Dechert

Associate Bonus Watch: Dechert Pays Market Rate, Plus $7,500 for Top Hours

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law firm associate bonus watch 2008 biglaw bonuses.jpgDechert has been the subject of a lot of bad news lately. The associates still at the firm will be pleased to know that they will be getting a market bonus for hanging on this long:

We are pleased to announce that we will be paying base bonuses for 2008 to associates in each of our U.S. offices as set forth below. The following base bonuses will be payable to those qualified associates in good standing at the time the bonuses are paid who have 1950 hours (billable, pro bono and nonbillable in accordance with past practices) in 2008.

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
Class of 2000: $32,500

For high billers, the payouts increase:

We will be paying additional bonuses for the associates receiving the base bonuses who have billed 2200 hours, 2350 and 2500 hours. We will pay $7500 for each level attained.

Stub first years will take home five grand and like it:

Associates in the Class of 2008 will receive $5,000 without regard to hours.

And there is even more good news:

We have determined that, despite the difficult outlook for 2009, we will progress salaries for associates consistent with past practice.

All the layoff news must be unsettling for the people working at Dechert. This bonus announcement will probably help morale.

Read the full memo after the jump.

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Dechert Ices 72 Staff Positions

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Dechert logo.JPGWe started getting reports this morning that Dechert let go a number of secretaries and legal assistants. But the numbers from our tipsters were low, very low. The Legal Intelligencer just reported that Dechert has in fact laid off an amazing 72 staffers.

A firm spokeswoman confirmed that Dechert has laid off 72 administrative staff across its U.S. offices. She wouldn’t get into details about which positions or how many in each office, but said the cuts were basically proportionate across the firm’s 11 U.S. offices.

The 72 administrative positions account for about 12.6 percent of the firms 570 U.S. staff members. Dechert has around 1,045 attorneys firmwide and the spokeswoman said there are no plans to cut any more staff or any attorneys based on what they know at this time.

An attorney tipster moves straight to the problem associates at Dechert are all worried about:

[I]t’s not like we can have less secretaries unless there are less lawyers…

Dechert has come to the layoff buffet early and often. In October, there was a lot of contention about how many attorneys Dechert has been stealthily getting rid of. At least the staff layoffs are being properly announced.

But then again, Dechert staff also got to feel a little bit of that “Dechert style” on their way out the door. More after the jump.

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Some Joy in Whoville!

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whoville holiday.JPGSo, some firms are not canceling their holiday parties.

Dechert’s makeup may be fading, but (apparently) the show must go on.

Dechert is still having its annual Holiday reception (cocktails, dinner and dancing) and, as usual, everyone at the firm is invited and everyone gets to bring a guest. The only changes are that it is on a Wednesday at the Grand Hyatt near GCT now (rather than on a Thursday at the Waldorf, as it had been for several years).

Be. Our. Guest! Be our guest, put our service to the test.

Meanwhile, Orrick is cutting back but not canceling their holiday party:

When: Friday, December 12th from 5:00 p.m. to 7:00 p.m.

Where: The Orrick Building – 10th Floor

Let’s raise a glass together in appreciation for another year of hard work and good cheer.

Conference room holiday party. Yay?

Well, it’s better than being fired.

Earlier: Nationwide Layoff Watch: O’Melveny & Myers

Dechert Picks Up An Interesting Piece From Heller

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Heller Ehrman LLP Above the Law blog.JPGDechert has just announced the hiring of former Heller chairman Matt Larrabee. His official partnership with Dechert is thought to be a mere formality.

From Dechert’s press release:

“Matt’s experience is unusually diverse, with each of his practice areas intersecting with a number of Dechert’s core litigation practices: class action defense, antitrust, fraud claims, and complex commercial litigation,” said Dechert chairman Barton J. Winokur. “Perhaps most importantly, Matt will provide yet another highly experienced and sophisticated first chair litigator to Dechert’s already impressive group of trial lawyers. I think everyone would agree that Matt is one of the most respected trial attorneys in the nation and we welcome him to the firm.”

One firm’s loss is another firm’s gain. If Dechert ever has to dissolve, they’ve got a new pro in house.

Read the firm’s full statement after the jump.

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Update: Dechert CEO Winokur Indirectly Responds to ATL

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Dechert logo.JPGApparently, Dechert Chairman and CEO Bart Winokur still finds Above the Law not worth his time, but that hasn’t stopped him from talking about our information elsewhere.

