This is the latest in a new series of ATL infographics — visual representations of our own proprietary data, relevant third-party data, “anecdata,” or just plain jokes. This infographic is brought to you by our friends at Prestige Legal Search. Earn another $5,000 to $50,000 with their Rewards Program.
For the most part, Biglaw associate bonuses remain stuck at last year’s levels, reflecting expectations that firm profits will be flat at best. This might seem fair, with everyone feeling the pinch of the “New Normal” and so on. But when we take a small step back and see how these bonus numbers compare as a percentage of partner profits to the bonuses of just a few years ago, these bonuses are arguably pretty measly.
The current $10,000 “market” (i.e., Cravath-following) rate for first-years is just 0.29% of Cravath’s profits per partner (according to the American Lawyer). Back in 2007, first-year bonuses equaled 1.36% of PPP. In other words, the Cravath partnership was nearly five times more generous to its associates back then.
Obviously, Cravath is among the most profitable firms in the world. What are the implications of matching Cravath’s bonus scale for those firms with much lower profit margins? Today’s infographic takes a look at how big a hit to PPP partners willingly take in order to Keep Up With The Cravathians….
Still, as Staci Zaretsky observed earlier today, there’s a one-in-a-million chance that some firm that hasn’t announced yet will beat Cravath. And if you’ve bought a ticket for Friday’s $400 million Mega Millions drawing, you believe in one-in-a-million — actually, one-in-259-million — chances.
Three firms just announced their year-end associate bonuses for 2013. Let’s scratch off these tickets and see what lies underneath….
The ruins of a house on the outskirts of Tacloban, capital of Leyte.
Law firms and the legal profession have a long and distinguished tradition of contributing to the public interest. Earlier today, we highlighted five Biglaw firms that are pro bono all-stars.
Most pro bono cases involve clients and causes here in the United States. But in today’s increasingly global world, law firms look beyond borders when it comes to helping the needy.
Yesterday we commended Skadden for its generous support of Typhoon Haiyan relief efforts in my ancestral homeland of the Philippines. And today we recognize several other law firms that have joined in this worthy cause….
Would you rather be a great lawyer or be perceived as being a great lawyer?
For many people, I think the answer to that question varies over time: At age 30, you’d rather be a great lawyer. At age 60, you’d rather be perceived as being a great lawyer.
Because, over time, your reputation may come to track reality. If you’re perceived as great when you’re 30, but you’re actually no good, that truth may out over time. As you age, your reputation may catch up with you.
By the time you’re 60, your professional horizon will have shortened, and it’s less likely that the world will unearth your incompetence. If you’re perceived as being a great lawyer when you’re 60, you may well make it to retirement unscathed.
What of law firms? Would you rather that your firm be great or be perceived as being great?
* The Magic Circle isn’t very magical across the pond in New York City. Four out of five firms from the U.K. — Allen & Overy, Clifford Chance, Freshfields Bruckhaus Deringer, and Linklaters — have yet to pull rabbits out of their hats in the Big Apple. [Am Law Daily]
* Dewey know how much this failed firm’s old domain name sold for at auction? At the conclusion of the sale, it ended up going for $210,689, which was just a shade over the initial asking price of $200,000. Someone just got ripped off. [Law360 (sub. req.)]
* The judge on this case against Skadden Arps isn’t sure that document review should count as anything other than practicing law, “even if it’s not the most glamorous.” Ahh, the luxurious life of a contract attorney. [Am Law Daily]
* Professor Raymond Ku has filed an amended complaint against Case Western Law Dean Larry Mitchell, and now the allegations are even juicier, including a possible ménage à trois. [Cleveland Plain Dealer]
* The number of people who took the LSAT in October has dropped for the fourth year in a row, this time by 11 percent. “This is a big deal” for law professors interested in keeping their jobs. [National Law Journal]
Unless you’ve made some deliberate, heroic effort to not know, you are aware that the most feverishly anticipated baby since 0 A.D. is now finally among us. This is a huge deal. People love babies. People love princesses and what not. So: huge deal. Thus, as we await the naming of the boy Windsor and as a flimsy topical pretext, let’s have a look at how the Magic Circle, the UK’s legal royalty, rate in the ATL Insider Survey.
