Orrick Herrington & Sutcliffe has been a leader in instituting a merit-based compensation system. Two aspects of their system make Orrick’s commitment to merit-based seem genuine:
1) Partners put in significant time so that merit evaluations are more than just hours cut-offs.
2) Orrick is transparent about how many people get paid.
You can’t run a merit-based system with a Jones Day-like approach to transparency without everybody feeling like they are secretly getting screwed. If you do it out in the open, at least the low-hanging fruit will know that other, better work paid off for others in their class.
So let’s look at the memo. While Orrick generally does a good job of looking at associate productivity instead of mere man-hours, make no mistake, the firm still wants you to bill, and in a timely fashion….
Continue reading “Associate Bonus Watch: Orrick’s Merit-Based Matrix Continues to Be the Most Transparent”
This morning’s news that Boies Schiller is making a mockery of the Cravath bonus scale simply reinforces the prevailing view (pace David Lat) around here that the 2011 Cravath bonus scale is fundamentally unfair.
Agreeing on this point is former Kirkland & Ellis partner Steven Harper (whose apparent pro-associate stance may make him a sort of Biglaw apostate). As Harper points out, “equity partner profit trees have resumed their growth to the sky. As the economy struggled, Cravath’s average partner profits increased to $2.7 million in 2009 and to $3.17 million in 2010 … That’s not ‘treading water.’ It’s returning to 2007 profit levels — the height of ‘amazing’ boom years that most observers had declared gone forever. Watch for 2011 profits to be even higher.”
And yet associate bonuses remain stagnant at 2009 levels. Furthermore, as ATL commenter “The Cravath Cut” is so fond of noting, when viewed as a percentage of profits, bonuses appear especially measly, at least from the associate p.o.v. (The current $7,500 market rate for first-years is just 0.23% of Cravath’s profits per partner. Back in 2007, first-year bonuses equalled 1.36%.) Despite these numbers, if history has taught us anything, it is that you can kill anyone Biglaw’s rank and file will follow Cravath’s lead.
Cravath is among the most profitable firms in the world. We thought it would be interesting to see what the implications of matching Cravath are for those firms with much lower profit margins. Which firms’ partners willingly take the biggest hit by keeping up? Are these firms arguably more “generous”? After the jump, check out those firms that pay the largest percentage of PPP in bonuses.
Continue reading “Keeping Up With the Cravathians: The Ten Most Generous (or Foolish?) Law Firms”
Welcome to the West Coast edition of the Career Center’s Top Partners to Work For. For the past few weeks, we have revealed the best partners to work for in New York and Washington, D.C., as nominated by you, our readers.
Now we make our way across the country to present you with the first set of California partners who hail from the prestigious firms of Sidley Austin, Sedgwick, DLA Piper, Orrick, Arent Fox, and Sullivan & Cromwell.
Let’s find out why these six partners are truly stellar….
Continue reading “Career Center Survey Results: Top Partners to Work For – California (Part 1)”
Stop sexually harassing me.
* Now trending on the Election 2012 campaign trail for Republicans: attacks on the federal court system. Be prepared for SCOTUS term limits and other ridiculous propositions. [New York Times]
* After some bratty behavior from MGA Entertainment, Orrick was allowed to withdraw as counsel. Maybe they’re using the unpaid $3.85M in legal fees to buy noses for their dolls. [WSJ Law Blog]
* Paul Ceglia’s latest lawyer, Dean Boylan, is used to working with fabricated evidence. He was just ordered to pay $300K in damages for creating some fake kiddie porn. [Bloomberg]
* Cate Edwards got married this weekend. Was daddy sporting another $400 haircut when he walked her down the aisle? [Hollywood Reporter]
* Who wins the prize for being the number one deadbeat taxpayer in New York’s Upper West Side? A lawyer with $1.2M in tax liens, that’s who. [New York Post]
* “It would be better if you didn’t wear any underwear to work.” The trials and tribulations of being a female bartender in Manhattan, now brought to you in lawsuit form. [New York Daily News]
The law firm of Orrick, Herrington & Sutcliffe continues to do battle with its former client, MGA Entertainment. It seems that the maker of Bratz dolls is still acting in bratty fashion, by not paying its legal bills, and Orrick has moved to withdraw from representing MGA. (This is not the first time that Orrick has tried to fire its difficult client.)
Fortunately, things are happier on the transactional side for Orrick. The firm just announced that it’s picking up five bank finance and high-yield partners, for its New York office.
