Chadbourne & Parke

Chadbourne & Parke: True-Up Raises and Make-Whole Bonuses

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2009 Associate bonus watch above the law.JPGYesterday, reports came in that Chadbourne & Parke unfroze salaries. Then tipsters started telling us that Chadbourne didn’t just thaw out one class year; instead, they went all out and gave true-up raises — putting their associates back to the salary level they would have been at had the firm never frozen salaries in the first place. True-up raises are even more significant at Chadbourne because the firm didn’t just freeze salaries, it actually cut salaries back in April.
By the end of the day, Chadbourne sources were telling us that in addition to the true-up raises the firm was giving out make-whole bonuses. Essentially, Chadbourne was giving people back the money they would have made over the course of 2009. That’s a move out of the Latham playbook (in a good way). One tipster put it like this:

[J]ust got my letter re: (1) bonus, and (2) 2010 salary and (3) true-up (actually got the letter last Friday, the 22nd). I am glad to say that I got unfrozen with a “true” true-up! The firm could not tell me if all associates were treated the same.

As we understand it, this good news was shared with nearly all Chadbourne & Parke associates.
Details and a statement from the firm, after the jump.

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This Week In Layoffs: 10.04.09

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pink slip layoff notice Above the Law blog.jpgEd. note: Above the Law has teamed up with Law Shucks. Law Shucks has done excellent work translating all of the layoff news into user-friendly charts and graphs: the Layoff Tracker.
For a while there it would look like the first consecutive weeks without layoffs since this time last year (by our reckoning, you have to go back to the weeks ending October 9 and October 2, 2008). Alas, one firm did come through with staff layoffs, about which more after the jump.

As usual, we begin with the US macroeconomic picture, and as usual, it ain’t pretty. For the week, the S&P 500 was down about 2%. That was the second straight week of losses, and the DJIA had its biggest weekly decline in three months. 263,000 net jobs were lost in September and the unemployment rate rose to 9.8 percent, despite perhaps the technical end of the recession. As with the stock market, bad results are one thing, but results worse than expectations are another, and that was the case here. Consensus estimates were net losses of 175,000, so the actual results were way short. August’s revised numbers were slightly better than original reports, though.

The poor results are creating pessimism around when things will start to turn around:

[T]he report also buttressed fears that economic expansion would be weak and hesitant, with scarce paychecks and economic anxiety remaining prominent features of American life well into next year.

“This is a weak report,” said Stuart G. Hoffman, chief economist at PNC Financial Services Group in Pittsburgh. “The rate of job loss has tapered off, but we still haven’t reached the point where businesses are willing to hire.”

Could this create political difficulties for the president?

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Chadbourne & Parke: Indefinite Deferral for Half Its Class

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Chadbourne solid logo.JPGThe closer we get to the time when incoming associates in the class of 2009 are supposed to start, the more deferral extensions we are likely to see. Over the weekend, news broke that Chadbourne & Parke had decided to push back half of its incoming class “indefinitely.”
We don’t have any information about whether the incoming associates on extended deferral will be offered any type of extended stipend.
Update: A spokesperson from Chadbourne responded to Above the Law’s inquires about the continuing stipend:

These deferred associates have already received $13,000 and will receive an additional $60,000 stipend beginning in February 2010.

The news shouldn’t be entirely surprising for incoming associates at Chadbourne. The firm laid people off in March, and cut salaries in April.
And remember, last October, Chadbourne instituted a hiring freeze. At the time, we had a few questions for Chadbourne:

In light of this hiring freeze, what does that mean for students who interviewed with Chadbourne? Are they de-facto canceling their 2009 summer program? If so, it seems like an awful waste of resources to send recruiters around the country for jobs that are no longer available….
And, of course, we have no idea how this will affect 2008 summers associates. We assume that any of them who received and accepted offers for full time employment next fall still have those offers.

Note to self: never assume.
There seem to be two options that firms are following. After the jump, let’s look at the options and take a reader poll.

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Fall Recruiting Open Thread: Vault 71 – 80 (2010)

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comparing.jpgWe continue our slog push through the nation’s 100 top law firms, as ranked by our friends over at Vault. Here are the next ten firms, to be discussed in the comments to this post:

71. Reed Smith
72. Bryan Cave
73. Perkins Coie
74. Hunton & Williams
75. Patton Boggs
76. Arent Fox
77. Schulte Roth & Zabel
78. Howrey
79. Chadbourne & Parke
80. Crowell & Moring

Assorted observations about these firms, after the jump.

