As we mentioned in Morning Docket, the American Lawyer recently released its highly influential, closely watched Am Law 100 law firm rankings. They say that “slow and steady wins the race,” and with regard to economic recovery, Biglaw firms seem to have taken that up as their new motto.
Yes, partners are still living as large as they ever were, but their success now comes in the form of single-digit returns with regard to key financial metrics. The divide between the “haves and the have-nots” in the world of major law firms has grown to epic proportions, and some Am Law 100 staples have fallen out of the top hundred firms altogether. Welcome to the new normal.
Are you ready to get excited about “modest” and “spotty” gains across the board? Let’s dig in….
Earlier this week, we took a look at faculty salaries at UVA Law School. They’re freely available online because UVA is a public law school. The UVA student newspaper obtained the records through FOIA and then posted them on the web. (If you have a problem with such information being made public, sorry. The best I can do is channel Justice Scalia and tell you: “Amend the statute.” )
We don’t want to pick on UVA, so we’re going to take a look at law professor compensation at a few state law schools. Going down the latest U.S. News rankings, we find ourselves at the ninth-best law school in the nation, Berkeley Law aka Boalt Hall.
The word “Berkeley” conjures up images of long-haired hippies smoking copious amounts of marijuana. But in light of their lush salaries, Berkeley law professors could roll joints using hundred-dollar bills….
(UVA also excels when it comes to producing funny Law Revue videos. They won once in the past and have been in the finals several times. Don’t be shocked if they make an appearance again in this year’s contest, whose finalists we’ll be announcing on Wednesday.)
What are the secrets to UVA’s success as a law school? For one thing, they have an amazing faculty, full of leading scholars and inspiring teachers.
But such talent doesn’t come cheap. Let’s learn more about law professors’ salaries at UVA….
What’s happening to the compensation of top partners at one major firm.
What kind of world are we living in? As we mentioned yesterday, a law school just announced that it’s lowering tuition — a shocking move, given that law schools almost always increase tuition by a few percentage points per year.
And now we get this news: a major law firm is cutting — yes, cutting — pay for top partners. This is a big surprise too, given that the powerful trend in the industry has been in favor of a growing divergence in pay between the highest- and lowest-earning partners. According to one recent study, “the spread in compensation between the highest- and lowest-paid partners in law firms has increased to 6-to-1 or 7-to-1 from the previous count of 4-to-1 or 5-to-1.”
So which firm is making this move, and what’s motivating it?
Unlike the latest Harmony Korine movie, filled with neon bikinis, former Disney princesses. and James Franco in bad dreads, my Spring Break consists of hanging with my kids while my wife works 24/7 on a grant application. We don’t make annual pilgrimages to Turks and Caicos; we make bi-weekly trips to Wegmans. But you know what? I signed on for this, and no amount of island sand can replace the sound of my younger boy reading a bedtime story to his little sister for the first time last night.
I read with interest the compensation package for the anonymous in-houser that Lat posted yesterday. In the comments, I pointed out that the package wasn’t outrageous or impossible, just that it was (way) outside of the norm. And that is okay. I chose this life and I am happy to say that it has been a soft landing for me. I have a good job, in a real estate market that is hard to beat — anywhere.
Lat is correct that Susan, Mark and I need to be circumspect about compensation; it would not do for our employers to see a pay scale pasted on these pages. So what can I say about my comp?
As regular readers of Above the Law know, we offer a wealth of content for in-house counsel. We have three in-house lawyers at major corporations who write columns for us — Mark Herrmann, Susan Moon, and David Mowry — and we supplement their coverage with additional in-house posts by our other writers.
One subject that our columnists tend to shy away from, for understandable reasons, is that of in-house compensation. They’ve written in generalterms about comp issues, but they haven’t, say, divulged hard numbers about how much they earn.
But one of our in-house readers reached out to us and did exactly that. Let’s find out how much this person makes. The claim: in-house lawyers are better paid than you might expect….
Apparently there’s no such thing as “rankings fatigue” in this world, because hot on the heels of the release of the 2014 U.S. News law school rankings, we’ve got another set of rankings. These rankings, brought to us by Forbes, focus on one of the most-discussed areas when it comes to the value of legal education as of late: starting salaries.
Let’s face it: no matter the reason you went to law school, money is constantly on your mind. Whether you’re currently rolling around in a bed full of cash like Demi Moore in Indecent Proposal or you’re rubbing your last two pennies together wondering how you’re going to make your next loan payment, your cash flow (or lack thereof) is very important, and starting salaries may reflect the money you’ll be able to make later on in life.
Let’s dig in to this list of the nation’s richest recent law school grads, as ranked by median starting salary….
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?
Over the last three weeks, we have heard from an In-House Insider, an opinionated source of insight into Biglaw-client relations — see here, here, here, and below. As with the three prior installments, the only changes I made to the Insider’s words were those done to protect their identity, and Insider was given the opportunity to revise their points once I added the questions and commentary. Again, I thank Insider for the candid observations and thoughtful opinions on these core issues….
AP: Any serious observer of Biglaw can see that firms continue to struggle adapting associate development to the new state of Biglaw-client relations. What can Biglaw learn from corporate clients like yourself on that front?
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.
Whether you’re fresh off the bar exam or hitting your stride after hanging a shingle a few years ago, one thing’s for certain: independent attorneys who start a solo or small-law practice live with a certain amount of stress.
Non-attorneys would think the stress comes from preparing for a big trial, deposing a hostile witness, or crafting the perfect contract for a picky client.
But that’s nothing compared to the constant, nagging, real-life kind, the kind you get from the day-to-day grind of being a law-abiding attorney.
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Additional information can be located on our website, at www.sgtlaw.com.