The new arrivals come from four different places, including three firms whose names you will definitely recognize….
Continue reading “Musical Chairs: Orrick Assembles an Impressive Team of Finance and High-Yield Lawyers”
Judge Vanessa Gilmore
* Lincoln Caplan writes about Bill Stuntz — “America’s leading thinker on criminal justice, and its hardest to categorize” — in a review of Stuntz’s posthumously published book, The Collapse of American Criminal Justice (affiliate link). [Democracy: A Journal of Ideas]
* Ben Kerschberg identifies eight great law and technology resources — including Above the Law’s tech section, natch. [Forbes]
* Andrew Cohen calls out Judge Vanessa Gilmore for “dubious behavior” in a death penalty case. Judicial diva is as judicial diva does? [The Atlantic]
* Professor Eugene Volokh comes to the defense of “dissental” and “concurral,” two new words coined by his former boss, Chief Judge Alex Kozinski. [Volokh Conspiracy]
Turtle as deadly weapon?
* Don’t let Stephen McDaniel or Bruce Reilly anywhere near a turtle. [Lowering the Bar]
* Check out Orrick’s excellent “It Gets Better” video. Orrick, MoFo and Shearman are the three large law firms we’re aware of that have made such videos; if you know of others, please let us know. [It Gets Better]
* If you are free on November 4th and will be in New York that night, consider attending the Black and White Masquerade Ball of the Dave Nee Foundation, a non-profit committed to fighting depression and preventing suicide. [The Dave Nee Foundation]
Stephen Venuto
People came in wanting to work, which is a shift. Students’ primary goal three or four years ago was to ensure they had a terrific social experience. They short-changed themselves a little.
– Stephen Venuto, head of on-campus recruiting for Biglaw firm Orrick Herrington & Sutcliffe, commenting on the new environment of summer associate programs during the legal recession.
This year, Orrick made offers of full-time employment to 47 of 52 summer associates. The firm’s 90 percent offer rate was at the lower end of the spectrum of the 17 national firms surveyed by Am Law.
There was no rational foundation to do [the spring bonuses]. It was not as if suddenly all the law firms in The Am Law 100 were minting money.
— Ralph Baxter, longtime chairman and CEO of Orrick (shortly before he was overheard screaming at the Wheeling career associates to mint more money).
Edward De Sear
On Friday we brought you the story of Edward De Sear, a former partner at several top law firms who now faces a charge of child pornography distribution. De Sear — a graduate of Columbia and UVA Law, who is now one of the nation’s leading capital-markets lawyers — has been a partner at Allen & Overy, Bingham McCutchen, McKee Nelson, Orrick, and Milbank Tweed. As we mentioned in our prior post, the charges against De Sear came as a shock to fellow New York lawyers and to neighbors of his in Saddle River, New Jersey (my hometown — I can walk to De Sear’s place from my parents’ house).
After our story appeared, a former colleague of Ed De Sear came forward, to share some recollections. “I’m completely stunned,” said this attorney.
What could our source recall about De Sear?
Continue reading “More About the Former Biglaw Partner Accused of Child Porn Distribution”
Edward De Sear
I grew up in the town of Saddle River, New Jersey, a suburb about 40 minutes outside of New York City. With its wooded rolling landscape and small-town charm, Saddle River is a pleasant place to live. Large houses, a mix of stately older homes and well-executed McMansions, sit on sizable plots of land, thanks to two-acre zoning.
It was a peaceful and bucolic locale, and when I visit my parents, it seems much the same. My colleague Staci Zaretsky, our newest full-time contributor here at ATL, also grew up there — and concurs with my assessment.
But Saddle River, like the suburbs depicted in such films as American Beauty and Happiness, is not without its drama. Yesterday Edward De Sear, 64, a resident of Saddle River and a capital-markets partner at the distinguished international law firm of Allen & Overy, was arrested at his home and charged with distributing child pornography. The charge of distributing child pornography carries a mandatory minimum penalty of five years in prison and a maximum penalty of 20 years and a $250,000 fine.
UPDATE (12:00 PM): Make that a former partner of Allen & Overy. De Sear has resigned from the firm, according to a statement issued by A&O. Read it in full after the jump.
Let’s learn more about the allegations against Ed De Sear, hear from someone who knows him, meet his high-powered defense counsel — and check out his beautiful and historic home….
