DLA Piper Salary Cut Follow Up
On Friday, we reported that DLA Piper cut associate salaries by ten percent across the board. But we now know that ten percent was just the starting line for associate salary cuts.
Friday, the firm memo included this language:
Adjustments to all associate salaries at other class levels will be determined and communicated on a case-by-case basis based on class year and performance levels.
It appears that the case-by-case consultation resulted in salary cuts of up to 20% for associates that were not on pace to make their hours. Many tipsters brought this to our attention, as well as some interesting commenters:
Elie/David - what I hope is not overlooked in DLA’s move is that they made a calculated move to mislead abovethelaw and its readers by saying that starting salaries were being lowered to 145. That’s not true. A number of first year attorneys salaries were lowered to 128k. There are 3rd years making 136k. Their efforts to cover for there salary reductions should be given more exposure.
Other commenters made the point that the decision was all about hours:
You could get great performance reviews/make in excess of your budget for years/ be well regarded/ do pro bono work etc, but still the ONLY thing that was taken into account when cutting salaries was whether you were on pace for the first 4 months of this year. The published memo does not disclose this. You could be a pretty average associate and happen to have been staffed on a doc review for the first 4 months or hoarded your work and hey suddenly you are getting paid more than other associates.
Tipsters emailed us, texted us, even called us on the phone to give us details about the 20% cut. We get into the extra news after the jump.
One issue that really got our tipsters angry is that first years who received a 10% cut are now making more than second or third year associates who had been slow for the first part of the year:
* If you were on pace: 10% cut
* If you were off pace: 20% cutThese numbers were calculated after subtracting off pro bono hours, which we are told will be counted toward our billable hour requirement up to 100, or over 100 if they are “signature projects.” Not so.
This was without exception. The email they sent about $145k, and a “case by case evaluation,” was pretty much irrelevant. I say … that the cuts today meant that most first, second and third years (at least in my office, in the two practice groups i talked to) went BELOW $145K. Whatever they were making — $170k, $180k, $200k — 20% was cut off.
Assuming that our summers (who start in June) will make $145k, they will make MORE than MOST OF THE FIRST, SECOND AND THIRD YEARS in our offices. Most went to $120-140k. First years who were on pace stayed at $145k, meaning that they now make more than second and third years who were off pace. Seriously.
These deep cuts also took its toll on people working in secondary markets. Suffice it to say that in some of DLA Piper’s smaller offices, a 4th year who got nailed with a 20% cut is making less than summer associate in NYC this summer.
If you put the salary cut situation in context with other cost cutting moves DLA has taken (like freezing salaries), you’ve got some people who are very, very angry:
6th year associate at DLA. The firm screwed me on my bonus earlier this year - giving me and everyone else the very bottom of the bonus range. I estimate that I lost at least 20K on that cheap ass move. Then the salary freeze, another 10k. Now a 20% reduction for another 34k in losses this year. These bastards have screwed me out of 64k this year (and I am not in NY or LA). Yet they have yet to reduce the obscene rates that the firm charges.I got my memo from some flunky. The memo informed me of my new salary “pursuant to our e-mail regarding the new Associate Pay structure.” I didn’t receive that jewel of an e-mail for several more hours. Classy.
My practice group leader was conveniently out of the office.
I hope this place dies.
But aren’t these moves better than layoffs? DLA has already laid off 180 U.S. attorneys and staff and another 124 in the U.K. (remember, Thursday’s official dismissal of U.K. personnel was simply the end of the redundancy consultation DLA Piper started in February, not a second round of London layoffs).
As one commenter put it, salary cuts might be better than firing people:
maybe they should have done the prestigious thing: fire ten percent of all associates and claim it was a performance based thingie…but not bother to explain to clients why ten percent of the firm was just discovered to be f***** up?
These are tough times for everybody. Will DLA take a recruiting hit for cutting salaries by up to 20% based on hours? Or is it still better than an outright layoff?
Earlier: Nationwide Salary Cut Watch: DLA Piper Joins the Party
Nationwide Layoff Watch: DLA Piper Lays Off 180
International Layoff Watch: DLA Piper Cuts 140 U.K. Employees




Comments
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1?
It's inevitable that salaries will fall all the way back to 1996 levels--i.e., $60-70K--because the dow is at 1996 levels. These incremental cuts will just continue until then.
What does this post have to do with summer associates?
ouch.
oh noooooooz
Enjoy the (lower) wages while they last, DLA people. DLA Piper will not survive long. You will soon be out of work.
Enjoy the (lower) wages while they last, DLA people. DLA Piper will not survive long. You will soon be out of work.
