Allen & Overy, recently named by American Lawyer as the firm with the sixth-highest revenue in the world, just decided to pull a Half-Skadden:

Bonuses will be paid at the end of January.

Class of 2008: $17,500 (pro-rated)
Class of 2007: $17,500
Class of 2006: $20,000
Class of 2005: $22,500
Class of 2004: $25,000
Class of 2003: $27,500
Class of 2002: $30,000
Class of 2001: $32,500

I hear that one good way to keep revenues high is to pay your employees as little as the market will bear.

Good job A&O. Way to keep up appearances. There's no way we'd deny you time in the spotlight just because you sent out a bonus announcement around the close of business.

Read the full memo after the jump.

The Lawyer reports that Allen & Overy might be in merger talks with Shearman & Sterling:

A&O is occasionally tempted by the thought of a market-busting merger. It approached Freshfields back in 2006, as exclusively revealed in The Lawyer (see story).

Senior partner David Morley is moving to New York next week for three months (see story). This is being taken in New York as proof that a deal is in the offing.

A&O has nicked a whole load of Shearman's Germans - though by rights this ought to rule out a deal with the rest of the firm.

Shearman needs help. (Actually, this is incontrovertible.)

After the jump, could this actually happen?

Welcome to another post in the 2009 Vault 100 open thread series. You all seem to like having the law firms listed in groups of ten, so we'll keep it up. Here are the thirty-something firms from the Vault 100, with prestige scores in parentheses:

31. Fried, Frank, Harris, Shriver & Jacobson LLP (6.461)
32. Freshfields Bruckhaus Deringer LLP (6.327)
33. Akin Gump Strauss Hauer & Feld LLP (6.313)
34. Winston & Strawn LLP (6.275)
35. Quinn Emanuel Urquhart Oliver & Hedges LLP (6.235)
36. Willkie Farr & Gallagher LLP (6.174)
37. Orrick, Herrington & Sutcliffe (6.173)
38. Allen & Overy LLP (6.147)
39. Cadwalader, Wickersham & Taft (6.131)
40. Proskauer Rose LLP (6.102)

Fried Frank and Cadwalader have been on the ATL radar of late. We broke news of staff layoffs at Fried Frank earlier this week, and news of the attorney bloodletting at Cadwalader last month. As noted in Cadwalader's notable perks: "ouch, layoffs." (Speaking of, in going through the Vault 100 list, we've discovered that Vault's definition of "perk" is very different from ours.)

In the comments, the curious can pose questions, and the insiders can share insights. More threads to come.

Earlier: Vault 100 Open Threads - 2009

Several firms have announced new parental leave policies. We'll highlight them here, and Justin will be adding the information to his maternity leave and paternity leave cheat sheets.

1. Allen & Overy is one of the three firms to comply with what is becoming the industry standard of 18 weeks paid maternity leave. Paternity leave is 4 weeks. A&O also included parental leave for support staff in its e-mail: maternity leave of 12 weeks and parental leave of 4 weeks.

2. Heller Ehrman is upping its paid maternity leave from 12 weeks to 18 weeks, while paternity leave will stay at 6 weeks.

3. Ropes & Gray is giving moms 18 weeks of parental leave (up from 13 weeks) and giving dads 4 weeks (up from 2 weeks).

The firms' parental leave announcements are available after the jump.

Today is Friday, so this news is timely. Some of you may recall the case of Schoenfeld v. Allen & Overy. Norman Schoenfeld, an observant Jewish lawyer who once worked in A&O's New York office, sued the elite "Magic Circle" law firm, alleging that it discriminated and retaliated against him as a result of his observing the Sabbath.

For counsel, Schoenfeld retained Anne C. Vladeck, the superstar plaintiffs-side employment lawyer who successfully represented Anucha Browne Sanders in her sexual harassment case against Isiah Thomas and MSG. After Vladeck and Sanders won at trial, the parties settled the case -- including all appeals -- for a cool $11.5 million.