Winokur spoke with the WSJ Law Blog to try to clear up some things about the firm:

1. Quite apart from any characterization as to reasons why associates might have been asked to leave and contrary to anonymous posts in abovethelaw.com, there were not 10, let alone 30, associates who were asked to leave in July with or without deadline.

2. Contrary to the implication in The Legal Intelligencer article, I do not believe that we are replacing “people with better people.” To clarify what I said to The Legal Intelligencer, as associates get more senior, they need to keep doing higher and higher levels of work, and not work that can be done by their juniors.

3. Additionally, in response to the slowdown in our structured finance practice, rather than lay-off associates, we assigned associates to full-time pro bono work, where they could continue to hone their legal skills while at the same time helping others. When the economy stabilizes and business picks up, it is our expectation that they will be part of the firm’s vibrant practices.

Parsing the language after the jump.

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Dechert: Inside The Black Box

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Dechert logo.JPGReaders have demanded more information about the so-called “stealth layoffs” at Dechert. Finally, we have additional information to report.

Readers, commenters, tipsters, recruiters, employees, and the Virgin Mary who appeared to me in a breakfast grapefruit are all reporting that a number of associates will be laid off at the end of this month. These layoffs have nothing to do with the March departures from the firm, and contradict the firm’s official statements on the matter.

As best we can tell, no less than 10 and no more than 30 associates were told at the end of July that they would be laid off in 3 months. According to one tipster:

Effectively we were told that we can come in to work, but do not have to, and we can tell the recruiters and places where we interview that we still have a job at Dechert. Now, at the end of the three months our salaries would stop coming. These three months was our severance. At the same time the partners did absolutely nothing to help us locate jobs because most were too afraid to do anything.

As many of you know, Gina Passarella of the Legal Intelligencer was able to speak at length (free version) with Dechert Chairman Bart Winokur. Mr. Winokur declined to speak with ATL directly, but in the Intelligencer article he does not really deny that associates were asked to “move on” in this manner. Instead, the Intelligencer reports:

“In my view, layoffs are when you decide to cut head count,” Winokur said. “It’s not when you decide to replace people with better people.”

Winokur said the culture of the firm is to improve year over year and when people reach a point of seniority and still aren’t getting better, the firm will sometimes tell them they don’t have a future at Dechert.

Whatever advantages there are to stealth layoffs are pretty much destroyed when your firm chairman starts talking about replacing people “with better people.” People we’ve talked to have emphasized that the firm is doing nothing to help associates put on notice find new jobs.

Even if you look at all of the evidence in the light least favorable to the firm, it doesn’t look like the number of July/October layoffs rise to the level that has been mentioned by some of our commenters.

But, there might be some other stealth moves going on. Read more after the jump.

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Rumors Of Dechert’s Demise Are Slightly Exaggerated

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Dechert logo.JPGWe really don’t know why everybody is so certain that Dechert is laying off a massive number of people. 20, 50, “nearly 100 attorneys,” no number seems too high or outrageous to post in the comments when it comes to Dechert’s “stealth” layoffs.

Clearly the firm is going through some kind of reorganization process, but there haven’t been any official “layoffs” since March.

But with all this smoke, there is bound to be a little bit of fire.

Read Dechert’s official response to the rumors after the jump.

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Some Weekend Updates

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In the interest of completeness, here are a few quick postscripts to stories that we previously covered in these pages, but didn’t get around to mentioning during the craziness of last week. They come from the National Law Journal and/or the WSJ Law Blog.

Robert Somma Bankruptcy Judge Robert Somma Above the Law blog.jpg1. Judge Robert Somma: The cross-dressing former bankruptcy judge (at right), who resigned from the bench after a drunk driving arrest, has joined the bankruptcy practice of Posternak Blankstein & Lund, a midsize firm based in Boston, as senior counsel. [National Law Journal; WSJ Law Blog]

2. American Justice School of Law: This defunct Kentucky law school, which in 2007 was hit with a class action filed by some of its students, has filed for bankruptcy. [National Law Journal; WSJ Law Blog]

Alex Kozinski Chief Judge Alex Kozinski small.jpg3. L’Affaire Kozinski: The panel of federal judges from the Third Circuit investigating Ninth Circuit Chief Judge Alex Kozinski (at right) has retained Robert Heim, head of litigation at Dechert, to oversee the probe (which will be staffed by lawyers from Dechert and Morgan Lewis & Bockius). [National Law Journal; WSJ Law Blog]

4. University of Michigan’s Wolverine Scholars Program: Sarah Zearfoss, dean of admissions at UM Law, has defended the program against allegations that it’s an attempt to game the U.S. News rankings. She pointed out that the program is small, likely to result in the admission of just five to ten students (out of a class of 360), and that very few UM undergrads (about 200) would even be eligible for it. [WSJ Law Blog]

