Two quick items about Clifford Chance, concerning two favorite topics here at ATL: layoff rumors and bonuses. A tipster at the firm told us:

CC/NY has laid off more structured finance associates in the wake of the six associates laid off last October. At least two more structured finance associates have been laid off in February — one straight layoff and one “pushed out,” i.e., strong-armed to leave — and there are rumors of more to come in other areas as well (such as M&A)….

The morale is low and associates [fear] that the CC/NY of the 2002 Memo vintage has come back. How can a firm which pretends to be one of the New York elite firms resort to layoffs as soon as market has slowed down? This is fantasy.

We contacted the firm, and spoke on the phone with a spokesperson:

“There have not been any layoffs since the six associates affected last October, not in structured finance nor any other practice. There aren’t any plans [for layoffs] in any practice area.”

“I’m not saying that we don’t continually monitor our business and work allocation. But we haven’t had layoffs in terms in terms of people being asked to leave for economic reasons. The layoffs in October were in direct response to market conditions in a very specialized product area, rather than a trend.”

We’re inclined to credit the firm on this. A firm that openly acknowledges layoffs, as Clifford Chance did, has more credibility when it denies layoffs than a firm that sheds a suspiciously high number of lawyers, but claims that everything is “business as usual.”
But we do have a correction to our prior report that Clifford Chance paid market bonuses, on an across-the-board / lockstep basis. Read more, after the jump.

Continue reading “An Update on Clifford Chance”

Here’s your daily dose of schadenfreude. Associates aren’t the only ones suffering in the economic downturn; partners are getting axed too. From the Chicago Tribune:

Jenner & Block, a top Chicago law firm best known for its trial attorneys, has downsized its partnership for the second time in two years.

At least 10 partners have been told in recent weeks they will have to give up their equity in the firm, with some being asked to leave, according to people familiar with the discussions….

“We periodically review how each of our partners and associates are doing and act on those reviews,” [firm chairman Anton] Valukas said. “It’s nothing different this year than we’ve done in other years.”

Guys at his high school got de-equitized all the time. It was no big deal.
Jenner & Block law firm cuts several partners [Chicago Tribune]

Yes, it’s March already. Guess what that means? No, we’re not talking about March Madness. We’re thinking of… bonus news from Paul Hastings!
A tipster in a non-New York office summarizes:

It looks like we matched Latham’s base levels. I’ve also been told that NYC matched the special bonuses there.

Better late than never!

We got our grubby paws on the memo sent to associates in California, Chicago, and Washington, DC. Here’s the money (hehe) quote:

This year’s associate bonus pool of $23.3 million is the largest in Firm history – a 20% increase over last year’s pool – with approximately 81% of participating associates receiving a bonus. Additionally, bonus awards for your offices are higher than last year at virtually all levels.

Performance expectations are steep, thus receipt of a bonus is a significant achievement. Top level bonuses are the exception and are awarded to associates distinguishing themselves by consistently demonstrating exceptional performance that far surpasses the Firm’s standards. Approximately 10% of all bonus recipients distinguished themselves at this level and were awarded the top bonus.

We haven’t seen memos for other PH offices. A source in Atlanta, though, claims that the firm cut ATL bonuses by 50 percent. Perhaps that’s their way of balancing out the recent pay raise.
We also haven’t seen the New York numbers. But at a meeting “a while back,” Barry Brooks, the firm’s New York managing partner, effectively told associates they’d match shops like Latham and Gibson.
The full memo for California / Chicago / D.C. — plus additional discussion about Paul Hastings, including complaints about the timing of their class-year raises and bonus payments — after the jump.

Continue reading “Associate Bonus Watch: Paul Hastings – California, Chicago, DC
(Plus a complaint about timing of PH’s raises and bonuses.)”

A bit of follow-up on goings-on at the University of Pennsylvania Law School. First, in yesterday’s post, we predicted: “[E]xpect Dean Fitts to send out some vague email offering blanket reassurances, but declining to say more due to federal privacy law. That seems to be par for the course for these incidents.”
Our prediction has been vindicated:

Sent: Wed 3/5/2008 12:01 PM
To: [U. Penn. community]
Subject: A Message from Dean Fitts

To the Law School Community,

As you may know, there was increased Public Safety presence at the Law School for a few days. Like most institutions, the University varies security on campus in response to changing situations and often does so out of an extra sense of precaution. We usually do not discuss these measures publicly. In this case, we did not do so out of respect for the privacy of a member of our community. Let me assure you that there were never any threats made nor were there any “incidents” at Penn Law. Our decisions in this case, as in others, are made and evaluated constantly with the intent of serving the best interests of our community. If you have any questions or concerns, feel free to stop by
my office.

Have a great spring break,

Mike

Second, check out comment #7 on the Daily Pennsylvanian article, posted today at 12:04 AM. It purports to be from the student in question (who identifies himself by name). This individual writes:

Unless there was yet another mishap by Penn or Penn Law, I am the student who was placed on this leave of absence. This is nothing more than a staged proceeding to force me to make precedent in the third circuit by tarnishing my reputation.

I am not on any psychiatric medication nor have I taken any. If the University actually believes that I pose a threat to your safety, then it should protect you by requiring me to seek mental health treatment instead of invoking this policy. I am now alone and upset and near a campus full of bright and happy students.

Very curious. We do wonder whether some law schools, out of an entirely legitimate concern for the safety of their students, overreact to reports of unusual behavior. History is full of examples of mass hysteria, from the Salem witch trials to the day care sex abuse scare, that turned out to be unfounded.
We’re not disputing the need for law school administrators to be vigilant, especially in light of the horrific school shootings of the past few years. And we completely understand their concern: if, God forbid, something were to happen on their campuses, they would be held responsible.
We’re just playing devil’s advocate and tossing out some fodder for discussion. That’s all.
Comments: Student prompts security increase [Daily Pennsylvanian]
Earlier: What’s Going on at Penn Law?