When it comes to the representation of women in the top positions in the legal profession, the news seems somewhat mixed. Things could be better in Biglaw. According to a recent survey, women constitute just 15 percent of equity partners — a number that has stayed roughly the same for the past 20 years.
On the in-house side of the divide, though, the news is better. Women lawyers are ascending to the post of general counsel in record numbers.
Ed. note: This is the latest column by our newest writer, Anonymous Partner. In case you missed his prior posts, they are collected here.
I did not know what to expect. Almost a month had passed since my initial invitation for a senior Biglaw personality to contact me, and someone had. After a bit of back-and-forth regarding confidentiality and logistics, we had arranged to meet. Even though I had intended to script out questions, my natural inclination to wing it took over. I had done some research on my subject (web bio, history of his firm, etc.), but was otherwise unsure of how things were going to go. My subject is not actively practicing anymore (and I would love to hear from an high-level “Insider” currently working in-house or in Biglaw), but he was able to give me both historical perspective and sagacious insight into how Biglaw has become what it is, and what it can do to meet the challenges ahead.
The setting of our meeting turned out to be very apropos of the glimpse into Biglaw history that I was going to receive. The wood paneling, uniformed attendants, and heavy furniture all but sang “elite,” and reflected the long traditions of the institution whose name was on the door. Considering I was meeting with a former leading partner at a white-shoe firm, it seemed an appropriate location. His suggestion, not mine of course. I had been there before, for a firm event back when I was an associate, but the mood this time was different, because the assumption underlying this meeting was that I, as a current Biglaw partner, belonged in some measure to this world. Debatable, but I definitely felt more comfortable than on my previous visit as a guest. I was aware throughout that we were literally sitting in the shadows of many Biglaw offices, and at the same time, that we were mere blocks from the place where my late grandfather (who came to America as a refugee) had made his living.
Last year, all things considered, wasn’t a bad year for Biglaw. The law firms of the Am Law 100, for example, experienced decent growth. In 2011, for the Am Law 100 as a whole, gross revenue grew by 5.3 percent, revenue per lawyer grew by 1.9 percent, and profits per partner grew by 3 percent. It was a perfectly fine year for partners.
How did their counterparts on the corporate side fare? Alas, not as well, according to Corporate Counsel’s latest compensation survey of the nation’s general counsel. Base pay for GCs in the survey declined by 1.8 percent, to an average of $611,411. Bonuses and nonequity incentive pay slid by an even larger number, 7.7 percent, to an average of $1,125,458. Meanwhile, in terms of non-cash compensation, the average stock award fell by 10.8 percent, to $1,426,325, and the average stock option award dropped by a whopping 18.7 percent, to $732,453.
These are just the top-line figures — which, of course, conceal a lot of individual variability. Let’s take a look at some specific names and numbers, as well as the top ten highest-paid general counsel….
* I’m not sure why Romney won’t just say that he lied to the SEC about when he left Bain. Lying to the SEC is just good business. Lying to the American people is something that politicians are only supposed to do for sex. [Wonkblog / Washington Post]
* Character and fitness can be a surprisingly tough hurdle, so I’ve been told. [The Toronto Star]
* Here are the top law faculties by scholarship. I’d bet this list and the list for top law faculties by salary are pretty similar. [Brian Leiter's Law School Reports]
I worked for twenty years at the darkest of the black-box compensation law firms: No one knew what anyone else was being paid, and the firm forbade talking about compensation. Here’s the curious part: We obeyed.
I saw the raised eyebrows of partners considering moving laterally to my firm: “Right — no one talks about compensation. You guys must talk about it all the time, just like we do at my firm. It can’t be a secret.”
Wrong. We really, honest-to-God did not talk about compensation. The subject just didn’t come up.
I’ve heard second-hand that this is true for other black-box firms, too. The managing partner of a different large, black-box comp firm recently told one of my colleagues: “Once you take compensation out of the limelight and forbid people from talking about it, then people stop talking about it. The subject drops off the table.”
That sets the stage: At firms where lawyers are permitted to talk about each other’s compensation, they do. And at firms where lawyers are prohibited from talking about compensation, they don’t.
Riddle me this: In corporate law departments, we are not prohibited from discussing each other’s compensation, but we don’t do it anyway. Why is that?
I recently got a lift to the airport from a lawyer at a mid-sized firm who I’d met only earlier in the day. “It must be a pleasure to work for you,” he said.
On the one hand, that seemed strange, since I work so hard to establish a public persona that I’m a pain in the neck. (Frankly, that’s not much of a charade.) On the other hand, this seemed not at all strange, since I’ve now grown accustomed to lawyers at firms sucking up to me.
But I figured I’d play along: “Why would it be a pleasure to work for me?” I asked, innocently. “I’m pretty tough on our outside counsel.”
“Because you can tell good from bad. You worked in private practice for 25 years, and you’ve labored in my field. I suspect that, back when you were playing the game, you could write a pretty good brief. When an outside lawyer sends a bad brief to you, you may criticize it, but at least when a lawyer sends a good brief to you, you’ll recognize that it’s good. I work with an awful lot of clients who can’t distinguish good work from bad.”
