Ed. note: This is the final column by Anonymous Partner based on his interview of a more-senior partner, “Old School Partner” (“OSP”). You can read the first column here and the second column here.
We had been talking for a while, when the conversation turned to Old School Partner’s experiences as a general counsel. He pulled no punches. “I was a very sophisticated consumer of legal services,” Old School Partner told me. In short, Old School Partner, when he turned to outside counsel, had high standards.
Having already decided to leave the security of a leadership position at a Biglaw firm for in-house life, Old School Partner demanded the same attention to detail and professionalism from his chosen outside counsel as he displayed when doing work for his former clients. As an example, he shared how he went about choosing litigation counsel.
“I was looking for counselors,” he told me, and that meant no fluffy credentials without real experience backing them up. “I wanted trial lawyers with real trial experience, who could have the confidence to forego a deposition that was not going to be of any value at trial.” Unlike many clients today, Old School Partner was willing to pay top dollar for real guidance, and did not default to assigning his cases to the lowest bidder or a firm that had a “preferred relationship” with his company. I got the sense that he viewed each case his company was engaged in as a business problem that needed solving, and was willing to pay handsomely for a solution — because he realized that throwing money at a litigation “team” was ultimately less effective and more costly than buying top-drawer help….
When it comes to the representation of women in the top positions in the legal profession, the news seems somewhat mixed. Things could be better in Biglaw. According to a recent survey, women constitute just 15 percent of equity partners — a number that has stayed roughly the same for the past 20 years.
On the in-house side of the divide, though, the news is better. Women lawyers are ascending to the post of general counsel in record numbers.
Last year, all things considered, wasn’t a bad year for Biglaw. The law firms of the Am Law 100, for example, experienced decent growth. In 2011, for the Am Law 100 as a whole, gross revenue grew by 5.3 percent, revenue per lawyer grew by 1.9 percent, and profits per partner grew by 3 percent. It was a perfectly fine year for partners.
How did their counterparts on the corporate side fare? Alas, not as well, according to Corporate Counsel’s latest compensation survey of the nation’s general counsel. Base pay for GCs in the survey declined by 1.8 percent, to an average of $611,411. Bonuses and nonequity incentive pay slid by an even larger number, 7.7 percent, to an average of $1,125,458. Meanwhile, in terms of non-cash compensation, the average stock award fell by 10.8 percent, to $1,426,325, and the average stock option award dropped by a whopping 18.7 percent, to $732,453.
These are just the top-line figures — which, of course, conceal a lot of individual variability. Let’s take a look at some specific names and numbers, as well as the top ten highest-paid general counsel….
* I’m not sure why Romney won’t just say that he lied to the SEC about when he left Bain. Lying to the SEC is just good business. Lying to the American people is something that politicians are only supposed to do for sex. [Wonkblog / Washington Post]
* Character and fitness can be a surprisingly tough hurdle, so I’ve been told. [The Toronto Star]
* Here are the top law faculties by scholarship. I’d bet this list and the list for top law faculties by salary are pretty similar. [Brian Leiter's Law School Reports]
I worked for twenty years at the darkest of the black-box compensation law firms: No one knew what anyone else was being paid, and the firm forbade talking about compensation. Here’s the curious part: We obeyed.
I saw the raised eyebrows of partners considering moving laterally to my firm: “Right — no one talks about compensation. You guys must talk about it all the time, just like we do at my firm. It can’t be a secret.”
Wrong. We really, honest-to-God did not talk about compensation. The subject just didn’t come up.
I’ve heard second-hand that this is true for other black-box firms, too. The managing partner of a different large, black-box comp firm recently told one of my colleagues: “Once you take compensation out of the limelight and forbid people from talking about it, then people stop talking about it. The subject drops off the table.”
That sets the stage: At firms where lawyers are permitted to talk about each other’s compensation, they do. And at firms where lawyers are prohibited from talking about compensation, they don’t.
Riddle me this: In corporate law departments, we are not prohibited from discussing each other’s compensation, but we don’t do it anyway. Why is that?
I recently got a lift to the airport from a lawyer at a mid-sized firm who I’d met only earlier in the day. “It must be a pleasure to work for you,” he said.
On the one hand, that seemed strange, since I work so hard to establish a public persona that I’m a pain in the neck. (Frankly, that’s not much of a charade.) On the other hand, this seemed not at all strange, since I’ve now grown accustomed to lawyers at firms sucking up to me.
But I figured I’d play along: “Why would it be a pleasure to work for me?” I asked, innocently. “I’m pretty tough on our outside counsel.”