It is not only a responsible move to cut salaries, but rather the firm has a fiduciary obligation to ensure the firms well-being. These salary cuts are in the best interest of the entire firm, associates included. It builds character to live on a smaller budget.
Comment removed by moderator.
It used to matter whether a firm was doing lay-offs (stealth or otherwise). With the proverbial house burning, short of selling associates for body parts, there will likely be no recruiting fallout from the new austerity measures since EVERYONE is doing it. I will, however, continue telling law students about how my crappy sweatshop employer (K&L Gates) abuses its lawyers and staff after the recession is over.
wtf was that?
9 should be banned from ATL, just outright banned for such lengthy, banal comment.
9 - You lost me at hello
The constant reporting on the layoffs, delayed starting dates, salary cuts, et cetera, is not helping associates at other firms. This coverage is simply giving firms the excuses they need to make the cuts at their shops (just as the reporting on salary hikes put pressure on firms to raise). In the interest of us all, please find something else to blog about.
9: You raise a lot of interesting issues, but (a) this is probably not the forum to resolve them; and (b) do not take what is about to be an onslaught of flaming personally.
Jesus christ. That was terrible.
DLAsslobster
To 9: Please immediately use the "Mark Levy Solution" for your problem. Thank you.
12: yfwgi. go away xoxo troll (following an older tls troll, and the weekend atl post).
BREAKING NEWS: Governor Granholm will be SUPREME COURT NOMINEE.
(FIRST to say it.)
http://www.freep.com/article/20090518/NEWS15/90518022/Granholm+to+be+at+White+House+on+Tuesday
9:
Thanks for posting that novel you've been working on. Did you want us to proofread it or something?
9 = comment of the year (even though I did not read it)
9 ,
I am a partner in a firm and I will gladly offer you all the advice you need:)
I read your first paragraph and your last paragraph. I am unsure what this dissertation was about, and therefore I will ask you kindly to pursue a different career. You have no future in law, you have no future around the legal profession.
I would be glad to refer you to some philanthropies related to your ethnic heritage, and I believe you will find better work within those organizations.
9 needs a friend. or a therapist.
I'm pretty sure 9 is a coded message from aliens. Prepare to be invaded, probed and left by the side of a country rode feeling confused and not knowing where days of your life went. Actually, now that I think about it, that's pretty much what to expect from the law profession in general these days, so youi may not even notice.
To commenter 9
The only thing that long worth reading is the Dune series by Frank Herbert.
Everyone is focused on 9, but did anyone catch that 8 is a total d-bag?
#9 = Kay Sieverding
If firms move away from lock step salary as DLA apparently has, I think they should have to report to NALP a breakdown of salaries by race, gender, and sexual orientation for each class year. Law is still so biased, much more so than other industries. Such a breakdown would be illuminating, no doubt.
Any associate paid less than the summer associates should seek other employment. Clearly the firm thinks very little of you.
As I said before, I don't think we should be worried that a failing firm like DLA Piper can't maintain salaries. They were playing out of their league. Leave the big salaries to us big boys.
#9=Leo Tolstoy
I'd rather be hunted as a slave boy by the Count Glossu Rabban than read post number 9.
Why do associates continue to think that pro bono hours have some sort of value, let alone value greater than regular billable hours? Pro bono has always been a blatant PR scheme to lure in gullible Gen Y law students. For every hour you work on pro bono, someone else has to bill an extra hour on real, paying work. Pro bono is not going to save your job because anyone can do it and it is a sea of red ink for the firm regardless of how much good "karma" comes out of it. Getting your salary chopped "despite" all those pro bono hours confuses the issue entirely.
The firms that are going to come out of this with their reputations intact are the ones that handle layoffs and salary cuts, however painful, with honesty, tact, and transparency.
DLA is apparently run by a bunch of douchebags. They deserve what they're going to get.
9,
(1) Stop blaming your parents for your failure to fully inform yourself regarding your junior college's policies and rules. There are plenty of non-FOB parents who still don't get how things in this country's academic system work.
(2) Do what you can to finish IGETC or a TAG agreement with some UC, graduate from that school with kick-butt grades, and then see what you want to do with your life. There is NO NEED to be pre-law in order to go to law school. Study whatever you want to study. Just get good grades from now on and after you transfer.
(3) You're obviously aware that you should try to go to a high ranked law school, and you are obviously aware that you need a good LSAT score to get there (beyond your grades, which you must address as in point 2). So just suck it up, get a job, and save up for the Kaplan or Princeton Review course, or put it on a credit card and make payments. Same with going to an expensive/far away law school; just get student loans if it means that much to you.
Doing what it takes to achieve your goals is the American Way, so get with the program.
I hear they're makng a DLA based movie entitled "Ghetto and Ghettoer"
once again firms, it's not going to be about what you do over the summer, but how you do it. having to cut salaries is one thing, but looking sneaky while you do it, like DLA does here, is going to hurt you much more.
