coffee is not available EVERYWHERE in the office - legal services will be compromised - ZZZZZzzzzz.
Apparently everyone at Skadden Chicago is pale because there is an office wide MRSA epidemic.
Back off already! Over 7% of the state is out of work. It's not the firm's fault that clients are generating less work and/or not paying. Move to Michigan or California and see what your employment changes are there. Cutting back on coffee is of such minor importance. If the miniscule dollars they save help keep people employed, so be it.
Hey 61! I'm just a person who is glad to still have a job. Increase your meds and get over yourself.
Hey 61! I'm just a person who is glad to still have a job. Increase your meds and get over yourself; and good luck getting a job.
Does anyone happen to know the State of Illinois unemployment numbers, and how that relates to McDermott's coffee service (or lack thereof)?
60 - all the attorneys that got the "free dinner" can AFFORD to buy their own dinner, their own coffee! What is the big deal - if people are able to keep their jobs, then go for it MW&E!!!
Bobby Jindal here with a Republican response and saying in Louisiana, we took a similar approach of cutting wasteful spending. Since I became governor, we cut more than 250 earmarks from our state budget, and we cut taxes six times. In short, while MWE partner George places his hopes in caffeinated associates, those of us who lived through Hurricane Katrina -- we have our doubts.
MRSA, that sucks.
Attorneys will look up and shout "Save our coffee!"... And I'll whisper "No."
Who needs coffee when you can bathe in champagne?
-Pop Bottles
25 = new ATL editor.
Glad D & L didn't stop serving coffee. Enjoying a cup of steamy goodness right now. There's you PPP at work for you!
Bobby Jindal - that was hilarious. I hope to see your schtick in more threads.
the people staying late for the dinner program were probably hoarding all the work anyways. maybe now that people are leaving earlier there will be more work for me!
59, D-cups > flavia > k-cups (I am a boobman, not an a$$man)
I miss the free cocaine. Now those were the days.
#25 here. I'm not an attorney. But I do spell check.
#25 here - I'm not an attorney. But I do spell check.
so when a head hunter calls up and says "lets grab a cup of coffee" ...
McDermott Will is the shithole of all shitholes.
Hmmm...Harvey Freishtat must be a pseudonym for Matt Larrabee.
hmmm...Harvey Freishtat must be a pseudonym for Matt Larrabee.
Sounds like a logical decision by MWE that has been appropriately communicated. Office coffee always tastes like crap anyway.
The office coffee is no where near as bad as the firm.
60:
I'm sorry, I must not have understood you correctly...does your post mean 6:30 pm is...late?
60:
I'm sorry, I must not have understood your correctly...does your post mean 6:30 pm is...late?
You people are spoiled. When I first started working in 1978, everyone had to bring their own beverages to the office. Nobody complained about it either. wa, wa, wa....grow up!!!
i was born in 1979. what was 1978 like? and, why arent u retired by now?
46- sorry. Harvey hits the age when he has to step down from management next year, not this year. If he leaves this year it is not of his own choosing.
how do you serve dinner at 6:30pm thats preposterous! dinner should be served at 8:00. Harvey get on the ball!!
George will have to do some serious mathematical acrobatics to fix the PPP numbers this year
I'm curious as to who the 45th lobby coffee was for, since they are still serving coffee 'to clients in the 44th floor lobby' and on 'all attorney floors.' So who was on the 45th floor that's no longer getting coffee? Paralegals and other staff? visitors other than clients? This just seems odd.
98 posts and no McDermoTTT? C'mon!
75 --- that was inspiring. Sad to see that nobody else got it.
Signed,
Working all weekend, and praising the lord for the hours
Looks like MWE jumped the shark!!
94 - u r the diaper king! Yaaaahhhh!
koenan the barbarian
burke
conlon
5 MBA financial analysts
Their salaries/relocation expenses equal free coffee and dinner money for life!
Get it together Management Committee
The laid off associates should push coffee carts around each floor. make some big cash!
Screw the coffee. The income partners who don't bring in a penny in new client business should be out the door. There is so much dead weight at MWE its ridiculous. This ridiculous effort to save money by cutting coffee makes the firm look pathetic. Whats next? One ply toilet paper or more likely BYOTP. Until they cut the dead weight they will be a joke.
