Today’s Biglaw layoff story involves a firm that’s even more impressive. This firm has been recognized as a great place to work by Fortune, Crain’s, and Above the Law. In fact, it topped our list of the 12 top rated firms for 2013.
Which wonderful law firm is parting with some people, and why?
As an instructor he’s a bit of a fascist, but you can’t help but feel sorry for Professor Hitler as he finds out that the law school scam is coming to an end. When a law school announced that tenured faculty were on the chopping block, some sharp minds put together a Downfall video to capture the feelings of law professors facing their fears over rejoining the private sector.
* Secrets secrets are no fun, secrets secrets hurt someone: Chief Justice Roberts named two judges to two secret courts. Congrats to Judges Boasberg and Tallman. [Legal Times]
* Bankruptcy just got a lot more fabulous. AG Eric Holder announced that the government would extend recognition of same-sex couples in federal legal matters. [New York Times]
* With reports of firms’ financials beginning to trickle out, partners are getting anxious. No one wants to be the next Dewey — or the next Gregory Owens. [Am Law Daily]
* This is the second year in a row that Greenberg Traurig has posted financial declines. Perhaps the firm started its lower pay, non-partner track residency program for a reason. Something to think about. [Daily Business Review]
* “It’s our duty as partners to help.” Law students articling at the recently dissolved Heenan Blaikie are learning a lesson in Canadian collegiality. The firm is trying to help them get new jobs. [Montreal Gazette]
* Speaking of Heenan Blaikie, we’re hearing chatter that the firm’s talks with DLA Piper may be in trouble. HB says the talks they’re off, but DLA says they’re ongoing. Hmm, that sounds dramatic. [WSJ Law Blog]
* “It’s a very L.A. thing. We’ll see how long it lasts.” If you had to choose, you’d probably go to Dumb Starbucks over Starbucks. Order a Dumb Frappuccino before they get a C&D letter. [Los Angeles Times]
There seems to be lots of good news emanating from Akin Gump these days. Last month, for example, the firm won the Above the Law holiday card contest — a contest it has traditionally dominated, with two wins under its belt.
A cool holiday card is fun, but above-market bonuses are funner. And it seems that Akin Gump can boast about bonuses now too.
This is quite a departure from last year. Why are Akin associates so happy about their bonuses?
* According to the latest Citi report, the Am Law 50 outperformed the rest of their ilk in terms of net profits and profits per equity partner. As for the rest, ha ha ha, enjoy all of your “modest” returns. [Am Law Daily]
* The ABA’s Standards Review Committee is close to a decision on its bar-exam passage standard for accreditation. It’s tough to protect students and law schools at the same time. [National Law Journal]
* Oh my! Professors at Albany Law are incredibly pissed the school would dare imply they suggested lowering academic standards to put asses in seats and stave off faculty layoffs. [New York Law Journal]
* Wendy Davis has left her position at Cantey Hanger, one of Fort Worth’s largest law firms, to dedicate herself fully to her bid to become Texas’ Next Top Governor. You stand, girl! [Fort Worth Star-Telegram]
* Yuna, a Malaysian pop star with a law degree who’s worked with artists like Pharrell, doesn’t think she’ll be able to fall back on her J.D. now that she’s in America. Funny, because many Americans feel exactly the same way. [Pittsburgh City Paper]
Ed. note: This is the latest installment in a series of posts on lateral partner moves from Lateral Link’s team of expert contributors. Michael Allen is Managing Principal at Lateral Link, focusing exclusively on partner placements with Am Law 200 clients.
A good recruiter can identify window-shoppers. We are all tempted to do it. You walk down Rodeo Drive and on your left, the polished chassis of a Bugatti Veyron catches your eye and on your right, the muted silver of Lamborghini Veneno flickers in the sun. A Lamborghini or Bugatti would more than satiate most people, but the titans of Biglaw are always chasing that elusive Maybach Exelero and in the process, they may at the same time alienate top-tier “Lamborghini” lawyers.