DLA = Damn Lowlife Assholes
Clearly, DLA Piper is signalling impending deconstruction.
Jewish Partner is offensive. I'm Jewish, but I say that as a person with a sense of humor offended by the moronic attempt at humor, rather than as a Jew.
We've been suffering for 2,000 years!
28, should the firm also do a breakdown of GPA and bar passage rate by race and gender? Such a breakdown would be very illuminating as well.
The new PE is just as annoying. Can't you come up with any other ideas PE? And if not, why do you torture us with your crap? One contributes schtick for the purposes of entertainment, which is a worthwhile cause.You however, simply have no life.
A "Jewish Partner" that advocates salary cuts to be in a firm's best interest is anti-Semitic, and based on childish Jewish stereotypes.
Jimmy Carter just died.
This seems really shady. It'll be interesting to see how this all plays out with recruiting this fall. It's a crappy time to be a law student, that's for sure.
Comment 9 has been removed, so shouldn't all the other comments that refer solely to comment 9 be removed as well? What's the point of keeping them?
Given that I have $250,000 in debt and no job, I would rather tell Paul's Fedaykin that their religion is essentially a manufactured religion made by the Missionaria Protectiva instead of reading post #9.
I'd say sue. If the partners don't have work to give you, they can't cut your salary for not making hours. It's their failure to make rain. It should be coming out of their "profits"...
Did anyone copy 9's rant? I don't want to be left ouf of the fun!
14 - Live by the sword, die by the sword.
You are young and dumb. The internet, message boards, blogs and "greedy associates" movement have enabled associates to openly communicate about firm life, benefits and salaries for years, resulting in unrealistically high salries for all biglaw associates. Consequently, you lose the privilege to whine about firms using this same medium to enable them to reduce your benefits and conduct layoffs. Grow up.
It's about time a firm had the guts to really start cutting salaries. With luck, more cuts will be coming before too much longer.
44 please cite a source
DLA's managing partner announced expectations of 7% drop in revenue and 6% drop in profits in fiscal 2009.
Yet, associate salaries were frozen and then cut an additional 10-20% to prevent layoffs? Really?
52, its just being reported by sources right now.
Between the salary freeze and salary cut, most associates have lost 30% this year. I usually don't feel badly for these types of people, but this is pretty drastic if you've got a mortgage, a family at home, or student loans to pay back.
51 = flamebait. don't take it.
This is pretty pathetic and badly thought out. Summers shouldn't be making more than 1st through 3rd years. This firm must be in some real trouble. Definitely not a place I would ever want to work.
48 - Sue for what? That the partners didn't just fire you and tell the world it was based upon your shitty performance? Life sucks, the economy sucks and sometimes, Timmy, you don't get a trophy just for showing up. The stronger and richer will always control the weaker and poorer; it is your job to learn how to be one of the stronger and richer and to control your own destiny.
56=racist.
58, 48 didn't have to specify the cause of action because it's so obvious: promissory estoppel. The "stronger and richer" are liable just like everyone else when they make promises on which people justifiably rely to their detriment.
I think layoffs would be better than salary cuts. If you have extra people, let some go but at least keep the soft committments that you have to the ones whom you want to stick around after the economy turns around.
This blows.
I just read that Kaye Scholer is offering incoming first years the option of taking $75K and leaving, or taking $50K and getting to ass fuck the secretary of their choice, then leaving. Not bad, not bad at all.
60 - I didn't have to state this because it is painfully obvious, but I will anyway: that is a stupid statement.
You almost scare me.
GOOD. Hope more firms follow suit. Associates are overpaid. Compensation will go up when hours go up.
You can't have it both ways, people. You can't bitch and moan about how the biglaw model is broken and how the partners make terrible business decisions, and then turn around and bitch when a responsible business decision is made.
Collect your six-figure paycheck, be thankful that you have a job, and enjoy your nights and weekends while things are slow.
Also, grow a pair and quit whining.
GOOD. Hope more firms follow suit. Associates are overpaid. Compensation will go up when hours go up.
You can't have it both ways, people. You can't bitch and moan about how the biglaw model is broken and how the partners make terrible business decisions, and then turn around and bitch when a responsible business decision is made.
Collect your six-figure paycheck, be thankful that you have a job, and enjoy your nights and weekends while things are slow.
Also, grow a pair and quit whining.
58- Perhaps you should dust off the old Restatement of Contracts and take a look at Section 90. I think 48 is right, sounds like a slam-dunk promissory estoppel argument.
No, 64, I think 60 might have a point. Check out Section 90 of the Restatement.
