Nationwide Layoff Watch: Allen Matkins Continues the Layoff & Salary Cuts ‘Super Combo’
Allen Matkins, a mid-sized California firm, is the latest firm to offer the “hemlock package” of layoffs and salary cuts.
The layoffs at Allen Matkins were relatively small. Only about ten people, six of whom were associates, according to ATL tipsters. But the salary cuts were more substantial. According to one tipster:
First year salary has been reduced from $160K to $145K. A number of other associates (excluding first years) were informed that their salary would be reduced by 15% or 30%. Those associates were told that they were selected to receive “adjusted” compensation based on their hours, although the actual method for determining which associate would be subject to this salary adjustment was not disclosed and remains unclear.
Other tipsters weigh in after the jump.
The Allen Matkins sources we spoke with were just as concerned with the firm’s apparent misdirection as they were with the simple facts of the layoffs and salary cuts:
These layoffs come after department meetings where associates were virtually assured that no layoffs would take place, and managing partner Brian Leck was recently quoted in the Daily Journal, indicating that the firm would lay off associates only as a last resort.Allen Matkins has been extremely successful at recruiting partners and associates from top-tier / white shoe firms by promising an improved sense of community, where firm attorneys are genuinely seen as part of a collective enterprise. Apparently the “collective” model only applies so long as PPPs … are not threatened.
Brian Leck did not respond to ATL’s multiple requests for comment.
One tipster even referred us back to Allen Matkins initial entry into the $160K market back in 2007. As the firm was raising salaries from $145K to $160K, Brian Leck wrote:
Consistent with our commitment to provide the highest quality legal services to our clients and to have the best attorneys to produce those services, Allen Matkins will raise the base compensation if its 1st year associates to $160,000 and will increase the base compensation of associates in the classes of 2005 through 1998 by $15,000, as well….Our clients, our people and our culture are our most important assets, and we believe that these increases are consistent with the importance we give to them.
Our tipster asked simply:
Does this mean I’m not as important, or does they pay cut reflect that clients and culture are not as important?
Aww … don’t feel that way brother. You still have a job, you still have a six figure salary, “you still Lieutenant Dan.”
(69) Comments
Comments
fuck around the shit
First to say I ponzied your ass
fuck around the shit
fuck around the shit
first goddammit.
This firm does not even register as a blip on the radar. Their "hemlock package" is more like a wine cooler. This firm should follow the exemplary posture taken by Robinson Cole. A baggage free termination = NO SEVERANCE. Although RC and this firm are not peer firms, I applaud RC's decision and frown on Allen Matkins. Just who do they think they are impressing with their feigned attempt at showing mercy?
not too surprising as they are primarily real estate - they could do more to up their brand however - they use really cheesy marketing materials
You are all idiots.
Very truly yous,
Skadden.
Leave Allen ALONE!
The ship be sinking...
Walnut Creek to $190k!
I don't want a large Farva. I want a goddamn liter o' cola!
There are maybe 10 people in the world who care about this news.
Please dig harder regarding firms that people care about.
First to say I like the DOVE advertising much better than the dealbreaker grape-chomper.
Thanks for the upgrade, ATL.
NO WAY! ARE YOU KIDDING ME?
13- fail. gibson will burn in hell.
Your tipster sounds like a giant douche. With all this layoff news going on hes bitching about a salary cut even though he's still working.
Your tipster sounds like a giant douche. With all this layoff news going on hes bitching about a salary cut even though he's still working.
Your tipster sounds like a giant douche. With all this layoff news going on hes bitching about a salary cut even though he's still working.
Pretty good Gump reference.
Wow, salaries are dropping from 160k to 145k in many firms. I wonder if law schools will lower tuition as well, seeing as their main justification for increases over the last few years was the increase in first-year salaries.
It wasn't logical for smaller firms to raise to 160k to begin with. I'm sure they don't bill out their first years at Cleary or STB rates.
Lieutenant Dan made millions of dollars and got new legs, courtesy of NASA. That's WAY better than anyone in this profession can hope for. I, for one, am opening a shrimp boat operation in Kansas in preparation for the upcoming ecological catastrophe. Below-average-intelligence Southerners/college wide receivers may apply.
Locke Lord announced "significant" layoffs of attorneys and staff about an hour ago. Start dAte for new assoc pushed back to jan 2010
13: hear, hear. Small firm + west coast = who cares.
23 - does that include Texans? They're below-average-intelligence and really like football - that should be good enough.
@26: My 3500 sq ft. wife disagrees.
23. If you're ever a shrimp boat captain in Kansas, I'll come down and be your first mate.
--Elie
24--any salary advance or stipend for the Jan. 2010 LL starters?
24 - Any more details about Locke Lord?
I'm buying a ass lobster boat and will be its captain, and I'm hoping that Kash will be my first mate
This news is important. The more firms that go from 160 to 145, well, you have to imagine at some point a top vault player will do it, and then the tidal wave will begin...
Locke lord had "signifcant" layoffs today. Attys and staff
Elie - done. Glad to have you.
-23
23 - I'd love to run a shrimp boat in what used to be Texas. We can anchor near my 3500 sq ft house.
