Compensation Guarantees

Ed. note: This is a new series from Bruce MacEwen and Janet Stanton of Adam Smith Esq. and JDMatch. “Across the Desk” will take a thoughtful look at recruiting, career paths, professional development, human capital, and related issues. Some of these pieces have previously appeared, in slightly different form, on AdamSmithEsq.com.

A Wharton School professor has analyzed the performance, and pay levels, of external hires versus internal staff promotions. He used personnel data from a division of a major U.S. investment bank for 2003 to 2009, and the characteristics of that talent market are remarkably similar to our own.

Investment banking, Professor Matthew Bidwell writes, represents “an interesting context in which to study the effects of internal versus external mobility [because] organizational performance often depends on the skills of the workforce, [thereby] increasing the importance of personnel decisions.” In addition, workers in banking are “notoriously mobile, making this a context in which organizations regularly engage in external hiring at all levels.”

The genesis of his study was seeking an answer to this question: what has the increased mobility of workers over the past 30 or so years meant, as firms turn away from offering lifetime employment in favor of relying on the external labor market to find experienced workers at all levels of the organization?

double red triangle arrows Continue reading “From Across the Desk: Lateral Hires & Guarantees Deconstructed”

As of this morning, the Dewey & LeBoeuf web site is still live and trumpeting, among many other things, the firm’s recent award for “Private Equity Law Firm of the Year in Poland.”

Meanwhile, back on Earth and/or the rest of the internet, industry observers have been feeling a bit like voyeurs at a pre-mortem autopsy. Everyone agrees that the downfall of this once-great firm is hugely sad (well, nearly everyone), but there is less of a consensus about who or what is to blame.

Last week we asked the ATL readership for their take on where fault lies. Here’s what you had to say….

double red triangle arrows Continue reading “Gone Dewey Gone: ATL Readers Dish the Blame”

* My Big Fat Dewey Compensation Guarantee: it’s like a movie that no one wants to watch, except it’s happening in real life. But at least the partners got their draws, right? [Reuters; DealBook / NYT]

* Why didn’t John Edwards’s former aide disclose to the government that he refused to lie under oath about his affair? “Because you never asked.” Best. Response. Ever. [MSNBC]

* Maybe Mintz Levin didn’t belong on the list of the Top Ten Family-Friendly Firms after all. The firm’s been sued twice in recent years for sexual discrimination. Oops. [Careerist]

* Baylor Law claimed the top pass rate on the Texas bar exam for the fifteenth time since 2001. Unfortunately, Baylor Law cannot claim a top pass rate on disclosure of private student information. [Baylor University]

* In America, lawyers are pissing off state bar associations by offering their services on Groupon. En México, no es un problema. There, you can buy gift cards for the gift that keeps on giving… divorce! [Huffington Post]