65 is more flamebait. Take it over to WSJ's law blog where everyone whines that associates are overpaid.
Can someon PLEASE repost #9???????????
PLEASE
Slashing salaries has nothing to do with avoiding layoffs, so stop trying to connect them.
Re layoffs, if a firm does not have the projected need for associates or staff, they will fire the excess capacity, regardless of the salary level.
Re salary cuts, whether there are layoffs or not, firms want to pay associates the least amount possible, to keep as much of the $$ as possible for the partners. Although cutting salaries, if not necessary, is pretty short-sighted. When things turn around, there will be mass defections and recruiting will take a huge hit to quality. Someone will always fill the spot, but where in the pecking order will your firm be? If it's DLA, a LOT lower than before.
59 = asslobster
Slashing (and maybe even freezing) salaries will result in a greater and longer problem for firms than layoffs. They have self-identified themselves as 2nd tier and weak, and contrary to what they may think, that stench will last long after the recession is over, even if they ever pay market at some point in the future.
Allelujah for working at a firm that hasn't done any of this (well, besides layoffs).
If I were at DLA Piper, I wouldn't trust for one moment that these moves mean they aren't going to fire people. When the right time comes, they will.
At least if you're getting paid market in the meantime you can save up as much as possible so that when the axe drops the impact won't hurt *as* much.
And by the way DLA, eventually the economy WILL turn around and you're going to need associates again. When that happens, try not to be surprised when your best and brightest associates leave for greener pastures where they don't have to worry about getting their pay cut every time the DOW hiccups.
73, glad they didn't self-identify someone else!
50/58/64 here - 67, I hope that is sarcasm (although, on this board, it is sometimes difficult to tell when someone actually believes what they are saying, or they are being sarcastic).
50/58/64 here - 67, I hope that is sarcasm (although, on this board, it is sometimes difficult to tell when someone actually believes what they are saying, or they are being sarcastic).
That's what happens when you put junior varsity players on a varsity team. DLA is nothing more than a mid tier defense firm that's trying to paly with the grownups.
That's what happens when you put junior varsity players on a varsity team. DLA is nothing more than a mid tier defense firm that's trying to paly with the grownups.
I would rather walk in rythmic fashion in the deep desert without any rock nearby in the middle of vast wyrmsign than work at DLA.
Cutting salaries at firms helps counter massive wealth disparity in the United States. It reduces the income of the very rich while making legal services more affordable for everyone else.
The ship be sinking...
48 & anyone else that wants to poke their eyes out with a fork; 9's comment is here: http://abovethelaw.com/2009/05/marc_dreier_house_arrest.php?show=comments#comment-1059841
65: I guess you missed the part where associates that are on target to bill 2400-3000 hours also had their salaries both frozen and then slashed.
Unless you meant enjoying the nights and weekends slaving away at the office...
77, the substance of your comment belies your reputed familiarity with this board. In any event, why do you hope the comment was "sarcastic"? What specifically is wrong with a promissory estoppel claim under these facts?
--Not 67
DLgAy
DLgAy
The structural assembly of DLA resembles, in many ways, the structural relationships that Dreier LLP had with many of it so called "partnerships" (we all know how that ended). The questions now is when, not if, the cracks in this shaky foundation causes the DLA structure to collapse. My bet is that DLA is the next to fold. If I were a partner, I would cash out now and look elsewhere while there is still some money left and no liabilities to worry about, yet.
What did the DLA salary letter say for associates? If it said something like "For Calendar Year 2009, your salary will be $X," I think you would have a claim that a contract was made that as long as you were employed at DLA during that time period, your salary would be $X, and that any attempt to make your salary less than $X would constitute breach.
Of course, since it is at will employment, maybe they can just fire you and hire you back.
elie, at this stage i the game i dont think many firms are worried about recruiting
61 - You assume that layoffs are based on performance, when many times it is not. Layoffs can be based on hours (which can result in a stellar associate being laid off while an average associate stays because s/he was staffed on a big project), politics or other non-performance based reasons. Associates may not be protected by the "right" partners, or may have worked for clients that are now bankrupt. By letting associates go, it does not mean that the ones remaining are the ones the firm likes more. Sometimes the partners selecting the associates to be let go have never met or spoken to the associates.
All will be well.
The Market will provide.
The structural assembly of DLA resembles, in many ways, the structural relationships that Dreier LLP had with many of it so called "partnerships" (we all know how that ended). The questions now is when, not if, the cracks in this shaky foundation causes the DLA structure to collapse. My bet is that DLA is the next to fold. If I were a partner, I would cash out now and look elsewhere while there is still some money left and no liabilities to worry about, yet.
I would rather be a slave boy to Baron Vladimir Harkonnen than work at DLA.