When these firms move to 145 for 1st years, what's happening to the rest of the pay scale? Any info, anyone?
36: since most firms have frozen salaries, basically the new first years will come in at 145, filling in the bottom rung. so compensation in 2010 will be 1st years 145, 2nd years 160, 3rd years 170, etc.
36: since most firms have frozen salaries, basically the new first years will come in at 145, filling in the bottom rung. so compensation in 2010 will be 1st years 145, 2nd years 160, 3rd years 170, etc.
Salary cuts from mid-sized and back-end Vault 100 firms = those that had no business raising to $160K in the first place. We are finally beginning to see which firms can afford to stay at the $160K pay scale...the true top tier firms. It's a shame that these smaller, mid-size firms didn't remain at $145K or less; probably could have saved a few jobs.
A number of other non-first year associates having salaries reduced between 15% and 30%!? If that happened to a 2nd year they would now be making between $112,000 and $136,000.... so less than the class below them. In some cases over $30K less. Ouch.
ATL scooped again!
http://lawshucks.com/2009/03/31/breaking-firmwide-meeting-at-locke-lord/
http://texaslawyer.typepad.com/texas_lawyer_blog/2009/03/layoffs-hit-locke-lord-bissell-liddell.html
As an LA BigLawyer, I think this news is important. Allen Matkins and Munger Tolles are California's two largest Cal-only firms. To see one of them engaging in layoffs and salary cuts/freezes is a bad indicator for the state of the market as a whole. Latham and OMM have already made their moves, and now the next tier is shedding lawyers. Scary shit!
42: Luce Forward is bigger than Munger and is CA only as well. They have already done cuts and a freeze too, just like Allen Matkins...
No way they are being upfront about their layoffs. This firm is heavily weighted in real property and much of that is on the leasing/development end.
And baby, it's all about the West Coast, the only Coast that matters.
While I am enjoying hearing this news since opposing counsel at Allen Matkins, in particular two associates, are obnoxious jerks.
(I am being very polite in return and keeping notes for a possible state bar complaint. It is that bad.)
45 - If your state bar complaint is as well-written as your post (grammar, anyone?), it is sure to be a winner. I'm sure the Allen Matkins associates are quaking in their boots.
That's sad news for Allen Matkins' associates and support staff. Hopefully, this will be the last round of layoffs. I wonder if their summer program will be affected.
Everyone can agree that salary cuts are no fun at all. However, anyone with common sense, especially real estate lawyers out there who are billing 50-75 hours a month, would be glad to have their salary cut and keep their job in troubled times.
Here's the good news, when ATL is covering a handful of layoffs at a mid-sized California firm, it has to mean that times can only get better.
Any news on other CA real estate firms, like Cox Castle? Is Cox doing layoffs and/or salary cuts?
Cock Castle is indeed doing layoffs
Allen Matkins to $190! (no K)
Does anyone have any information on Allen Matkins' San Diego office, particularly the corporate group?
52- no, and no one cares.
45 to 46: You sound like an AM employee. Sorry about the 15-30% pay cut. They are not quaking their boots because if I file a complaint I will wait until after the case is resolved.
42 - I agree with your comment. As a recently laid-off BigLaw 3rd year in CA, I'm looking to go to one of these Cal-only firms. By my read, Jeffer Mangels and Irell haven't done any mass layoffs to date (i.e. stealth or otherwise may be a different story...). Any news on these two firms anyone?
From what I hear from my friends who are still at Allen Matkins, 1st years at AM (including 2 who failed the bar) are making more than the vast majority of 2nd years, close to half of the 3rd years and a handful of 4th and 5 years. The firm seems to be trying to avoid the bad press associated with cutting their 1st year salaries to anything below 145k by blaming the other associates for their lack of hours.
This is clearly a publicity stunt by Allen Matkins. I suppose their thinking is that if their name appears on Abovethelaw.com then they must be a legitimate law firm. Not so.
This is clearly a publicity stunt by Allen Matkins. I suppose their thinking is that if their name appears on Abovethelaw.com then they must be a legitimate law firm. Not so.
If you want a good summary of everything (deferrals, layoffs, summer programs, etc...) go to http://lawfirmchaos.blogspot.com/
first years are worthless.
Allen MaTTTTTTTTTTTTTTTTkins? Who f-ing cares???
Yo, assholes, this motherfucker's dead!
I guess soon we'll be hearing about how my dog (who's the alpha of the neighborhood) will be delaying start dates and cutting salaries for the Maltese two doors down.
Allen Matkins has never paid market. Not even close. Severe compression after the first year.
55,
Jeffer has been a joke for quite some time. Nice subtle trolling.
64 - not so. As a former AM associate, I can attest to the pay scale. It is market through the 4th year. After that, compression sets. in. 160, 170, 185, 210, compression.
At least before the salary cut / freeze.
Mindi Canner is a fat bitch.
65 - 55 here. No trolling intended. Please speak on. I'm genuinely curious. Why is JMBM a joke? I understand that the business model is much like Dreier's (the defunct law firm, not the ice cream maker), but it seems legit ...
Allen Matkins is a horrible firm anyway. It is a terrible work environment for women and minorities and they do crappy legal work. This house of cards will fall eventually.