Okay, “drove out” is probably not the right phrasing here, for reasons we’ll explain below. But there’s no denying that people are keenly interested in the drama surrounding the departure of eight Weil partners to Sidley Austin in Dallas.
Let’s take a closer look at the situation, shall we?
Today, we turn toward Texas. Texas is beloved here at ATL as an apparently bottomless source of colorful legal news. The state is a frequent battleground for high profileconstitutional fights while also generating a steady stream of tabloid fodder, from “judges behaving badly” to “tragic homicidal mayhem.” (Of course, there’s also the running joke among the ATL commentariat that, for what a New York Biglaw associate pays for his cramped studio apartment, one can buy a 3,500-square-foot wife house in Texas.)
But of course this is a limited, distorted view of the legal industry in Texas. Texas is a huge, diverse state with a relatively strong economy and a unique legal culture. Biglaw firms thrive in all three major cities, both local outposts of national firms, or more significantly, Texas-bred firms such as Baker Botts and Vinson & Elkins. Our ATL Insider Survey (13,000+ responses and going strong, thanks), asks attorneys at firms to evaluate their employers in terms of compensation, hours, training, morale, and culture. After the jump, we’ll look at how firms in Texas stack up in these categories — and how they compare to the national averages…
A few days ago, conservative political bloggers had some fun with the news of left-leaning commentator Matthew Yglesias buying a $1.2 million condo. But I tend to agree with Jonathan Chait: unless you’re a full-blown communist, there’s nothing inconsistent between being somewhat liberal and owning a nice place. I don’t even have a problem with so-called “limousine liberals” (although owning a $1.2 million apartment is hardly limousine land).
The news of Yglesias’s real estate purchase first appeared in Washingtonian magazine, which has fantastic coverage of the D.C. real estate market. The same column also contained news of several lawyers cutting seven-figure housing deals….
Last year, I complained that the complicated compensation system at Vinson & Elkins was giving me a headache. What’s wrong with a Cravath-style system of lockstep salaries and bonuses? Or a Kirkland- or Latham-style system of lockstep salaries and individualized bonuses? Is it really necessary, for purposes of paying associates, to utilize a system involving deferred compensation?
Luckily for me and my limited quantitative-reasoning ability, V&E has decided to streamline their system. Let’s learn about what they’re doing, which they revealed in the course of announcing their bonuses.
Welcome to our latest round-up of summer associate offer rate news. This post contains the latest list of law firms and offices with 100 percent offer rates. In future posts, we’re going to shift gears and focus on firms with lower-than-average offer rates.
An offer rate that’s lower than 100 percent is not necessarily newsworthy. The fall recruiting process by which summer associates are selected isn’t perfect. Sometimes candidates look great on paper and do well during interviews, but then do something during the summer — turning in disappointing work product, getting drunk and acting inappropriately — that causes them to get no-offered. And sometimes people get no-offered for reasons that aren’t their fault — office politics, discrimination. Stuff happens.
We’re not expecting 100 percent offer rates all around. At the same time, there is such a thing as an unusually low offer rate. If you know of an office with an unusually low offer rate — which we will arbitrarily define here as something under 66 percent, or two-thirds — please email us (subject line: “[Firm Name] Offer Rate”).
Now, on to the updated list of firms and offices with 100 percent offer rates….
The law firm of Vinson & Elkins, one of Texas’s top shops, once represented Enron. I was reminded of this fact in trying to write up V&E’s bonus news (year-end bonuses and spring bonuses, which the firm just announced). Lawyers at Vinson & Elkins seem to thrive on complexity — in the service of hiding what’s really going on with respect to money matters.
Trying to get a grasp on the V&E compensation system gave me a splitting headache. Unfortunately, because the firm plays such an important role in setting compensation for the Texas legal market, attention must be paid.
So let’s discuss the just-announced V&E spring bonuses, as well as the 2010 year-end bonuses that were announced in January 2011, and try to figure out what the heck is going on down there….
Associates bitch when partners won’t share the wealth, but nobody says a peep when legal support staff get shafted. The very concept of staff bonuses has gotten lost in the recession shuffle, despite the fact that the support staff who remain are being stretched so thin.
Well, it looks like Vinson & Elkins remembers that staff are people too. Today multiple tipsters report that legal support staff at V&E will be receiving a bonus. Our sources didn’t know how much they’re getting, but they’ll be getting something.
UPDATE: Reports a Vinson & Elkins source, “As a matter of clarification, the staff bonus that [was just announced] by V&E is an EXTRA bonus being paid by Management. V&E staff already received their normal staff bonuses in December. Viva la V&E!!”
Compare this to Jones Day. In November, the firm broke its legendary code of silence about compensation just to say that their staff would not be getting bonuses. That’s not nice. That’s like a recovering paraplegic going through years of physical therapy to get to the point where he can give his doctor the finger.
So really Vinson does deserve quite a bit of credit here. Good job by them.
And oh yeah, the firm also told associates that they would be getting bonuses this year… and suggested that the bonuses would be better than the Cravath scale….
We’re doing our annual march through the Vault prestige rankings, to give ATL readers the opportunity to have their say about perks and pitfalls at these firms. If your firm actually let you swap your Blackberry for your iPhone, brag here. Or if your firm has such a strong stench that it makes you nauseous, vent here.
We’ve been doing open threads in batches of ten, but now we’re going to pick up the pace. Here are the Vault #41 – 60. This is when the prestige list gets a little more geographically diverse, with firms based in Houston, Atlanta, Philadelphia, Palo Alto and even Pittsburgh:
Cruciani alleges Budd “completely misrepresented the compensation system at Baron & Budd and the upside that allegedly existed there,” and Budd showed his “greed” when he paid himself a $50 million bonus in December 2005, which was 75 percent of the firm’s bonus pool that year.
Note to partners with a wandering eye: If a firm describes its compensation system as “Hully Gully,” be wary. In addition to misrepresenting the firm’s compensation system, Budd also neglected to tell Cruciani that there was bad blood between him and co-founding partner Fred Baron.
After hearing a host of counterclaims during a six-week trial, the jury sided with Cruciani, and decided the lost income and the impact on his future earnings warranted a $8.8 million award.
According to the Dallas Observer, the local legal community was shocked by the size of the award. Why was it so big?