Simpson Thacher

Nationwide Layoff Watch: Correcting the Record on Simpson Thacher

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Simpson Thacher Bartlett LLP Abovethelaw Above the Law blog.jpgEarlier today, the New York outpost of TheLawyer.com, a British publication, reported on personnel reductions at Simpson Thacher & Bartlett. The report was of keen interest to us because we’ve been hearing rumors — generally vague and unsubstantiated, but persistent — of “stealth layoffs” at STB.
The folks over at The Lawyer seem to be hearing similar gossip, some of which appears in their report:

[Simpson Thacher ] has taken the unusual step of introducing a mid-year performance review for its associates. It is understood that the benchmark for associates to reach in order to keep their jobs is significantly higher than in previous appraisals.

Market sources have ­suggested that up to 30 associates have been asked to consider their positions as a result of the review. Simpson Thacher chairman Pete Ruegger denied the firm was making credit crunch-related layoffs.

This report appears to be erroneous, at least in a few respects. We spoke with Simpson partner James D. Cross, co-chair of the firm’s Personnel Committee, who described it as “wildly inaccurate”:

It’s business as usual here as far as reviews. We have not changed our standards, and we have not changed our process. We’ve always had a midyear review process. I don’t know where someone came up with the number of 30 [affected associates].

A second STB source echoed Cross’s statement, telling us that “no new mid-year process was introduced.” The firm has long conducted midyear reviews for (1) first-year associates and (2) more senior lawyers who received negative annual reviews. According to this source, “if a more senior lawyer gets a negative annual review, that person will often be slated for a midyear review so that progress can be checked after six months, not just annually, and so that the firm makes sure it is doing all it can in terms of additional training and mentoring.”
Additional discussion, after the jump.

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Legal Eagle Wedding Watch 7.13 and 7.20: Columbian Dictatorship

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LEWW champagne2.jpgWe interrupt the spirited smackdown of ATL Idol to bring you a couple of LEWW-related announcements. First, as expected, Team Ho-Glover scored a decisive win in June’s Couple of the Month voting. LEWW salutes this glorious SCOTUS – WGWAG – Friend-of-Lat juggernaut!
In other news, two notable grooms didn’t make our list of finalists this week. The first is Lee Bollinger, son of current Columbia University president (and former University of Michigan president) Lee Bollinger. And the second is Paul Lieberstein, who looks a lot like that guy who plays Toby in The Office. Because he is that guy.
On to this week’s contestants:

1. Sue-Yun Ahn and Charles Kitcher
2. Jennifer Hare and Jaron Shipp
3. Gena Hatcher and David Lenzi
4. Athena Theodoro and Daniel Adamson

Click on the link below to read more about these impressive legal matches.

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Legal Eagle Wedding Watch 2.3: Sterling Reputation

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Legal Eagle Wedding Watch NYT wedding announcements Above the Law.jpgYes, LEWW hears the howls of protest from our readers about the weeks we skipped recently. We’ll do a makeup post soon, we promise. The weddings pages have been such a wasteland lately that it’s been hard to pull together the kind of legal and nuptial excellence you’ve come to expect here. And it’s crushing our spirit.
Take this week. The NYT featured just seven weddings total, with only two LEWW contenders and one Ivy degree (from U. Penn). Here are the two finalists:

1.) Robin Rosenthal and Richard Rothfeld

2.) Erin Conroy and Thomas Welling Jr.

More about these newlyweds, after the jump.

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Musical Chairs: Kasowitz Attributes IP Head’s Departure to ‘Extremely Inappropriate Personal Conduct’

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Jeremy Pitcock Jeremy S Pitcock Morgan Finnegan Above the Law blog.jpgIf we hadn’t already named a Lawyer of the Day, the prize might have gone to Jeremy Pitcock of Morgan & Finnegan. From the American Lawyer:

The former head of intellectual property at Kasowitz, Benson, Torres & Friedman was fired in December for “extremely inappropriate personal conduct,” according to the firm.