Ha! Here’s an issue that I’d noticed when I was in private practice, but never really thought about. And it’s an issue that arises frequently in-house, because an in-house lawyer’s clients typically are not lawyers. My chauffeur may have thought that he was currying my favor by flattering me, but in fact he was doing something much, much better — he’d given me fodder for a blog post.
What should lawyers do when their clients can’t tell good legal work from bad?
If you’ve ever wandered over to Backpage.com and spent a few minutes reviewing the classified ads there, you probably realized that you had just discovered the seedy underbelly of the internet. Rife with ads for adult services — which is arguably just an elegant way of saying prostitution — the website, owned by Village Voice Media, has come under fire for its association with human trafficking.
Leave it to the company’s general counsel, Elizabeth McDougall, to take a stand for these scandalous online ads. After all, it’s great business! Backpage reportedly has a 70% market share for prostitution ads in the United States, generating millions in revenue.
This week, McDougall is taking additional heat from state attorneys general for her statements in an off-color op-ed column published in the Seattle Times. What could she have said that was so controversial?
* Rob me once, shame on you; rob me twice, shame on me? Supreme Court Justice Stephen Breyer was robbed for a second time, but this time as the victim of a burglary on May 4. [Thomson Reuters News & Insight]
* Dewey know when this ship is finally going to capsize (so we can stop making these puns)? Two of D&L’s Hong Kong partners have decided to defect to DLA Piper, and more may be joining them soon. [Asian Lawyer]
* He might’ve been a “bad husband,” but that doesn’t mean he’s guilty. The jury in John Edwards’s campaign finance trial will begin deliberating today. Let’s see if they convict him of being more than an adulterer. [CNN]
* After his citizenship stunt, Eduardo Saverin can look forward to being defriended by the United States — not like that’s a bad thing, because to be honest, the movie version of him is much cuter. [New York Daily News]
* And this is why lawyers shouldn’t try to be funny. Safeway’s General Counsel, Robert Gordon, is being branded a sexist for telling a recycled joke about pigs and D.C.’s most powerful women. [Corporate Counsel]
* A three month suspension has been recommended for a former Treasury Department attorney who attempted to steal ties from Nordstrom. What, he couldn’t spring for a Neiman’s run? [National Law Journal]
* If you bought those stupid ass Skechers Shape-Up shoes in the hope that your booty would look like Kim Kardashian’s, you can get a piece of the $40M settlement. Not bitter, not at all. [Los Angeles Times]
I gave my “book talk” about The Curmudgeon’s Guide to Practicing Law at Schnader Harrison’s annual retreat last Saturday and then had the opportunity to moderate a panel of six (counting me) in-house lawyers. Three of the gang were from QVC, one from Endo Pharmaceuticals, and one from the Graham Company. Being a rabble-rouser at heart, I started the discussion by posing the question that I often considered during my time as an outside lawyer: How can a law firm that wants new business displace a competent incumbent firm?
My co-panelists were quite good, but I must say that their natural instinct when confronted with this question was to evade. Each panelist started by saying something that was not quite responsive to the question. Only after some follow-up questions did our panel finally tell the audience how to displace a competent incumbent.
Let me start with the evasions, saving the real answers for the end . . .
Hey, have you read Above the Law for like one single minute in the past month? If so, you probably know that we’re having this big blogger conference on March 14th at the Yale Club. Yeah, the Yale Club. You’ll be able to recognize me: I’ll be the only big… blogger guy surreptitiously holding a can of crimson spray-paint.
Speaking of coming, you should come. We’ve got CLE and all that. Click here to buy tickets to get CLE credit for listening to bloggers scream about stuff on the internet.
To refresh your memory, details on the panel that I’m moderating — almost entirely sober, mind you — follow.
My panel is called Blogs as Agents of Change, and we’re going to talk about whether all of these spilled pixels are actually making a difference. You know my view… just ask Lawrence Mitchell, but here are the panelists:
So you spent a considerable amount of time courting, selling and maybe even doing some friendly stalking of that attractive lateral partner candidate with a sizable book. After he or she ignored your emails and didn’t return your calls, a few weeks go by and you read a press release in the legal media announcing the recent move to a competing firm.
Rats. Another one got away from you. You cringe when you consider how much time was spent in meetings that did not bear fruit. Your heart aches when recall how you were led to believe this was a marriage made in heaven.
You have been rejected.
The sting of rejection is painful, even for fancy law firms. But you need to find a way that you can turn this disappointment into a legitimate learning experience.
No, this isn’t a pre-party before we come back next fall for the real thing. This IS the real thing. Quinn Emanuel is pushing the envelope on recruiting. The party is now. This is when you meet the partners and associates face to face. This is when we begin the dance that could land you an offer for your second summer BEFORE school starts in the fall.
First: You come to the party. Second: If you like us, you send your resume after June 1, 2014. Third: If we like each other, you get an offer.
We’re not waiting for fall. We’re not doing the twenty minute thing. This party is the real thing!
We hope you’ll join us, and look forward to meeting you.
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