Back to the Schoenfeld case. Sources close to the case inform us that the parties have resolved the case, and it will be formally closed in the near future. It hasn't been dismissed yet, as you can see when you check the S.D.N.Y. docket (1:07-cv-11431-HB), where the last entry is the pretrial scheduling order. But the parties have an agreement in principle to settle, and it will be papered up soon.

We reached Todd Girshon of Jackson Lewis, counsel to Allen & Overy, by phone. He offered a "no comment" (although we detected a faint hint of amusement in his voice as he said it). We've left telephone and email messages for Anne Vladeck, counsel to Norman Schoenfeld. We haven't heard back from her yet, but we'll let you know if and when we do.

We must confess that, although we're happy to see the parties resolve their differences, we're sad that we won't get to write more about this case. As you may recall, when the story first broke, we thought that it might turn into "the Jewish version of Charney v. Sullivan & Cromwell." It looks like that won't be happening. No tales of "bending over," boiled hard drives, or boasts of representing Nazis -- just a quiet settlement. What began with a bang has ended with a whimper.

In other Allen & Overy news, the New York office has a new managing partner. Congratulations to Kevin O'Shea, who assumed leadership of the New York office effective May 1. Presumably he's glad to have this lawsuit behind the firm as he takes the reins at A&O - NY.

Update: The firm has confirmed news of the imminent settlement. See here.

Earlier: Lawsuit of the Day: The Jewish Version of Charney v. S&C?
Schoenfeld v. Allen & Oy-vey-ry: We've Got Close to Bupkis
Schoenfeld v. Allen & Oy-vey-ry: A&O's Answer

Okay, you already knew that hiring Allen & Overy isn't cheap. Remember their European fee schedule?

So why was this U.K. judge so upset over an eight-figure bill from the firm? He really ought to know better. From the FT (via WSJ Law Blog):

A High Court judge has blasted a top City of London law firm for charging nine years’ worth of man hours on a five-day trial over BlackBerry patents, in a judgment that will fuel the growing controversy over lawyers’ billing practices.

Lawyers from Allen & Overy racked up nearly £5.2m [$10.32 million] in costs representing Research in Motion, the maker of the popular BlackBerry device, in a dispute with Visto, a US-based wireless technology company.

In a scathing judgment, Mr Justice Floyd said he would expect the firm’s associates to be able to recite “all the documents in the case by heart” given the amount of time they claimed to have spent on the dispute.

Try them, Your Honor. Those two poor associates billed over 4500 hours on the case over 15 months.

“The picture summoned up by this bill of costs is one which is totally unfamiliar to anyone who has been involved in economically conducted patent litigation,” the judge said. In refusing to award Research in Motion its full costs, he said he was bound to prevent a party from recovering “unnecessary and unreasonable’’ expenses.

Ten million bucks is a hefty sum -- but it's not unheard of in the world of high-stakes litigation. And when Blackberries are involved, legal bills balloon. Recall how Wiley Rein scored a $200 million payday for representing NTP in its litigation against RIM (on a contingent-fee basis).

And more Blackberry-related litigation may be on the way. See this piece from the National Law Journal, about how the devices may initiate "a new wave of wage-and-hour litigation," based on claims of unpaid overtime.

Biglaw associates are out of luck. But paralegals who had Blackberries bestowed upon them might have meritorious claims.

Judge lambasts lawyers’ fees [Financial Times via WSJ Law Blog]
U.K. Judge Rails at Allen & Overy's $10 Million Bill in BlackBerry Patent Case [Legal Week via WSJ Law Blog]
BlackBerrys may spur overtime suits [National Law Journal via WSJ Law Blog]

Earlier: Charging $1,000 an Hour Is For Chumps

We received 1,036 responses to last week's ATL / Lateral Link survey on where you'd most want to work, which, in turn, was based on your nominations last month.

Here's how it turned out:

Survey Results: Which Firm Would You Most Want To Work For?

Overall, Latham & Watkins dominated the field, pulling in almost one fifth of all votes. Latham was the most popular choice among voters in L.A., the Bay Area, and Washington, DC, and was particularly favored by tax lawyers and litigators.

