Back in June, Dorsey & Whitney laid off 55 people and announced that it was cutting associate salaries by 10 percent. At the time, our sources reported that the decisions were made in reaction to the firm’s revenue numbers from May:

Management got May’s figures last night, and apparently, the situation was quite dire. The prognostications for the future months also did not hold to budget and they decided something relatively drastic needed to be done.

A tipster reports that Dorsey is cutting salaries again. And this time the cut is even more drastic:

Per an email from Marianne Short, the firm is slashing associate salaries firmwide. Could be up to 25-30% for midlevel / senior associates.

The firm contends that salary cuts will not get up to the levels reported by the tipster. But Dorsey is one of the firms that has decided to abandon lockstep compensation. Could that result in 25 percent reductions to base pay?

Additional details and a statement from the firm, after the jump.

Dorsey & Whitney’s managing partner, Marianne D. Short, was making the rounds in the Minneapolis office yesterday, talking to associates there about the future of the firm.

That future might be one without lockstep compensation. A source reports:

[T]he firm [suggested] it was restructuring our compensation. They did not give us any specific details. But, it seems likely that this will result in another large pay cut for associates. While hazy on the details, Dorsey management indicated that the restructuring will be something like this: we will be given a base pay rate which will be below market (whatever that means these days, but regardless, likely well below what we are currently making after our 10% pay cut), which will be supplemented by a ‘bonus’ if we make our hours to bring compensation up to market.

Alright, slow down. While it does appear that Short broached the subject with associates in Dorsey’s Minneapolis office, it appears that there are still a lot of evaluations and reviews that will have to take place at Dorsey before any final decision is made. It is premature to speculate about what kind of new base salary the firm might offer.

But it does look like the firm is considering a new system. We have statements from the firm and more from our tipsters, after the jump.

We are so close to the end of the Vault open threads that I’m starting to get my second wind. I don’t know much about the firms on this part of the list, but you guys do. You know a lot. You’re so smart, you probably don’t even need this quick recap of the next group of firms. But I’ll go through it anyway:

81. Katten Muchin Rosenman
82. McGuireWoods
83. Baker & Hostetler
84. Dickstein Shapiro
85. Venable
86. Locke Lord Bissell & Liddell
87. Bracewell & Giuliani
88. Dorsey & Whitney
89. Finnegan Henderson Farabow Garrett & Dunner
90. Hughes Hubbard & Reed

Locke Lord is in the house. The firm moved up ten spots from last year.

Other movers and shakers after the jump.

It seems that many of our friends in the upper Midwest are preparing for a long hard winter back on the 3L recruiting circuit. Above the Law has confirmed that Dorsey & Whitney made offers to only 56% of its 2009 summer associates. A Dorsey & Whitney spokesperson broke the news to Above the Law:

Firmwide, Dorsey made 28 offers of employment to the 50 2Ls who were with us this summer, including offers of employment to 16 2Ls in Minneapolis.

The competition was so tough this year that even the 1Ls summering with the firm felt the pinch:

Dorsey also made offers to return for Summer 2010 to 3 of the 8 1L candidates who were with us.

Those 3 1Ls are very lucky. In August, the firm announced that it was canceling its 2010 summer program in offices outside of Minneapolis.

After the jump, the firm and Above the Law tipsters say that economics caused the low offer rate.

The latest Biglaw trend, as the recession rolls on: canceling summer associate programs. Thus far, to the best of our knowledge, only a handful of firms have canceled their summer programs. But we believe that (1) additional firms have already done so but are keeping quiet about it, and (2) more firms will announce cancellations in the weeks ahead, as we approach fall recruiting season.

We’re aware of two new firms that have canceled their summer programs for 2010, in whole or in part. First, Dorsey & Whitney will not be hosting summer associate programs in cities other than Minneapolis. From a firm spokesperson:

Dorsey & Whitney has determined to suspend summer programs in our offices outside Minneapolis in 2010. This action is not an expense reduction measure. Rather, we plan to meet our clients’ needs through the services of our current associates, our new associates starting in the fall and future associates from our summer classes.