The Magic Circle comprises five venerable London firms: Allen & Overy, Clifford Chance, Freshfields, Linklaters, and the terrifyingly-yet-diffidently named Slaughter and May. Powerhouse “Slaughters” is the only one of this prestigious group lacking a New York office. The other four are among the most truly global firms and are among the top ten firms in the world measured by revenue. S&M is also the only one of the group for which we lack sufficient survey responses to generate ratings based on the ATL Insider Survey. After the jump, see how the others’ New York offices stack up in terms of Compensation, Hours, Training, Firm Morale, and Culture.
* Thanks to the slow transactional markets in Western Europe, Magic Circle firms like Allen & Overy, Linklaters, and Clifford Chance are struggling to pull a rabbit out of a hat in terms of gross revenue and profits. [Am Law Daily]
* If at first you don’t succeed because of John Ashcroft, try, try again. Former Missouri Supreme Court Judge Ronnie White is once again being considered for the federal bench in St. Louis. Good luck! [Missouri Lawyers Weekly]
* In case you’ve been sleeping under a rock, Boston bombing suspect Dzhokhar Tsarnaev pleaded not guilty to murder charges. He’s looking at life in prison or the death penalty. [Bloomberg]
* Target, if you’re wondering why you’re getting sued, it’s because of this alleged memo explaining that not all Hispanic employees eat tacos, dance to salsa, and wear sombreros. [Huffington Post]
* “Please don’t be hung” is a solemn prayer that’s only useful to a woman whose case is on re-trial. Ex-Bengals cheerleader Sarah Jones’s defamation suit was sent to the jury. [Associated Press]
* A study finds that over 93 percent of attorneys, judges, and legal writing professors think the writing they’re reading is bad. One could argue this is evidence of a crisis in writing skills. Or one could argue that lawyers are a**holes who think every voice other than their own is wrong. It’s a 50/50 shot. [Associates Mind]
* If you ever wondered how many OSHA violations one could find with Jabba’s Palace, wonder no more. [Legal Geeks]
* Are you scared of Obamacare? Here’s a roundup of your official survival guides! [The New Republic]
* If you’re trying to enter the United States, border agents can seize your electronics and look at all your private files because you need to respect their authoritah! [Forbes]
* Joseph Kennedy Jr. died helping to invent drones. OMG, you guys! The drone war is the final stage of the Kennedy family’s long-term liberal plan for world domination. [io9]
Over the weekend, we passed along some good news about Dewey & LeBoeuf. It appears that the firm has been given a new (even if temporary) lease on life by its lenders. Initial reports suggested that the firm was getting one week or maybe two in order to reach a new debt deal with its banks. It now appears, however, that the firm could be getting a more long-term extension, in the range of 90 to 120 days. The deal still needs to be finalized; keep your fingers crossed.
That’s the good news. Now, back to the bad news: more partner defections from Dewey….
Be careful what you write when you’re young and idealistic.
In 2003, David Wolfe, a lawyer who works alongside Cherie Blair at top London human rights shop Matrix Chambers, decided he was unhappy with the way the British legal hierarchy works. So he co-signed an open letter criticising the Queen’s Counsel (QC) system –- a process that sees a handful of barristers (British trial lawyers) promoted to the elite QC rank each year, enabling them to charge clients more money. “The QC system cannot be justified as being in the public interest or promoting competition,” the letter stated.
Nine years on, and last week Wolfe found himself made up to QC — an honour which, despite the name, involves no input from the Queen or her family members. He didn’t decline. Indeed, all QCs have to actively apply in order to gain the title. Unfortunately for Wolfe, someone mentioned his youthful letter to RollOnFriday, a widely read U.K. legal blog.
When contacted about the letter, Wolfe responded….