No coffee, no workee.
Does McDermott ever get recognized for anything other than its horrible leadership?
I met a McDermott partner once. He was quite fat, and came across as a poor manager.
107---No
Why does everyone hate McDermott so much? I've heard so much about the cheap and oppressive atmostphere and the shitty management. Is is really true?
man, there's some serious hatred in the mcdermott threads directed at the income partners. they can't all be useless.
111 -- I am an associate at McDermott. Not all the income partners are useless but sadly most of them are. They sit in their office with nothing to do. If you have been an income partner for 3-4+ years and haven't managed to get a good client of your own you should be shown the door. I think its coming. Cutting out coffee and special order pens will only save you so much. Same with associates and staff. Dump the non-performing income partners and scare the ones that have potential to drum up clients of their own and the firm stands a chance. I have to say its a pretty miserable place to work. If I could do it over I'd be somewhere else.
Just a suggestion to those that think associates are ungrateful about the loss of coffee. Maybe the actual concern is that guys who are cheap enough to nix coffee (costing what? $20 a week? $40?) will be absolutely fucking merciless when swinging the axe?Nah, I am sure that they aren't worried that this is a harbinger of bigger things. It is really about the coffee.
The guy writing the e-mail to George hit the nail on the head. It looks petty and desparate. Either George is a fool for failing to see that this will make MWE look cheap, clumsy and unable to forsee the obvious, or he actually is so cheap that he honestly doesn't give a fuck. I sure as hell am glad that I don't work there. A man too cheap to put coffee in the budget is sure as hell too cheap to pay one fucking dime of severance. He is probably going to dream up performance based excuses to fire everybody from the mailroom guy on up. But yes, the real story here is the loss of coffee. Not the fact that everyone at MWE actually works for Mr. Burns.
Why isn't anyone commenting on the equity partner withholds?
From a profitability standpoint, whacking non-income partners is a risky move. In the short-term, it looks good; in the long term, it could be trouble. Now more than ever, firms like MWE need to have the rainmakers bringing in new business and pushing the work down to lower cost, higher profit-margin non-equity partners or senior associates. Weighing the rainmakers down with a ton of billable hours is a short-term revenue answer that will create a long-term profit problem.
115 - MWE does need to trim the fat at the income partner level. There are way too many income partners that will NEVER make capitol partner. The firm has been too generous (or stupid) in the past with who made income partner and its now time to correct that. If you haven't proven your worth despite a few years at that level it is time to be asked to leave.
MWE does need to trim the fat at the income partner level. There are way too many income partners that will NEVER make capitol partner. The firm has been too generous (or stupid) in the past with who made income partner and its now time to correct that. If you haven't proven your worth despite a few years at that level it is time to be asked to leave.
Agreed with cutting income partners. At least in NY, there are a bunch of income partners, who went to shit schools (and before you start with the shit school vs. good school thing - trust me, they're dumb), who have no business of their own, and who sit around and do pro bono. But the firm prefers to cut first years. Nice job management!
ELIE YOUR POSTS SUCK
ELIE YOUR POSTS SUCK
ELIE YOUR POSTS SUCK
ELIE YOUR POSTS SUCK
ELIE YOUR POSTS SUCK
ELIE YOUR POSTS SUCK
You folks don't get it. The real core of MWE culture hasn't changed in 40 years: cold, dowdy, tight-fisted, awkwardly Midwestern, and smart as hell. That culture will keep the firm going long after many of its more-prestigious competitors have died off, merged away, or morphed into something unpleasant.
I used to be an income partner there. I had no business and no chance of ever becoming a capital partner, but as I kept busy doing other people's work the firm didn't fire me outright. I was a profitable if unpromising cog. No one said anything to me about my future, even during performance reviews. (I didn't ask. There was no point to it.) Eventually, after lining up another job, I quit.
So I'm no MWE booster. But I respect the firm's knack for survival. The real partners in any firm are the insiders who protect themselves until the last. In this context, MWE's insiders are among the best anywhere.
