Earlier this year, partner bonuses at Hogan Lovells generated some controversy across the pond. Certain partners in London questioned the process by which payments were determined and wondered whether partners in management received too much relative to rank-and-file partners. Squabbles over partner pay are something the firm’s incoming CEO, D.C.-based Stephen Immelt, can look forward to addressing when he takes over next summer.
Let’s now turn from partner pay in London to associate pay in New York. The NYC office of Ho-Love recently showed its associates some love, in the form of year-end bonuses. Were they as controversial as the London partner payouts?
MoFo’s new German team is known for its expertise in Technology, Media & Telecommunications (TMT) transactional work. The Berlin office in the firm’s third outpost in Europe and its 17th office worldwide.
How is Hogan Lovells taking news of the departures? As the ABA Journal wondered in a headline, “Morrison & Foerster opens Berlin office; is Hogan Lovells miffed?”
* Based on the justices’ reactions during oral arguments in Windsor v. U.S., there was no defending the Defense of Marriage Act. Not even Paul Clement, the patron saint of conservative causes, could save the day. [New York Times]
* Alas, the David Boies and Ted Olson Dream Team stole much of the spotlight from Roberta Kaplan, the Paul Weiss partner who argued on behalf of Edith Windsor in an effort to overturn DOMA. Seriously, you go girl! [WSJ Law Blog (sub. req.)]
* Dude, you’re getting a Dell! Alston & Bird and Kirkland & Ellis are the latest firms to join the Biglaw sharks (including Ho-Love, Debevoise, Wachtell, SullCrom, and Simpson Thacher) circling this major tech buyout. [Am Law Daily]
* It looks like it’s time for JPMorgan to face the music for its investments in Lehman Brothers, because a federal judge just ruled that the bank cannot “dispatch plaintiff’s claims to the waste bin.” [Reuters]
* An alleged killer’s sense of mortality: James Holmes, the suspect in the Colorado movie theater shooting, offered to plead guilty and spend life in prison in order to avoid the death penalty. [CNN]
In fairness to DLA Piper, the craziness might not be that high on a per capita basis. DLA Piper is one of the largest law firms in the world. In the most recent Global 100 rankings, DLA took second place in both total revenue and attorney headcount.
Many of the DLA Piper stories are on the lighter side. But this latest one — involving serious allegations of overbilling, apparently supported by internal DLA emails saying things like “churn that bill, baby!” — is no laughing matter….
One of the nice things about being a Biglaw lawyer is that you’ve got some autonomy over your schedule. You know how much work you have to do, and you know when it’s due, and within those borders you can manage your own time. If you want to come in a little bit later and stay a little it later, so be it. If you want to come in super early… well, you’re probably still going to end up staying late because of some BS that happens at 4:30 p.m., but after you bill 100 hours in a week, you can probably take it really easy once your matter closes.
The point is, Biglaw lawyers have the expectation of being treated like adults when it comes to their own time management.
So it’s a little bit surprising that a Biglaw firm is treating associates in one office like little children who need to be present when attendance is taken….
Yesterday Elie offered some predictions for 2012. I’ll get even more specific and offer a prediction for January 2012: energy lawyers will be making moves this month.
January is generally a popular time for partner moves, and energy lawyers are popular people. Right now their practice area is as hot as New York City is cold. As you may recall, this time last year a slew of energy attorneys moved from McDermott to Cadwalader.
We’ve recently received word that at least two prominent partners in the energy space are switching firms. Let’s find out who they are and where they are heading….
UPDATE (2:30 PM): After the jump, we’ve added an update with additional context, details, and partner names. A source states that five partners are leaving and that the departures constitute a major move — a much bigger deal than our original report might have suggested.
In our recent post on the top 10 most generous large law firms — based on analysis by ATL’s new director of research, Brian Dalton — the firm of Hogan Lovells placed second. Under the rankings, this meant that Hogan partners are taking the second-biggest hit to their own bottom lines in order to keep their associates happy and well-compensated.
But is this still the case today? Based on what we’re hearing about the most recent Hogan bonuses, announced shortly before Christmas, one wonders whether the Ho-Love partners have turned from Santas into Scrooges….
He was clearly the salesman-in-chief, and he did a darn good job at it. I remember being told that despite the fact that the economy was essentially collapsing around everyone’s heads, 2008 was going to come in well over budget with record revenues and profits.
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.
It’s late October, so Biglaw bonus news could drop any day now. In 2010, Cravath didn’t kick off the season until November 22. But back in 2009, Cravath announced bonuses on November 2. And in 2007 — yes, the glory days, before the Great Recession — Cravath announced bonuses, regular and “special,” on October 29.
In light of the economic gloom and doom, including the possibility of a double-dip recession, it wouldn’t be shocking if bonuses are modest this year. Better to conserve the cash and avoid layoffs, right? Or maybe repeat what happened in 2010 and save some money for spring bonuses in a few months, when firms might have a better idea of the direction of the economy?
Regardless of how bonuses turn out, there are other pockets of good news in the world of large law firms — even news requiring law firms to open their wallets. Check out the growing number of firms that offer the perk we’ve dubbed the gay gross-up….
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 seven years. You can reach them by email: email@example.com.
It’s that time of year again when JDs are starting to apply for 2L summer jobs and 2L summers are deciding which practice area to focus on.
For those JDs with an interest in potentially lateraling to or transferring to Asia in the future, please feel free to reach out to Kinney for advice on firm choices, interviewing and practice choices, relating to future marketability in Asia, or for a general discussion on your particular Asia markets of interest. This is of course a free of cost service for those who some years in the future may be our future industry contacts or perhaps even clients.
For some years now Kinney’s Asia head, Evan Jowers, has been formally advising Harvard Law students with such questions, as the Asia expert in Harvard Law’s “Ask The Experts Market Program” each summer and fall, with podcasts and scheduled phone calls. This has been an enjoyable and productive experience for all involved.
Whether you’re fresh off the bar exam or hitting your stride after hanging a shingle a few years ago, one thing’s for certain: independent attorneys who start a solo or small-law practice live with a certain amount of stress.
Non-attorneys would think the stress comes from preparing for a big trial, deposing a hostile witness, or crafting the perfect contract for a picky client.
But that’s nothing compared to the constant, nagging, real-life kind, the kind you get from the day-to-day grind of being a law-abiding attorney.
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