Holland & Knight announced today that it would be moving away from lockstep associate compensation. But unlike the firms that have rushed to jump on the Orrick-style, three-tier “pure merit” model, Holland is adopting a hybrid approach. Here’s how Holland & Knight managing partner Steve Sonberg explained it to associates this morning:
The base salary of an associate will no longer depend solely on seniority and the number of hours billed by an associate during the preceding year. Instead, the firm will evaluate each associate on the basis of both objective and subjective factors.
The objective factors will continue to include the number of billable and creditable hours. The firm’s existing policy on creditable hours is not being changed. In addition to the number of billable and creditable hours, the firm will now also consider other factors that objectively measure an associate’s contribution to the firm and to our clients (e.g., collections, profitability, significant matter responsibility, and successful client development).
The subjective factors will include professional and career development (including client development skills), the quality of the legal services provided to our clients, and other contributions to our profession, our communities, and the firm. We are committed to providing an evaluation process that clearly communicates to associates what is expected of them.
Under the new model, this combination of subjective and objective factors will be used to determine what kind of raise associates receive from year to year.
Above the Law spoke with Adolfo Jimenez, the partner at Holland & Knight who oversees the firm’s associate program. H&K’s new compensation plan is very different from the ones we’ve been seeing lately, and we asked Jimenez why the firm decided to go in a different direction.
The penalty for having a partner announce layoffs on a train was six spots according to Vault. There have been other Pillsbury cutbacks. But the Acela incident happened when associates had Vault surveys sitting on their desks.
After the jump, let’s take a look at some of the other firms in this group.
Last week, we brought you some salary cut news from the Sunshine State. Today we bring you more such news. Holland & Knight, a large national law firm with a significant presence in Florida (the state it started in), announced pay cuts yesterday for associates, senior counsel, and senior professionals. The salary cut will be effective with the next paycheck (i.e., this Friday). The information was disseminated by voicemail — or, to be technical, a secure link to a Flash audio message — at approximately 7 p.m. Eastern time yesterday.
Our sources reported pay cuts averaging around 10 percent. But according to managing partner Steven Sonberg, the overall cuts are closer to 7 percent.
The explanation, including the firm’s full statement on the cuts, after the jump.
Former Thelen associates might still be scrambling to pick up the pieces of their aborted legal careers, but former Thelen partners continue to land on their feet. The latest partner refugee is an All-Star. Richard Raysman (of what used to be known as Thelen Reid Brown Raysman & Steiner) has ended up at Holland & Knight.
Raysman left Thelen in August for Otterbourg Steindler. He got out before Thelen collapsed. Not surprisingly, Holland & Knight’s announcement downplays Raysman’s connection to his defunct former firm:
After graduating from Massachusetts Institute of Technology and receiving his J.D., from Brooklyn Law School while working at IBM as a systems engineer, Raysman founded the firm of Brown, Raysman, Millstein, Felder & Steiner which grew to 250 attorneys. The Brown Raysman firm was the first significant firm to focus on computer law. Raysman was among the first lawyers to recognize that the practice of law in the area of computers would be increasingly important as digital technology spread through commercial enterprises.
But ex-Thelen employees still remember My. Raysman. Remember, earlier this month former Thelen employees were granted class status to pursue claims against Thelen. Their lawyer has indicated a willingness to go after former partners of the firm.
But clients probably won’t care about Raysman’s connection with the unfortunate events surrounding Thelen. He’s a leading lawyer in an important field. We’re sure Holland & Knight will be thrilled by the extra rain.
You know how a lot of buildings omit the “13th floor” out of superstition? I’ve noticed that really superstitious people think about the 14th floor as the danger zone, because counting is not a particularly hard thing to do.
I bring this up because tomorrow is Friday the 13th, and I’m just wondering if the invisible hand of market collapse decided that Thursday the 12th was a “better day” for everybody to get fired.
In any every, as many commenters have already noticed, there appear to be massive layoffs at Holland & Knight today. Some of our sources report that as many as 200 attorneys and staffers could be out of a job by the end of the day. Other sources place that number closer to 300.
Holland & Knight has declined to offer us a statement at this time.
Update: According to the WSJ Law Blog, the firm fired 70 lawyers and 173 staff. From a statement: “Today, we began restructuring our operations to better meet the needs of our clients and to take steps to fully respond to the adverse effects of the current economic downturn.”
After the jump, we have additional details from tipsters.