Fall Recruiting Open Thread: Vault 51-60 (2009)

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comparing.jpgWe’re entering the second half of the Vault 100. This is part of a series of open threads to discuss the firms considered to be the profession’s most prestigious. Because we know you love prestige. And the opportunity for “TTT” accusations. [FN1]
Here’s the next bunch of firms, with prestige scores in parentheses:

51. Munger, Tolles & Olson LLP (5.851)
52. Dechert LLP (5.838)
53. Vinson & Elkins LLP (5.822)
54. Goodwin Procter LLP (5.815)
55. Jenner & Block LLP (5.778)
56. Pillsbury Winthrop Shaw Pittman LLP (5.728)
57. Alston & Bird LLP (5.715)
58. Fish & Richardson P.C. (5.706)
59. Cooley Godward LLP (5.692)
60. Irell & Manella LLP (5.635)

doughboy.jpgVault notes that attorneys at Pillsbury are treated to “freshly baked cookies.” But they also have to put up with being referred to as “Pillsburians” by Vault.
Compare, contrast, discuss… and if you’re at Pillsbury, have a chocolate chip cookie for us.
Earlier: Vault 100 Open Threads – 2009
[FN1] We periodically get e-mails asking for the definition of “TTT,” which appears so often in comment threads. As the uninitiated have surely gathered, it’s a derogatory term. Likely originating on AutoAdmit, it stands for “third tier toilet.” For more, see Urban Dictionary.

  • 04 Mar 2008 at 4:10 PM
  • Dechert

Nationwide Layoff Watch: An Update on Dechert

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Dechert LLP logo Dechert Price Rhoads Above the Law blog.jpgWith apologies for the delay, here’s our promised update on the situation over at Dechert LLP.
As we mentioned last Friday, back in this post (and its multiple updates), it looked like Dechert laid off 13 lawyers in its Finance and Real Estate practice (“FRE”). Then firm chairman Barton Winokur sent out this message, late on Friday afternoon:

Due to the major shift in market conditions affecting client demands in our Finance and Real Estate practice area, we currently do not have sufficient work for all the associates in FRE. As a consequence, we have told 13 associates in the U.S. FRE group that we see no demand for them in that group in the foreseeable future. However, due to increased and substantial demand in other practice areas, we will be offering those lawyers the opportunity to work in those other groups.

We think we’ve gotten to the bottom of what happened to the Dechert 13. And we’ve picked up a few other tidbits about the situation over there.
Read more, after the jump.

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What’s Going Down at Dechert?

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Dechert LLP logo Dechert Price Rhoads Above the Law blog.jpgWe’ve been hearing vague rumblings of something about to go down over at Dechert LLP. Said rumblings are reminiscent of what we heard in the days and hours leading up to Cadwalader’s Thursday Morning Massacre. Also note this comment on today’s Morning Docket:

Not all Dechert associates have three days to enter their time. Some will need to enter it before they leave the building today.

We hear that certain groups at Dechert are super-slow, and morale in some quarters is super-low. These are, of course, often harbingers of lawyer layoffs.
We’ve put in an inquiry to the firm, but they haven’t gotten back to us yet. We’ll let you know if and when they do. In the meantime, feel free to dish in the comments, or email us. Thanks.
Update (4:40 PM): As reported by the Legal Intelligencer, Dechert just laid off 13 associates. We have a new post up on the subject over here.

Associate Bonus Watch: Dechert Docks Associates for Dilatory Billables

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associate bonus watch 2007 law firm Above the Law blog.jpgHow can law firm administrators get associates to enter their time on time? Here’s one idea: link time entry to those beloved bonuses.
From a source at Dechert:

Attached is an email that all the attorneys at Dechert LLP received today regarding associate bonuses and potential penalties. According to the policy outlined below, an associate’s bonus may be reduced by up to 10% due to the late submission of billable time over the past year. I thought this might be of some interest to your readers.

We agree. Might this become a Biglaw trend? Nagging emails about timely time entry are easily ignored. Slashing bonuses, on the other hand, tends to grab associates’ attention.
In fairness to the firm, it’s worth noting that the policy is not super-draconian. Most of the bonus reductions were under 5 percent, and delinquent associates have the opportunity to redeem themselves: “[E]very associate whose 2007 bonus is reduced will have the opportunity to earn the amount of bonus reduction back, if he or she remains in good standing and complies fully with our time-recording policy in 2008.”
Check out the full memo, after the jump.

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