“Because you can tell good from bad. You worked in private practice for 25 years, and you’ve labored in my field. I suspect that, back when you were playing the game, you could write a pretty good brief. When an outside lawyer sends a bad brief to you, you may criticize it, but at least when a lawyer sends a good brief to you, you’ll recognize that it’s good. I work with an awful lot of clients who can’t distinguish good work from bad.”
Ha! Here’s an issue that I’d noticed when I was in private practice, but never really thought about. And it’s an issue that arises frequently in-house, because an in-house lawyer’s clients typically are not lawyers. My chauffeur may have thought that he was currying my favor by flattering me, but in fact he was doing something much, much better — he’d given me fodder for a blog post.
What should lawyers do when their clients can’t tell good legal work from bad?
If you’ve ever wandered over to Backpage.com and spent a few minutes reviewing the classified ads there, you probably realized that you had just discovered the seedy underbelly of the internet. Rife with ads for adult services — which is arguably just an elegant way of saying prostitution — the website, owned by Village Voice Media, has come under fire for its association with human trafficking.
Leave it to the company’s general counsel, Elizabeth McDougall, to take a stand for these scandalous online ads. After all, it’s great business! Backpage reportedly has a 70% market share for prostitution ads in the United States, generating millions in revenue.
This week, McDougall is taking additional heat from state attorneys general for her statements in an off-color op-ed column published in the Seattle Times. What could she have said that was so controversial?
* Rob me once, shame on you; rob me twice, shame on me? Supreme Court Justice Stephen Breyer was robbed for a second time, but this time as the victim of a burglary on May 4. [Thomson Reuters News & Insight]
* Dewey know when this ship is finally going to capsize (so we can stop making these puns)? Two of D&L’s Hong Kong partners have decided to defect to DLA Piper, and more may be joining them soon. [Asian Lawyer]
* He might’ve been a “bad husband,” but that doesn’t mean he’s guilty. The jury in John Edwards’s campaign finance trial will begin deliberating today. Let’s see if they convict him of being more than an adulterer. [CNN]
* After his citizenship stunt, Eduardo Saverin can look forward to being defriended by the United States — not like that’s a bad thing, because to be honest, the movie version of him is much cuter. [New York Daily News]
* And this is why lawyers shouldn’t try to be funny. Safeway’s General Counsel, Robert Gordon, is being branded a sexist for telling a recycled joke about pigs and D.C.’s most powerful women. [Corporate Counsel]
* A three month suspension has been recommended for a former Treasury Department attorney who attempted to steal ties from Nordstrom. What, he couldn’t spring for a Neiman’s run? [National Law Journal]
* If you bought those stupid ass Skechers Shape-Up shoes in the hope that your booty would look like Kim Kardashian’s, you can get a piece of the $40M settlement. Not bitter, not at all. [Los Angeles Times]
I gave my “book talk” about The Curmudgeon’s Guide to Practicing Law at Schnader Harrison’s annual retreat last Saturday and then had the opportunity to moderate a panel of six (counting me) in-house lawyers. Three of the gang were from QVC, one from Endo Pharmaceuticals, and one from the Graham Company. Being a rabble-rouser at heart, I started the discussion by posing the question that I often considered during my time as an outside lawyer: How can a law firm that wants new business displace a competent incumbent firm?
My co-panelists were quite good, but I must say that their natural instinct when confronted with this question was to evade. Each panelist started by saying something that was not quite responsive to the question. Only after some follow-up questions did our panel finally tell the audience how to displace a competent incumbent.
Let me start with the evasions, saving the real answers for the end . . .
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
LexisNexis and OverDrive®, the digital library solutions provider chosen by 22,000+ libraries, schools and colleges worldwide, have joined forces to provide a library management solution that suits evolving legal research requirements mobility, simplified library management, and space and budget reductions.
Reduce your library costs and extend the budget.
With LexisNexis® Digital Library, overhead and administrative costs for maintaining a print library are reduced dramatically. Adopt an easy-to-use platform that requires minimal staff resources so your organization can make the most out of your library budget. Plus, multi-year purchase options let your library lock in savings.
Empower your librarians.
Your firm’s librarians will have more time to conduct value-added research. They’ll have greater insight into what resources the staff actually uses so they can make adjustments to the collection quickly using a single website. Librarians can gain greater control, which can lead to better library utilization and increased strategic value to the firm.
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: firstname.lastname@example.org.
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.
The traditional job application and interview process can be impersonal, and applicants often struggle to present themselves as more than just the sum of their GPAs, alma maters, and previous work history. ATL has partnered with ViewYou to help job seekers overcome this challenge. ViewYou NOW Profiles offer a unique way for job seekers to make a personal, memorable connection with prospective employers: introduction videos. These videos allow job candidates to display their personalities, interpersonal skills, and professional interests, creating an eDossier to brand themselves to potential employers all over the world. Check it out today!