Welcome back from your long weekend. I trust everybody is ready to put in a lot of hard work through the holiday season in order to finish the year off strong.
Ah, what’s the point? Based on the early bonus news, it seems that Biglaw managers are going to go with stingy bonus payments for the second year in a row. And while we’ve reported that hours appear to be up this year over last year, hours aren’t back to 2007 levels.
If firms are going to keep bonuses at 2009 levels until their profits get back to 2007 levels, well, then maybe it’s time to kick back and do some shopping on Cyber Monday…
Nothing says “Biglaw” quite like an old-fashioned partner threat. Biglaw partners, a self-important bunch if there ever was one, generally do little to mask their huge egos. But when those egos express themselves in the form of threats against underlings, well, that’s when you learn why people get paid $160,000 right out of school.
You see, in most situations you just can’t treat highly educated people like naughty schoolchildren and expect them to take it. Not if you are paying them $50,000 a year for some average, middle-class lifestyle. They’ll quit. They’ll tell you to take your BS job and shove it down your condescending throat. But when you pay people $160,000 (or more), then you can talk to them however you please. They’ll take it (and apparently thank you for it). Biglaw partners know that their associates are being paid more money than they can make nearly anywhere else, and so they have little incentive to consider how they speak to their associate colleagues.
Now most partners threaten or belittle people on an individual, face-to-face basis. But sometimes these communications are disseminated to a broader group, and on the rarest of occasions these partner meltdowns are captured over email and sent to Above the Law. And those are the best.
When I moved in-house ten months ago, my phone started to ring off the hook — and not just from folks I hadn’t spoken to in years, who thought that I’d now be itching to retain them. I also got a few calls from people who were simply curious about the difference between working in-house and working at a law firm.
One of the differences is self-evident: You arrive at work on your first day at a corporation, and you devote that day entirely to ministerial crap. You spend an hour completing immigration forms, spend an hour having your photograph taken for various ID cards, fill out your health insurance and retirement benefit forms, create passwords for a dizzying array of computer databases, set up your computer to receive corporate training, and then realize that everyone is heading home.
Ouch! Another wasted day! You didn’t do a minute of billable work. You might as well have been on vacation today, because you did nothing that could legitimately be charged to a client.
I planned to announce the results of the survey when the first firm announced bonuses contingent on an hours requirement. But since bonus news is late this year, perhaps Rudolph has some sort of tumor?
I still think bonuses will come. Associates will stand in Evan Chesler’s office and force him to watch them shoot bunnies until he names a bonus, if they have to.
So they’re coming. While we wait, let’s take look at how hard people are working. It turns out that quite a few of you have been busy little bees…
As we said yesterday, there’s still time left in the year for associates to crank out some billable hours to hit their targets. There’s still time to participate in our hours survey, where the early returns suggest that many of you are quite busy.
That’s a good thing, especially if you are at Mayer Brown, New York. No, the firm hasn’t released bonus information yet. In fact, the firm hasn’t even released its 2011 payscale.
But Mayer Brown is telling people how many hours they need to hit in 2010 in order to be eligible for a 2011 raise…
With just about six weeks to go in 2010, it’s time to check in on how people are doing with their billable hours.
At the start of the recession, hitting your hours could mean the difference between having a job and emailing Above the Law about stealth layoffs at your firm. This year, there hopefully isn’t that kind of pressure (at least not to the same degree). This year, hitting hours targets should be all about your bonus.
Of course, the difference in total compensation between a fourth-year associate who bills 1920 hours and a fourth-year who hits 2050 could be significant. The early buzz is that bonuses will be substantially bigger this year than last year, but the drop-off from one hours level to the next could be significant. Some firms might make bank-busting payments that will generate sweet headlines, but not all associates will hit the hours mark necessary for the top payment.
Still, with a month and a half to go, there’s time to “juke your stats,” as they say on The Wire. If finding an extra 80 billables between Thanksgiving and Christmas makes a huge difference, clients should be prepared for their attorneys to drag out any assignments they get. Sorry clients, associates gotta eat too.
So how are people doing? Take our poll, and get a sense of how many hours your peers are on pace for….
If you talk to law firm partners who are in charge of collecting fees, they’ll tell you that getting clients to pay has become a real hassle ever since the recession started. Clients are trying to make their books look as palatable as possible, and if that means avoiding or delaying payments to their lawyers, well, then that’s what they are going to do. Collecting fees from clients is one of the top concerns of Biglaw managers.