Not merely “inappropriate” conduct, but “extremely inappropriate” conduct. We’re guessing it was strenuously objectionable.

Jeremy Pitcock, 35, joined Kasowitz in March 2006 after being wooed from Simpson Thacher & Bartlett, where he was a senior associate. Kasowitz named him head of IP not long after. But after less than two years, Pitcock left the 200-plus-lawyer firm for 52-lawyer New York IP boutique Morgan & Finnegan.

Morgan touted Pitcock’s hiring as “an outstanding addition to our successful litigation practice” when it announced his move on January 8. But the Kasowitz firm says he was forced out following an unspecified incident.

“Mr. Pitcock was terminated for cause by Kasowitz, Benson in December 2007 because of extremely inappropriate personal conduct,” name partner Daniel Benson said in a statement.

So what prompted the firm’s statement?

Kasowitz’s statement followed the publication of an article in trade publication IP Law 360 last week, which reported that Morgan had lured Pitcock from Kasowitz. In his statement, directed toward the publication, Benson said, “It was inaccurate to use ‘nab’ in your headline, or to use ‘jump ship’ in your opening paragraph.”

“We were not looking to publicize this incident, but because of those incorrect news items, we felt compelled to set the record straight,” Benson said in a press release that the firm distributed online.

We’re intrigued — and the full article in the American Lawyer doesn’t offer much more. If you have details on the alleged conduct, please email us. Thanks.
Update (6/6/08): Jeremy Pitcock has filed a $90 million defamation lawsuit against Kasowitz Benson. See here.
Kasowitz Fired its ex-IP Chief for Inappropriate Conduct [The American Lawyer via Law.com]
Jeremy S. Pitcock bio [Morgan & Finnegan]

Biglaw Perk Watch: Good News for Parents, from Davis Polk and Arnold & Porter

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breastfeed redacted lactate lactation room Above the Law blog.JPGSometimes we wish we had the breastses. Then we could enjoy the luxurious lactation room at Davis Polk & Wardwell.
Back in this post, we wrote about the lactation room at Simpson Thacher & Bartlett. We’re sure it’s plenty nice. But we doubt it’s as snazzy as what the competition on the other side of Lexington Avenue is offering.
Check out this Davis Polk email, which went out late last year (exclamation mark in the original):

From: **** On Behalf Of Associate Development
To: all.lawyers.ny
Subject: Nursing Room

We are pleased to announce that the firm now has a private nursing room!

Located on the 10th floor, this cozy room is equipped with brand-new furniture, including a comfortable chair and end table, refrigerator, and reading materials of interest to new mothers. Access to the secure room is available through the Security Desk. A small sign on the outside of the door indicates when the room is occupied.

We hope that this amenity will provide returning mothers who wish to continue nursing their babies additional support during this important transition. Your privacy and comfort are our priority.

Please do not hesitate to contact [xxxx] or any member of the Associate Development Department if you have any questions. Thank you and congratulations to all of our new DPW Parents.

We’re curious about the “reading materials of interest to new mothers” at DPW. Draft asset purchase agreements? SEC proxy filings?
Meanwhile, in other happy news for parents, Arnold & Porter has jumped on the improved parental leave bandwagon. Following the recent trend, which we’ve been following in these pages, they’ve increased the paid leave they provide to women who give birth or primary caregivers of a newly adopted child. It used to be 12 weeks; now it’s 18 weeks, which appears to be the “market” rate these days.
Transmittal email, plus A&P’s full leave policy, after the jump.
Earlier: Biglaw Perk Watch: Lactation Rooms

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Nationwide Pay Raise Watch: Business As Usual at Simpson Thacher

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Simpson Thacher Bartlett LLP Abovethelaw Above the Law blog.jpgAlmost one year ago, Simpson Thacher & Bartlett announced a major associate pay raise, unveiling a new pay scale with a starting salary of $160,000. The move sent tremors throughout Biglaw. Firms in New York quickly followed suit; firms in markets outside New York took longer, but eventually matched (for the most part).
But if you’re looking to STB to lead the market higher still, you’ll be disappointed. Yesterday the firm sent around this memo:

SIMPSON THACHER & BARTLETT LLP
MEMORANDUM TO ALL ASSOCIATES AND COUNSEL
Effective as of January 1, 2008, the annual base salary for each class year will be as follows
Class of 2007 – $160,000
Class of 2006 – $170,000
Class of 2005 – $185,000
Class of 2004 – $210,000
Class of 2003 – $230,000
Class of 2002 – $250,000
Class of 2001 – $265,000
Class of 2000 – $280,000
Class of 1999 – $290,000
Salaries for counsel and classes senior to 1999 will be addressed on an individual basis and discussed with those individuals during the Annual Review process. Increases will be reflected in the January 30, 2008 paycheck.
January 14, 2008

Earlier: Breaking: Simpson Thacher Raises Associate Base Salaries!!!

Reading the Associate Compensation Tea Leaves
(And a Digression on Billable Hours)

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100 dollar bill Above the Law Above the Law law firm salary legal blog legal tabloid Above the Law.JPGWe’re a week or so into 2008, which raises the question: a new year, a new associate pay raise?
One might expect pay raises to be announced around fall recruiting time, to entice the 2Ls. Historically, however, the last two base salary increases were announced in January (perhaps in an effort to reduce the post-bonus exodus of associates). In January 2007, Simpson Thacher announced its new pay scale, with a $160,000 starting salary. The prior raise, by Sullivan & Cromwell to $145,000, was announced in January 2006.
But don’t expect more of the same in January 2008. From the National Law Journal:

As law firms wrapped up operations for 2007, the associate compensation picture looked eerily similar to the boom before the bust seven years ago.

The ratio of bonuses to base salaries for first-year associates at the nation’s top law firms in 2007 was on par with the figures in 2000, a year that precipitated a dramatic plunge in those annual perks that help to make the punishing associate hours more tolerable.

For 2007, beginning associates made as much as $45,000 in bonuses in addition to the $160,000 in base pay at top firms in New York and on the West Coast, with some shops doling out “special bonuses” and getting bragging rights ahead of competitors.

But all that cheer in 2007 may become a distant memory as 2008 is looking increasingly leaner.

“There’s more concern out there now than there was in the summer,” said James Cotterman, an attorney-compensation consultant with Altman Weil. “There’s more talk about a recession.”

Indeed. If we’re not already in a recession, we’re about to enter one. Sure, some firms have strong countercyclical practices. But litigation and bankruptcy never make as much as transactional work and M&A in boom times.
More doom and gloom, plus the promised digression on billables, after the jump.

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(And a Digression on Billable Hours)”

Health Inspection Scores of NYC Law Firm Cafeterias: How Does Your Firm Stack Up?
(And Open Thread About Firm Cafeterias More Generally)

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cockroach Biglaw law firm cafeteria Above the Law blog.jpgWe have a lunch meeting today, so we’re going to be offline for a while. We’ll leave you with a food-related post to chew over while we’re gone. Hopefully it won’t cause you to lose your appetite.
Over at Keeping Up With Jonas, Jonas Karp has filed a great investigative report: a look at how various law firm cafeterias fared in unannounced annual inspections by the New York City Department of Health. If you’re hoping for a healthy dose of schadenfreude, you might be disappointed. As Karp writes, “All of the firms surveyed passed their inspections, and none had Serendipity 3-like 100 live cockroach violations.”
Darn. But as Jonas notes, “some firms did a lot better than others.”
Which ones? Read the full post to find out. As you review the results, consider this question: Is cafeteria cleanliness inversely proportional to law firm prestige? Simpson Thacher and Cravath came within a few points of failing inspection, while a perfect score was earned by… Greenberg Traurig!
Maybe GT associates won’t be getting a pay raise anytime soon. But at least their New York office has an immaculate cafeteria.
Feel free to opine on the quality of your law firm’s cafeteria, or any other Biglaw canteen that you have personally sampled, in the comments.
Law Firm Cafeterias: Inspection Results [Keeping Up With Jonas]

