To pass the time while commuting, I like to listen to podcasts. If ATL had a podcast I would add that to my listening rotation (especially if Lat is able to pull in sitting judges to guest host or as interview subjects). But this is not a column about podcasts. Though the idea for this contest came from a podcast I was listening to, the B.S. Report with Bill Simmons. The host was interviewing a former ESPN colleague, and they were discussing how certain statistics in baseball are misleading.
An example? Wins for pitchers. Apparently there is a movement to abolish that statistic. Why? Because a pitcher can pitch a terrible game, and still come away with the win, assuming his lineup bails him out. Conversely, a pitcher can pitch a beautiful game, and lose just because his hitters decide to approach their at-bats like the pudgy partner from bankruptcy at the annual intra-firm softball game. To prove the limited utility of using wins as a proxy for determining who is the best pitcher, consider the following. By nearly all accounts, Clayton Kershaw of the L.A. Dodgers is the single most dominant pitcher in baseball today. Unsurprisingly, he is reportedly in line for the richest (around $30 million a year or so) contract extension for a pitcher — ever. But he has fewer wins this season (so far) than Bartolo Colon, a 40-year-old journeyman pitcher (on his sixth team, and nearly a decade removed from his last All-Star game appearance), who is making non-equity service partner money ($3 million) by baseball standards. Wins simply do not tell the whole story.
Biglaw has its share of statistical shortcomings….
There hasn’t been much major good news on the associate compensation front over the past few years — since, say, January 2007. But recent weeks have brought pockets of minor good news for limited constituencies. Green shoots, anyone?
We’ve waited a long time to type these words. A major law firm just raised starting salaries for first-year associates.
Before you start chanting “NY to 190,” however, there are some things you should know. The raise relates to associates in what some might call a “secondary” legal market; we’re not talking about New York, or Washington, or Los Angeles. Associates at this firm, even post-raise, won’t be making the magic number of $160,000 a year.
That said, the legal market in question is rather large, and the law firm in question is a national and even international player. So the move could have ramifications beyond just the affected associates….
Very few people work in Biglaw for the thrill of being surrounded by lawyers. Nor are Biglaw refugees heard lamenting, on the odd chance they are lamenting leaving Biglaw at all, the fact that they are no longer surrounded by fellow attorneys. What do they miss, if anything? The money.
Biglaw refugees are not the only ones stirred by the thought of Biglaw’s outsized profits. Those profits are the nectar that draws the droves of worker-bee law students into the welcoming embrace of law schools. And the gruel that sustains the overworked bodies and minds of Biglaw’s associates and junior partners as they slave in the mineshafts hoping for their day in the sun. Biglaw’s millions are also the elixir that lubricates the arthritic joints of senior partners who insist on staying in their positions of power well past the expiration dates that their forebears adhered to. More than ever, it is about the money….
Base salaries for Biglaw associates haven’t budged since January 2007, when Simpson Thacher led the charge to $160k. Year-end bonuses have remained fairly static since 2007 as well, the year of Cravath’s special bonuses. The 2012 bonuses represented an improvement over the 2011 bonuses, but only if you ignored the 2011 phenomenon of spring bonuses. On the whole, associate compensation is treading water.
But for Supreme Court clerks, aka “The Elect,” compensation continues to climb. In 2011, the signing bonus for outgoing SCOTUS clerks started to move from $250K to $280K. In 2012, the increase solidified, with $280K becoming the new going rate (and $285K becoming the above-market rate).
Now, just a year later, some firms are offering SCOTUS clerkship bonuses in excess of $280K or $285K. How much are they paying, and which offices of which firms are leading the market higher? The answer might surprise you….
As law students gear up for fall recruiting season — yes, the Biglaw gravy train still accepts new passengers, even if not as many as before — some rising 2Ls might start to think, after researching firm after firm, “All of these places sound alike! They all have cutting-edge practices in bet-the-company litigation or cross-border M&A. They all have collegial cultures and ‘no screamers.’ They’re all committed to diversity and pro bono.”
But there are real differences between law firms. If you doubt this, just check out Above the Law’s Law Firm Directory. You can see the different letter grades we’ve assigned to firms, based on reports from lawyers who work at each firm and on overall industry reputation.
Further proof that law firms aren’t all the same: while some firms are giving out pink slips, others are issuing bonus checks. And we’re in the middle of July, not exactly peak bonus season. What gives?
Law schools, don’t expect your applications to rebound anytime soon. The Law School Admissions Council (LSAC) recently released data showing that fewer people took the February 2013 LSAT than any administration of the February test ever.
1988, folks. The Berlin Wall was still up. People were listening to Rick Astley and not ironically.
The reduced number of test takers is certainly a result of students beginning to question the value proposition of law school. But some of it is undoubtedly the result of intelligent students questioning the value proposition of being a lawyer.
Would you want to go into a field that hasn’t seen a starting salary raise since 2007?
A few months ago, we wrote a story about the $160K-Plus Club: those law firms that pay their first-year associates more than $160,000 a year, the going rate within Biglaw. Earlier this week, we covered which cities give young lawyers the biggest bang for their buck — i.e., cities where the buying power of the median salary for that city is the greatest.
Let’s mash up these two stories. Today we bring you news of a law firm that (1) pays a starting salary of more than $160,000 and (2) is based in a city that’s in the top ten for buying power. Associates at this firm are — by our calculations, based on the NALP Buying Power Index — living as well as someone earning $414,000 in New York City. That’s a staggering sum for a first-year associate.
So which firm are we talking about? And are they hiring?
If you are considering a virtual law practice, you know that many of today’s solo firms started that way. But why are established, multi-attorney law firms going virtual?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Reduces malpractice risk
Enables you to gather the best attorneys to fit the firm, regardless of each person’s geographic location
Leverages mobile devices and cloud technology to enable on-the-spot client and prospect communication
Transitioning in-house is something many (if not most) firm lawyers find themselves considering at some point. For many, it’s the first step in their career that isn’t simply a function of picking the best option available based on a ranking system.
Unknown territory feels high-risk, and can have the effect of steering many of us towards the well-greased channels into large, established companies.
For those who may be open to something more entrepreneurial, there is far less information available. No recruiter is calling every week with offers and details.
In sponsorship with Betterment, ATL and David Lat will moderate a panel about life in-house and we’ll hear from GCs at Birchbox, Gawker Media, Squarespace, Bonobos, and Betterment. Drinks, snacks, networking, and a great time guaranteed. Invite your colleagues, but RSVP fast, as space is limited.
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 seven years. You can reach them by email: firstname.lastname@example.org.
It’s that time of year again when JDs are starting to apply for 2L summer jobs and 2L summers are deciding which practice area to focus on.
For those JDs with an interest in potentially lateraling to or transferring to Asia in the future, please feel free to reach out to Kinney for advice on firm choices, interviewing and practice choices, relating to future marketability in Asia, or for a general discussion on your particular Asia markets of interest. This is of course a free of cost service for those who some years in the future may be our future industry contacts or perhaps even clients.
For some years now Kinney’s Asia head, Evan Jowers, has been formally advising Harvard Law students with such questions, as the Asia expert in Harvard Law’s “Ask The Experts Market Program” each summer and fall, with podcasts and scheduled phone calls. This has been an enjoyable and productive experience for all involved.