110, people hate the firm because it does not tend to take actions that cultivate loyalty. In my experience, it is cut throat, you have little say in how things are run or in your own career development, no one cares about job satisfaction and manament decisions are so random that you can never get a bead on what is/is not expected. This last factor drives people crazy because you can't predict what will get you promoted or canned. One day you do something and it is the greatest. The next day, you get yelled at for the same thing. The place is depressing and was before this melt down.
Harvey barely got elected. It was a divided vote and I bet there are some on the management committee that regret changing from Mike to Harvey.
118 - Its not just a NY thing. Most of the income partners in Chicago, LA and Boston are the same. Dumb and doing mainly pro bono since they have nothing to do since the downturn. A cut is fully expected amongst this bloated class to be coming in a few weeks/months regardless of what bullshit Harvey is trying to spin on his pathetic goodwill tour. I hope these poor fat bastards have been saving up before they get the ax because no way cheap MWE is going to give the generous package that Latham gave.
What is more shocking is that this firm has yet to reach a final decision regarding 2008 associate bonus compensation. The holidays passed months ago, spring training has already started, a new president is in office, but the associate compensation committee has yet to announce what, if anything, it intends to do (so far, small "bonus advances" that were significantly below market were paid in December).
Associates have been told that the firm has been unable to determine 2008 bonuses until some unspecified date in March because the firm wants to "wait so it can accurately gauge the pulse of the market." However, a reasonably intelligent 5th grader with web access could have stated what market 2008 bonuses were at least two months ago. Firm leadership and the associate compensation committee apparently think that associates are too stupid to understand that the firm is receiving an interest-free loan by neglecting to pay (or even announce) 2008 associate bonuses until some unspecified date in March.
Most associates think it is fine when the firm is cheap with coffee and other superfluities - thrift trumps profligacy. However, associates draw the line when it comes to compensation. Every year the firm conjures up news ways to "gets creative" when it comes to nickle-and-diming associates around bonus time. The firm's ingenuity in this respect is amusing for maybe a year or two, but ultimately gets old. My guess is that this regular MWE practice is the reason why MWE is so vociferously flamed on this board.
129: well said.
Don't plan on a bonus. Why? See 114.
Bonuses in March? ROFL. At most, there will be something nominal in the range of $5 to $10k. After two rounds of layoffs (yes, the stealth one in December was a layoff) and in this economic environment, that's the most they will do. And they probably won't even do that.
There may be too much fat in the income partner ranks, but the income partners aren't comparable to the younger lawyers. For one, they actually know what they're doing. They can, and do, run the cases/deals. The capital partners need them to do that work. The younger associates can't do it. And clients won't pay capital partner rates of $700-750 to do that work, even if the capital partners wanted to. And many of them don't, since they'd rather be out drumming up new business.
Second, there's a lot of money to be made on the income partners. They bill in the $450 to $500 an hour range, which generates about $1 million in billables annually. Or more. Their salaries are less than 1/3 of that. That's a pretty profitable worker bee. And unlike the younger associates who waste a lot of time, you usually don't need to write off a lot of an income partner's billable time.
Does anyone read the old blogs "McDermott layoffs"=still active! This firm sucks so badly that people still post! Glad that MWE will have to merge to stay alive.
MWE Income partners are the slaves of the firm. Most have never sent out a client bill. They don't even deserve the title of associate at a top firm.
People, JS, PS, and BB want HFs job. They even plan to start politcking immediately. HF and all of the capital partners at the top end of the Xmas tree (I'm an insider) don't deserve 1/10 of their salary. All they care about is themselves -and not the firm.
HF is a fat slob right?
Why hasn't anyone pointed out that MWE was the first major law firm in the United States to freeze associate salaries? You can look it up. MWE was before even Latham.
#133: What's this about merging? With which firm?
132--you sound like a worried income partner trying to save his own hide by crapping on the junior associates. Each associate can view his/her billings and how much was written off. As a 2nd year, less that 1% of my 2000+ hours was written off, and the few hours that were written off were little snippets of time that would look like we were nickel-and-diming the client if we billed for them. You'll need to make a better case for yourself. Good luck in the next round.
What's worse? Flavia Coffee or McDermott's leadership? I'll go first.
McDermott's Leadership 1
Flavia Coffee 0
132--the difference is that an income partner can easily do what a 2nd yr does. But a 2nd yr doesn't know how to do the bulk of what an income partner does.
Income partners may well get cut in the next round. Maybe even a lot of them. No one knows. But so far it's been largely younger associates getting cut. Including a bunch of 2nd yrs.
You may provide more value to the firm than most 2nd yrs. Good for you. You're the exception.
I am getting a lot of calls from MWE attorneys asking if my firm is hiring. Seems like the writing is on the wall.
HA! No firm is hiring.
Not true, even MWE is hiring. You just have to have the right skill set and be willing to work in the right city. Right now, that is bankruptcy and compliance-related work.
Not true, even MWE is hiring. You just have to have the right skill set and be willing to work in the right city. Right now, that is bankruptcy and compliance-related work.
There are a lot of MWE associates looking to jump ship as soon as possible. The place is absolutely miserable. Lying partners don't help.
the firm is known for trying to "trade up" talent. They look to let go of attorneys from schools like New England, de Paul, American, New York Law, or Loyola and try to hire pedigree that would not consider the firm when times are better.
As a mid-level associate with MWE, I can advise any lateral candidate with any pedigree whatsoever to look elsewhere. There is a reason the firm has only been able to get candidates from Cooley for the last few years: this firm stands alone as a miserable place to work (which, considering the competition, is an accomplishment).
148: That's the reason why MWE would be a good choice for a lateral with a pedigree in today's market. A Northwestern, Chicago, or Columbia grad who got laid off from a top-tier firm might be welcomed at MWE. Go in with your eyes open, take things for what they are, and you can have a good couple of years before you can't take it anymore.
Anyhow, miserable it might be, a hitch at MWE looks better on a resume and pays more than the Depression survival jobs many of us will have to get -- and those jobs are pretty miserable, too, especially if you're not used to the blue-collar blues.
Reminds me of Faust...
I spent three horrible years of my life at MWE. I would NEVER hire MWE if the situation arose.
Why, just because they pad their bills, do sub-standard work, play fast and loose with their ethical obligations, and put partner interests before client needs?
You're awful picky.
There will be more cuts at MWE. I'm on the inside and I know. Under performing income partners and staff will feel it the worst. Count on it. The list of names has already been made so trying to inflate your hours is a waste of time. Your time would be better spent trying trying to secure a new job and then hang around to get your 3 months severance if your an atty and 1 week for every year you've been there if unfortunately your staff at MWE.
Karma's a bitch. I wonder if anyone at the firm is reviewing these comments and rethinking how they treat people.
People - they don't frickin' care! Stop worrying about MWE partners - they care about you as much as they care about the shit on the bottom of their shoes....
It's as bad as portrayed. Dissent from senior-most equity partners (e.g., the author of the coffee reply to all); pitiful road show by the Chairman; leadership in 2 groups (BR and IP lit) are noteworthy embarrassments; no hope of advancement to equity (even with business) sans well-aimed sycophancy; yet, growing chance of de-equity; bad furniture; and, now, no coffee.
Don't forget the ripped carpet. The place is hell on earth.
As an ex MWE income partner, many of the things mentioned on this blog are true but others are not.
Senior management is awful and greedy, but there are plenty of rising stars who are trying to change the firm culture (not sure they will all succeed). Power is centralized among too few partners, and they really have no understanding of the firm as whole other than from reading reports. For everyone's sake, I hope P Sacripanti takes the reigns soon. Notwithstanding the change in leadership however, I suspect it will take time to change the firm's culture.
One of the larger problems with MWE is that it feels as if it has been cobbled together -- there is no feeling of being in a single firm with resources that you can draw upon from throughout the firm. It's the silo mentality taken to a whole new level. Also, many of decision makers (from office leadership to exec cmmttee) shouldn't be in management at all (not everything should be tied to how much cash kwen is brought in by a particular person).
Another is that the firm is too focussed upon short term profits. If a capital partner has a large writeoff in one year, MWE dings them very hard. This has led to the defection of quite a few talented equity partners with skill sets that MWE will be challenged to replace.