People like 77 are why that schtick never gets old.
ASSMU
exactly.
I'd rather be sent to the spice mines on Kessel than work with commenter #9.
The structural assembly of DLA resembles, in many ways, the structural relationships that Dreier LLP had with many of it so called "partnerships" (we all know how that ended). The questions now is when, not if, the cracks in this shaky foundation causes the DLA structure to collapse. My bet is that DLA is the next to fold. If I were a partner, I would cash out now and look elsewhere while there is still some money left and no liabilities to worry about, yet.
GOOD! Its supply and demand. You goofs just are not worth as much anymore. You will all soon be begging for jobs at these places.
Not to channel PE, but if all you are worried about is associate comp, you are probably a crappy associate to begin with. Good riddance.
Here's the problem with DLA -- they merged with every firm that said "'take me . . . take me." There was no quality control at all. None of us had ever heard of the firms we were merging with. The firms sucked. And the lawyers we merged with suck. And management thought simply putting everyone under one umbrella would make us this global law firm that clients would flock to and pay huge $$ for. It was a stupid idea in a good economy. It's real stupid when the economy falters. So now the firm is stuck with a huge overhead and lawyers that can't hold a candle to other lawyers that charge similar rates. Why would clients stay? There are a ton of better firms with similar rate, and even more firms that will do a better job for less. Why would future law students/associates come here? There are a ton of better places that pay more -- and if you can't get a job at one of those firms and instead you're going to be paid "below market" (which DLA now pays) -- might as well go to a place where people are happy (and better lawyers to learn from). Why would partners stay? Those with a book of business and connections in any industry will jump to a firm that can support their practice (with other partners that are of equal ability, and associates that are not disgruntled and excited to be there). So, what's left? A bunch of people who have no other options. Not a great place to work, and not a great place for a client to bring work.
95 - Look at the posts after my comment. There are still posters who believe that this is a viable argument.
But I will bite anyway - where is the reliance - actual or foreseeable? and what is the "injustice" if this "promise" is not enforced?
Number 9 --> http://www.top-law-schools.com/forums/viewtopic.php?f=14&t=67576
I was in Houston once.
Thanks, 83. That's hysterical.
I bet that 9 and 35 are the same person... PSYCHO!
9 proves the point: The Internet is a kind of hell!
DLA Piper is the McDonald's of law firms. (Except that McDonald's is profitable and not about to run out of business).
101:
Do you really not see the promissory estoppel issue here? Promise - Reliance - Detriment = Summary Judgement
Sincerely,
Everyone
101 - Are you promising me that there is not a promissory estoppel claim here? Because if you are, I may rely on that promise and therefore have a cause of action against you for promissory estoppel.
77/101, I'm going to take pity on you. This is a running joke on ATL. Whatever the issue, someone will assert that section 90 applies. It started with people suggesting it semi-seriously re: deferrals; at this point, it just gets twisted to fit each and every ATL post. It's mostly fun because people like you who aren't in on the joke get so up in arms about it being ridiculous/the work of misguided 1Ls, etc.
So thanks for keeping the game alive another day. :)
And by the way DLA, eventually the economy WILL turn around and you're going to need associates again. When that happens, try not to be surprised when your best and brightest associates leave for greener pastures where they don't have to worry about getting their pay cut every time the DOW hiccups.
--
When the economy turns around they will counteroffer with obscene salaries. Power and money will always win in the end.
Mr. Ponzi?
If you are seriously disgruntled, here is what you do:
Bill your ass off this month, but don't enter any of your time. Then, after time closes for the month and you receive an email from a partner asking you to input your time, let them know that you would be happy to do so, as soon as you receive certified funds in the amount of your "present salary x .25"
Breaking News. Refresh for Updates.
CARTER OBITUARY -- (AP): "One of the most popular presidents of the 20th century, James Earl "Jimmy" Carter, Jr. redefined the nation's political agenda and dramatically reshaped U.S. priorities in Energy and Education while serving as president from 1977 to 1981.
"As president, Carter created two new cabinet-level departments: the Department of Energy and the Department of Education. In foreign affairs, Carter pursued the Camp David Accords, the Panama Canal Treaties and the second round of Strategic Arms Limitation Talks (SALT II). All of which redefined America's leadership throughout the world.
"In addition to creating Habitat for Humanity, Carter and his wife Rosalynn founded The Carter Center, a nongovernmental, not-for-profit organization that works to advance human rights."
THIS IS BREAKING NEWS. MORE TO FOLLOW.