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Nationwide Layoff Watch: Chadbourne & Parke Update

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Chadbourne solid logo.JPGWe reported earlier today that Chadbourne & Parke was laying off people today (check out our prior coverage here). We just received this firm wide email:

Accordingly, with deep regret, we are reducing the number of attorneys in our offices worldwide by approximately 25. Today will be the last day at the Firm for many of the individuals impacted by this decision. They are all talented professionals who have made valuable contributions to the Firm. They will all be missed and we wish them well. All affected attorneys present in our offices today have been personally spoken with and we expect to speak with the others in the next few days.

Chadbourne is also imposing a deferred start date on incoming associates, but unlike Venable, the firm doesn’t appear to be offering extra money for 3Ls. New Chadbourne first years won’t start until January 2010.

Not that it’s a particularly safe thing to be a Chadbourne first year. Our reports indicated that 8 of the 25 people laid off were first year attorneys.

On the other hand, the firm is offering a three month severance package. Also, the firm is explicitly forgiving the bar loan that first years received.

Again, most of our sources say that Chadbourne was really “nice” about the whole process.

Read the full memo after the jump.

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Nationwide Layoff Watch: Chadbourne & Parke Joins the Party

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Chadbourne solid logo.JPGThis layoff news is breaking right now, so we don’t have all of the details. But we understand that “heads are rolling” today at Chadbourne & Parke.

The firm did not respond to an immediate request for comment, but there are multiple reports of the layoff reaper making the rounds at the firm right now.

Layoffs are being done face-to-face and no firm wide announcement has gone out.

However, the firm is firing first years, so we don’t imagine that this is a “performance review.” In fact, one tipster puts it like this:

They were very nice. It is purely economical.

We understand that Chadbourne is giving a three month severance package.

You’ll remember that in October, Chadbourne announced a hiring freeze. That seems like an obvious move now, and not surprisingly it looks like that wasn’t enough of a cutback to ride out the economic storm.

But at the time Chadbourne said that the hiring freeze wouldn’t affect the 2009 summer program. We’ll see if that holds up in the face of layoffs.

Update (4:39): Chadbourne has now confirmed these layoffs. Check here for our continuing coverage.

Earlier: Hiring Freeze at Chadbourne & Parke Adventures In Burying The Lead

Prior ATL coverage of law firm layoffs

Updated Salary Freeze Round-up: Even More Firms on Ice

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pay freeze salary freeze pay cut law firm.jpgAs we noted in yesterday’s Morning Docket, even the New York Times has taken note of the salary freeze trend at law firms. The Times reached out to Above The Law’s own David Lat for the story:

Although many associates are angry about the freezes, others are relieved, said David Lat, founding editor of AboveTheLaw.com, a blog about law firms and the profession.

“There is this sense that firms didn’t act prudently during the boom and now they are getting religion, and that it’s better late than never,” Mr. Lat said. “Many associates we have spoken to think the freeze probably saved jobs.”

At the beginning of the month, we did a round-up of firms that have frozen 2009 salary rates at 2008 levels. That list was 16 firms long. Since then, quite a few other firms have announced freezes. Due to frequent requests, we’re updating the round-up list since the number of firms with freezes (that we know of) has more than doubled, to 33 32. Check out the as-comprehensive-as-we-can-make-it list, after the jump.

Recently announced salary freezes include “solid ice freezes” at Blank Rome and Townsend and Townsend and Crew; and “Slurpee freezes” at Bingham McCutchen, Fish & Richardson, and Texan firm Andrews Kurth.

Memorandums, as well as a new list of all firms with “solid ice” and “Slurpee” freezes, after the jump.

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Associate Bonus Watch And Nationwide Pay Freeze Watch: Chadbourne & Parke

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law firm associate bonus watch 2008 biglaw bonuses.jpgWe haven’t yet gotten our hands on the Chadbourne & Parke bonus memo, but a firm spokesperson confirmed what the general numbers look like. According to the spokesperson:

“Our bonuses are on Cravath, Half-Skadden, scale. Individual bonus determinations are based upon individual performance and pro rated for part time attorneys and attorneys who have been with the firm for less than the full year.”

I wonder if somewhere, Cravath’s Evan Chesler is thinking about ways to kill me?