Runner-up Wachtell was actually the top choice of respondents in New York, narrowly besting Davis Polk and Latham. It was also, by far, the most popular pick among M&A lawyers, with roughly 30% of their vote.

Kirkland placed third overall, but was the top choice of Chicago respondents and patent lawyers, with almost twice as many votes as the next most popular firm in Chicago (Latham) and almost as many patent votes as the next two firms combined (Latham and Quinn).

Williams & Connolly, Ropes & Gray, and Davis Polk tied for fourth, with Ropes & Gray dominating the Boston vote, Williams & Connolly pwning DC (and gaining the second highest vote from litigators after Latham), and Davis Polk rocking the investment management scene (with Ropes & Gray running second best in that field).

Paul Hastings was the clear winner among labor & employment attorneys, winning almost 70% of the vote, and was also the most popular choice among real estate attorneys and lawyers in Atlanta.

On the Magic Circle front, Linklaters proved more popular than Allen & Overy, and was actually the most popular choice among securities lawyers. Allen & Overy was the most popular choice among structured finance attorneys.

Posted below is the European fee schedule of Allen & Overy. At current exchange rates -- approximately $1.55 to the Euro, and $2.00 to the British pound -- this means that partners bill out at about $1,050 an hour in Paris, and $1,190 an hour in London. Says a source: "Twelve-hundred bucks an hour for a partner in London? Ridiculous."

On the other hand, if a $1,200-an-hour partner can solve your problem in six minutes -- with a well-placed telephone call, or an absolutely brilliant judgment call -- maybe she's worth it. Perhaps you should be more worried about $600-an-hour junior associates (to say nothing of $350-per-hour paralegals).

This month's ATL / Lateral Link survey, focused on which firm you would choose if you could go anywhere, was dominated by Latham & Watkins and Wachtell Lipton. But several firms were close behind.

  * Respondents had several reasons to applaud Latham: "Prestige", "Friends there are happy", "Awesome firm, awesome people", "They rock", "Prestige, substantive work, great litigation practice", and "Top notch clients and matters; kick ass bonuses; selective hiring in a good way (need good grades plus a good; personality); Vault top 10 without the stuffiness of originating on the east coast; good growth but no risk of Brobecking (great management + tons of funds).....should I go on?" Or, as one respondent summed it up: "ass kickers."

  * At Wachtell, with 2007 profits per partner of $4.48 million, money played a key factor in respondents' enthusiasm for the firm: "100% bonus", "money", "it's all about the cash", "I want the compensation!", "money honey" and, of course, "CASH."

  * "Money" was also a big plus for Cravath (even though their profits per partner were a mere $3.3 million). Voters also noted "Prestige, training, can go anywhere else afterwards."

  * "Prestige" and "Exit opportunities" also won several votes for Skadden, who also had more than $2 billion in revenues last year. (Their SideBar program is pretty cool, too.)

  * "Bonuses and work" were praised at Kirkland & Ellis, as was stability: "They're well positioned for the credit crunch and M&A downturn. And the pay's better, of course."

  * Sullivan & Cromwell was also coveted for "good work, and $$$$" as well as "reputation." With profits per partner of $3.13 million, that "$$$$" is appealing at multiple levels.

  * Paul Hastings surged in popularity as respondents complemented their labor & employment practice and their compensation structures in Atlanta and Chicago.

  * In an incendiary match-up, Davis Polk was heralded as "da bomb", while Boston heavyweight Ropes & Gray was declared "the bomb."

  * Among the Magic Circle firms, Allen & Overy supporters declared "Great offices, european attitude" while Linklaters was called "the best globally, both in equity and debt."

  * Debevoise won several votes for its combination of "prestige and culture".

  * Litigators were torn between Quinn Emanuel, where "hard core litigators with a great reputation" create an atmosphere where "[p]ersonality, quirkiness, and fun seem prevalent," and Williams & Connolly, as "the best litigatio[n] shop. Period."

