State Of The Texas Market

Ed. note: This is the latest installment in a series of posts by Lateral Link’s team of expert contributors. Larry Scott is a Principal at Lateral Link and oversees attorney placements in Texas. Prior to joining Lateral Link, Larry was an Executive Senior Partner with a national recruiting firm. He worked as an attorney at Jenkens & Gilchrist and also spent time in global accounting firms in the U.S. and internationally, including Hong Kong and Vietnam. He holds a J.D., cum laude, from the University of Houston, a B.A., in accounting, with High Honors, from the University of Florida, and a Masters in Accounting, also from the University of Florida. Outside of work, Larry enjoys fitness and music. He is an avid guitarist who regularly performs at blues jams around Houston.

The Texas market is primed for a massive 2017 as partner laterals remain mostly steady and associate laterals are up when comparing movement before and after Cravath’s “Moneylaw” announcement. As the compensation began to proliferate from New York to other major markets, Texas suddenly became a top destination with its low-cost of living and competitive salaries compared to New York and other major markets.

How popular is it with out of state attorneys? Almost 17 percent of the associate movement in Texas since June has come from attorneys moving into the state from another market. Not surprisingly, most of these moves are coming from New York.

So which city is the bigger winner? Houston has by far the most associate movement since the raises were announced. Houston alone accounts for over 50 percent of the total associate movement in Texas from June to now.

The partner movement in Texas is following similar trends to associate movement. Houston is by far the most popular city for lateral partner moves. However, the movement within practice areas could not be more different.
Corporate and Litigation comprise roughly the same percentage of lateral associate movement in this “post-Moneylaw” period. However, for partners, Litigation dwarfs every other practice. It constitutes roughly 37 percent of the total partner movement in this period. Comparatively, Corporate partner movement accounts for less than 15 percent.

Vinson & Elkins nabbed nearly 10 percent of the total partner moves during this period, bolstering its Litigation practice with 5 IP/Patent litigation specialists in Austin and Dallas. In Houston, Bradley Arant had the largest gains.

2016 has also continued to see the opening of new Texas offices by national law firms, including Akerman, Orrick, and Polsinelli, as well as regional firms like Alabama-based Bradley Arant and Mississipi-based Butler Snow.

Although the Texas lateral partner market is vast and perceived to be largely impenetrable, we keep our ear on the market by continuously monitoring and analyzing the market to ensure our clients have access to the most up to date information. If you are a partner considering a move or wanting to discuss the market, or firm management looking to stay ahead of the curve, feel free to reach out to me or my colleagues at Lateral Link. We are happy to help.

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