McDermott Will & Emery: It’s a Good News, Bad News Kind of Thing
Today, McDermott Will & Emery completed its “2008 compensation cycle.” There is (shockingly) some good news for associates at the firm.
According to a firm wide memo:
In recognition of strong performance, the Committee approved 2008 bonuses that are in keeping with the Firm’s merit-based approach to total compensation and that in many cases exceeded the market.
According to sources we’ve spoken with over the past few weeks, this is largely true. While MWE’s bonuses were nominally half-Skadden, high performers and top billers report that they received substantially more money than that. One tipster reports:
Pretty much everyone to whom I talked was pleasantly surprised. We pretty much expected them to go with the Cravath scale, but they actually went above by a bit. [For first years] the class the median was $21,250, the average was $22,266, and the high was $40,000.
It gets progressively better up the scale, with some 4th years reporting that they received as much as $60,000 in bonus.
We understand that these figures include the $10,000 bonus advance MWE associates received in December.
Of course, stub-first years didn’t receive any bonus. But given the fact that McDermott recently laid off 60 associates, the stub-first years that are left have to be pretty happy to still have a job.
But there is some bad news too. Details after the jump.
McDermott has been talking about a salary freeze for some time. Back in December, long before Latham cracked the pay freeze whip, MWE announced that it was “considering” instituting a pay freeze. At the time, we reported:
Buried in the third paragraph of this “new” announcement was the line:“In addition to the final bonus determinations, Associate base salaries for 2009 will be determined and announced in March at the conclusion of the 2008 compensation process. Until then, current base salaries will remain in effect”
Well, it’s March. Despite the “strong performance” of 2008, MWE is officially freezing salaries for 2009. the firm wide email (screen shot below) says that the freeze will give the firm more “flexibility,” whatever that means.
Check out the email below.
Earlier: The Next Wave of Cost Cutting: The Pay Freeze
Nationwide Layoff Watch: McDermott Will & Emery Cuts 60
The Next Wave of Cost Cutting: The Pay Freeze
(83) Comments
Comments
First, taste it!
First -
Freezing salaries now is ludicrous, the Dow is on the rebound and the recession is clearly over.
I've got your stub right here. And where exactly is the bad news in this? At this point, isn't a pay freeze good news?
((____)========D~~~~~~
Give me back that fillet-o fish!
Give me back that fish...
Give me back that fillet-o fish!
Give me back that fish...
My god, my anus is on FIRE right now, shouldn't have eaten those hot wings.
I forgot to add: go to Rutgers-Camden, folks
Kenny Powers would never work for a TTT firm like McDermott. The majors are a callin'....
I can confirm the good bonuses, and you didn't need to bill a ton of hours to get it.
Not surprised. You have to bill 2000 to get a bonus at mwe and not many people did in 2008. So that means less people were sharing the pot.
At least MWE's Chicago office didn't have an outbreak of MRSA like Skadden Chicago did. That is just nasty.
Can someone please revive the "Call me Ishmael" schtick? That was a solid schtick. Good times.
Still no post on Posner's benchslap from last week? Come on, Ellie.
STOP USING THE TERM "HALF SKADDEN"
YOU SUCK, MYSTTTAL
Any news on Howrey?
13: you are functionally retarded
http://abovethelaw.com/2009/03/judge_posner_says_expired_sala.php
Has anybody noticed the really weird smell in the lobby of VenableDC lately?
Totally misleading. This is a PR move to make it appear that MWE is healthy. What about the capital partner salary withholds? What about the associate and staff layoffs?
Very few MWE associates made hours in 2008, the majority in my group did not even come close to making 2000 hours. The firms sucks and another round of layoffs will come near the end of April. Work is incredibly slow, and associates spend far too much time checking other associates' hours on ETE to see who is next to get laid off.
5 you are so disgusting.
It should be noted that several laid-off associates also got bonuses.
If the firm is so stable, why haven't they told their incoming first year associates when their start dates are?
21 asked the million dollar question. If they are so stable TELL THE FIRST YEARS WHEN THEY WILL BE STARTING!
17. Yes. Yes I have.
18 - I think that more than half of the associates got bonuses. You are right that it is less than other years, but still a lot of associates. I think it depended on the group.
Me too. Ew.
Nothing can be worse than being chased around the hallways by a Paul Hastings partner wielding a wire hanger.