Second, Quarles & Brady isn’t having a summer program this coming year. From their website:

Thank you for your interest in Quarles & Brady LLP. At this time we are not currently accepting applications for the 2010 Summer Associate Program. Due to the changing economic environment, and our commitment to our 2009 entry-level associates who will be joining the firm in January 2010, the firm has decided to suspend the 2010 Summer Associate Program. Quarles & Brady remains committed to law school recruiting and entry-level hiring, and we hope you will consider applying in the future.

We wish you the very best this recruiting season!

Readers, what do you think of firms canceling summer programs? Let’s discuss.

Yesterday, we reported that Dorsey & Whitney laid off 55 staffers. Despite the staff layoffs, we mentioned that Dorsey had generally avoided the worst aspects of the economic recession.

Well, “not so fast my friends.” After our report went up, associates at Dorsey & Whitney flooded the ATL inbox with news of a ten percent associate salary cut. The first tip overestimated my mind reading ability:

You probably already have this by now, but Dorsey implemented a 10% across the board pay cut for associates.

Another tipster reported that full time associates aren’t the only people that will be taking a pay cut:

… also cut all associate salaries by 10% and are asking contract lawyers to agree to a similar cut.

We understand that associates learned of the salary cuts via an internal video available on Dorsey’s intranet. We don’t have the video, but we do have some additional details after the jump.

Bad news coming out of Minneapolis today. A Dorsey & Whitney spokesperson has confirmed to Above the Law that 55 staffers have been let go.

The firm tell us that the 55 staffers represent about 7% of Dorsey & Whitney’s support staff. The layoffs took place across seven of the firm’s offices, but the spokesperson tells us that Minneapolis was the hardest hit.

Tipsters report that 38 of the 55 staffers were based in the firm’s Minneapolis office.

As far as we know, this is the first round of economic layoffs for Dorsey (#87 in your Vault guides). The firm has frozen associate salaries, but has largely avoided some of the more aggressive cost cutting measures we’ve seen from other firms.

Of course, the firm’s overall ability to avoid the worst of the economic recession is of little solace to the staff that lost their jobs today.

Good luck to those let go. Who knows, maybe Thor Anderson needs some extra help?

Earlier: Nationwide Pay Freeze Watch: Dorsey & Whitney

As 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.

The new year is shaping up to be a cold one. As we noted in our 2008 Year in Review series, one of the biggest stories heading into 2009 has been that of the salary freeze. Rather than instituting lock-step raises for associates entering a new class year, a number of firms have informed associates that their salaries will remain at 2008 levels.

There have been two types of freezes: the “Solid Ice freeze”—with salaries frozen through all of 2009—and the “Slurpee freeze”—where firms are sticking with 2008 levels for now, but promise to revisit the decision later in the year.

Many an ATL reader has requested a round-up, and we aim to please. So find your pleasure, after the jump. Some of the firms have been reported on before, and some are new.

If you know of other frozen firms, send us an e-mail at tips@abovethelaw.com with the subject, “Salary Freeze: FIRM NAME.” Also, if your firm has raised salaries as expected, feel free to send us the news, with the subject “Salary Raise: FIRM NAME.” While freezes are news, raises as expected aren’t, so we will not be covering firm by firm, but we may do a round-up.

Find the list of the sixteen firms that have frozen, after the jump.

I hope that a jolly Turkish Saint brought Dorsey & Whitney associates something spectacular for Christmas. Because a pay raise was certainly not one of their stocking stuffers.

A memo went out to Dorsey& Whitney associates on December 23rd explaining the bad news:

Management and staff have just completed the 2009 forecasting and budgeting process. In order to protect our people and resources, and to prepare for what all anticipate will be a tough 2009, the Management Committee reluctantly decided to freeze all associate and staff salaries (except associate productivity bonuses) effective immediately. Although equity partners do not receive a salary, their compensation is impacted by the economy as well. As soon as the economy stabilizes and the prospects for the legal industry brightens, we will end the firm-wide salary freeze.