These problems point to the heart of MWE's greatest weakness (and, ironically, its greatest strength) which is the eat what you kill mentality that permeates the firm. Ultimately, it is why MWE will be around for a long time to come. But it also is the main impediment to the firm ever operating in a holistic manner, an achivement that many other national firms can tout. The petty manner in which many equity partners keep their finger in a project with a preexisting client is unbelievable.
As for income partners, although there seems to be much hatred directed at them, unfortunately the sad truth is that the associates do not compare to those at v10 firms. Perhaps there is room to cut some in these ranks, but they really do add value as they can run deals.
Best of luck to MWE and its worker bees. It wasn't a bad place to work.
125 and 158 are spot on
125, 158 and 159 are the same person. The firm does not have V100 talent, and it's an awful place to work.
Awful is in the eye of the beholder. Having worked in private practice in two v10 firms before jining McDermott, it has its positives and negatives. If it is the only place you have ever worked, then your experience is more limited. 125 and 158 are not the same person.
Actually 161 is delusional as I have worked at other firms and can tell you MWE absolutlely sucks. I'd be gone but the market isn't allowing for this. Dont come here is you dont have to.
Actually 161 is delusional as I have worked at other firms and can tell you MWE absolutlely sucks. I'd be gone but the market isn't allowing for this. Dont come here if you dont have to.
Actually 161 is delusional as I have worked at other firms and can tell you MWE absolutlely sucks. I'd be gone but the market isn't allowing for this. Dont come here if you dont have to.
Let's not fool ourselves. All biglaw sucks. It is just a matter of degrees.
Its okay- MWE will merge with some low tier TTT firm.
I'm 125. I'm not 158. But 158 has a point: after working at a few places you do get a sense of perspective.
For all you young'uns out there: Think of your granddaddies holed up in a snowbank in December '44, dreaming of getting out of Bastogne alive and getting their frostbite treated. Think of your grandmas, 8 or 10 years old in 1936 or so, picking polk salet and dandelion greens along the road so the family can have of vegetables in their hambone soup. In life there are times like these, including times when you have to work at places like MWE and then get laid off from them. You'll survive and get to tell your grandkids about the trauma.
It may be that MWE will outlast the other competition but I ask at what cost? They will eventually cut into and become half the size as will other firms. Talent will leave and a new culture will instill itself but I don't see MWE at 1100 lawyers by 2010. The first round of 60 lawyers is merely a start to another round of head chopping in the next 3-6 months. Problem is that the next round will take its fair share of income partners next time around -- something they mostly avoided in the first round. Too many income partners are dead weight glorified associates with no real value to offer except the work they do. No work means no need for them and they are easily replaceable by a mid to senior level associate with a lower cost to MWE.
The next problem they will face is dumping large amounts of office space - within 3-4 years they will need only 60% of what they have in Chicago and similar reductions will take place in other cities as well. Ask former Keck and Altheimer partners - the landlords don't go away - and even if there's no recourse against individual capital partners - it can be a driving force in pushing a shrinking firm to and over the brink.
Look at Palo Alto; we dont need new space and are desperately trying to sublease our OLD building and the NEW building. Go HF for great management. Once again, the management committee deserves every part of the millions they get for management!
Does anyone have real *inside* (ie Deep Throat) info on income partner cuts? When? Who? Is it based on hours or are they going to look at people who have their own business?
Better question: When was the last time equity partners at McDermott received a paycheck?
172: it was a Tuesday. But I'm not sayin' which Tuesday/
110 - take it from someone that is still employed there... it's dreadful.
8 said: "FYI, microsoft outlook does have a "are you sure you want to reply all" function."
Where?
The Chicago Tribune just posted an article about McDermott. No publicity is bad publicity, right George? HAHAHA
175 - It's installed through Marimba as an Outlook plugin; you can disable it if you so choose.
- Not 8
I'm glad that George outed our Comp Chair John H. Love the partnerly spirit around here - and you wonder why people get sanctioned, sexually harassed and have to kiss up to get promoted at 3rd year!
What a bunch of whiners!! It's a good thing Starbucks just launched their instant coffee. Now you can bring your own like the rest of us do.