So of these fourteen juggernauts of practice, prestige, and sweet, sweet profits, who would you most like to work for?

Cast your vote in today's ATL / Lateral Link survey, after the jump.

The Magic Circle law firm of Allen & Overy, defendant in Schoenfeld v. Allen & Overy, has just filed its Answer (PDF). They're hoping to make Norman Schoenfeld's claims disappear. Schoenfeld, an observant Jewish lawyer who once worked at the firm, alleges that A&O discriminated and retaliated against him as a result of his observing the Sabbath.

We contacted the firm for comment. Here is their statement:

Allen & Overy denies all allegations of discrimination. This person's employment was terminated based solely on performance within his orientation period, a trial period of time mandated for all employees. He also failed to disclose to Allen & Overy the fact of his previous employment at another law firm.

Our firm has a strict written policy prohibiting any form of discrimination, and we provide all new employees and partners training in both diversity awareness and harassment prevention. Over the past several years, we have also instituted live diversity training for all of our existing attorneys and managers. We will vigorously defend our proud reputation of diversity and inclusion and are confident of a positive outcome for Allen & Overy with respect to these allegations.

More discussion, including interesting information from tipsters, after the jump.

Update (5/9/08): The case is settling. See here.

Back in December -- around the holidays, so many of you may have missed it -- we wrote about Schoenfeld v. Allen & Overy. It's a lawsuit brought by Norman Schoenfeld, an observant Jewish lawyer who once worked in the New York office of Allen & Overy. Schoenfeld claims, among other things, that A&O discriminated and retaliated against him as a result of his observing the Sabbath.

Since then, we've received many requests for updates. This message is representative:

"Is there any news on this lawsuit? As a Sabbath observant 2L, this is of interest to me and many of my friends. A post on ATL providing an update would be appreciated. Love the site. Thanks."

We're not aware of any procedural developments in the case. And we sadly didn't receive much in response to our request for firsthand information about Norman Schoenfeld or Allen & Overy in New York. Here's the most interesting tip we received -- some opinions from an A&O associate:

"That this suit goes on is beyond anyone here at A&O. I did not know this Schoenfeld guy much for the five minutes he worked here and don't know if his complaint has merit. I will say this though: associates don't want to work with Mark Wojciechowski and are asking not to work with him."

"He told A&O he was bringing associates from Mayer Brown; MB associates refused to come work with him. Better to stay on a sinking ship like MB NY than work for a nightmare like Mark Woj...."

"No one can understand how firm management let this happen (rumor is that A&O already fired their first outside counsel). Recruitment of NY lawyers is badly affected and we just wait to see how much this costs the firm in damages (and associates of course since all s**t gets passed down - you know the partners won't take the hit in their pocket)."

We contacted the firm for comment, but they didn't have anything to add.

If you have any firsthand information to pass along about the events in question, please email us. Thanks.

Complaint: Norman Schoenfeld v. Allen & Overy (PDF)

Earlier: Lawsuit of the Day: The Jewish Version of Charney v. S&C?

Bonus season is still with us, although it's winding down. Announcements continue to trickle in, but at a reduced pace. Going forward, we will combine bonus info into omnibus posts that will go up periodically, depending on whether we have a critical mass of tips.

Here is today's compilation of associate bonus news -- plus a tantalizing email, from Allen & Overy, that raises the possibility of an associate pay raise.

1. Thacher Proffitt & Wood: TPW has been hit hard by the credit crisis. As we reported back in November, they may be laying off associates this month. But at least they're still paying out bonuses to the folks who are still around:

TPW paid bonuses year end. No standard memo to all, so information is hard to come by. They paid market bonus ($35,000 for class of 2006) with an hours requirement.

There seem to be four tiers: 2100 hours = full bonus, 2000 hours = half bonus, 1900 hours = somewhere between a third and a fourth ($10,000 for class of 2006 associates), and below 1900 hours = no bonus.