Unlike Latham & Watkins, Dorsey & Whitney is promising to end the pay freeze as soon as the economy stabilizes. That could happen in 2009.

Pay freeze > massive layoffs. Right?

Read the full memo after the jump.

Our Vault 100 series is winding down. We hope that the insiders have enjoyed the opportunity to brag (or to vent) about their firms. And that the curious have appreciated insights into life at various firms in the top 100.

Here is the next bunch up for discussion (with their prestige scores in parentheses):

81. Crowell & Moring LLP (4.763)
82. Katten Muchin Rosenman LLP (4.754)
83. Stroock & Stroock & Lavan LLP (4.735)
84. Arent Fox PLLC (4.726)
85. McGuireWoods LLP (4.697)
86. Venable LLP (4.676)
87. Dorsey & Whitney LLP (4.575)
88. Dickstein Shapiro LLP (4.554)
89. Baker & Hostetler (4.531)
90. Finnegan, Henderson, Farabow, Garrett & Dunner, L.L.P (4.503)

Are the following statements true or false?

Okay, you know the drill.

Earlier: Vault 100 Open Threads - 2009

This sign captures the flavor of the past week in law firm news, including the massive layoffs at Cadwalader and the office closings at Akin Gump. If you have other tips for us, send them to us here.

The law firm pain is starting to be felt even by those still in law school. We’ve been forwarded various emails announcing that some firms or offices have canceled on-campus interviews for 2009 prospective summer associates, including the New York office of Dorsey & Whitney, the Chicago office of Midwestern firm Barnes & Thornburg, and, as we reported on Wednesday, Cadwalader (at certain law schools, e.g., Rutgers - Newark). Here are excerpts from the notices:

From John Marshall Law School:

I received notice from the head of recruiting at Barnes & Thornburg that the firm will not be having a summer program in its Chicago office next summer. Therefore, the OCI option for that firm has been removed from Symplicity.

---

From Columbia Law School:

The New York office of Dorsey & Whitney LLP will no longer be interviewing at EIP (ed. note: Early Interview Program) as they have decided not to have a formal summer associate program in 2009.

---

From Rutgers Law School:

Also, please note that Cadwalader, Wickersham & Taft LLP, scheduled to interview on campus on August 13th, has had to cancel and will contact students independently to schedule interviews if they are selected.

We expected large law firms to power on with their summer associate programs, so we were somewhat surprised to hear that Dorsey & Whitney is suspending its program in New York. Then again, it was a rather small program — about five summer associates in 2007, per the firm’s NALP form (PDF). A Dorsey spokesperson had this comment:

It is true that the New York office of Dorsey & Whitney will not sponsor a formal summer associate program in 2009. We have made this decision based upon our hiring needs in the New York office at this time. This decision with respect to the New York office summer associate program does not preclude the possibility of hiring an incoming class for 2010 in our New York office. The firm’s other offices that have traditionally sponsored summer associate programs will continue to do so.

Have other firms canceled their OCIs at your school? Please let us know in the comments, including your school, the firm, and the firm office.

See full notices from firms regarding OCI cancellation, after the jump.

The rich get richer. Movie stars who already earn millions of dollars per picture get showered with freebies, like award show “gift bags” worth thousands of dollars. Similarly, students at top law schools, who already have their pick of $160K job offers, get wined and dined by leading law firms. There IS such a thing as a free lunch, if you go to the right law school.

Of course, the quality of the fare will vary. From a tipster at a top 25 law school (according to the latest U.S. News rankings):

This isn’t that exciting of a tip, but the flyer just kind of freaks me out. What’s up with that graphic?

See you ‘round the taco table!