Continue reading “Allen & Overy Partner Accused of Kiddie Porn Purveyance”
I’m going to tell you the tale of two law firms.
Firm A: You win a major, high-profile case. The victory is covered by the legal press and mainstream media. The award to your client is huge, and the victory comes at the expense of a rival firm. Your only problem? Your client won’t pay you your millions in legal fees.
Firm B: You lose a major, high-profile case. Your well-known client gets rocked with a huge verdict, a rival firm is taking a victory lap all around town, and all you can do is tweet about the appeals process. But you are getting paid, and you expect to earn even more in fees as you plan your next move.
All else being equal, which firm would you rather work for?
If you chose Firm A, welcome to Orrick, Herrington & Sutcliffe. And good luck to you…
Continue reading “Would You Rather Win, Or Get Paid While Losing?”
You'd smile too if you got home in time for dinner.
Today’s New York Times has a front-page story by Catherine Rampell entitled At Well-Paying Law Firms, a Low-Paid Corner. The article focuses on the phenomenon of “career associates” or “permanent associates” at large law firms. These lawyers are not eligible for partnership consideration and earn less than traditional associates, but they do enjoy a better “lifestyle,” in terms of more-reasonable hours and greater control over their schedules.
These positions generally pay around $60,000, significantly lower than the $160,000 that’s standard at top Biglaw shops. They are typically located not in New York or Chicago or L.A., but in more out-of-the-way places — such as Wheeling, West Virginia, where Orrick has its back-office operations, or Dayton, Ohio, where WilmerHale has “in-sourced” much of its work.
We mentioned the Times article earlier today. Morning Dockette was not impressed: “Career associates get to have ‘lifestyle’ jobs at Biglaw firms — but really, what kind of a lifestyle is it when you have to live in a crappy city with an even crappier salary?” Elie has also criticized these positions, characterizing them as “barely legal” jobs.
But such criticism might be overly harsh. Let’s look on the bright side….
Continue reading “Not on the Partner Track — and Maybe That’s Okay”
The official title of the NALP conference panel that I attended on merit-based compensation contained a playful shout-out to Sarah Palin: “How Is That Performance-Based Compensation System Working for Ya?”
The panel was originally supposed to have featured a representative of the now-defunct Howrey law firm. So the snarky answer to the question presented might be, “Not well.” (In fairness to merit-based compensation, however, Howrey’s dissolution didn’t have much to do with its model for training, promoting, and compensating associates.)
No mention of Howrey was made during the introductory remarks (or anywhere else in the discussion, for that matter). Rather, the panel focused on the positive — and offered useful advice for firms that are contemplating adoption of performance-based systems….
Continue reading “NALP 2011: Performance-Based Compensation Systems”
What’s going on over at Orrick? Spring bonuses, that’s what — but with a twist.
As we’ve noted before, Orrick remains committed to merit-based compensation, even though some other firms that started moving away from lockstep have returned to it. Orrick’s approach to spring bonuses reflects the meritocratic orientation of its compensation.
Let’s have a look at what Orrick is doing here….
Continue reading “Associate Bonus Watch: Orrick Springs Forward”
On Tuesday we told you that McGuireWoods, Dewey & LeBoeuf, and Weil Gosthal were all contributing to the relief efforts under way in Japan. The response has been pretty great.
While some people seem to think Japan’s status as a rich nation means it doesn’t need any international aid, I don’t see how the country’s long-term ability to recover has anything to do with the immediate humanitarian crisis. Japan will undoubtedly be able to rebuild in the future, but its citizens need food and water today.
We’ve now received word that even more Biglaw firms are pitching in to do what they can. If you know of additional firms supporting relief efforts that we have not mentioned, please tell us in the comments to this post….
