* Football’s labor lockout legal fees: which Biglaw firms scored huge touchdowns thanks to their collective bargaining work? The three top billers included Latham, Dewey & LeBoeuf, and Patton Boggs. [Am Law Daily]
* The sanctions for filing a 9/11 conspiracy claim cost $15K, but forever being remembered as the lawyers who got benchslapped for drafting “a product of cynical delusion and fantasy” is priceless. [Reuters]
* Jared Loughner is still incompetent to stand trial, and he’ll remain in the loony bin for another four months. You know what that means? Time to make this kid swallow some more pills. [Arizona Republic]
* “It seems no one can use dirty words, except Steven Spielberg.” Well, sh*t, I’ll be damned. Is Elena Kagan going to be the voice of reason in the Supreme Court’s FCC profanity case? [Los Angeles Times]
* Ken Cuccinelli filed an emergency motion to get Virginia’s primary ballots printed. You can’t wait three days for Perry’s hearing? It’s on Friday the 13th. You know how that’s going to go. [Bloomberg]
* The Tenth Circuit upheld a ruling to block an Oklahoma law barring the consideration of Sharia law in court decisions. If this pisses you off, go and watch Homeland. You’ll feel better. [MSNBC]
This actually happened last Wednesday — but, due to the less-than-exciting nature of the news, we doubt anyone has been prejudiced by our delay in reporting it. The law firm of Dewey & LeBoeuf announced associate and counsel bonuses, on the Sullivan & Cromwell scale (i.e., the Cravath scale, but topping out at $42,500 instead of $37,500).
Even if not surprising, it is nice that Dewey is matching market. As you may recall, Dewey made our list of the top ten most generous law firms — i.e., ten firms that generally match Cravath-level bonuses, despite having significantly lower profits per partner than Cravath. Partners at these firms take a financial hit to keep their associates happy.
Just like last year, there are a few footnotes to the Dewey bonus news that merit comment. And there’s some positive news for top performers, too….
Agreeing on this point is former Kirkland & Ellis partner Steven Harper (whose apparent pro-associate stance may make him a sort of Biglaw apostate). As Harper points out, “equity partner profit trees have resumed their growth to the sky. As the economy struggled, Cravath’s average partner profits increased to $2.7 million in 2009 and to $3.17 million in 2010 … That’s not ‘treading water.’ It’s returning to 2007 profit levels — the height of ‘amazing’ boom years that most observers had declared gone forever. Watch for 2011 profits to be even higher.”
And yet associate bonuses remain stagnant at 2009 levels. Furthermore, as ATL commenter “The Cravath Cut” is so fond of noting, when viewed as a percentage of profits, bonuses appear especially measly, at least from the associate p.o.v. (The current $7,500 market rate for first-years is just 0.23% of Cravath’s profits per partner. Back in 2007, first-year bonuses equalled 1.36%.) Despite these numbers, if history has taught us anything, it is that you can kill anyone Biglaw’s rank and file will follow Cravath’s lead.
Cravath is among the most profitable firms in the world. We thought it would be interesting to see what the implications of matching Cravath are for those firms with much lower profit margins. Which firms’ partners willingly take the biggest hit by keeping up? Are these firms arguably more “generous”? After the jump, check out those firms that pay the largest percentage of PPP in bonuses.
* Urging people to kill the president is protected speech, according to the Ninth Circuit. So if you are playing along at home, judges think that talking about killing judges is wrong, but they don’t care if you threaten the executive branch. [Wired]
* The U.S. Government has decided to stop pursuing Randy Quaid. When reached for comment, Russell Casse said: “They’ve got bigger fish to fry now, believe you me.” [Gawker]
* Delaware should make it more efficient for law firms to tax public mergers. If you don’t like it, you’re feel to come up with some other way for your firm to generate half a million in undeserved fees. [Dealbreaker]
The world of large law firms isn’t all about prestige and pay. Although the Vault 100 prestige rankings and the Am Law 100 profit-per-partner rankings are closely watched, there are other ranking schemes out there — and some of these frameworks adopt a kinder, gentler outlook on Biglaw.
For example, take the American Lawyer’s A-List. Although the A-List rankings take law firm financial performance into account, they also factor in diversity, pro bono work, and associate satisfaction.
Associate satisfaction: that’s the driving force behind another important set of rankings, Vault’s just-released “Best Law Firms to Work For” list. The notion of “quality of life” at a law firm might seem laughable to some — but let’s face it, some firms are generally better workplaces than others. (Of course, your mileage may vary: some lawyers have great experiences at firms known for being awful, and some lawyers have awful experiences at firms known for being great.)
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.