And it should be a top concern for Biglaw associates. Nobody is going to be getting a bonus when the firm cannot realize its profits.
You’d think every practicing attorney would be on the same page with this by now. You’d think, at the very least, every person would be diligently putting in their time to give their firm the maximum opportunity to collect on their billable hours. But apparently some people haven’t gotten the memo that putting in your hours in a timely fashion is critical in this environment.
Well, at Simpson Thacher, they want to know your hours, now. And the firm is threatening to bring the hammer down on attorney timekeepers who are putting off this important paper work. Put in your hours, or STB will hit you where it hurts — the wallet…
A few days ago, the Washington Post reported on the legal misadventures of prominent D.C. attorney Glenn Lewis (no relation to the Canadian R&B singer, as far as we know). According to the Post, “Glenn C. Lewis is an acknowledged titan of the D.C. area divorce bar, a former president of the Virginia Bar Association who boasts that he is the most expensive lawyer in the region: $850 an hour. He has an impressive office in the District and an array of high-profile clients.”
One would expect a lawyer of Lewis’s stature and success to have impeccable judgment. But it appears that recently he made a serious misjudgment. He decided to sue a former client for an extra $500,000 in fees and interest, after having already received some $378,000 from that client.
Unfortunately for Glenn Lewis, that client was a lawyer — and decided to strike back. By the end of the whole episode, Lewis ending up owing his former client money — an amount in the six figures….
After a bit of explanation last week, we’re back to live action. As you’ve likely concluded from the title, this is the second installment in a series. Last week we discussed hours spent in the office, with the lesson for future small law practitioners being this (based on your comments and emails): small law practice doesn’t necessarily mean fewer hours.
On the heels of that conversation, I thought we should delve into the reason young associates so often spend those long hours in the office becoming fatter, more pale versions of their pre-law selves. It’s likely the bane of your existence regardless of the size of your firm or the size of the city in which you find yourself…
I graduated law school in 2006 at the same time as a close friend. We’ll call him Brian, since that’s his name. Brian went to a top five law school; I went to a… well, not a T-5. He took a Biglaw job in Manhattan; I moved home to Georgia, where I ended up in Small Law. Having used each other as sounding boards throughout law school, it only made sense that we’d continue to do so as we transitioned into our respective practices. We shared many of the same fears and growing pains. For example: Did I pass the bar exam? Am I handling this issue correctly? What work am I allowed to, or even supposed to, hand off to a paralegal/secretary?
Beyond those general issues, I was surprised at how different our worlds really were on both a macro and micro level. Most of you have heard or been a part of discussions on the general differences that Small Law is supposed to provide: better hours, less pay, more freedom, etc. I want to move past broad generalities and share some of my actual experiences as compared with Brian’s, as a means to jump start a discussion. There have been some very thoughtful comments attached to the first twoposts, and I hope that trend continues here.
This will be the first of several posts dedicated to a deeper dive into the world of Small Law and how it measures up to its Biglaw counterpart. Let’s start with…
The evolution of relationships between the genders continues. Currently, in law firms, there is an interesting conundrum; balancing the desire for a gender-blind workplace where “the best lawyer gets the work and advances” and the reality of navigating the complicated maze created by the fact that, in general, men and women do possess differences in their work styles. These variations impact who they work with, how they work, how they build professional connections and how organizations ultimately leverage, reward and recognize the talents of all.
Henry Ford sat on his workbench and sighed. A year earlier, he had personally built 13,000 Model Ts with his own hands. Fashioning lugnuts and tie rods by hand, Ford was loath to ask for help. Sure, there were things about the car that he didn’t quite understand. This explains the lack of reliable navigation systems in the Model T. But Ford persevered because he knew that unless he did everything, he could not reliably call these cars his own.
“Unless my own personal toil is responsible for it, it may as well be called a Hyundai,” Ford remarked at the time.
The preceding may sound unfamiliar because it is categorically untrue. And also monumentally stupid. Henry Ford didn’t build all those cars by hand. He had help and plenty of it. Almost exactly one hundred years ago, Henry Ford opened up the most technologically advanced assembly line the world had ever seen. Built on the premise that work can be chopped up into digestible pieces and completed by many men better than one, the line ushered in an age of unparalleled productivity.
Today, an attorney refers business because he can’t do everything the client asks of him.
There are three reasons why this is way dumber than a made-up Henry Ford story…
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months, and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.