Continue reading “More Law Firms Contributing to Japanese Relief Efforts”
Raj Rajaratnam
* The epic insider trading trial of Raj Rajaratnam got underway today. Bess Levin, of our sister site Dealbreaker, comes up with a (rather hilarious and bizarre) list of possible character witnesses for Raj. [Dealbreaker]
* Speaking of the Rajaratnam trial, who were those mystery men observing the proceedings in the courtroom? [Clusterstock]
* In other insider-trading news, a former Dewey & LeBoeuf associate, Todd Leslie Treadway, has been hit with civil insider-trading charges by the SEC. [National Law Journal via WSJ Law Blog]
* Talk about a benchslap: “Mr. Redlich continues to display an apparent disregard for the time and resources that this court must expend in interpreting his poorly-drafted pleadings and analyzing his sloppily-constructed and thinly-researched memoranda.” [Albany Times-Union]
* Four important lessons, for lawyers and technologists, that can be drawn from Michelangelo’s sculpting of The David. [Ben Kerschberg / Forbes]
* Musical chairs: Sean Patrick Maloney — former aide to Governor Paterson, Governor Spitzer, and President Clinton, and a former candidate for New York Attorney General — joins Orrick from Kirkland. [Orrick (press release)]
* Did you know that March is Women’s History Month? [In Custodia Legis]
* On a more festive note, Happy Mardi Gras! [Twitpic]
* Congratulations to Omar Ha-Redeye of Law Is Cool, winner of the 2010 Blawg Review of the Year. [Blawg Review]
* I’m doing Non-Sequiturs today, since Elie is too busy marching on City Hall. [Reuters]
* A round-up of lawyer moves inside the Beltway — including another defection from Howrey (patent litigatrix Jennifer Dzwonczyk, to Venable). [Capital Comment / Washingtonian]
* Speaking of Howrey, Professor Larry Ribstein, a partnership law guru, has some questions about the handling of Howrey liabilities. [Truth on the Market]
* Apparently Cardozo Law ladies need sex as well as walking instructions. [Cardozo Jurist]
* RICO suave: Chevon turns the tables on those Ecuadorian environmental plaintiffs. [WSJ Law Blog]
* Congratulations to Orrick’s eight new partners. [Orrick]
* Larry Bodine offers some marketing advice to United Airlines — after a rather unpleasant interaction at LaGuardia Airport. [Larry Bodine's Law Marketing Blog]
* This week in A Round Tuit: the latest Obamacare ruling, the Egyptian uprising, and the shortcomings of the British legal media. [Infamy or Praise]
Every year, Fortune produces a list of the 100 Best Companies to Work For, and every year a handful of law firms make the list. And every year I wonder why some law firms made the list, while others did not, and whether Fortune actually has any idea about what they’re talking about.
We cover this list every year (click here for our posts in 2010, 2009, 2008, and 2007). Last year, six firms made the list. But this year only four law firms are among the top 100 companies.
Again, I can’t figure out what the two firms that dropped did wrong. But let’s congratulate the four firms that did stay on the list.
So, which firms made the cut?
Continue reading “Annual ‘Best Companies to Work For’ List Includes Four Law Firms”
Our law firm holiday card contest is still underway, but we’re in the home stretch. Voting closes tomorrow, January 9, at 11:59 p.m. (Eastern time). If you haven’t done so already, review the finalists and vote over here.
In the our earlier post, we promised a post in which we’d (1) give shout-outs to some holiday cards that were strong but narrowly missed our cut and (2) poke fun at some of the Christmas cards we found especially disappointing. Here is the promised post.
Let’s look at some of these honorable and dishonorable mentions. Perhaps your law firm’s card is among them?
Continue reading “ATL Holiday Card Contest: Honorable and Dishonorable Mentions”
While some firms ran away from their merit-based compensation plans almost as soon as the economy began to turn around, Orrick, Herrington & Sutcliffe stuck with it. Depending on your performance reviews, you might make less at Orrick than your peers at competitive firms, but you also might make a whole lot more. Click here for our prior coverage of Orrick’s compensation system.
Merit-based compensation makes bonus time particularly complicated. The firm uses the bonus to cover up any gaps between your base salary under its multi-tiered associate structure versus base salary at lockstep firms, and it uses its bonuses to pay out, well, associate bonuses. AND it uses the bonuses to pay out that “extra” compensation top performers at the firm deserve.
If Orrick had a culture of secrecy like some of the Biglaw firms we cover (ahem, Jones Day, ahem), then all that would happen would be a general feeling among every associate that somehow they were getting screwed. But Orrick has fought against distrust and misinformation by being amazingly transparent when it comes to its bonus structure. Last February, Orrick put together a wonderful chart that fully explained to its own associates (and potential new recruits and lateral hires) how the firm determined its 2009 bonus structure. We’ve been told that the firm will put one together again for the 2010 bonus cycle. (In February. Which is unfortunately months away.)
So while we wait for the full story, right now we only know what the Orrick associates know. And that is that their bonus will be using the Cravath scale as a benchmark in its calculation of market compensation…
Continue reading “Associate Bonus Watch: Orrick’s Merit-Based Total Comp Will Use Cravath as a Baseline”
