This is the latest in a new series of ATL infographics — visual representations of our own proprietary data, relevant third-party data, “anecdata,” or just plain jokes. This infographic is brought to you by our friends at Prestige Legal Search. Earn another $5,000 to $50,000 with their Rewards Program.
For the most part, Biglaw associate bonuses remain stuck at last year’s levels, reflecting expectations that firm profits will be flat at best. This might seem fair, with everyone feeling the pinch of the “New Normal” and so on. But when we take a small step back and see how these bonus numbers compare as a percentage of partner profits to the bonuses of just a few years ago, these bonuses are arguably pretty measly.
The current $10,000 “market” (i.e., Cravath-following) rate for first-years is just 0.29% of Cravath’s profits per partner (according to the American Lawyer). Back in 2007, first-year bonuses equaled 1.36% of PPP. In other words, the Cravath partnership was nearly five times more generous to its associates back then.
Obviously, Cravath is among the most profitable firms in the world. What are the implications of matching Cravath’s bonus scale for those firms with much lower profit margins? Today’s infographic takes a look at how big a hit to PPP partners willingly take in order to Keep Up With The Cravathians….
In the two years that we’ve been conducting our ATL Insider Survey, we’ve amassed in excess of 15,500 responses from practicing lawyers and law students. These results have provided us with unique insights into what people really think about their employers and schools. We believe our survey information furnishes our readers with a deep resource for comparing and evaluating these organizations, whether in the form of our Law Firm and Law School Directories, or in posts that take a deeper look at such factors as practice area, compensation, or geographic location. Many thanks to those thousands of readers who have shared their experiences.
Obviously, one subject that the ATL readership is passionate about is the world of Biglaw. Whether it’s to assess a potential employer, or to simply see how one’s firm compares to its peers, apparently there’s no end to the appetite for insider information. So as this year winds down, we’ll end on a happy note and have a look at which Biglaw firms are rated most highly by their own employees…
Still, as Staci Zaretsky observed earlier today, there’s a one-in-a-million chance that some firm that hasn’t announced yet will beat Cravath. And if you’ve bought a ticket for Friday’s $400 million Mega Millions drawing, you believe in one-in-a-million — actually, one-in-259-million — chances.
Three firms just announced their year-end associate bonuses for 2013. Let’s scratch off these tickets and see what lies underneath….
Law firms across the land are running tighter ships these days. Even if your firm breaks the $2 million mark in profits per partner, which is good enough to put it in the top quarter of the Am Law 100, there’s no reason to dilute your PPP unnecessarily.
Consider the venerable law firm of Debevoise & Plimpton, one of Biglaw’s most prestigious and profitable firms. Earlier this year, the firm parted ways with its trusts and estates practice, a move that was viewed in some quarters as designed to enhance profit.
First they came for the T&E lawyers. Then they came for the legal secretaries and other support staff….
You’d be jumping for joy if you landed an offer from a top law firm.
It’s harder to be a partner in Biglaw today, both in terms of making partner and remaining a partner. You can no longer just coast along after making partner; you need to prove yourself and your value to the firm, year after year. That’s a change from past practice (and people can argue when exactly the change took place).
But some things in Biglaw haven’t changed. The practice of being generous with offers to summer associates — too generous, some might argue — is alive and well. Summer programs are smaller today than they were before the Great Recession, but offer rates remain robust.
Following up on Monday’s story, here are more firms that have given offers to all of their summers:
For many law schools, the bidding process for the upcoming on-campus interview season closed yesterday. In bidding, schools quite reasonably advise students to select potential employers that align with their aspirations and geographic preferences. For example, the section of the Duke Law web site devoted to OCI admonishes students to “thoroughly research” potential employers and to “focus only on employers in whom you are genuinely interested and that match your career goals.” Presumably, one career goal shared by all law school graduates is to eventually be free of debt. As previously and repeatedly noted, for most, a Biglaw associate position is the only employment outcome which gives the graduate a plausible prospect of paying off his student loans.