We were similarly troubled by these Alpo-stuffed creations, which didn’t strike us as very taco-like. But then we recalled that tacos can be soft as well as hard.

Which got us wondering: What is the difference between a soft taco and a burrito? We found enlightenment here and here.

A Massachusetts judge, as well as ATL readers, previously concluded that a burrito is not a sandwich. But a soft taco, insofar as it is “open” — i.e., with exposed fillings, like a traditional sandwich — may present a closer case.

Burrito vs soft taco? [Yahoo! Answers]
Soft Taco vs. Burrito [VWVortex Forums]

Earlier: ATL Reader Poll: Is a Burrito a Sandwich?

(We realize this is old news, but we’re declaring this Remedial Blogging Day at ATL. We have a few other slightly stale stories that we may write up later today, if it continues to be a slow news day.)

Judge Harold Baer (S.D.N.Y.) was once nominated as a hottie of the federal judiciary. Alas, he didn’t win.

But in a competition for hotheadedness rather than hotness, Judge Baer might fare better. From a very interesting article by Anthony Lin in the New York Law Journal:

A Manhattan federal judge has delivered a lengthy manifesto against declining civility in the legal profession in the course of sanctioning law firm Dorsey & Whitney and two of its partners.

Southern District of New York Judge Harold Baer opened his 129-page decision with a discussion of how “naked competition and singular economic focus of the marketplace have begun to infiltrate the practice of law, subordinating the high standards of service, collegiality and professionalism as a result.”

He ended it with his observation that “partners are at times made and retained for their rainmaking skills and not for their legal skill, that the number of billable hours is not only the alpha and omega of bonuses but that these hours — or at least the ones that count — often exclude pro bono hours, or that who gets credit for originating a piece of business can throw a firm into turmoil and prompt internecine struggles, or that the bottom line has eclipsed most everything else for which the practice of law stands or stood to the extent that the practice of law is now frequently described as a business rather than a profession.”

Usually when a federal judge tears you a new one, you just grin and bear it. Or maybe go out and buy some Preparation H.

But the lawyer who was the subject of Judge Baer’s ire actually struck back. Read more, after the jump.

On the Way Out:

* The U.S. Attorney for the Northern District of California (San Francisco), Kevin Ryan, is stepping down. He cited “personal and professional reasons” for his departure.

(Does this mean that ATL favorite Eumi Choi might be placed in charge of the office for a while, even if only in an acting capacity? We hope so.)

Judicial Promotion:

* In New York, Brooklyn Civil Term Administrative Justice Theodore T. Jones Jr. has been nominated by Attorney General Governor Eliot Spitzer to the Court of Appeals, the state’s highest court.

Lateral Moves:

* Over in London, Camille Abousleiman and Louise Roman Bernstein, described by the WSJ Law Blog as “capital-markets stars,” are leaving the troubled Dewey Ballantine for LeBoeuf, Lamb, Greene & MacRae.

* Litigator Kristan Peters, to Dorsey & Whitney, from Fulbright & Jaworski.

New Partners:

* Akin Gump: Eighteen new partners. Names here.

* Dow Lohnes: M&A and corporate lawyer Matthew Block (described to us as “a hard worker” and “a great guy”).

Spitzer Names Jones to Court of Appeals [New York Law Journal via Law.com]
NY Lawyers Switching Firms [NYLawyer.com]
Dow Lohnes Announces New Partner Matthew Block [Dow Lohnes]
Ryan Will Leave His Job In San Francisco [WSJ Law Blog]
Dewey Defections Across the Pond [WSJ Law Blog]

From Biglaw to business:

* Another Wachtell Lipton partner is leaving the firm. Corporate partner Mitchell Presser recently left to join Fox Paine. We now hear that WLRK real estate partner Michael Benner may be leaving to become general counsel at real estate giant Tishman Speyer.

New Partners:

* Dorsey & Whitney: Banking lawyer Mark Jutsen.