Re 110, and another long-standing tradition on ATL is people like 110 commenting and trying to dispell the issue by CLAIMING THAT IT'S JUST A JOKE. It is NOT a joke. A firm promises to hire you and pay you a certain amount of money. In reliance on that promise, you maybe move to a certain city, enter into a certain lease, etc., and then suffer finacial hardship when the firm breaks it's promise. All of that is totally foreseeable, and that's why people are filing promissory estoppel claims.
114: Cite your source. Since this "obituary" is not on either Associated Press' website or Reuters, the sources from which everyone else gets their news. This announce is not on CNN or NYT either.
Thanks, 114. This is sad news.
108 - We live in the real world, and in the real world you do not get credit for "issue spotting." This is probably why many A+ students in law school have such a difficult time transferring their skills to law firm practice. Anyone can make an argument for promissory estoppel, but it will never be realistic or viable. What is the reliance and detriment?
I bet DLA 's douche merges with Nixon's PeaPee or Bryan's Cave to tie rocks together to see if they float...
115 - While you might be right in your particular example, ATL commenters have asserted promissory estoppel in a number of funny, but quite unrealistic situations (e.g. suicide, partner defections, etc). Plus, even taking your example seriously, could an associate reasonably rely on an offer given our current state of the economy? It seems that a reasonable person would or should anticipate the very real possibility that an offer would be rescinded.
42 is right. Get a life dude.
120, by that logic, there could never be a promissory estoppel claim because "[i[t seems that a reasonable person would or should anticipate the very real possibility that," given human nature, the person making the promise might be lying. Promissory estoppel clearly is a viable claim in this context.
I promise to estop my foot in your ass.
118: see 115, which conclusively demonstrates the "real-world" viability of this claim.
100--A primary driver behind the firm's merger mania appeared to be the headlines its Chairpersons were able to grab. The mergers were so fast and furious, the lion's share were bound to be crap deals (lawyers being notoriously poor business people). Here's hoping the Chairpersons get their just headlines as this al-bloato firm swirls.
This latest adverse development is a particularly bad omen in that the usual DLA spin meisters aren't coming on here posting about how visionary the firm leaders are in adopting this latest measure.
http://www.newsday.com/news/nationworld/nation/wire/sns-ap-us-carter-obit,6001090.story
110 - Thanks for the pity. I will stop responding.
122, Well, it just so happens that promissory estoppel claims rarely succeed. So 120 may not be too far off the mark. That's one reason why promissory estoppel claims have been such a running gag on ATL.
122/When would you bring this prom estop claim? While you are still working at the firm? If so, I can guarantee you would be fired the day the firm received notice of the filing. That would be a good strategy.
why all the hate man... Que Sera, Sera (Whatever Will Be, Will Be) . It's OK to be mediocre
We, as partners, are very aware of the seriousness of these promissory estoppel claims. In fact our partner retreat was extended 3 days in Las Vegas for the sole purpose of exploring this very serious issue. Ultimately, we had no way around deferrals and would have to bite the bullett should someone file a promissory estoppel claim. We would have no defense.
114 - Thanks, I didn't even know he was sick.
114
That's a total gag. Not even the libs would list Carter as "one of the most popular presidents of the 20th Century."
Nice try.
I don't think he was sick. Likely it was Mossad.
Raise your hand if you clicked to CNN or some other site to see if Carter really did bite the dust.
I did. (He didn't.)
Here's the problem with DLA -- they merged with every firm that said "'take me . . . take me." There was no quality control at all. None of us had ever heard of the firms we were merging with. The firms sucked. And the lawyers we merged with suck. And management thought simply putting everyone under one umbrella would make us this global law firm that clients would flock to and pay huge $$ for. It was a stupid idea in a good economy. It's real stupid when the economy falters. So now the firm is stuck with a huge overhead and lawyers that can't hold a candle to other lawyers that charge similar rates. Why would clients stay? There are a ton of better firms with similar rate, and even more firms that will do a better job for less. Why would future law students/associates come here? There are a ton of better places that pay more -- and if you can't get a job at one of those firms and instead you're going to be paid "below market" (which DLA now pays) -- might as well go to a place where people are happy (and better lawyers to learn from). Why would partners stay? Those with a book of business and connections in any industry will jump to a firm that can support their practice (with other partners that are of equal ability, and associates that are not disgruntled and excited to be there). So, what's left? A bunch of people who have no other options. Not a great place to work, and not a great place for a client to bring work.
114 - HOAX
Jimmy Carter lives on!
I just shelled a few p'nut's with Jimmy Carter. Then we drank some Lynchburg Lemonade. Man, that boy can really put it away.
I relied on the fact that Jimmy Carter was dead to my detriment!
University of Baltimore School of Law is devastated by this news -- where will there grads go now?
Accidental publishing of obituaries happens all the time:
http://en.wikipedia.org/wiki/List_of_premature_obituaries
..used to happen in high shcool all the time, not a big deal...