Meanwhile, Chadbourne also announced a salary freeze:

As you know, the world economic outlook for 2009 is uncertain. Accordingly, as a matter of prudence, the Firm is reserving decision on associate salary levels for 2009. We will make a decision on this matter within the next several months as the global economic picture becomes clearer.

Half-Skadden bonus, Latham salary — but no layoffs, so there’s that to be happy about.

Earlier: Prior ATL coverage of associate bonuses

Prior ATL coverage of associate salary freezes

Legal Eagle Wedding Watch 12.21-1.4: Winter Thrill

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champagne glasses small.jpg

The winter wedding announcements are often a prestige wasteland, but we’re actually quite pleased with the caliber of the couples we’ve been able to round up for the first 2009 edition of Legal Eagle Wedding Watch (which admittedly includes some entries from late 2008).

Here are your contestant couples:

1. Bella Sewall and David Wolitz

2. Daniela Jampel and Matthew Schneid

3. Jaime Teitelman and Howard Wachtel

Click on the link below to read more about these newlyweds.

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Legal Eagle Wedding Watch 12.7: The Luckiest

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champagne glasses small.jpgIn response to the many queries we receive from couples hoping to be selected for LEWW (yes, we do get them — mostly from grooms, oddly enough), we’d been thinking about drawing up some submission guidelines (sort of like the NYT’s).

But we’ve got a better idea. Three words: pay to play. See, we’ve got this thing, and it’s f****** golden. You don’t just give it away for nothing. Call us; we’ll talk.

Here are this week’s candidates (only two again, because it’s December and the pickings are getting slim):

1. Nancy Kuhn and Bernard Nussbaum

2. Shira Tolins and Benjamin Roth

More on the newlyweds, after the jump.

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Hiring Freeze at Chadbourne & Parke
Adventures In Burying The Lead

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economy freezes over.JPGA firm-wide memo from Charlie O’Neil, managing partner of Chadbourne & Parke, announced that the firm was instituting a legal and non-legal hiring freeze in response to the economic downturn.

The lengths O’Neil went to try and bury this important piece of firm information are slightly amazing. The firm-wide email was entitled “How Are We Doing?” and the first 4 paragraphs read like the “Yay Us” emails we’ve seen from firms like DPW and STB.

However, in the sixth paragraph, O’Neil gets to the part where he talks about keeping control over firm expenses:

That said, expenses have been under constant review and we have taken a number of steps to better position us for the remainder of this year and next. Among the more significant is the decision to delay much of the planned technology upgrade. We recognize the need to improve technology and certain of the more important upgrades will continue. Others, including the upgrade to new desktop computers and software, will be postponed. We will review this decision in 2009 as the economic picture becomes clearer. Should conditions improve we will begin the upgrade sometime in 2009; otherwise it will be delayed until 2010. We will be issuing new guidelines pertaining to controls over Firm business expenses, including travel. We will also more closely monitor and limit certain other expenses which in a more robust economy might otherwise be acceptable We have also instituted a freeze on hiring legal and non-legal personnel. To the extent a practice area has need of additional legal personnel, we will seek to temporarily shift lawyers from a less-busy practice area to assist, rather than hiring laterally. We will take the same approach with non-legal personnel and departments. We welcome your thoughts on other cost saving measures.

Catch that? I bet O’Neil hopes you didn’t.

More after the jump, including the full Chadbourne memo and the firm’s response.

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Adventures In Burying The Lead”

Fall Recruiting Open Thread: Vault 71-80 (2009)

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comparing.jpgThe Vault 100 march continues! In this series of open threads, we list the firms, and you all discuss their upsides and downsides. We’ll be wrapping this puppy up this week.
Here are the next ten (with prestige scores in parentheses):

71. Nixon Peabody LLP (5.218)
72. Hunton & Williams LLP (5.208)
73. Perkins Coie LLP (5.119)
74. Reed Smith LLP (5.057)
75. Patton Boggs LLP (5.050)
76. Chadbourne & Parke LLP (4.997)
77. Bryan Cave LLP (4.969)
78. Thacher Proffitt & Wood LLP (4.967)
79. Howrey LLP (4.926)
80. Schulte Roth & Zabel LLP (4.910)

Usually, we have fun with the “notable perks” chosen by Vault. But as we move down the list, the perks are becoming distinctly less notable — e.g., gym membership discounts, free parking, and “good views.” Oh well.
You know what to do! Have at it in the comments.
Earlier: Vault 100 Open Threads – 2009