So what shapes student perception of large law firms and drives the decision of the law student in prioritizing their OCI bids? No doubt there are unique versions of received wisdom that get passed from generation to generation of students at every school. And of course there are plenty of media entities measuring firms against one another: revenues (AmLaw), “prestige” (Vault), practice area prowess (Chambers) and so on. This being the time of year where Biglaw careers are just starting to be built, we thought it would be interesting to look at how students themselves rate law firms. Which firms are the law student favorites?
Think Olivia Pope (Kerry Washington) of Scandal, but with a Biglaw background.
Consulting is a popular path for law students and lawyers. Legal education and practice can help hone the analytical and communication skills required of consultants. Both lawyers and consultants solve problems — often complex, intractable problems — and are rewarded handsomely for their efforts.
Are you interested in pursuing consulting as a possible career path? Today we introduce you to a lawyer turned consultant who reminds us of Olivia Pope of Scandal — a high-powered troubleshooter who is confident, eloquent, and attractive….
* Akin Gump partner Patricia Millett is willing to take a whopping pay cut to serve on the D.C. Circuit — from $1MM to $184K — and for that alone she should be confirmed ASAP. [National Law Journal]
* With the number of law firm mergers in the last six months alone, we’re on a “potentially record-setting pace” for 2013. Hey, look at it this way: it’s cheaper than hiring and firing laterals. [Am Law Daily]
* According to the Bureau of Labor Statistics, in June, the legal industry lost more jobs than it has in a single month since June 2011. Congrats, Class of 2013! welcome to the real world. [Am Law Daily]
* In its defense, Standard & Poor’s claims its ratings were puffery, and that no reasonable investor would rely on them. Aww, poor widdle “sophisticated consumers of [investment information].” [Bloomberg]
* For those of you practicing personal injury law in New York, this case is a bombshell. If you want to put the whole insurance industry on trial, follow the action here. [New York Personal Injury Law Blog]
* Sarah Jones, the ex-cheerleader who sued TheDirty.com for defamation, was back in federal court yesterday for the beginning of her case’s retrial. What a way to start an engagement. [ABC News]
* New York Mayor Michael Bloomberg commissioned a report on SDNY Judge Shira Scheindlin in advance of her ruling on the NYPD’s controversial “hey, you’re black, come get a pat down” “stop-and-frisk” policy. According to the report, Judge Scheindlin is biased because she ruled against the NYPD in search and seizure cases 60% of the time. An alternative read is that the NYPD is really bad at following the Constitution. Occam’s Razor strikes again. [New York Daily News]
* STRIKE!: Legal Services NYC walked off the job this morning after rejecting new contract offers. [New York Law Journal]
* Pentagon Papers lawyer James C. Goodale thinks President Obama, whose administration seized phone records of journos, is worse than President Nixon, who tried to charge the New York Times for conspiracy to commit espionage. Because hyperbole is the awesomest thing in the world! [New York Observer]
* Tennessee law grad and judicial affairs director fired amid allegations she hooked up with Tennessee basketball player Trae Golden. [MStars News]
* After revelations earlier that Arkansas wasn’t “buying American” and instead getting its death penalty drugs from the UK, the pharmaceutical company announced it would cut off the supply, joining a number of drug companies that are practically slowing executions around the country by limiting supply. [YubaNet]
* After the post, check out the Biglaw firm using 4square way too much…
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.
Things have changed recently in Korea – a few of our US and UK client firms are looking, very selectively, for a lateral US associate hire. Until just recently, there was not much hiring like this going on in Korea, since US and UK firms started opening offices there. We have already placed two US associates in Korea in the past month at top firms. Most of the hiring partners we work with in Korea do not actively work with other recruiters.
If you are a Korean fluent US associate in London, New York or another major US market, 2nd to 6th year, at a top 20 firm, with cap markets or M&A focus (or mix), or project finance background, and you are interested in lateraling to Korea to a top US or UK firm, please feel free to reach out to us at email@example.com or firstname.lastname@example.org. Our head of Asia, Evan Jowers, was just in Korea recently, and Evan and Robert Kinney will be in Korea in a few weeks. We are in the process of helping several firms open new offices in Korea (a number of which are interviewing our partner level candidates) and also helping existing offices there fill openings.
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