Schulte Roth & Zabel really came up with a creative way to make this terrible bonus season even worse for SRZ associates.
Schulte is matching the Cravath scale, but not all at once. Half of the bonus is being paid now, the other half in March. It’s Schulte’s way of issuing a retention bonus without actually spending any extra money.
It also sets Schulte up nicely to avoid paying spring bonuses next year. Not that Schulte management really cares what people think about them. The firm didn’t pay spring bonuses last year. Even though the firm is making people whole with a “spring bonus” payment to those who should have gotten one last spring, the money is still tied to hitting 2011 hours targets.
It’s really one of the most disingenuous bonus memos we’ve seen. While technically the firm is matching Cravath, it’s doing it in a nickle-and-dime way that makes it pretty clear the Schulte partnership begrudges every last cent they have to pay out in bonuses.
If the associates don’t like it, they know where the door is….
The funny thing about spring bonuses is that nobody really planned on them. Firms really thought they were going to be able to get through bonus season paying Cravath’s lowball initial bonuses. Remember when Cravath seemingly set the market, and there was that one partner caught saying “thank God”? That’s what firms were thinking.
Well, spring bonuses have been with us for some time now, and most firms that are going to pay them have announced. Still, there are some firms that seem to be trying to figure out how to delay or avoid paying market compensation for as long as possible.
Schulte Roth is in that category. They’ll be paying spring bonuses, but only if you hit various 2010 and 2011 hours requirements.
And so while Schulte can say that it is “matching” the Cravath scale for spring bonuses, it seems like there are a lot of Schulte people who will not be seeing a single spring bonus dollar. These are the kinds of things that happen when firms are caught off guard by market forces…
With fall recruiting gearing up, and the lateral market warming up, we continue our annual series of open threads about the law firms featured in the Vault prestige rankings. These threads provide ATL readers with a forum to discuss the different firms and their various strengths and weaknesses.
The end of the Vault 100 is in sight. We’re covering the firms in batches of 20 now. Here are the firms ranked #61 to #80, which will provide today’s discussion fodder:
This summer is not as thrilling for law students as summers past. Firms have tightened their belts, and the law students lucky enough to snag one of the few summer associate positions out there are not getting the royal treatment. Or they are, but now the royal treatment is defined as allowing summers to order anything they want off the McDonald’s Dollar Menu (“All the McChickens and baked apple pies you can eat, 3Ls! But get it to go. There’s work to be done.”).
The programs themselves, with trips abroad and lavish entertaining, could seem more like summer enrichment for precocious college students than real employment. But as a general rule, that sort of treatment is a thing of the past.
More typical is the summer program at the Wilmington office of Skadden, Arps, Slate, Meagher & Flom L.L.P., where Temple second-year Nick Mozal is spending his summer in corporate law. Mozal said there has been some entertaining, but the big event so far has been a night at a Phillies game.
Well, it is Wilmington. Are there better options than that?
But even in much more glamorous Philadelphia, the summer experience is lackluster:
James Lawlor, a Reed Smith partner who recruits and hires summer associates, said the firm has been doing less entertaining of summer associates, and when it does, it is more likely to schedule events at the firm’s Center City offices rather than at costly restaurants.
“We took away some of the bells and whistles,” Lawlor said.
Not all firms have silenced their bells and thrown out their whistles, though. After the jump, check out this year’s contenders for best summer associate event. And vote for the firm that should take home the shorter and smaller prize…
Most New York lawyer types have given up on the idea of cooking for themselves; they’re far more likely to get their dinner from Seamless Web than from their own fridge and stovetop. But not Serena Palumbo. She’s now in-house counsel for an Italian bank, and has persevered in making nightly home-made dinners, despite prior stints at Schulte Roth and Shearman & Sterling.
And her perseverance has led to a possible career opportunity: TV celebrity chef. She’s one of the competitors in The Next Food Network Star, a Bobby Flay and Giada de Laurentiis-hosted reality competition, which is exactly what it sounds like.
Palumbo looks great in photos, but a former colleague who caught the premiere told us she struggled a bit in the first episode:
Wolfgang Puck told Giada that the Food Network might have to make room for a new Italian princess.
She did a good job with the food but struggled in front of the camera; she came across a bit forced so she’s not a front-runner but can probably turn things around.
Curses. Corporate lawyers don’t get to spend time in a courtroom, practicing their TV face in front of a jury.
We caught up with Serena by phone this week and asked her how she got onto the show, and more importantly, how she finds time to cook dinner every night at home in Manhattan…
The “pro bono year” is to Biglaw what a “study abroad program” is to most American universities: a time for reflection, exposure to new things, and a more relaxed pace.
It was a necessity born of the recession. Firms did not have enough work to go around; they didn’t want to lose perfectly good employees, but they also did not want to pay them six figures to sit in their offices, twiddling their thumbs until the economy picked back up. So, instead, they offered five-figure stipends and the requirement, in some cases, that their lawyers go off and serve the public good.
