Profits per partner numbers are out and they confirm what we’ve all suspected: 2010 was a really good year to be a Biglaw partner. The Am Law 100 reports that 2010 PPP rose 8.4%. That’s a significant improvement over 2009, when PPP rose only 0.3%
Gross revenue also went up 4% (kind of — more on that below), that’s compared to a 3.4% decrease in revenue in 2009. However you crunch the numbers, Biglaw had a better year in 2010 than it did in 2009.
If you managed to stay in Biglaw. Some of these gains can be traced directly to Biglaw’s willingness to shed people, including equity partners, in order to keep the numbers up…
It’s definitely a good Friday over at Akin Gump. The firm just announced spring bonuses.
Better late than never. We’ve been receiving complaints from financially achin’ Akin associates for weeks. Earlier this month, for example, one Akin Gump lawyer complained about the firm not paying spring bonuses despite robust profits in 2010 (profit per partner of $1.6 million, compared to 2009′s $1.5 million).
So Akin Gump partners had a good year in 2010, and now they’re spreading the wealth. Let’s take a look at what they’re doing with spring bonuses….
You know associates are pissed when they end their emails to Above the Law with lines like this one, from a message we received last night:
NO ONE SHOULD COME HERE. EVERYONE HERE SHOULD LEAVE.
Jacob Riis photographs associates at one Biglaw firm
That’s what happens when you tell your associates that they’re going to get paid significantly below market and like it.
Several firms have not yet announced spring bonuses, and associates at these firms are annoyed. But there are only a handful of Biglaw firms that cut associate salaries back during the recession and have not yet brought their people back to market-level base compensation.
One of the firms that is lagging behind the rest of the market had an “all associates” conference call yesterday, during which management tried to explain why associates were being underpaid and undervalued by the firm.
We’ve previously discussed the trend of partners leaving Biglaw to launch their own firms. We’ve seen a lot of this action in New York and D.C., home to such well-regarded boutiques as MoloLamken, started by former Shearman & Sterling and Baker Botts partners, and BuckleySandler, started by former Skadden partners.
It’s happening out on the West Coast, too. In the fair city of Seattle — one of my favorite places in the entire United States, especially when it’s not raining — about half a dozen partners are leaving K&L Gates to start their own shop. One Queen Emerald City tipster described this news as “the most exciting thing that has happened here since Kurt Cobain died.”
UPDATE (4/5/11): The official press release about the new firm, Pacifica Law Group, appears after the jump.
Who are the lawyers that are leaving, and why? Let’s find out….
This week, Seyfarth Shaw announced the arrival of two construction litigators from Howrey, David Mancini and James Newland Jr. The two partners have been on the Seyfarth website for a while, as we noted last week, but Seyfarth made it official on Monday with a press release.
The other big news this week at Seyfarth: payment of bonuses. Alas, this news isn’t being as warmly received as the Howrey partners.
“Very individualized and below market as usual,” said one source. “No mention of spring bonuses either.”
And now is the time on Above the Law where Elie gets to say “I told you so.”
About five months ago, I mentioned on this site that making $250,000 a year does not make you rich. People got angry with me for saying that. In the comments and around the internet. Apparently stating an obvious fact in a society that is dealing with a widening gulf between the haves and have-nots is controversial.
But at least I confined my financial musings to people in the six-figure range. A new report from Fidelity Investments says that people who are sitting on seven figures of wealth don’t feel rich until they have about $7.5 million.