Does that mean MWE is bringing back the coffee?
Why does the lobby at VenableDC smell? I feel like I am taking crazy pills.
The bad news is that you're working at McDermott Will & Emery.
MWE has told its first years when they're starting: December 1. Chill out.
I think it would be in more firms best interests to institute the Paul Hastings coat hanger policy. Harsh times call for harsh measures.
16, 13 was asking for a post from Elie. Your link was to a story by someone named Kashmir. Who's functionally retarded now?
Who would've thought that by eliminating the free coffee service, you could save enough to give bonuses .
http://abovethelaw.com/2009/02/mcdermott_desperation.php#more
Ask people in MWE corporate? Did anyone get a bonus?
Laid off associates who made their hours also got a bonus.
To anyone going to Venable-DC's offices: really, really sorry about that one. I totally dropped ass in the lobby.
Now, if you don't mind, I'm late for my 4:13 Greyhound bus that's taking me back to Rutgers-Camden . . .
6, while we're on the subject, can someone explain that commercial to me? Damn catchy jingle though....
32: the person asking for a post from Elie on a topic that has already been covered by a person named Kashmir.
Somebody should tell Venable about that. Clients probably do not appreciate the stench of fecal matter.
I love The Dow is Up Guy.
38, is that a sentence? Whatever it is, what's its point?
MWE is a horrible place to work. There are a lot of associates looking to jump ship.
No where near half of the associates received bonuses. That's laughable.
McDermottt sucks. The place is full of miserable human beings, particularly partners with only one client.
McDermoTTT.
Don't forget about the associates who got screwed because MWE doesn't count pro bono hours.
My Venable is way out of control. I need to get back to the doctor before it spreads.
What a joke. Let's cut out coffee and pens, eliminate loyal and hard-working staff, conduct stealth and economic layoffs, withhold equity partner salaries and then give bonuses to the few associates who made hours. Nice try, Harvey, but it ain't working.
Thanks a lot Kirkland. You just ruined my life.
What would you guys rather have: your jobs back or full skadden bonuses?
19 = Lesbian
-5
Why were associates who made their hours last year laid off?
45: i had 300 pro bono hours, and that brought my total hours up to only 2050 and i got WAY more than half skadden. so i dont know what you are talking about.
51: we were told lay offs were not performance based (as opposed to the year end terminations). and from what i know of those laid off, that is a true statement. management said (and i have no reason to disbelieve them) that it was about properly managing future work flow. basically certain groups or class years were just too large to support expected work flow. i know everyone has their conspiracy theory as to why that is BS, and i have no inside information... but many of the people i know that were laid off got great reviews and had decent hours... it seems to be more about what the firm thought future work flow would be for that person in that department. i have no other explanation.
Whatever, 47. Shouldn't people who worked real law firm hours get paid more than people who worked 9 to 5? Makes sense to me.
I love MWE. Sanctioned and paying high bonuses!
What about SV IP ?
52: keep drinking the MWE kool aid. The kool aid will make you fat and MWE will trim you. MWE is a joke of a firm.
I feel for the McDermottt associates because it's a hellhole.
Who can complain about salary freezes when people are being laid off? Give me a break.
At least some associates who were laid off last month made hours and did not get a bonus.
Performance may have been a factor in some of the layoffs, but not for many of them. McDermott cut as many people as it possibly could for performance reasons back in the fall and December. In the February layoffs, several individuals with high reviews who met their hours were laid off. Some believe that it was because demographic factors did not favor them (e.g., white males were let go to balance the number of individuals from a protected class who were let go).
Please as if there are ANY minorities at MWE. Look at the management committee. Look at the promotions to equity.
52 here.... what kool aid am i drinking? all i recounted was my personal knowledge. i know i got a bonus when a big chunk of my hours were pro bono. and i know that the few people i know who were laid off made their hours and got good reviews. that's not being a shill for management... that's just telling you what i personally know and letting you draw a conclusion. i'm sure others have different experiences and know different things.
57: people who weren't laid off, obviously.
- 5th year at a firm that has not laid off or frozen salaries
59, I know of a minority female who made her hours without pro bono and got great review. What did she got - wait for it - she got laid off! Suprise!! Go MWE and HF! Obviously demographic factors did not favor her.
