Lat here. Going into the 2013 Biglaw bonus season, indicators were looking mixed.
Cravath, the supremely prestigious and profitable law firm that’s the traditional market leader on bonuses — as in the firm most widely followed by other firms, not necessarily the firm that pays the biggest bonuses — announced another large partner class. Last year, that boded well for bonuses.
On the other hand, Biglaw’s overall performance has been somewhat anemic this year. The stock market might be hitting new highs, but many law firms are running in place.
People have been waiting forever for Cravath to make its big announcement. Now the wait is over: at 4:45 p.m. today, Cravath announced its 2013 year-end bonuses.
How are they looking? What’s getting stuffed inside associate stockings this holiday season?
I really don’t want to be that guy at the dinner table who points out that the mashed potatoes are lumpy and the turkey is a bit dry. A law school is cutting tuition by half for some students, and for that we should be thankful. This follows a trend, seen here and there, in which law schools are starting to respond to the low interest in legal education by competing on price.
Except it also follows the trend of not really being a tuition “cut.” Instead it’s a tuition scholarship that is worth about half of the tuition, while the school maintains its high listed sticker price.
Well, this is Above the Law, not a Thanksgivukkah meal. Who wants a side of hater?
It’s Tuesday, November 26, past 5 p.m. Do you know where your bonus is?
When we surveyed our readership about 2013 law firm bonuses, 57 percent of respondents predicted that the first firm (traditionally Cravath) would announce during the week of Thanksgiving. That’s basically over. It’s theoretically possible we could get an announcement later tonight or sometime tomorrow, but it seems unlikely.
The Biglaw year has a rhythm to it. As we approach Thanksgiving, there is an opportunity for each and everyone in Biglaw to take stock. Doing so is important, especially if one falls prey to the peculiar attempts by many to imbue meaning into Thanksgiving by “giving thanks,” before stuffing themselves into a stupor (followed by a six-hour-long “nap” on a relative’s couch and a frantic post-nap drive to some big-chain parking lot for the priceless opportunity to join the unwashed masses in a frenzied dash to save ten percent on the gadget du jour — if that is how people have their holiday fun, more power to them).
If you are going to make giving thanks a holiday focal point, at least do so mindfully. If you are still employed in Biglaw, you have a lot to think about.
If the events of this past year proved anything, it is that the change in Biglaw is irrevocable. In 2008, everyone suffered, driven by economic events bigger than the industry. In contrast, this year proved definitively that there are Biglaw firms that are winners, and getting stronger. But that list of firms is short. Most Biglaw firms are being challenged, and the responses they adopt to confront those challenges continues to be varied. Whether your firm is itching to merge at all costs, or continuing to whistle along as if nothing has changed (while frantically making moves under the radar to avoid giving even a whiff of being challenged), every Biglaw firm has wittingly or unwittingly decided on a future course. At a minimum, Biglaw lawyers should do the same on a personal level, with the understanding that for the great majority of Biglaw attorneys, career changes are more likely than career stability nowadays.
Checklists are helpful for assessing performance and ensuring that important considerations are not overlooked. While everyone’s personal checklist (or questionnaire, if you prefer) may look different, there are at least three categories that should be addressed on any Biglaw attorney’s year-end self-review: financial, professional, and personal. First, the financial….
I’m somewhat reluctant to criticize other people’s bad financial decisions, having made so many atrociously dumb decisions in my own life. My financial stupidity isn’t even in the past tense — I have a brand-new PS4, but I’m waiting until the new year when my Flexible Spending Account resets to go to the doctor.
On the other hand, sometimes it takes an idiot to spot an idiot (I just made that up). At the very least, I’m somewhat uniquely qualified to identify which financial mistakes are “common” among the financially illiterate, versus the mistakes that take a special kind of dumb.
There are a few articles making the rounds today: there’s a Salon article trying to explain why law schools are comfortable scamming their students, and there’s a Forbes article making the stupid “now is a good time to go to law school” argument (which should make smart people roll their eyes). We’ve been down those roads before.
But we also have an article from a guy who says law school was the start of his financial downfall. He doesn’t blame law school, which is good, because I’m pretty sure he’s got nobody else to blame besides himself. And maybe his ex-wife….
* Former U.S. Attorney Neil H. MacBride will be joining Davis Polk as a partner in the firm’s white-collar defense practice. Nice work, DPW — he’s actually kind of cute. Earn back that rep! [DealBook / New York Times]
* Matthew Kluger, most recently of Wilson Sonsini, was disbarred in D.C. following his insider trading conviction. His criminal career apparently began while he was still in law school. Sheesh. [Blog of Legal Times]
* Kent Easter, he of the “I am but a spineless shell of a man” defense, was just on the receiving end of a mistrial. It seems the jury was totally deadlocked. Guess they felt bad for him. [Navelgazing / OC Weekly]
* The Iowa Law Student Bar Association supports the school’s decision to cut out-of-state tuition by about $8,000 because to stand against such a measure would be absolutely ridiculous. Congratulations on not being dumb. [Iowa City Press-Citizen]
* Apple won more than $290 million from Samsung in its patent infringement retrial. Siri, tell me what the fifth-largest jury award in the U.S. was in 2013. OMG, I didn’t say delete all my contacts. [Bloomberg]
* The trial for James Holmes, the shooter in the Aurora, Colorado movie theater massacre, was delayed by a judge until further notice. A hearing has been scheduled to reassess the situation in December. [CNN]
* Myrna S. Raeder, renowned expert on evidence and criminal procedure, RIP. [ABA Journal]
It’s nearly that time of year, when all the grueling hours that Biglaw associates have put in will pay off in the form of fat bonuses. Or don’t pay off, with miserly bonuses, or nothing at all. Or something in between? Point being, we have no idea how the 2013 bonus season will play out. Presumably, the answer is buried somewhere deep in Allen Parker’s unknowable heart.
The signs thus far are not especially encouraging, at least for those with a vested interest. (Admittedly, for most, this is all much ado about white-shoe people problems.)
Yes, Cravath might be doing well, at least if its large partner class is any indication. But on the subject of law firm 2013 profits in general, the Citi Bank Private Law Firm Group’s report on the first half of the year concluded:
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….
The Dewey nightmare continues for non-settling partners.
Many former partners of now-defunct Dewey & LeBoeuf signed up to join the “Partner Contribution Plan” that was hatched during the law firm’s bankruptcy case. The gist of the Plan: pay a certain sum (which varied from partner to partner) into the pot, and win a release from any future Dewey-related liability.
The main appeal of the Plan was finality, a way of putting the entire Dewey debacle in the rearview mirror. And that appeal was strong: more than 400 ex-partners agreed to the Plan, which freed them up to focus on their post-Dewey lives at new firms.
But a minority of former partners refused to sign on. A lawsuit filed last week against one ex-partner reveals what lies in store for them….
The Empire State Building, lit up with the colors of the Philippine flag to show support for Typhoon Haiyan victims. (Photo courtesy of Natalie Navarrete.)
When disaster strikes, lawyers are there (and not just to hand out their business cards). Lawyers and their law firms have responded swiftly and generously in the wake of natural disasters, giving of their time and treasure to help the victims of calamities around the world.
Lawyers and their law firms, especially Biglaw firms, have come to the aid of people affected by Hurricane Sandy, the Japanese earthquake and tsunami, and earthquakes in Haiti and China. We have chronicled and commended these efforts in Above the Law over the years.
In light of this track record, it should come as no surprise that one of the world’s top law firms is giving generously to support relief efforts in the Philippines, my ancestral homeland, where thousands have died due to Typhoon Haiyan (local name Yolanda). Which firm, and how much is it giving?
If you think most legal technology misses the mark, LexisNexis Firm Manager® wants to change your mind. Read more about it here.
Built with input from hundreds of solo and small-firm attorneys across the country, it’s made for practitioners who’d rather build the firm of their dreams than deal with the hassles of running a business.
· Go Mobile, Stay Connected.
See all your firm’s information, wherever you are, on whatever device you’re using. Access and update client files, enter billing, search & share documents and more. It’s just like you’re in the office, only you’re not.
When Chintan Panchal decided to leave a global BigLaw partnership to start his own firm, he could only hope that he would face the high-quality problem of firm building that many had cautioned him about. Focused on the uncertainty surrounding of a new firm launch, he decided to tackle staffing needs, IT challenges, and financial planning requirements after he had built up his legal practice.
Panchal Associates LLP–a corporate/finance and outside general counsel boutique–was quickly off to a great start. Clients and matters were flying in the door, and Chintan soon had a team of lawyers and staff with a variety of operational needs. To continue building an excellent team and provide them with a competitive benefits package, to expand his physical presence to include a European practice and additional partners, and to scale his operations and IT capabilities to support this growing enterprise brought with it demands of time, money, and expertise. Chintan knew he needed help.
“With the assistance of NexFirm, we have upgraded the capabilities of our firm to meet, and in some cases exceed, the standards we were used to at our former BigLaw firms. Operationally, we can now attract and service clients we didn’t have the bandwidth to support in the past, and continue to build our team with the best and brightest legal talent in the industry,” said Chintan Panchal, adding “It has worked out quite well in our case; NexFirm is an essential partner for us.”
The holiday season is upon us, and yet again, you have no idea what to get for the fickle lawyer in your life. We’re here to help. Even if your bonus check hasn’t arrived yet, any one of the gifts we’ve highlighted here could be a worthy substitute until your employer decides to make it rain.
We’ve got an eclectic selection for you to choose from, so settle in by that stack of documents yet to be reviewed and dig in…
The traditional job application and interview process can be impersonal, and applicants often struggle to present themselves as more than just the sum of their GPAs, alma maters, and previous work history. ATL has partnered with ViewYou to help job seekers overcome this challenge. ViewYou NOW Profiles offer a unique way for job seekers to make a personal, memorable connection with prospective employers: introduction videos. These videos allow job candidates to display their personalities, interpersonal skills, and professional interests, creating an eDossier to brand themselves to potential employers all over the world. Check it out today!