Every year, the National Law Journal names individual people and firms that have done outstanding pro bono work. This year perhaps more than others, it is especially important to recognize those that gave their time to charity. With the economy crumbling, there is a huge need for free legal services.
Eric Blinderman, international legal counsel to Proskauer Rose, had gone to Iraq in March 2004 as an associate general counsel for the Coalition Provisional Authority. Later, he served as chief legal counsel and associate deputy to the Regime Crimes Liaison. In 2007, Blinderman’s firm officially became a part of The List: Project to Resettle Iraqi Refugees, a nonprofit organization founded that year to help resettle Iraqis in danger because of their affiliation with the United States. Holland & Knight had already been collaborating with the project, and Mayer Brown signed on this year.
Firms nationwide were inspired by the historic 2008 presidential election to devote pro bono time to protecting access to the voting booth. Lawyers went to court in several states on voter access issues, most frequently to prevent a voting reform law, the Help America Vote Act, from becoming a barrier to the ballot. The law required states to match voter rolls with another database, usually the registry of driver licenses, to create a more accurate list of voters.
Read the full list of winners here. And please share your stories about other great pro bono acts in the comments.
Judging from our traffic, readers are enjoying this rundown of the Vault 100. We do aim to please here at ATL. We appreciate those who have offered insights about firms in the comments.
Moving on to the next group (with prestige scores in parentheses):
As we move down the Vault list, “notable perks” are becoming less elaborate. This group is dominated by tales of free food, from endless soda at Greenberg Traurig to weekend doughnuts and muffins at Foley. And it appears that Pillsbury lacks a monopoly on cookie benefits; over at Cahill, lawyers are plied with “twice daily cookie trays.”
We note this food-related perk at Bingham: “If any lawyer takes out a more junior lawyer for drinks/dinner, he/she can submit the expense to the mentoring budget AND the senior person can get creditable hours.” Can you expense the roofies?
We invite you to compare and contrast these firms’ work, lifestyle, benefits… and cookies, in the comments. Earlier:Vault 100 Open Threads – 2009
The bad news continues to roll in. Becker & Poliakoff, which just announced across-the-board pay cuts for its lawyers, isn’t the only Florida firm that’s hurting.
From a report by Julie Kay, for the upcoming issue of the National Law Journal:
In another sign of the hard times facing the legal industry, particularly in real-estate heavy South Florida, two local law firms — Holland & Knight and Shutts & Bowen — have laid off non-lawyer staffers.
On a day that could be dubbed Black Friday in South Florida legal circles, Tampa-based Holland & Knight, one of Florida’s largest and most venerable firms with 1,150 lawyers, laid off 70 staffers Friday, including legal secretaries, IT and accounting staff. No lawyers were laid off.
The layoffs of about four employees in each of Holland’s 17 offices represented 5% of Holland’s non-lawyer workforce.
Shutts & Bowen, a 200-lawyer, Miami-based firm, Friday laid off nine people, all entry level file clerks or paralegal clerks. No lawyers or legal secretaries were affected.
Holland & Knight spokeswoman Susan Bass told the Daily Business Review that the firm “had some redundancies and inefficiencies.” Seventy staffers is a whole lot of redundancies.
Read more — about prior layoffs at H&K, and the situation over at Greenberg Traurig — below the fold.
Our open threads on Vault 100 law firms seem to be drawing fewer comments. But we’ll finish what we’ve started. We don’t want to give you a case of these.
So here is this afternoon’s set of Biglaw shops (with Vault prestige scores in parentheses):
If you are considering a virtual law practice, you know that many of today’s solo firms started that way. But why are established, multi-attorney law firms going virtual?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Reduces malpractice risk
Enables you to gather the best attorneys to fit the firm, regardless of each person’s geographic location
Leverages mobile devices and cloud technology to enable on-the-spot client and prospect communication
Transitioning in-house is something many (if not most) firm lawyers find themselves considering at some point. For many, it’s the first step in their career that isn’t simply a function of picking the best option available based on a ranking system.
Unknown territory feels high-risk, and can have the effect of steering many of us towards the well-greased channels into large, established companies.
For those who may be open to something more entrepreneurial, there is far less information available. No recruiter is calling every week with offers and details.
In sponsorship with Betterment, ATL and David Lat will moderate a panel about life in-house and we’ll hear from GCs at Birchbox, Gawker Media, Squarespace, Bonobos, and Betterment. Drinks, snacks, networking, and a great time guaranteed. Invite your colleagues, but RSVP fast, as space is limited.
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: firstname.lastname@example.org.
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.