Lateral Moves:

* Speaking of Dorsey & Whitney, they’re closing their San Francisco office. Ten IP lawyers from that office are joining Morgan, Lewis & Bockius.

* With the Brown Raysman-Thelen Reid & Priest merger about to become official, two entertainment and IP lawyers are leaving Brown Raysman’s L.A. office. Partner Brian Pass and associate Kevin Straw are joining the Century City office of Sheppard, Mullin, Richter & Hampton.

NY Lawyers On the Move [NYLawyer.com]
As Firm’s Outpost Sinks, 10 IP Attorneys Jump Ship [NYLawyer.com]
Firms’ Merger Spurs More Exits [NYLawyer.com]

Once you hit your third year at a large law firm, and sometimes even earlier, you start receiving dozens of calls from legal recruiters. Usually you send them to voice-mail, then delete their messages later. But occasionally, when you’re having a bad day at the office, you listen to their dulcet tones — and dream about a happier tomorrow.

(When we were at a firm, there was one headhunter in particular whose voice was so alluring, male associates with no intention of going anywhere would talk to her for hours.)

Legal recruiting can be tough work at the associate level — lots of cold calls, few responses. But at more senior levels, it can be very lucrative. Consider this, from the New York Law Journal:

In May, just one month after Akin Gump Strauss Hauer & Feld announced Chang-Joo Kim had joined its New York office as a partner, the law firm cut a check to recruiting firm Boston Executive Search for for $227,500.

But did it pay the right recruiter? New York search firm Sivin Tobin Associates says it sent Akin Gump a package about Mr. Kim last December, along with a term sheet. Sivin Tobin is now suing the law firm, alleging breach of an implied contract….

The NYLJ article goes on and on about the chronology of events, which didn’t interest us much. What did interest us were these two items: (1) the placement fee of $227,500, and (2) the agreement that the fee was to represent “25 percent of the candidate’s total compensation in his first 12 months at the firm.”

So we did the math (with a calculator, of course). Corporate lawyer Chang-Joo Kim, previously a partner in Dorsey & Whitney’s New York office specializing in Korean transactions, earned $910,000 in his first year at Akin Gump. Very nice!

(Yeah, we know. Many Biglaw partners earn millions, as revealed in the AmLaw 100 survey each year. But they tend to be partners at the top New York-based firms (e.g., Wachtell, Cravath, etc.). We’re impressed that Mr. Kim earned almost a million dollars for joining a branch office of Akin Gump. We’re assuming he brought along with him a sizable book of business.)

Recruiter Sues Firm’s NY Office Over Headhunter Fee [NYLawyer.com]
Chang Joo Kim bio [Akin Gump]

Oodles of juicy moves today, especially out of and into the federal government. As the leaves change, so do the lawyers.

Government to Private Sector:

* Federal prosecutor John Hueston, a leader of the team that prosecuted Enron execs Kenneth Lay and Jeffrey Skilling, is heading for the greener pastures of Irell & Manella.

All around the country, AUSAs with white-collar criminal experience are leaving U.S. Attorney’s Offices — including our former workplace — for the more lucrative precincts of private practice. The trend is especially pronounced in the legendary Southern District of New York, as noted by Anna Schneider-Mayerson.

Private Sector to Government:

* Corporate and securities lawyer Michael Halloran, a partner at Pillsbury Winthrop, has been appointed to serve as deputy chief of staff and counselor to Christopher Cox, chairman of the U.S. Securities and Exchange Commission.

Lateral Moves:

* Broker-dealer compliance specialist Steven Lofchie, to Cadwalader, Wickersham & Taft, from Davis Polk & Wardwell. (In this day and age, compliance is a hot area. We’re guessing Lofchie got offered a nice deal.)

* Tax lawyer John Narducci, to Orrick, Herrington & Sutcliffe, from White & Case.

* IP lawyer Robert Wasnofski Jr., to Dorsey & Whitney, from Baker Botts.