Ironically, the coffee that was eliminated WAS Starbuck's coffee!! Way to go George and Harvey -- making the headlines in all the right ways!! Woo Hoo!!
Do John Harvey and George even care about Chicago? Do we have a health practice? A competent trial group that gets big cases? How do we align with other successful Chicago firms like Sidley and Kirkland (PPP over $2.5?). I guess we spend all of our time on coffee and petty stupid poltiics and we never grow the business.
Thanks again management committee. If you really are worth your shit- then publish the amount that the comp commitee pays you for your HOURS and the RESULTS that you achieved.
Look at the IPCCC or the Assoc Comp? They cant even get their comp numbers out the door and its already late.
Thanks to all on MANAGEMENT. YOU DESERVE YOUR JOBS.
I worked at MWE for over a decade. As one of the recent layoffs from MWE I have to say that up until Harvey took over as Chairman (more like Grim Reaper) the firm was a damn good place to work at. Harvey had huge shoes to fill in when he came in to replace Larry Gerber, and Harvey failed miserably. In a matter of months, the Carnelluti partnership in Milan fell apart. The plans for an office in Paris went to shit as well.
Then about a year ago Harvey hired in his big gun Bob Koenen from Howrey Simon Arnold & White to be the new COO. He gave this guy full reign to come in and do as he saw fit without any repercussions or restrictions, answering only to Harvey. Soon, the department heads for accounting, IT, and HR slowly got replaced with former Howrey Simon Arnold & White staffers that Bob Koenen brought over. All under the firm's nose.
Harvey Freishtat's capabilites as a penny-pinching bastard were of particular use when he was in charge of the Compensation Committee because he made sure attorneys got their due. In the 12 years that Larry Gerber was chairman MWE thrived, expanded and grew. This was thru a period of the last Gulf War, 9/11 and the beginning of the current Gulf War. In his tenure as chairman at MWE, Harvey W. Freishtat has managed to close offices, lay-off staff, and put in a figurehead in the form of Bob Koenen that has "diplomatic immunity" from the Management Committee. Immunity that has enabled Bob Koenen to replace long time support staff with high-paid, under-skilled "yes men" that are slowly draining MWE's profits.
I say this to you, MWE Management Committee members: Check your books. Maybe all isn't as it seems when it comes to who is getting paid what and how much. It's a fine line between being penny-wise and outright greedy. You might want to see just how much Bob Koenen and all his new staff replacements and consultants from Howery are making compared to the long time MWE staff that we're recently let go.
You are a looser - you were let go!
It's loser. Learn to spell, nub.
Hey 183 -- why don't you go see if you can't shine Harvey's shoes. Now that he will be able to retain his multi-million dollar salary thanks to the body count he created, I am sure he will be able to throw you a few nickels. Idiot.
Sorry I can't spell BONUS and MAKING OVER TWO MILLION DOLLARS FOR THE MANAGEMENT COMMITTEE MEMBERS.
Somewhere Over The Rainbow, Bluebirds fly. Birds fly Over The Rainbow. Why then, oh why can't I? -
http://www.pw-mag.com/articles/172/1/Full-Speed-Ahead/Page1.html
- If happy little bluebirds fly beyond the rainbow, why oh why cant I?
Desperation over coffee! Real desperation is having your income gone with no notice, and only McDermott's LAVISH severance (one week for each year of dedicated service and health insurance to the end of the month), and that is doled out only after you sign an exhaustive five-page document protecting the firm from any conceivable legal remedy you might have had. Latham at least has some class.
Is is true that McDermott is asking all employees to minimize toilet flushing in order to reduce its water bills?
This is unfair. The LA and OC offices are run differently than the rest of the firm and people are much happier.
190, are you serious? When was the last time you saw a woman equity partner? What is the state of the IP and corporate groups. Those offices are as effed up as the rest.
190 -- Oh the sarcasm! I've been in the LA office of MWE for more years I care to admit and trust me the majority (staff and attorneys alike) are not happy. The office is being run into the ground by the managing partner and the office administrator is incompetent. There are no women in any positions of power. Sexual discrimination is rampant and swept under the rug. Female associates don't go anywhere but out the door.
