Year-end is fast approaching in Biglaw. For litigators, the last two weeks of December are usually some of the calmest of the year. Even the hardest of adversaries are apt to adopt a “Christmas Truce” and halt the lobbing of discovery grenades at each other. Courts start to slow down, and most everyone is happy to “pick things back up” after the turn of the year. But like all things Biglaw, complacency at year’s end is impossible for a Biglaw partner — even when work is relatively quiet. Why? One word: collections.
For tax and other corporate structure reasons that your firm’s comptroller will be happy to explain to you (if you dare to actually engage a non-lawyer in conversation about the business of your law firm), most Biglaw firms want to have every single drop of revenue possible in the door by December 31st at 11:59 p.m. While your typical partner is fairly insulated from money matters at the firm all year, and mostly just wants no surprises when it comes to their compensation, at year’s end everyone is recruited and expected to give their all. To what? Collections!
The client always has more leverage but certainly, for the high-end work, the firm is calling the shots.
– Kent Zimmermann, a consultant with Zeughauser Group, commenting on the premium hourly fees charged by Biglaw attorneys in sought-after practice areas like mergers and acquisitions, corporate finance and securities, white-collar defense, and litigation.
(That’s interesting, but what were the highest and lowest rates for partners and associates in 2012? We’ve got that info, and more, after the jump.)
Cravath partners enjoy discounts at Subway, among other perquisites.
It’s rare for partners to leave Cravath, given the prestige, pay, and perks associated with partnership at the firm. And it’s especially rare for a Cravath partner to leave for a rival firm, as opposed to a Wall Street investment bank or major corporation.
Cravath has a very specific system for running itself, and that system has served Cravath very well over the years. As its competitors expend increasing amounts of effort to climb the prestige hierarchy and expand across the globe, Cravath remains at the top, serenely servicing its clients — and printing money for its partners. Part of the reason why Cravath so rarely loses partners to other firms is that it’s so profitable overall that even a partner being paid under Cravath’s lockstep system still does better than a “star” partner at many other firms.
So that’s why today’s news is so notable. A prominent young partner at Cravath has decided to leave Worldwide Plaza and take his talents across town.
Who is the partner in question, and where is he headed?
A correspondent recently posed this question: I’m a litigation partner at a big firm. If I go solo, will my corporate clients continue to use me for their smaller matters?
I’ll use this column to do two things. First, I’ll offer the customary answer to all legal questions: It depends.
Second, I’ll ask my in-house readers at large corporations to let me know (either by posting in the comments or sending an e-mail to the link in the shirttail below) whether their corporations use sole practitioners.
Will big corporate clients follow an individual lawyer who jumps ship and goes solo?
Despite our occasional curmudgeonly moments, we are generally happy people here at Above the Law, and we love happy stories. Our pages are full of feel-good tales (even if negativity bias causes readers to remember the sad or angry stories more than the happy ones).
But enough of that. Let’s hear from the managing partner of our law firm:
Ah! Orlando in March! What a fine time and place for our annual firmwide retreat.
I want to welcome everyone to this magnificent resort, and I want to take this opportunity to say a few words about a subject that’s dear to our hearts: Billing time.
To paraphrase Sir Thomas More in “A Man For All Seasons“: “When a man [fills out his timesheets,] he is holding his own soul in his hands like water; and if he should open his fingers then — he needn’t ever hope to find himself again.”
For the junior associates in the crowd, consider this: You will, at some point, have a slow month. You’ll get nervous that the firm will punish you for not having billed enough hours. To protect yourself, you’ll be tempted to borrow from the future. You’ll think that, if you add just four hours to this month’s time, you’ll have hit your billing target. If you charge those four hours to your largest client, no one will notice that you’ve slightly padded the bill. And you’ll figure that you’ll make this up to the client in some future month; you’ll work four hours some Saturday morning that you won’t write down, so the client will come out even in the long run. “That’s not really fraud,” you’ll think, so you’ll have eased your conscience. . . .
Ed. note: This is the latest in a series of posts on partner issues from Lateral Link’s team of expert contributors. This two-part post about lateral partner hiring was written by Larry Latourette, Executive Director of the Partner Practice at Lateral Link.
The call came in on a dreary Saturday afternoon in November. A senior partner from the Detroit-based firm of Dickinson Wright was going to be in town on Monday and wanted to meet about lateral hiring for their D.C. office. Having been a lawyer at three D.C. branch offices (including a stint as managing partner for Preston Gates) and having attended dozens of similar meetings as a recruiter with out-of-town law firms, I didn’t have high expectations; almost all out-of-town firms think they can successfully compete in the brutal Washington market already rife with marginal offices on life support and shuttered offices of those that didn’t make it. Nevertheless, I agreed to meet since I always learn something from these encounters, and one thing life has taught me is that you never know how things will actually turn out.