52, please explain that with your wonderful MWE experience.
63 - you are barely literate. "What did she got...." Are you kidding me? "And got great review...." Wow. Something tells me you're not even a lawyer.
63: 52 again. i dont understand your question. i'm pretty sure i said that from what little i know of those laid off, performance had nothing to do with it. your story just seems to confirm that.
Who was the last minority equity partner in corporate, trial or IP?
What happened to the number of minority associates in SV?
Guess it was a lack of appropriate mentoring, guidance and assistance.
It's nothing personal or anything, but why couldn't at least some of the bonus $ have gone to client development activities; send associates to training sessions, conferences or things like that? Multiply all those bonuses x associates and -- wait -- isn't this like what happened at AIG or what? Gosh, hope no one will need to reimburse MWE later to keep up the $1,000,000+ incomes of all those goshdarn equity partners.
Melvin White.
5,
I am hurt. Truly hurt.
19
All of the McDermott layoffs were economic based. The "performance based" layoffs were done to minimize any bad publicity. It was a sneaky move by McDermott. Laying off 60 lawyers during the economic second round doesn't look quite as bad as laying off more than 100 lawyers (stealth layoffs plus economic layoffs plus worldwide layoffs).
52 will get laid off soon enough. Mixing long posts to ATL during work hours with 300 pro bono hours is a recipe for an economic or stealth layoff.
I've worked for many employers throughout my career, but no employer was worse than MWE. It is an AWFUL place.
67--I am no fan of MWE, but this is nothing like AIG. Bonuses were given to associates, not partners (i.e., executives) and MWE did not receive public funds. Not that hard to see the distinction....
I received what was, in light of the difficult economy, a very generous bonus. McDermott could have short-shrifted the associates but they did not. No one would have had much of a basis to complain, after the layoffs that happened, if the firm had just given people $5k. They could have done that and gotten away with it. The fact that they didn't says something pretty positive about them. Call me a kool aid drinker if you want to, but that's my opinion.
67: Regarding your comment:
"It's nothing personal or anything, but why couldn't at least some of the bonus $ have gone to client development activities; send associates to training sessions, conferences or things like that?"
McDermott simply isn't interested in developing its own associates into partners. Look around your practice and see how many of the income and equity partners were internally developed at McDermott versus how many were brought in as laterals. As I see it, McDermott takes two approaches: it hires laterals that have developed business generation skills at more enlightened firms and it poaches talent with books of business apparently by letting them keep a larger portion of their take. Your role as a McDermott associate is to grind out billings until MWE decides to dump you. Development activities would only distract you from the role MWE has assigned you.
No, you can get promoted at MWE. You have to kiss the right butt. Look at trial and corporate. Talent. Business. Nothing matters. Go dumb plan with new management. Continue paying associates! No reserves. Get new offices. Failing China!
GOOOOO MWE!
The firm totally sucks!
I sit here and read all of the negative comments about MWE and shake my head. Comments coming no doubt from disgruntled MWE people. If you don't like it here then don't work here. If you worked here and got fired...I wonder why? Think about all the people that have gotten laid off that have families. The majority of you guys that were let go are a bunch of whiney, candy-assed spoiled brats making more money then you should have or deserved. And for the rest of the complainers, be thankful that you still have jobs to come to.
I sit here and read all of the negative comments about MWE and shake my head. Comments coming no doubt from disgruntled MWE people. If you don't like it here then don't work here. If you worked here and got fired...I wonder why? Think about all the people that have gotten laid off that have families. The majority of you guys that were let go are a bunch of whiney, candy-assed spoiled brats making more money then you should have or deserved. And for the rest of the complainers, be thankful that you still have jobs to come to.
"And for the rest of the complainers, be thankful that you still have jobs to come to." There's the MWE management style for you in a nutshell. Shut up and be thankful...until you're laid off.
Incoming first years have a start date - December 1st .
But management never mentioned an additional stipend?
Does anyone have any idea if we will be getting some extra ciz-ash for the delay like a lot of other firms?
Extra cash for the delay....you have got be be kidding me!!!! You are lucky you get to start at at. What a greedy moron.
Extra cash for the delay....you have got to be kidding me!!!! You are lucky you get to start at at. What a greedy moron.
Ok, ok I need to check my spelling but I just can't believe the audacity of some people.