We are stuck now but when the economy recovers I have a feeling a lot of people will run for the doors.
A worthless office administrator at MWE? No way!
What happened to the expose article by the Daily Journal about MWE?
192-Apparently you aren't having an affair with the right person to get promoted?
It doesn't matter, we don't have an ounce of work anyway. LA, OC, and SV are failures. SD will get cut enirely in the new cuts, what a waste. And don't forget that the China offices ...
When I was being recruited as a 2L, you all painted such a pretty picture. Now I understand that it was all lies. Worse, now that I am on the inside, I was also told to lie during interviews and to summers. Not this year. If asked, I will honestly tell the 2Ls that the ship is sinking and that I cant wait for the market to pick up so I can get away from those who sexually harassed me during my summer and the rest of the crooks, racists, and a-holes.
Free coffee is a constitutional right! Look it up -- Juan Valdez versus the State of California!
195- It makes me sick too. Pro bono supposedly counting as billables, "lean staffing", mentoring, and all kinds of other BS that was pawned off to all the recruits.
197 - Make no mistake, pro bono in the 40-60hrs range is a good thing. But if you bill beyond 60hrs of pro bono you might be publicly praised by HF but you be considered a non-producer and eventually terminated.
Income partner cuts? When? SV has no clients.
198 is right. Local managers try to get people to participate in all kinds of firm activities, including recruiting, diversity, mentoring, professional responsibility, summer associates, pro bono, etc. These activities are fun and you feel good doing them. But, if you look at bonuses and promotions, it is very clear that the only thing that counts is billable hours. There is a long line of people, including capital partners, who did things in the name of good firm citizenship, who have found themselves kicked to the curb. The firm will take credit for all this good effort, including by issuing press releases for the dumbest stuff but you might see yourself without a bonus, losing units, or out the door for failing to make your hours. Your reward: They will commend you for being a good person.
Aesop says: Stay away from firm citizenship activities unless you know you have no intent to stay at the firm and you are just riding things out with a nice quality of life for as long as the firm will let you. If you have any ambition, focus all your effort on finding real billable work and building your own reputation through select marketing effort that benefit you. Everything else is a waste if you don't make your hours.
200 is right.
MWE is loaded with asshole partners. Another reason the firm is awful: far too many remaining partners have all their eggs in one basket. Lose that one major client and those partners will have little to no business. There are a few respectable partners at the firm; they are rare though.
201-Do you see a transition plan? It can't possibly be with the current income partners (many have never even sent out a bill). Then who? I guess laterals. The door at MWE's California offices revolves so fast that you can't possibly keep up. Except for women and minorities, they get pushed out...
There is no transition plan. In fact, we are about to elect two co-chairs to head our firm. Who, by the way, dont like each other. When in the history of mankind have two people who depise each other jointly lead a group successfully...never!
Its just like the IP group had a deputy co-head - wasn't that effective.....
204 has it right - neither had any leadership qualities and basically lied about everything and anything to get what each wanted - IP imploded.
The IP group imploded with a car accident in Tennessee. No one could fill those shoes in quite the same way.
Ironic that RVL is the only one who remains at McDermott from the original group.
136 - yes, HF is a fat slob.
i was laid off in the california offices. despite working my butt off - they claim it was the economy. but query, does the client know? all of my hours were billed and collected. if i was a screw up - they should not have billed the time.
thanks management. amazing how great you all are. why dont you plan another management meeting so 45 losers from around the world with no active practice can spend loads of money travelling in first class, buying wine and then actually do nothing. don't address compensation or promotion. don't address the faiing china offices which hopefully wont be part of the firm since they are bleeding dollars. and don't address the fact that some offices dont have a single client in that office,they appear to be sweat shops for other big partners without any sweat (i.e there is no work).
think about the big picture. coffee, as they say, is just the tip of the iceberg.
MWE just announced some new partners in China. MWE's mantra: lay off productive folks and hire unknowns as partners. The remaining intelligent folks at MWE know that the ship is sinking. Too many bad management decisions and horrible partners. I would never hire MWE.
