Incoming Associates at Fenwick Take the Money and Run
As regular Above the Law readers know, there are a few firms that are offering “go away” money to their incoming associates. The deal, like ones at Stroock and Pillsbury, is that the firm will give incoming associates a large payment instead of a job, and the incoming associate will quietly go peruse other employment options.
We haven’t really gotten a sense of how many would-be associates would actually consider this offer — until now. Fenwick & West offered its incoming associates $60,000 to stay away. According to our sources, around 40 percent of Fenwick’s 2009 class took the money.
But there is a catch; there’s always a catch.
Details after the jump.
A tipster shared some overall numbers about Fenwick’s incoming class:
Fenwick just finished buying out the ‘09 grads who were supposed to start this fall. We all just received our $60,000 check (minus taxes). This is on top of the $15,000 summer stipend we got.In case you’re curious, they had 38 summer associates in ‘08. They gave offers to 34. Of these, only 24 accepted their offers. Then, out of these 24, they gave buyout offers to at least 10 people (maybe 12). Nine of these 10 people accepted the buyout.
When Stroock and Pillsbury offered their incoming associates a buyout, it wasn’t at all clear that firms would be revoking offers to incoming associates outright. But now we know that offer revocation is a real possibility for the class of 2009, so it makes even more sense that some people would voluntarily take the money and run.
However, at other firms offering go away money, the offer was made to the entire class. At Fenwick it looks like the option was targeted to a subset of attorneys in the class. If you were one of the attorneys targeted with the departure offer, would your choice still be voluntary?
According to our tipster, the incoming associates who were targeted received an offer they couldn’t refuse:
They said the buyouts were optional, but when someone tried to decline, they told her to reconsider.
Fenwick did not respond to multiple requests for comment.
But hey, $60,000 — on top of a $15,000 summer stipend — is still a lot of money. Especially if you do the smart thing and move to Guatemala. That kind of hard currency will go far down there.
Earlier: Pillsbury: Let’s Try This Whole ‘Voluntary Departure’ Thing One More Time
Stroock Offers $75,000 in Stay Away Money
Incoming Associates, Some of You Aren’t Going to Be Working at Arent Fox
(66) Comments
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Law firm management is superior to business management. Yep.
Take the money and run. Never look back. Get out of biglaw before you get in. Find a more fulfilling career. Good luck.
You should all be happy for this offer.
Looks like this year Fenwick learned its lesson--sort of. Their summer program was again oversubscribed, but they only made offers to 17 of the 39 summers.
I wonder how many of those 17 will get to 'choose' to be bought out. And how many will simply have their offers revoked.
GuatAmala?
My PPET billing ratio in 2008 was 10:1. My ratio for 2009 is even higher. Service partners work while I learn the samba. YOU GOT THE RIGHT ONE BABY!
where is "guatamala"
it's a small country hidden between Elie's fat rolls. Elie, when are you going to order your guards to let the Rankor go?
STEPTOE RESCINDS OFFERS TO CLASS OF 2009!!!!
You could hang all kinds of shingles with 60,000 in seed money.
You HOI POLLOI are dilatory, nescient, unsightly, dilatory and penurious.
Is that Pillsbury place still in business? I thought they went under
Trust me, $75k not to work in BigLaw is a blessing. Most of you weren't going to cut it anyway, statistically speaking, so $75k for doing nothing is pretty nice.
This is a preemptive lathaming. Good work!!!
I am an incoming associate deferred "until January." I have not received my start date yet. Should I be worried that I will be given the Fenwick?
8 and 9 - true story. Someone I know was born in Guatemala while her parents were on diplomatic assignment. On her US passport, it cites her place of birth as "Gutatemala City, Gutatemala". It caused some problems at Turkish immigration - real problems.
16 -
Trust me, very few people got a lathaming.
-Latham Secure
16 -
Trust me, very few people got a lathaming.
-Latham Secure
Elie- follow up on the steptoe comment?
This would never hapen at Widener
That's fascinating, 18.
A year from now we'll look back at these associates who got buyouts with envy. Most 09 associates are likely to get their offers rescinded with no compensation or they'll be brought on and Lathamed within the first few months leaving a whole class of lawyers with 6 figure debt and non-existent career prospects.
"GuatAmala" is a country where you can "peruse" other employment opportunities. In Guatemala and other places, you would be expected to pursue other opportunities.
What the hell is going on at Steptoe!? Whoever has info should share with the group.
I'm gonna make him an offer he can't refuse.
@24: "No career prospects"? Yes, because being a BigLaw minion is ALL you can do with a law degree. (rolling eyes)
First?
got a call from steptoe's hiring partner who rescinded my offer and told me that the firm is doing so with all summers. FUCK them.
got a call from steptoe's hiring partner who rescinded my offer and told me that the firm is doing so with all summers. FUCK them.
We got absolutely nothing when our gig in Memphis was cancelled. Instead, we went to see Elvis' grave where David felt that he got too much fucking perspective. Fenwick & West sounds very generous.