2. McDermott Will & Emery. Here's a follow-up to our prior post on MWE:

They are having a videoconference on the 15th with all associates to discuss compensation. In the meantime, they allegedly are continuing to monitor market data. It appears as if they will try and fix their initial misread of the market, but no one knows when, how or by how much. In some cities, peer firms' bonuses [were] 3, 4 or 5 times MWE's bonuses.

3. Kramer Levin Naftalis & Frankel: We previously wrote about the Kramer Levin bonus announcement. Now comes this caveat:

Sneaky to state that everyone gets the special bonus at 2000 hours, but it's not market. For example, a fourth-year will either get 80k for 2150 or 38k for 2000-2149.

The Kramer Levin memo appears after the jump.

4. Allen & Overy: This is not bonus news, but over at Allen & Overy -- or should that be Allen & Oy-vey-ry? -- an email went out before the new year telling associates that the firm probably "will not be able to announce associate/senior counsel salaries for 2008 before the year begins." One source wonders:

Have any other firms mentioned something like this? Do you think management knows something about a pending raise? Why wait, unless they have information about a possible raise?

Intriguing. We'll keep you posted.

We have to step out for a bit (company holiday party). We've only skimmed this Complaint (PDF), just filed in the Southern District of New York, by a Jewish lawyer against his former employer, Allen & Overy.

Check out the Complaint for yourself, by clicking here (PDF), and offer your thoughts in the comments. We look forward to reviewing your reflections when we return.

P.S. A special request: nicknames for this lawsuit, a la "Brokeback Lawfirm" for the Aaron Charney case, are especially welcome.

Complaint: Norman Schoenfeld v. Allen & Overy (PDF)

Update: Here is the firm's statement, emailed to us by a spokesperson:

Allen & Overy denies all allegations of discrimination. This person's employment was terminated based solely on performance within his orientation period, a trial period of time mandated for all employees. He also failed to disclose to Allen & Overy the fact of his previous employment at another law firm.

Our firm has a strict written policy prohibiting any form of discrimination, and we provide all new employees and partners training in both diversity awareness and harassment prevention. Over the past several years, we have also instituted live diversity training for all of our existing attorneys and managers. We will vigorously defend our proud reputation of diversity and inclusion and are confident of a positive outcome for Allen & Overy with respect to these allegations.

We'll write more about this later. If you have any firsthand information to pass along about the events in question, please email us. Thanks.

Guess it's "Magic Circle" night here at Associate Bonus Watch. Fresh on the heels of Freshfields, we've confirmed the Allen & Overy bonus announcement.

Check out the memo, announcing year-end and special bonuses at market rates, after the jump.

Allen & Overy in the UK has over-produced a hiring video that uses real actors to portray A&O solicitors engaged in really interesting work for global clients.

Watch the video here at RollOnFriday, which offers this take on it:

Presumably the prosaic reality of 15 hour days drafting intercreditor deeds and dealing with IT problems would not make great TV. And my, what a lot of TV there is: it goes on for an age, and watching it is like wading through treacle as cast members mention "the deal" every five seconds.

The film laboriously tracks "the deal" in minutes, hours, and days, walking us through the boring lives of A&O partners, associates and trainees in the split-screen style of 24. The performance of the associates falls well short of the drama of Boston Legal. In the end, it would have been a more believable if the deal had collapsed in the last-minute negotiations, like in the real world, where heads would roll on Friday.

Anyone seen better--or worse--law firm recruitment videos?

* Across the pond, Allen & Overy hopes to pick up recruits -- quite literally. [Charon QC: The Blawg]

* One path to a judgeship: marry a prominent political fundraiser. [Daily Business Review]

* Alberto Gonzales and George Terwilliger should get along famously. [Washington Briefs]

* The fame of the S&C bonsai trees spreads, as ATL earns a shout-out in the Washington Post's Express. [Read Express]

That's the question we tackle in our latest column for the New York Observer. Here's an excerpt:

Among associates at large law firms, Facebook passed the tipping point sometime over the summer. Since the site opened to the public last year, adults everywhere have been joining—there are 40 million people already on Facebook, and about a million more every week. But lawyers seem to be particularly enamored of it (as is Microsoft, which is reportedly considering an investment that would value Facebook at as much as $10 billion).