195 - Are you in the DC office? I think a lot of women had similar experiences . . .
How do you think a complaint about losing a coffee perk (pun!) is viewed by the millions of people who have been laid off from other industries? Financial services firms have a major PR disaster on their hands because of the way they benefited from OPM - Other People's Money. Law firms aren't far behind.
Looking into this further, I just found out that this was STARBUCKS COFFEE that was brought up to the conference room floor for all to enjoy (Chicago office only)!!!! Give us a break, stop complaining and walk down to Starbucks and pay for it yourself if you want "Starbucks" coffee. Lazy, high paid brats. "but what about the down-time to walk down" give me a break - associates waste enough time as it is.
Does anyone know if McDermott has officially reneged on distributing the second half of the bonuses from 2008 work? It was supposed to be paid out in March.
Do you really think HF is going to give you more money? With all the layoffs, capital partners not getting paid, associate raises on hold, a China office that is totally disfunctional...
How many McDermott capital partners will abandon ship in the next six months? Are they holding out in hopes of getting their withheld salary? When is the next round of layoffs expected at McDermott?
When will the '09 grads be starting? December?
My sympathies to 182, but your assessment of the Gerber years is flat-out wrong. Gerber is 100% responsible for the penny-pinching culture you complain about. HF is only following the trail that Gerber blazed.
Gerber was a CPA, and that’s how he led. Crank up billing rates, neurotically squeeze expenses, and over-rely on short-term financial printouts to get an outsized PPP. Gerber figured it would draw laterals with big books. Certainly hasn’t worked, at least not well enough to justify the change in culture and the permanent hit to the firm’s morale.
The Italy thing? A bad idea from the get-go (during Gerber’s run); was never going to work. Firm growth? Big deal; all the big firms have grown. Underqualified yes-man administrators? Gerber wrote the book on them (although to be fair, many were teacher’s pets of individual partners). And yes, there was a layoff during the Gerber years, and office closings too.
Look, HF was part of the Gerber management and deserves his share of the criticism for it. But let’s not do the revisionist-history thing on Gerber.
Any news on the China office? Are we going to renew the alliance?
What about the sanctions order? What is going on with the appeal?
And the elections for firm chair? Three equity partners with some planning to be co-chair?
I guess three heads are better than one. Maybe three heads can figure out a way to develop a trial practice. Especially when the trial head wont be part of the trial group.
I can see support for the JS/PS ticket but is anyone supporting the BB ticket. Many of the practice groups in DC office have self destructed under BB "leadership".
215--On point.. Capital partners have still not rec'd "08 distributions--including those partners who have left MWE.
An ATL PSA
Note to all future students and lateral associates considering MWE. . . RUN FROM MWE LIKE THE PLAGUE! Unless this is your absolute last resort, every other AmLaw 100 firm is better.
Good luck.
How bad was BB that he lost to JS/PS?
Bad, A BB win would have shown that people were willing to look to an outside point of view. Instead, they keep marrying their cousins and producing mutant leadership. I am not a BB fan. His own management style is not particularly inclusive, but he would have been better than the two that won if for no other reason than we would have known who to hold accountable. There is a leadship vacuum that will make people leave for greener pastures.
"high-paid, under-skilled "yes men" that are slowly draining MWE's profits."
"high-paid, under-skilled "yes men" that are slowly draining MWE's profits."
Seriously, that is worth repeating. LOL! If there's a Daily Journal expose in the works, I have much to say. MUCH!
Do you really have much to say or are you going to leave it at innuendo and gossip?
226- not sure who you are referring to since it applies to most equity partners in SVY, DC, NY and Boston.
And yes, you can thank those "partners" for paving the way for a second round of layoffs...coming soon.
226- not sure who you are referring to since it applies to most equity partners in SVY, DC, NY and Boston.
And yes, you can thank those "partners" for paving the way for a second round of layoffs...coming soon.
I wonder how much of a cut (if any) the partners will take this year? Yea, kill the coffee (especially on the non attorney floors because we all know the non attorneys make oodles of money and don't need free coffee) and increase the price of tampons in the ladies room to $1 each. Whatever you do - don't cut perks for partners!