Cleary Gottlieb Associate Gets Benchslapped By Tax Court

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Shawn Hynes Shawn T Hynes Cleary Gottlieb Above the Law blog.jpgAs the old adage goes, “A lawyer who represents himself has a fool for a client.” And there is some anecdotal evidence in support of that proposition. See, e.g., Elana Glatt / Elana Elbogen (depending upon how you view the merits of her case against her wedding florist).
Here’s another example of what can happen when Biglaw litigators represent themselves. From TaxProf Blog:

The Tax Court today decided Hynes v. Commissioner, T.C. Summ. Op. 2008-1 (1/2/08), a case involving Shawn T. Hynes, a fifth year securities litigation associate in Cleary Gottlieb’s New York City office. The taxable year at issue was 2003, when Hynes was a Penn 3L (he tranferred to Penn after completing his first year at Oregon).

More about the facts of Shawn Hynes’s case, and how he got benchslapped by the Tax Court, after the jump.

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Associate Bonus Watch: Simpson Thacher!!!

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associate bonus watch 2007 law firm Above the Law blog.jpgWe have to hit the road; we’re going out of town. So this is the last you’ll hear from us in a little while. If you have new bonus announcements to pass along, please email us, or note them in the comments to this post. We will follow up when we return.
But there’s no need to tell us about the Simpson Thacher & Bartlett bonus announcement. We already have it, and we’ve reprinted it after the jump. Thanks!

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D.C. Pay Raises: Separating the Men from the Boys? (Plus Rumors of Skadden NY Raises)

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sorting hat Harry Potter Above the Law blog.jpgLaw school can be thought of as a Harry Potter-style “sorting hat” for law students (as Dave Hoffman suggests). Similarly, the recent round of pay raises can be thought of as a sorting hat for law firms.
Nathan Carlile has this excellent article in the current issue of the Legal Times:

Call it a near miss.

Earlier this year, New York’s Simpson Thacher & Bartlett raised starting salaries for first-year associates to $160,000. In the competition to recruit top talent, the tactic was similar to one used by Kenyan marathon runners: a midrace burst to separate elite competitors from the pack of pretenders.

But while Simpson’s bump momentarily opened up a $25,000 gap between top-end New York firms and their Washington counterparts, the pack soon matched the move. Eight months later, starting salaries for first-years at most of the 200 largest firms nationwide remain bunched at $160,000.

More discussion — including rumors of Skadden leading a new round of pay raises in New York City — after the jump.

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Legal Eagle Wedding Watch 9.16.07 and 9.23.07

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LEWW logo.jpgSo LEWW was at a wedding the other weekend, and who should plunk down next to us but a reporter for the NYT Vows section! It was a deeply emotional, humbling experience — like being face-to-face with Gandhi, or Bono — but after we recovered, we waved our ATL press credentials and had a nice chat with the correspondent.
Turns out it was her first Vows column, so we briefed her on the most basic rules of Vows column writing: Make sure you refer to the bride, groom, or both as “honest,” “courageous,” “spirited,” or “down-to-earth,” etc., and definitely include at least one forced simile (“as white as a sun-bleached seashell” is good; “as grounded and unshakable as a redwood” is a two-fer!).
We can’t wait to read about that wedding in this coming weekend’s NYT, but in the meantime, we have two weeks worth of LEWW to catch you up on. Here are our featured couples:

1.) Kate Edmonds and Alex Donner
2.) Denise Delgado and Keith Kerman
3.) Fell Ogden and Charles Gray Jr.
4.) Daisy Wademan and Luc Dowling
5.) Deecy Gray and Douglas Ginsburg
6.) Aielleen Fajardo and Stefan Schick

More about these couples, after the jump.

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