There is nothing wrong with Fenwick that couldn't be fixed by firing Gordy Davidson. The guy is a glorified used-car salesman.
How is this a "good deal"? Uncle Sammy is going to take a HUGE chunk of that $60,000, which you'll never see again.
You are now a new "attorney" with no experience. Good luck flipping that to your advantage as your go-away money is eaten up by the interest on your student loans.
I dont understand the buyout strategy. Why not keep them on the hook for a while longer and pay them a bit each month, so if their needs change they can hire them on. Or make them work for a pro bono job, then at least it might be a tax deduction. They dont even look good doing the buyouts, but I guess better than revoking outright.
30/31: Were you one of this year's summer or summer of 2008, expecting to start within the next few months? Sorry to hear, keep your head up.
35, I hope you're not a tax lawyer.
Everyone given this opportunity should play the numbers and take the money. In the worst case scenario, this money would make the monthly loan payments for 4 years or so, buying you a lot of time to find other opportunities. And if you were lucky to get a decent opportunity right off the bat, it could take a huge bite out of student debt. Even the best and brightest gunner "future partner" associate should take this offer.
I think that law schools should send representatives (such as those recently departed from the legal profession) to the various colleges warning prospective law students regarding the dangers of going to law school.
Is Fenwick hiring laterals?
I heard Duane Morris is thinking of a similar program....anyone else hear it?
Steptoe has yet to inform their 2009 summers about offers. However they did rescind offers for the class of 2009.
Getting paid to walk away is generous compared to non-law fields. Still, the taxes on the buyouts are enough to piss off a liberal Democrat. Why are buyout payments taxed as a bonus when this will be the only income some people can expect for a while? I have to wait until April 2011 to recover taxes withheld from the partial buyout payment I'll receive in January 2010. All from a job for which I interviewed in August 2007.
It's like, how much more gay could the Spinal Tap commentors be? The answer is none. None more gay.
44, you are clearly on the stupid side of the line between stupid and clever.
Partner here: If you want to know what's wrong with law firms today, just look at these payouts to defer or pay off incoming associates. Only a total idiot would pay someone to not come to work. These firms don't have to do this, but they're doing it in order to save face. Bullshit on their faces, because the partnership derserves better management. Kick out the managers, most of whom weren't all that good at practicing law anyway, and fuck the incoming associates.
Is this firm about to go bankrupt?
I actually believe 46 is a partner.
43 - you can increase your number of exemptions and not have as much tax withheld. A guy where I summered figured it out that if the SA gig was the only money you were making this year, you should put down 17 exemptions to end up with the right withholding.
Clearly, this is not voluntary. When the firm gives you "go away" money, and when you refuse the firm tells you to reconsider, the message is pretty clear.
but it's a better situation when they explain it to you like that, 50. rather than just canning you a couple of weeks later. "you should think REALLY hard about that $60k, young associate." the firm gets to save face by not having to fire you. you save face by not being fired.
Someone didn't take the money? They really need to think this choice through at take a good look at that iron clad contract they have with Fenwick...
What the hell is a Fenwick? Is that related to a SMU?
This article is old news and thus misleading. I heard that Fenwick made the walkaway offers last spring and are just paying out now because this is when the walk-aways would be starting. If that's the case, this was as classy response to over-offering (done pre-Great Recession). The walkawayers are receiving about the same severance they would get being dropped as first years without putting themselves out by taking the California bar (if going to Fenwick was the only reason for taking the CA bar) and actually moving to the Bay-area (not cheap). Plus, their newly minted J.D.'s aren't as stale as if they got tossed half a year in as a first year.
54 is Gordy Davidson.
49 - you need to include a Circular 230 disclosure in your comment
@35 hope you're not a benefits lawyer either.
24 - awwwwww...my heart bleeds for all of the poor, pampered, debt-ridden new lawyers who must finally face reality.
"Who moved my $160k?"
@46 -
"... and fuck the incoming associates."
You could have left that part out, you already said you were a partner.
Agree with 54, this is old news. Fenwick did this last spring for some incoming associates. They basically said you offer is still there but if you do not take this buyout then your offer will be the first to be rescinded later on...
Fenwick is dirt and its lawyers are pondscum. Moreover, the backwards thinking of this firm - as demonstrated by its decision not to expand overseas - promises its slow but sure death. Those who escaped early with a little bit of money will be better off in the long run.
Fenwick offered incoming associates buyouts in 2001 as well. I believe the figure was $60k.
Elie, you forgot to mention that they only tried to buy out incoming associates from lower ranked schools. Only those from non-T14 schools got buyouts. They basically said, "We're paying you $60,000 to walk away because we think your school sucks." Nice job, Fenwick & WesTTT.
63 - not true. people in the T14 schools got bought out as well.
54 - the news was given after you were stuck taking the California bar
43, there's no such thing as being taxed as a bonus. All non capital gains/dividend income is taxed the same, whether it's earned weekly or as a "bonus."
64 = Jay Pomerantz, an equal-opportunity douchebag.