* Johnson & Johnson will have to fix several factories after an agreement with the FDA prompted by massive product recalls. This still doesn’t explain why my bottle of Tylenol may contain tree nuts. [Bloomberg]
* Charlie Sheen hammered out a custody agreement With Brooke Mueller. That’s nice. [People Magazine]
* Texas may consider a law that would make losers pay attorneys’ fees. Easy, New York Mets. Not all losers. Just those who lose lawsuits. [New York Times]
* A discussion of the legal complaints lodged against the Wisconsin Legislature for Wednesday night’s votes. You know who’s not complaining? This guy. [Wisconsin State Journal]
* A former assistant attorney general from Maine was sentenced yesterday in a child porn case. This is definitely the year of the assistant AG. [ABA Journal]
Happy Birthday Nino
* Not all people living in Idaho are racists, duh. Some are gangsters from Boston. [New York Times]
* Law firm profits and productivity were up in 2010, while demand was flat and revenue was modestly up. Someone named Dan DiPietro and someone named Gretta Rusanow tag-teamed a report all about it. [Am Law Daily]
* A former McGuireWoods partner pleaded guilty to falsifying a tax document. [ABA Journal]
* The Wisconsin Senate passed sweeping curbs on collective bargaining yesterday. The protesters are still howling, but I wonder how loud they’ll be when Pinkertons shove batons in their faces. That’s not actually happening. I just have a fairly violent and anachronistic imagination. [Reuters]
* House Republicans have gone meta in promising a defense of the Defense of Marriage Act. [Los Angeles Times]
* State Senator Carl Kruger, of Brooklyn, will turn himself in on corruption charges today. Big up to Crooklyn. [New York Times]
* Coach Sweater Vest’s hilarious understanding of attorney-client privilege is hilarious. [The Lantern]
* Profits per partner at Kirkland & Ellis topped $3 million in 2010, and the firm boosted its revenue even though it shed some lawyers. I Can Has Spring Bonus? [Am Law Daily]
You don’t see this everyday. Raymond Carey, a 57-year-old white male partner at Foley & Lardner, is suing the firm, alleging that it paid him less than it would have paid a “female, non-Caucasian, younger partner.”
Sadly, it appears the only evidence Carey has for his claims is that he wasn’t paid as much as he feels he was promised. That’s disappointing. When women, gays, or minorities make discrimination claims, there are usually juicy tidbits about inappropriate jokes and statements made to the alleged victim. But I just read through a 63-page complaint and there wasn’t a single alleged “cracker” joke. Apparently nobody at Foley told Carey he needed to show “more bulge.”
But hey, if the brother’s not getting paid as much as other people in his office, maybe he has a point. And even if you don’t find the complaint particularly salacious, one of Carey’s attached exhibits is the Foley & Lardner partnership agreement….
Ed. note: This is the latest installment of Size Matters, one of Above the Law’s new columns for small-firm lawyers.
As has become my tradition, Sunday night I watched the Academy Awards while drinking an Oscar-themed martini. While watching the three-and-a-half-hour award show, I was reminded of a few life lessons that I have learned about practicing law.
First, as I listened to the kids from P.S. 22 sing “Somewhere Over the Rainbow,” I remembered that my years at Biglaw have left me dead inside.
Second, as I saw the many beautiful (and not so beautiful) nude dresses, I was reminded of the importance of transparency in the management of a small law firm. Yes, perhaps this analogy is a stretch, but I just wanted to be able to write about the Oscars and my Black Swan-tini….
So you spent a considerable amount of time courting, selling and maybe even doing some friendly stalking of that attractive lateral partner candidate with a sizable book. After he or she ignored your emails and didn’t return your calls, a few weeks go by and you read a press release in the legal media announcing the recent move to a competing firm.
Rats. Another one got away from you. You cringe when you consider how much time was spent in meetings that did not bear fruit. Your heart aches when recall how you were led to believe this was a marriage made in heaven.
You have been rejected.
The sting of rejection is painful, even for fancy law firms. But you need to find a way that you can turn this disappointment into a legitimate learning experience.
No, this isn’t a pre-party before we come back next fall for the real thing. This IS the real thing. Quinn Emanuel is pushing the envelope on recruiting. The party is now. This is when you meet the partners and associates face to face. This is when we begin the dance that could land you an offer for your second summer BEFORE school starts in the fall.
First: You come to the party. Second: If you like us, you send your resume after June 1, 2014. Third: If we like each other, you get an offer.
We’re not waiting for fall. We’re not doing the twenty minute thing. This party is the real thing!
We hope you’ll join us, and look forward to meeting you.
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.
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