This condition is endemic to some of the top Am Law 100 law firms. Despite their massive push for expansion, many firms are still hesitant to bring in outstanding lateral candidates. The process is also torturous for the candidates who go through multiple rounds of interviews before they are finally turned away for bill rate concerns or potential conflicts, not even mentioning the opportunity costs of time for everyone involved in the process…
About two years ago, in May 2012, Dewey & LeBoeuf filed for bankruptcy. It was the largest law firm bankruptcy in the history of the United States. Shortly thereafter, industry insiders began to speculate as to when the next big firm would fold. In June 2012, our own Mark Herrmann suggested that it was a “near certainty that a firm [would] collapse within the next two years.”
Lo and behold, he was correct, for it was just last night that another embattled Biglaw firm decided to close its doors. Perhaps the loyal employees clinging to this firm’s carcass should have been better prepared for something like this, since it was preceded by waves upon waves of partner defections and talks of a “major restructuring,” likely due to financial problems, among the firm’s leaders.
You’ll want to keep reading, because this is the largest law firm to ever fail….
Some large law firms, when announcing year-end associate bonuses, also announce base salaries for the new year. In Biglaw, the salary scale hasn’t budged since January 2007, when Simpson Thacher announced the $160K scale (providing for base salaries ranging from $160,000 for first-year associates to $280,000 for eighth-year associates).
You could view this as a compensation cut, since we have had some inflation (even if not high inflation) since 2007. According to the inflation calculator of the Bureau of Labor Statistics, $160,000 in 2013, the latest year available, had the same buying power as $142,407 in 2007. Of course, law school tuition has climbed quite a bit since 2007 — so even for the lucky souls who land Biglaw jobs, the value proposition of a law degree isn’t as appealing today as it was back in 2007. You’re paying more for a degree that gets you less.
What’s the solution? Work for a firm that will pay you more than $160,000 as a starting salary, of course! Let’s say hello to the newest member of the $160K-Plus Club….
As more and more people discover that law school is not the “get rich quick” scheme that they once thought it was, applications continue to plummet. As of late January, law school applications were down 13.7 percent from where they were in 2013. The loss of student revenue is killing the bottom line at some law schools, and members of their administrations don’t like it one bit.
These ivory tower inhabitants seem terrified and are reacting accordingly, having been forced to deal with the dearth of applicants and enrollees in all sorts of ways. Some law schools are doing the right thing and lowering tuition in the hopes of luring students to their once hallowed halls.
Others are hacking and slashing away at their faculty and staff, just like law firms. First came news of the potential purge of junior faculty at Seton Hall (which was fortunately averted). Next came the staff massacre at McGeorge. Then Thomas Jefferson started handing out pink slips, and all hell broke loose.
Which law school is the latest to announce a possible pruning of its ranks? We’ll give you a hint. This law school is located in New York, a state with 15 law schools to choose from, several of which have been sued over their allegedly deceptive employment statistics…
(Please note the multiple UPDATES added to this post.)
Grover Cleveland’s excellent book of career advice for young lawyers has a delightful title: Swimming Lessons For Baby Sharks (affiliate link). It nicely captures the competitive nature of the legal profession today.
But the cutthroat competition isn’t for everyone. One high-powered lawyer, coming up on partnership at a top-tier law firm, decided he didn’t want to swim with grown-up sharks. He’d rather go swim with blue whales — quite literally. He’d rather be where the wild things are — and by “wild things,” we aren’t talking about cute drunken paralegals at a post-closing party.
Let’s look at this lawyer’s departure memo — great opening line, or greatest opening line? — and find out how he made enough money to break out of Biglaw’s golden handcuffs….
Are you challenged by the costs and logistics of maintaining your office, distracting you from the practice of law?
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:
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 six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months (Robert Kinney and Evan Jowers will be in Hong Kong again March 15 to 23), and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.
Everyone is talking about the importance of Social Media in Corporate America. But it is relatively safe to say that most law firms and lawyers are slightly behind the social curve. Most lawyers, at minimum, use LinkedIn, for networking. Some even use Twitter for pushing out short, pithy content, while many have Blogs, where they write their little hearts out. The adage “it is better to give than to receive” is not always true though in the world of Social. In the Social World – it is best to listen, give back and engage.
Social Media is a communications tool that can deeply educate you about the needs and wants of your clients and prospects when used in conjunction social media monitoring and sharing tools.
Take this quick quiz and see if you know how to use Social to help you engage more with your clients or to better service the ones you have.