I'm a 3rd year with offers at DLA & Pillsbury -- Is one more prestigious than the other? Which offer would you take? Do you think either firm is not going to make it?
This would never happen to a SMU grad. SMU rules Locke Lord.
142 - Neither firm is going to make it. In fact, both died in the same horrific accident that took the life of our greatest President - Jimmy Carter.
Jimmy Carter - Not dead yet: http://www.deadoraliveinfo.com/dead.nsf/cnames-nf/Carter+Jimmy
144 -- my parents told me about Jimmy carter and they said he stunk, so Idn't believe you about DLA & Pillsbury
SMU rules Locke Lord? Then Locke Lord to $85k says I!
SMU rules Locke Lord? Then Locke Lord to $85k says I!
I'm just curious as a pretty consistent (Dallas-based) ATL reader... what's with the SMU and Locke Lord comments of late? Did I miss some original joke here? I didn't think much of anyone outside of Texas had heard of either SMU or Locke Lord.
Duke Leto Atreides is, however, quite dead.
Locke Lord? didn't they merge with a vacuum cleaner company called Bissel?
Miller's eyes role back in his head - totally freakish when you talk to him
The whiner a-hole in the article should just fall on his sword so his buddy in the office next door could keep his full salary. Or maybe he should Gilooley a few first years to keep his full $170k. At least he still has a job, unless he gets his wish and the firm dies, then he and every other associate/counsel/partner without a book would all be unemployed.
I'm surprised they haven't forced the associates to buy their jobs, like the non-equity partners forced to become equity partners
DLA associates are all waiting to get on ATL from their home computers -- they're running scared....
Miller and Burch say run run run -- we're coming for you -- we need to slash salaries so we can continue to travel and not bill any hours in the name of being brilliant managers.......
3rd tier law schools are taking this news very badly - -this is really going to hurt their avg. comp. number for their recent grads.
142 - Do not, I say DO NOT accept at DLA. I left there last summer. It was a miserable place to work. It was wonderful in the times of Piper Rudnick, but those days are long dead. It grew for chest-thumping growth's sake, and is paying the price now for its out of control ego.
156 - don't forget Nigel on the other side of the Pond.
SHOULDN'T SUMMER ASSOCIATES MAKING MORE THAN CURRENT DLA PIPER ASSOCIATES PICK UP THE TAB FOR THOSE LOWER PAID ASSOCIATES. MAKE A SA TAKE YOU TO LUNCH!
Skadden just reported that it will increase first-year incoming associate salaries to the $180k scale.
How could anyone trust a firm headed by people named Francis, Sir Nigel, and Lee? Sounds like a crossdressing burlesque troop to me.
skadden to 180?
Weird that Bakers cuts pay and no one comments on it.
Could it be one obsessed no offer pwn3d OCD loser is on some kind of posting frenzy?
163 -
I didn't put the bullet in the furnace and stop talkin' bout my mother.
If DLA associates are not happy with their compensation, they are free to leave at any time.
As mentioned elsewhere, these changes are an opportunity to spread the wealth of legal talent now held in a few big firms into a larger number of service units, thereby increasing the accessibility of legal services to more Americans.
165: I bet many will.
Unfortunately for DLA, it probably won't be the corporate or real estate associates on track for 1000 hours. Instead, it will be the associates on track for 2000+ in hot practice areas.
DLA appears to be built like a North Korean shopping mall.
Unfortunately, salary cuts will be necessary at some firms. But across-the-board cuts like this with no tie to hours are retarded. Any firm that screws the associates actually billing hours and bringing in lots of money for the firm is a fool. Associates will be gone to the extent their are opportunities out there (even now there are still some in some practice groups). And certainly there will a mass exodus when things pick up, if this firm even still exists then.
165: I think you were that dude at DLA I fucked up the ass with my big cock, your ass was tight and I didn't use a rubber, and you liked it- like a bitch in heat
The economy is turning. Law firms understand it. Their window of opportunity is closing fast. If they don't cut salaries now, it will be too late. Once the cut is made, it will set a precedent for years. They did the same thing after 9/11 when most law firms abandoned their 401k matching contributions. Guess what. This benefit never came back, not even during the boom years. So congrats guys. You really play this game well.
171 is right. DLA is only doing this so it emerges from the recession with a competitive edge, and it remains an international powerhouse built on a solid foundation.
DLA is a lot like the Playstation game, Katamari Damacy. You start small, and your only goal is to get bigger by rolling over things that are smaller than you - they stick to you. You start by rolling up pennies and dice, and when you've grown enough, you can roll up whales and islands. It doesn't matter what you roll up, either. Shit is just as good as gold bars, as far as you're concerned. You have to watch out for objects that are bigger than you, though. Crash into one of those, and you fall apart. But what's bigger than a Katamari-sized lawfirm?