This fall, many of those lawyers are heading back to their firms (though some liked being “abroad” in the public interest sector so much that they don’t plan to go back). Skadden is still trying to decide how much worth the pro bono year, or “Sidebar Plus” in Skadden parlance, brought to its associates, and thus how much to pay them upon their return.
It seems though that Skadden is unsure about the worth of Sidebar itself. Though the firm has not officially commented on it, we understand that it is discontinuing the Sidebar Plus program, apparently because work at the firm has picked up and it wants all of its associates back at the farm, plowing the billable hour fields.
What will become of the “pro bono year” for Biglaw? When we emerge from the recession, will it be left behind? Heading into the fall, some firms are still offering the year-away option to incoming associates, including generous stipends…
Most Biglaw New York lawyers would die of malnutrition without SeamlessWeb. Malnutrition, people! Because nobody has time to run down 50 floors to grab a bite to eat after hours.
Given the recession, charging 6:30 steak dinners to clients is no longer cool. But Schulte Roth & Zabel could be taking its anti-Seamless policy a bit too far. Here’s the email Schulte attorneys received last night:
The Firm cafeteria goes to great lengths to provide menu choices that reflect your preferences, and we are constantly looking for new ways to improve those offerings and keep the cafeteria operating as efficiently as possible. Attorneys and legal assistants working in the office on a client-related matter past 7:30 p.m. are encouraged to patronize Café 23, which is open for dinner Monday through Thursday evenings from 6:00 to 9:00 p.m. Beginning April 5th, 2010, you will not be able to place orders through SeamlessWeb until 8:30 p.m. on weekday evenings.
We recognize that this change will cause some of you to rethink your dining options and, to that end, we ask you to let us know what types of food you would like the cafeteria to provide at dinnertime and then give Café 23 a try. Please email your comments and suggestions to [Redacted], Director of Food Services. Thank you.
Screwing around with SeamlessWeb is one sure way to piss off everybody that works for you. And boy are Schulte associates pissed …
In November, we reported that Schulte was letting people go. We noted that Schulte decided to lay people off before the holidays.
Now it appears that Schulte wasn’t exactly being a total Scrooge. It looks like Schulte let people know they were going to be fired back in November, but those layoffs become official this Friday.
Well, at least people were still able to draw a paycheck through the holidays. I imagine the holiday season unemployment line is one of the most depressing places on earth.
In November, we reported that 13 people had been let go. Now that people are actually set to leave the office, that number has gone up.
Details after the jump.
A college graduate without student loan debt is akin to reading a kind quote about Kim Kardashian in a tabloid—it’s rare.
In the past eight years, student loan debt has nearly tripled to a whopping $1.1 trillion, and in the past 10 years, the percentage of 25-year-olds with such debt has risen from 25% to 43%
It’s gotten so bad, in fact, that New York Fed economists warned last month that the burden of student debt could stilt consumer spending by twentysomethings, as well as further hamper the recovery of the housing market and economy.
To get a better idea of what massive student loan debt (we’re talking over $100,000 massive) looks like, we talked to an attorney who graduated with a large student loan debt. We also consulted LearnVest Planning Services CFP® Katie Brewer to see just how their repayment plans stack up.
S. Fischer, 36, Attorney Graduated: 2001
How Much I Borrowed: $100,000
What I Still Owe: $45,000
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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@example.com.
Deal flow has clearly picked recently up for most US associates, counsels and partners in Hong Kong/China and Singapore. We are on the phone with a lot of these folks on a daily basis, many of whom we have known for years. Further, the head of our Asia team, Evan Jowers, and Kinney’s founder and president, Robert Kinney, frequently meet in person with leading US partners in Asia to assess their needs and keep on top of the inside scoop at as many firms as possible. The need for legal recruiting help in Asia from experienced recruiters appears to be live and well. In March, Evan and Robert were in Beijing at such meetings, in April, Evan was in Hong Kong, and for half of June Evan will be in Shanghai and Hong Kong. Thus its pretty easy for us to tell when there has been an across-the-market pick up in capital markets and corporate work.
On an average day in Asia when Evan and Robert visit firms, they typically have 5 to 9 meetings a day, mostly with US partners in the market. The reason they have these meetings is not simply because Kinney makes a lot of US attorney placements in Asia and that a particular firm may have openings; instead these are just visits with friends. After years of working together as business partners, the folks at Kinney are actually these peoples’ friends. The firms Kinney work closely with in Asia (which is just about every law firm – call us if you want to know the one firm in the world we will never place anyone with again, ever, and why) look forward to the visits, or at least act like they do. After seven years in the market, many of the client partners are former associate candidates. Also, these US partners see Kinney as a very good source of market information as well, because they know how deep their contacts are in the market and how frequently they are speaking to counterparts at peer firms.
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