It’s an expensive love affair.... Next year, the AmLaw 200 law firms are expected to hire 10,000 new associates. Let’s estimate, conservatively, that half of them spend one billable hour a week on Facebook. If we assume (again conservatively) an average hourly billing rate of $200, that comes to about $50 million a year in lost billable hours—and partner profits. Fifty million bucks will buy you a lot of Hermès ties.

You can read the rest of the piece by clicking here.

From Bluebook to Facebook: Social Site Seduces Firmland [New York Observer]

Sadly, the music-loving law firm of Nixon Peabody is not on this afternoon's list of five Vault 100 firms to talk about. And don't hold your breath -- we won't reach NP until we hit the 70's.

Here are the firms that are on the table:

51. Jenner & Block LLP (5.940)
52. LeBoeuf, Lamb, Greene & MacRae LLP (5.925)
53. Allen & Overy LLP (5.922)
54. DLA Piper (5.913)
55. Cahill Gordon & Reindel LLP (5.913)

We note the presence of Cahill Gordon on this list. Even though Cahill routinely lands near the top of the profits per partner rankings of the American Lawyer -- in 2006, they were #6, with PPP of $2.575 million -- the firm's prestige seems to lag behind its profits. Any thoughts on why?

Please chatter away about these five firms in the comments. Thanks.

The Vault Top 100 Law Firms [Vault]

Earlier: Vault 1-5; Vault 6-10; Vault 11-15; Vault 16-20; Vault 21-25; Vault 26-30; Vault 31-35; Vault 36-40; Vault 41-45; Vault 46-50

Our posts on the perks or fringe benefits of law firm life continue to generate interest and good comments. Here is today's topic:

Why don't you guys do an open thread on working abroad? I know of several firms that send their associates for some period of time to work [overseas].

For example, Allen & Overy has a program in which they send their senior associates to London to work for something around six months. A friend of mind who worked for Shearman went to Asia, and some others from Baker McKenzie have been sent to other offices around the world.

One advantage of working abroad: a generous cost-of-living allowance. Last month, Cravath raised its London COLA:

Cravath Swaine & Moore has raised the cost of its living allowance (Cola) for London office associates from $85,000 (£41,000) to $110,000 (£53,000), The Lawyer can reveal. The 30 per cent hike at the elite firm takes remuneration for the most junior lawyers in Cravath's City office to potentially in excess of £150,000.

At current exchange rates, that works out to a starting salary of $300,000. Not bad. And a Cravath source tells us that the firm is eager for people to head over there: "[T]hey are super busy and trying to get more people to go and stay longer.... [T]hree hundred grand is a lot of dough, no matter how expensive London is!"

Your thoughts on overseas Biglaw gigs are welcome, in the comments.

Cravath hikes London cost of living allowance [TheLawyer.com]

Earlier: Biglaw Pay Raise Watch: Weil and Cleary to 180, Latham to 190!

We've been providing salary news updates in the comments because, due to technical difficulties, it's more reliable than trying to do so here on the main page. For your reference, here are links to the latest announcements:

1. Allen & Overy: Confirmed. Memo is here.

2. Debevoise & Plimpton: Confirmed. Memo is here.

3. McKee Nelson: Confirmed. Memo is here.

(We will spare you the details of the boring debate over whether they should be considered a DC firm with a very large New York office, which is the obvious preference of McKee Nelson's media relations people, or a firm that's roughly split between the two cities. How many D.C. associates can dance on the head of a pin?)

4. Schulte Roth & Zabel: Confirmed. Transmittal email for PDF memo is here.

****************************
Paging Biglaw boys: Is the retroactive portion of your pay burning a whole in your pocket? Are you trying to figure out how to spend $1,000 in found money?

Fret not. Have we got an idea for you:

For the High-End Bathroom, Something Unexpected [New York Times]