Wear is the Dow is Up Guy when you need him?
Simple answer fire real estate and corporate associates who are not on track to bill 1800+. Restore all of the cut salaries and then some.
Sam Isaacson you better check your office daily, I'm waiting for the right time but will be planting a smelly bag of shit when you least expect it. Screw off, serves you right for failing to stand up and protect the associates in your department. In two weeks your office will smell better than the stink you put out. You are a failure as the department leader, a complete failure. Of course, now you can blame Lee when the associates leave and the firm is stuck paying some recruiter hack because no one wants to work in your department.
The partners will work you to death and then complain when you try to take a day off to care for a sick relative. Finally, they will cut your pay because they are opportunistic jerks who would screw over their own mothers if given the chance.
Non-equity DLA-P partner here. It's all good. I'm psyched actually! I was called to see the management committee in the morning. Mr Big wants to see ME! Woohoo! Only thing I don't like is this heart plug they made us all get. Mine kinda itches. But they say it's for our own good. So suck it bitches! I'll be hanging with the big boy in the morning! Go me!
146 -
James Leroy Earl Billy Bob Carter did not stink. Sure he had a slight b/o problem, but most of the ladies dig that musky smell.
Its 100% true about Carter, DLA, and Pillsbury dying in a tragic accident, too.
Those funds might just be eaten up by Obama's new tax policy anyway. I agree with the poster that said enjoy your nights and weekends while it is slow. When it does pick up, the firm can pay you more or you can leave.
Well managed firms are cutting costs, and the biggest cost is associate salary.
Some "prestigious" firms simply fire oh, say 10% of the associates and claim the firings had nothing to do with the economy. This kills the career of the fired.
Other, better managed firms, try to do creative things to keep people employed till things pick up.
Not a big deal really, nor terribly hard to understand. If you don't like your new, slightly lower salary, find a new job and show the world your value!
How many very valuable and highly sought after associates have tendered their resignation?
Has Cravath indicated hiring interest in all these top 100 law school grads, some of whom actually graduated in the top 90% of their classes?
I wanna know!
178 -- Are you sure your not gonna be called in to Mr. Big to fire your ass???
178 -- Are you sure your not gonna be called in to Mr. Big to fire your ass???
182 - what is the point of your comment? Do you actually think people would quit without getting a new offer first? Do you actually doubt DLA has associates from top 5 schools? Do you just enjoy acting like an asswipe on a bulletin board so people can't beat you up like they do when you go outside?
They just changed their minds and now it's a straight 10% cut for every associate. No 20% cuts anymore.
They just changed their minds and now it's a straight 10% cut for every associate. No 20% cuts anymore.
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I confirm this as well.
Salary cut - EPIC FAIL!
Very good move to rescind the 20% cuts, but be careful what you wish for, it only means they will have to cut some more heads during the remainder of 2009. It will be nice to see some more arrogant asshead underperforming associates get their heads chopped, dreams smashed and egos lowered to mere mortal levels! I think these young punks have no concept of reality. Was anyone even born in the 70s? And if you think big government is going to pay this well, you'll be waiting for a decade! As for me, looking forward to the next Ronald Reagan!
Horrible move. The associates who are not even close to being on a reasonable pace need to be terminated immediately. This is a slap in the face of every associate who is near or on pace. Fuck you, stupid real estate fucks!
Sam Isaacson still has not confronted the shit storm he created by not standing up for Chicago litigation associates. Scoped out his office today. The bag is coming. Not surprisingly, Sam was MIA.
Elie, keep on digging here. There is more than meets the eye. The 20% cuts upset a group of under performing partners. It exposed their inability to generate work.
The comments above are scary. How many of these people have been through a recession or prolonged contraction in the economy? Go ahead and take out your calculators. Please program 10% less over the next 10 years and also very modest increases. Also then please adjust your lifestyle. Then if you lose your job, please try to find another one that pays as much. Good luck! Oh... but I'm worth it! You arrogant fuck, you are not you were overpaid to begin with! But you have no money in the bank and you will have to fall back on your parents to pay your bills. Oh... but my parents can't support my lifestyle. Damn this government it is all their fault! I need them to bail me out! No you fat bloated fuck, it is your big heads that got in the way and you should have money in the bank! What is even scarier is the amount of morons still unwilling to change their lifestyle because they believe they are better than the rest! I got news for you all, DLA is being smart here adjusting for a prolonged downturn quickly and watch other firms follow suit or go down in flames. All the models were wrong and you better program in a long tough road ahead, the party is over amigos!
Miller + Burch = narcissist managers that will merge into oblivion