* M&A lawyer Sandy Feldman, to Kirkpatrick & Lockhart Nicholson Graham, from Torys.

Retirements:

* Plaintiffs’ lawyer Alan Schulman, of Bernstein, Litowitz — and formerly of the indicted Milberg Weiss — is retiring at the end of the year.

Not Going Anywhere — Yet:

* Apple CEO Steve Jobs and HP CEO Mark Hurd are sticking around — despite the problems that their companies face.

NY Practice Leader Leaves One Elite NY Firm for Another [NYLawyer.com]
More NY Partners Switching Firms [NYLawyer.com]
Milberg Weiss: Merger Talks Break Down; An Alum Retires [WSJ Law Blog]
Enron Prosecutor John Hueston to Join Irell & Manella [WSJ Law Blog]
The Gang That Shot Straight Is Disbanding, For a Profit [New York Observer]

The latest news on the most notable moves within the profession:

Government to Private Sector:

* Seth Silber, to Wilson Sonsini (as counsel), from the FTC. (Quips our tipster: “What a lovely week to join that particular firm!”)

New Office Openings:

* Crowell & Moring — aka “Cruel & Boring”*** — is opening a New York office. They’ve grabbed litigator William McSherry, from Arent Fox, and patent lawyer Janet McLeod, from Dorsey & Whitney, to kick things off.

* The exceedingly profitable, Houston-based Susman Godfrey is opening a New York office, headed by name partner Stephen Susman.

Lateral Private Sector Moves:

* Bankruptcy guru Paul Basta, to Kirkland & Ellis, from Weil Gotshal & Manges.***

* Patent litigators Joseph O’Malley and Bruce Wexler, to Paul Hastings (NY), from Fitzpatrick, Cella, Harper & Scinto.

*** “Cruel and Boring” is just a silly nickname for Crowell & Moring that we’ve heard around town. We have no idea as to whether it has any factual basis. We just think using nicknames for law firms is fun.

Other law firm nicknames we’ve heard: Weil Gotshal & Manges = “We’ll Getcha & Mangle Ya” (self-explanatory); Cravath Swaine & Moore = “The Death Star” (self-explanatory); Davis Polk & Wardwell = “The Teahouse on Lexington Avenue” (for their penchant for hiring geishas attractive Asian-American females — don’t get mad at us, we didn’t make it up).

(Feel free to add more law firm nicknames in the comments to this post.)

On The Move [Antitrust Review]
Basta Says Hasta to Weil Gotshal [WSJ Law Blog]
DC Firm Opens NY Office [NYLawyer.com]
Houston Firm Opens Manhattan Office [NYLawyer.com]
Firm Adds NY Patent Litigators [NYLawyer.com]

* In the legal and regulatory crackdown on business corruption and white-collar crime, “lawyers serving fraud-ridden companies have emerged relatively unscathed,” reports the Washington Post. Chalk it up to professional courtesy. [Washington Post]

* Lord Conrad Black (at right), former media mogul, has had his worldwide assets frozen by a Canadian court. But don’t feel too sorry for him — he still gets an allowance of $20,000 a month. (Is that U.S. dollars, or Canadian?) [BBC News; Wall Street Journal via WSJ Law Blog]

* Judge Eldon E. Fallon (E.D. La.) upheld the jury verdict finding Merck liable in a recent Vioxx case, but ruled that a new trial must be held on damages because the $50 million compensatory damage award — not a punitive damages award — was “grossly excessive.” Seems like the right decision to us. After all, the guy survived (and isn’t a pro basketball player). [Associated Press via DealBreaker]

* Two former Brocade Communications executives, charged in the options backdating scandal, have pleaded not guilty. [Bloomberg News]

* A federal bankruptcy judge ruled that Dorsey & Whitney breached fiduciary duties of client loyalty — and ordered the firm to cough up almost $900,000 in fees.
[Minneapolis-St. Paul Star-Tribune]