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?
Some attorneys think they are unable to transition from Biglaw to opening a solo or small firm boutique because they lack the ability to generate business. They might think, “If I can’t generate business at my current firm, with all of its vast resources, goodwill, and prestige behind me, then how could I ever hope to generate business on my own?”
This kind of negative thinking is pernicious, and based on a number of fallacies….
* And here’s the depressing fact of the day (well, at least the morning): the legal services sector added just enough jobs from December 2011 to December 2012 to represent a .7% increase. Gah, not even a full percentage point! [WSJ Law Blog (sub. req.)]
* A federal judge who never worked at a law firm for a single day in her life stepped down from the S.D.N.Y. to join Zuckerman Spaeder. She only wanted to “try something new,” but she may be in for a little bit of a rude awakening. [DealBook / New York Times]
* Dewey know what the “fundamental problem” is with this failed firm’s partner contribution plan? When even the bankruptcy judge overseeing the case is confused, you know you’re in for a bumpy ride. [Am Law Daily]
* The suit against Albany Law over its allegedly misleading employment statistics was dismissed, but have faith, ye of little hope, because some cases are heading to discovery. [Thomson Reuters News & Insight]
* James Holmes, the man accused of murder in the Aurora movie theater massacre, will appear in court today for his first evidentiary hearing. Of course, none of that matters, because he’ll just say he was insane. [CNN]
For as far back as I can remember, the arrival of a new year has been an occasion for me to reflect on my life, where it has gone, and where it appears to be going. Many times I would spend New Year’s Eve simply being grateful; more recently, it has been an occasion to try to see a little furthur [sic].
This year, for the second consecutive year, our firm was approached by an Am Law 100 firm to explore the potential of our being acquired or otherwise merging. These overtures are flattering. They also intensify my annual ritual of considering my path and the choices I have made.
I have written before about some of the differences between Biglaw and small. My perception of those differences, however, has changed quite a bit in the nearly four years since I left Biglaw to help start a boutique firm. Our firm also has changed so much from one year to the next that my calculus of the pros and cons of Biglaw also has changed….
Even if the big lockstep New York firms are done, associate bonus news continues to roll in from around the country. For example, bonuses are out at Sidley Austin. We’re working on a story for tomorrow; feel free to email us or text us (646-820-8477) with your reactions (to be used anonymously).
Today brings bonus news from Susman Godfrey. The high-powered boutique is known for high-stakes commercial litigation — and high, market-beating bonuses.
(And high-attendance holiday parties too; this year’s fête in New York drew more than 500 guests, many of them boldface names of the legal profession. As I observed on Twitter, “you could staff a great law firm with the guest list at the Susman Godfrey holiday party.”)
So how big were the Susman Godfrey bonuses this year?
It was our new receptionist’s first day at our office. I was in our kitchen, and I found a potato wrapped in a paper towel. Because it was a raw potato far in the back of one of our unused kitchen drawers, I had no idea how long it had been there. Months, maybe. So I asked Cassidy, the new employee, “Is this your potato?”
Cassidy was slouched nearly horizontal in her chair. She looked at me with an expression of vague annoyance, and reached up to remove her iPod earbuds. She mumbled a response but didn’t really answer me. So I asked again, “Cassidy, I was just curious, is this your potato?”
I repeated my question for the third time and finally she replied, “I don’t know. Maybe.”
I tried a different approach. “Let me put it this way. Have you brought a potato into the office in the six hours you have been working here?”
Progress! “Well, then I think it’s safe to say that this is your potato. Mystery solved.”
The earbuds went back in and we let Cassidy go the next day. She called our office about a week later, asking to retrieve a pair of scissors and… you guessed it, her potato….
Brian Tannebaum, my fellow small-firm columnist, recently described as silly the notion that “success in the law doesn’t come from good legal work.” I agree with Tannebaum that success requires far more than “being able to obtain a volume of calls from a fake presence, a creation of a ‘brand,’ and trying very, very hard to get our hand to the top of the baseball bat of the internet.” But I also think that success doesn’t come just from doing good legal work. In my experience, the most talented lawyers often are not the most successful, at least by traditional definitions. Nor are the most successful lawyers the best lawyers.
For Biglaw associates, success is usually defined as making partner. Anonymous Partner recently wrote that when you make partner in Biglaw, you “occupy a new professional status, and the nature of making partner is such that no matter how badly you screw up the rest of your life, you have accomplished something very rare. It is a life milestone, on par with getting married or winning the lottery in terms of its immediate alteration of your identity.”
And who makes partner in law firms? The best writers? The best oral advocates? The most thorough? The hardest working? The most efficient? Not necessarily any of the above.
Partnership decisions vary from firm to firm, and I am not so cynical to suggest that merit plays no role. Obviously, “merit” always plays a role. It’s just that what is meritorious is in the eye of the decision-maker, and that differs from what many associates might think is most important….
“I’m delighted to announce that our firm, Dewey Cheatem & Howe, has just reached a settlement of a longstanding class action on behalf of our beloved client Evilem Pire Insurance Corp. (‘EPIC’). Due to our tireless efforts reviewing documents and engaging in discovery motion practice, EPIC was able to settle the case for only $1 trillion dollars, a mere fraction of the many quadrillions sought by the plaintiffs . . . .”
If you are a lawyer in a firm, then you probably have seen a similar email more than once in your career. The victory email is a tradition at many firms, even when the result can only barely qualify as a victory. Because I think it behooves lawyers to always consider the purpose of any communication, we might wonder why victory emails are so prevalent….
Ed. note: This is the first installment in a new series of monthly posts, brought to you by Corporette’s Kat Griffin, which will deal with topical business and lifestyle issues that present themselves in the world of Biglaw. Send your ideas for future columns to us by clicking here.
In just a few weeks, ’tis the most dreaded time of year for law firm associates: the time for holiday parties. What do you wear? What do you drink? Do you have to dance with your assistant? Can’t you just stay at the office until the after party gets started?
Keep reading for some tips and tricks on the dos and don’ts for law firm holiday parties….
One of my favorite recurring columns on Above the Law is the “Departure Memo of the Day.” Elie Mystal hit a nerve last week when he published a particularly depressing departure memo from a harried mother at Clifford Chance who was struggling, unsuccessfully, to balance the demands of parenthood and Biglaw. The departure memo lit up Twitter and even the Huffington Post decided to weigh in.
At many Biglaw firms, departure memos have become an ingrained part of the culture. Why are departure memos so ubiquitous, especially in Biglaw? The New York Times put it best:
“The ‘departure memo’ is a fixture at many large employers, and nowhere more so than at big law firms. Departures, particularly of young associates, are built into the business model. Not everyone is supposed to stay, and many never planned to stay, so leaving is often celebrated. Many of the ‘Departure Memos of the Day’ published on Above the Law fall into that category. Excitement at the next opportunity, and a little bit of glee at leaving, is completely acceptable, as is a little thumbing of the nose at the firm. Creativity isn’t unusual.”
The Clifford Chance departure memo struck a chord with many lawyers because it openly grappled with the struggle for work/life balance so familiar to so many of us. But it also raises bigger issues regarding the purpose intended by such missives….
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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