The meeting and my subsequent experience reconfirmed that lesson as together we almost doubled the size of their D.C. office by adding 10 lawyers in the subsequent 15 months. While many firms do a decent job at partner recruiting, most have some weaknesses either in strategy or execution. Dickinson, however, put in place the best hiring structure and followed through as effectively as any I have encountered.
To bring more rationality to an often convoluted and inefficient process, the following distills the elements of that approach. While its solutions aren’t unique, the Dickinson model offers a useful benchmark from which other firms might improve their own hiring efforts….
Ed. note: This is a new series from Bruce MacEwen and Janet Stanton of Adam Smith Esq. and JDMatch. “Across the Desk” will take a thoughtful look at recruiting, career paths, professional development, human capital, and related issues. Some of these pieces have previously appeared, in slightly different form, on AdamSmithEsq.com.
A Wharton School professor has analyzed the performance, and pay levels, of external hires versus internal staff promotions. He used personnel data from a division of a major U.S. investment bank for 2003 to 2009, and the characteristics of that talent market are remarkably similar to our own.
Investment banking, Professor Matthew Bidwell writes, represents “an interesting context in which to study the effects of internal versus external mobility [because] organizational performance often depends on the skills of the workforce, [thereby] increasing the importance of personnel decisions.” In addition, workers in banking are “notoriously mobile, making this a context in which organizations regularly engage in external hiring at all levels.”
The genesis of his study was seeking an answer to this question: what has the increased mobility of workers over the past 30 or so years meant, as firms turn away from offering lifetime employment in favor of relying on the external labor market to find experienced workers at all levels of the organization?
* Munger Tolles & Olson recently announced a new partnership class, 75 percent of which is composed of women. Let’s hear three cheers for diversity in the practice of law! Oh, and uh… congratulations to the lone white guy, too. [The Careerist]
* Praise the Lord and pass the ammunition: in an opinion penned by Judge Richard Posner, a divided three-judge panel of the Seventh Circuit struck down an Illinois law banning the concealed carrying of loaded weapons outside the home. [Bloomberg]
* Holy crap! Law students asked for change, and the Arizona Supreme court is giving them exactly what they wanted, which is impressive. 3Ls will now be able to sit for the February bar exam. [National Law Journal]
* And speaking of Arizona, the Phoenix City Council and state Board of Regents have approved ASU Law’s plans to move its campus, and the city even threw in $12M to sweeten the deal. [Phoenix Business Journal]
* Remember the defamation suit Cooley Law filed against a former student who anonymously criticized the school on his blog? His lawyer will defend his anonymity today in court. [Thomson Reuters News & Insight]
* Nevermind the fact that he’s a “person of interest” in a homicide case, because a Guatemalan judge ordered that antivirus mogul John McAfee should be released due to his illegal detention. [Los Angeles Times]
In a recent ranking of the world’s most valuable law firms, the litigation powerhouse of Quinn Emanuel topped the chart in “value per partner” (total firm value divided by number of equity partners). For QE, the “VPP” figure came out to a whopping $17.7 million.
So you can understand why masochistic talented lawyers pursue partnership at the famously hardworking firm with such fervor. Sure, occasionally you’ll hear about a partner walking away from the riches. But for many a young lawyer, making partner at Quinn Emanuel is a dream come true.
Over the weekend, QE announced ten new partners. Who made the cut?
Average law school debt for graduates of private universities hovered around $122,000 last year. With only 57% of new attorneys actually obtaining real lawyer jobs, recent graduates have a lot to consider when it comes to managing their student loan payments. Thanks to our friends at SoFi, today’s infographic takes a look at student loan debt, including the possible benefits of refinancing for JDs…
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.
The JOBS Act created new tools for companies to publicly advertise securities deals online. As a result, thousands of new deals have hit the market and hundreds of millions in capital has been raised, spurring a wealth of new business development opportunities for attorneys.
Fund deals, startup capital raises, PIPE deals and loan syndicates are just a handful of the transactions benefiting from the JOBS Act. InvestorID FirmTM is a platform designed to help attorneys equip their clients with the workflow, marketing and compliance tools to publicly solicit a securities offering online. By providing clients with the tools to painlessly navigate the regulatory landscape of general solicitation, InvestorID FirmTM helps attorneys add value above just legal services.
The Jumpstart Our Business Startups Act (JOBS Act) went into effect in 2013 and permits Regulation D offerings of securities to be advertised publicly. This means that funds and companies can now use social media, emails and web sites to market transactions to new “accredited” investors.
However, with these new powers come new pain points. InvestorID FirmTM provides a secure, fully hosted, cloud-based platform with a breadth of tools for your clients, including: