Shearman & Sterling

The Latest and Greatest Nationwide Start Date Round-up

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Last month, we brought you Open Thread: Nationwide Start Date Round-up. After a flood of tips in response to that, we brought you an Expanded Nationwide Start Date Round-up. After that post, we got another deluge of tips. So now we bring you the latest and greatest round-up: more firms, more 2010 start dates, more pro bono deferral opportunities, more great taste, less calories…. whoops, wrong post.

Proskauer Rose announced start dates yesterday. Incoming associates have got some time to kill and some money to spend, says a tipster:

Proskauer [is] pushing their new associates back to March 2010. They’re offering a $20K stipend, or the option to get a public interest job, start Jan. 2011 and get a $60K stipend. They’re also still honoring a $10K salary advance they had previously offered.

Most firms, like Proskauer, have offered baby associates deferral stipends when pushing back start dates. However, a few disgruntled 3Ls have written to ATL saying that stipends are not forthcoming at their firms. Here are reports from tipsters:

Locke Lord Bissell & Liddell not offering any stipends [not even salary advances] to deferred Class of 2009 associates. Deferred Associates are still receiving their graduation bonuses ($1500), I guess that’s supposed to carry them through until January 2010.

You guys got to say something about the fact that Shearman, unlike most of the other firms, isn’t paying any kind of a stipend to those it is deferring until January ’10.

King & Spalding, all offices, has been pushed to January 19, 2010. Incoming associates were informed in late March. No stipend, and the salary advance is also not an option anymore.

Goldberg Kohn gave their incoming associates a $7500 bar stipend (which was reduced from the originally promised $8,000); they paid for Bar Exam fees; and they gave them a hand wave goodbye. As for their reported “pushing back start dates”, Goldberg Kohn has told their incoming associates that their start date was INDEFINITELY deferred. They said that March 2010 was a possibility but that the date was arbitrary and they are making no promises at all….They have offered no deferral stipend.

We would like to note that Shearman is paying a $65,000 stipend to those deferred to September 2010.

We wanted to call this post “The Final Round-up,” but that seemed overly optimistic. Check out the newest additions to the nationwide start date watch, after the jump. This time around, we’ve included firms (that we know of) that have not yet announced start dates.

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Shearman & Sterling Pushes Back Start Dates: Class of ’09 v. ’10 Can Now Begin Fighting In Earnest

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Shearman logo.JPGShearman & Sterling is the latest firm to ask incoming first years to voluntarily delay their start dates. According to a firm wide memo that went out today, the firm is offering $65,000 (plus the standard bar stipend) for incoming associates who are willing to start in September of 2010.

But there’s an interesting wrinkle. According to the memo:

Incoming Class of 2009 associates who choose to participate in the Delayed Start Program will have an offer to join the firm as a first year associate in the Class of 2010, with the option to start on the first start dates for Class of 2010 associates.

So, officially now, Shearman is asking people not just to give up a year of Biglaw salary, they are also asking them to lose a full class year. That will affect their raises (assuming those will still exist at some point), bonus payouts, and put even the superstars a year behind in their quest for partnership.

According to NALP, Shearman made 128 offers to its 129 participants in the 2008 summers program out of its New York office. This year, the firm expects just 54 summers. But it certainly looks like those 54 people are now directly competing against a significant number of the 128 people the firm now hopes will defer until 2010.

I think it’s safe to assume that the firm doesn’t want 182 people starting in September 2010, so something will have to give.

More details from the Shearman memo, after the jump.

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NALP’s Numbers on 2009 Summer Programs

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NALP logo.JPGYesterday, we mentioned a NALP “glitch” that allowed users to get a sneak peak at the organization’s 2009 statistics about law firms. The problem, whatever it was, was fixed soon after we alerted NALP to the problem. Here’s the quick statement we obtained from NALP:

Legal employers provide this data to NALP each winter. NALP is pleased to be able to publish this free online searchable database each spring once the data submissions are finalized.

Excellent. It’s a great resource.

As promised, today we take a look at some of the overall summer program numbers from the firms that are ranked 11 through 20, according to Vault (check out firms 1 – 10 here).

The moderately surprising fact is that this next batch of firms didn’t decrease their overall summer associate offers as much as the Vault top ten. Looking at the firm’s New York offices, there was a 14% decrease in offers to 2Ls, compared with a nearly 20% decrease in the V10.

But, one firm really does skew those numbers. More details after the jump.

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Open Thread: Cravath & Co. to Shorter Summers

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summer associate program ATL Above the Law blog.jpgDaylight savings is on. The weather keeps flirting with the idea of getting warmer. And area stores are starting to put miniskirts on display in their front windows. You know what that means: Summer’s a-coming. Law students bound for BigLaw summer associate gigs may already be packing their bags. Except it looks like many will be able to pack less clothing, because this year’s summer gigs are going to be a little shorter.

Firms won’t comment on this E-mails are pouring in from law students across the land telling us that a 12-week program is just a summer dream now. According to tipsters, Cravath, Swaine & Moore; Gibson, Dunn & Crutcher; and Kirkland & Ellis are shortening their summers to 10 weeks; and Shearman & Sterling has confirmed that it is rolling it back to just nine weeks. Here’s what we’ve heard:

Cravath just called all of their upcoming 2L Summer Associates and informed us that the summer program would be cut to 10 weeks. They asked that we go online and reschedule our dates accordingly. No explanation given. I’m sure that they made calls rather than emails to avoid a paper trail.

We think the explanation is likely a financial one. Firms are cutting back, and they can get to know you just fine in 10 weeks rather than paying to have you stick you around for 12. Gibson-bound 2Ls got calls as well:

I received a call from the Gibson, Dunn & Crutcher summer coordinators today, as did many of my soon-to-be colleagues. The start date moved up to May 18th (instead of the 11th) and the end date moved back to July 24th (instead of the 31st). They tried to sell it as a “good move” for everyone because the recruitment season start so early now (August); they think both the firm administration and the summer associates will appreciate some time to prepare for recruitment season. Is this some sort of signal? Should 2L summers be planning to interview in the fall?

C’mon now. Let’s not totally freak out. Or let’s, but in the comments. Here’s an open thread to discuss which firms are scaling back their summer programs.

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Update: Shearman & Sterling on Shearman & Sterling’s Corporate Practice

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Shearman logo.JPGShearman & Sterling declined to comment on the rumors of “performance based” layoffs we reported on, yesterday. However, they did want to comment on our characterization of their faltering corporate practice:

The current environment has presented significant opportunities for Shearman & Sterling across its platform. We have been involved in many of the most complex situations that have arisen in recent months and continue to be active on a large number of those transactions throughout the world, including the sale of Merrill Lynch to Bank of America, Allianz’s sale of Dresdner to Commerzbank, numerous engagements for financial institutions and hedge funds arising under the Lehman insolvency (including our worldwide representation of Bank of America), and Hypo Real Estate in its German restructuring. We also have seen a substantial increase in the demand for our litigation and international arbitration practices. In response to your comments, activity levels in our Capital Markets practice have indeed slowed somewhat, as they have at all major firms, but other practices, as evidenced above, are very busy. Consistent with our normal practice, we are actively allocating associate staffing to areas of the firm where there is the greatest need.

So, there’s that. We’ll try to keep on top of how Shearman’s performance reviews go as they get started over the next couple of weeks.

Earlier: Nationwide (Stealth) Layoff Watch: Shearman & Sterling and Loeb & Loeb

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Nationwide (Stealth) Layoff Watch: Shearman & Sterling and Loeb & Loeb

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Shearman logo.JPGWe’ve been hearing reports all morning about some news leaking around the offices at Shearman & Sterling. One tipster collects the potentially bad news in a clear way:

[M]id and senior-level associates that would in normal economic conditions have left any way are being asked to leave. In addition, Shearman’s senior management has advised Partners to be strict in reviews in the upcoming review process (scheduled for the coming weeks) for all levels of associates (not only mid- and senior-levels).

Apparently, the firm is determined that any layoffs get reported as “performance based” attrition rather than full-on layoffs. Sources suggest that firm leadership is still smarting over the reputation hit they took when they laid off people, back in 2001.

The firm has not responded to a request for comment.

Whatever they want to call it, there seems to be good reason for Shearman associates to be worried over the next couple of weeks. We’ve also learned that Shearman’s Capital Markets practice is not doing well. A tipster reports:

Business in Capital Markets has slowed dramatically over the past several months. Junior associates from Capital Markets have been temporarily staffed on litigation matters.

We know that Capital Markets practice groups are slow all over. But staffing corporate attorneys on litigation work suggests that there are larger problems with Shearman’s corporate practices.

Stealth layoffs at Loeb & Loeb, and the firm’s response, after the jump.

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Legal Eagle Wedding Watch 10.19-11.2: Twin Souls

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We’re back with our second installment of the Legal Eagle Wedding Watch in as many days. Enjoy, and have a happy, happy Friday.

Behold, the most outstanding legal lovebirds from the past three weeks:

champagne glasses small.jpg

1. Brenda Zelin and Kyle Williams

2. Alyssa Greenwald and Edward Wittenstein

3. Erik Hyman and Max Mutchnick

4. Jamie Bartholomew and Steven Aller

Evaluate the worthiness of these couples, after the jump.

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Holiday Cheer from Shearman & Sterling

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champagne bottle Christmas party holiday party Above the Law blog.jpgThe New York Times reports on a growing trend in American business: the cancellation of holiday parties. With the stock market having finished its worst month since 1987, and with layoffs running rampant, there’s not much to celebrate. People, this is no time for egg nog.

Law firms that have canceled holiday festivities include DLA Piper (Chicago) and Fried Frank. Financial firms going Grinch include Morgan Stanley, Barclays, and American Express.

But some law firms won’t be bullied into relinquishing the Christmas spirit. From the NYT:

[S]ome companies see holiday gatherings, whatever the style and scale, as an important hedge against sagging morale — particularly at a time when raises and bonuses will likely be scarce.

“It’s important to get people together for a little social event at that time of year, especially when it’s been as tough a year as this,” said Peter Horowitz, a spokesman for the Wall Street law firm Shearman & Sterling, which is planning holiday lunches and dinners at less expensive restaurants this year. “But at the same time, you have to make sure that you don’t go overboard.”

Perhaps this bodes well for bonuses at Shearman? Hopefully S&S stockings will be filled with cash and not coal.

Or are holiday parties the opium of the masses for Biglaw? Throw everyone a big party, with lots of booze, then announce low bonuses the next day, when they’re too hungover to complain?

Forget Caviar: Holiday Parties Feel the Pinch [New York Times]

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Law Firm Merger Mania:
Allen & Overy + Shearman & Sterling = A&S&S??

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law firm merger small.jpgThe Lawyer reports that Allen & Overy might be in merger talks with Shearman & Sterling:

A&O is occasionally tempted by the thought of a market-busting merger. It approached Freshfields back in 2006, as exclusively revealed in The Lawyer (see story).

Senior partner David Morley is moving to New York next week for three months (see story). This is being taken in New York as proof that a deal is in the offing.

A&O has nicked a whole load of Shearman’s Germans – though by rights this ought to rule out a deal with the rest of the firm.

Shearman needs help. (Actually, this is incontrovertible.)

After the jump, could this actually happen?

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Allen & Overy + Shearman & Sterling = A&S&S??”

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A Silver Lining to the Wall Street Cloud: More Work for Lawyers (at Shearman, Sullivan, Wachtell, Weil, etc.)

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Wall St Wall Street investment banking finance financial.jpgIn case you hadn’t heard, Wall Street is in meltdown mode right now. Our colleagues over at Dealbreaker have been working over the weekend and around the clock to cover all the latest developments.
Here are the two big stories from the financial world. First, the top-level parent company of Lehman Brothers, Lehman Brothers Holdings Inc., is filing for Chapter 11 bankruptcy protection. (But no sleeping in for Lehmanites; they have been informed that they’re still expected to show up to work this morning.)
Second, Merrill Lynch, the investment bank that some feared might be next to go down the Bear Stearns / Lehman Brothers path, has reached a deal to sell itself to Bank of America, for $50 billion.
What do these deals mean for lawyers? Well, at least in the short term, they bring good news: more work. (Over the long term, of course, the news may be less good, as current and potential future clients vanish from the landscape on Wall Street.)
For its bankruptcy, Lehman is turning to Weil Gotshal & Manges, long known for its top-notch bankruptcy practice. From Dealbook:

Weil.gifLehman has hired Weil, Gotshal & Manges, the law firm that handled Drexel [Burnham Lambert]‘s bankruptcy filing [in 1990]. Harvey Miller, the head of Weil’s restructuring practice, is known as one of the deans of the bankruptcy bar.

In addition, Lehman is trying to sell its more valuable assets, including its broker-dealer and asset-management operations. It appears to be represented in those efforts by Sullivan & Cromwell, according to TheDeal.com (subscription).
Wachtell Lipton Rosen Katz WLRK AboveTheLaw Above the Law blog.jpgMeanwhile, Wachtell, Lipton, Rosen & Katz, a powerhouse in financial-institutions M&A, is getting a piece of the action on the Merrill deal. As reported by the Wall Street Journal, the Merrill / B of A deal was hammered out in “a marathon series of meetings at Wachtell, Lipton, Rosen & Katz, the law firm which has long represented Bank of America in its deals.”
Shearman & Sterling logo Above the Law blog.jpgWachtell isn’t lending out their offices for free. As TheDeal.com reports, WLRK is indeed representing Bank of America in the transaction (for a fee that will be well into the eight figures — Ed Herlihy doesn’t come cheap). Merrill Lynch is being advised by Shearman & Sterling.
If you’re aware of other winners and losers from these deals, please share what you know, in the comments.
Lehman Announces Bankruptcy Filing For Holding Company [Dealbreaker]
Bank of America Reaches Deal To Buy Merrill Lynch [Dealbreaker]
What a Lehman Bankruptcy Filing Might Look Like [DealBook]
Bank of America to Buy Merrill [Wall Street Journal]

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