Agreeing on this point is former Kirkland & Ellis partner Steven Harper (whose apparent pro-associate stance may make him a sort of Biglaw apostate). As Harper points out, “equity partner profit trees have resumed their growth to the sky. As the economy struggled, Cravath’s average partner profits increased to $2.7 million in 2009 and to $3.17 million in 2010 … That’s not ‘treading water.’ It’s returning to 2007 profit levels — the height of ‘amazing’ boom years that most observers had declared gone forever. Watch for 2011 profits to be even higher.”
And yet associate bonuses remain stagnant at 2009 levels. Furthermore, as ATL commenter “The Cravath Cut” is so fond of noting, when viewed as a percentage of profits, bonuses appear especially measly, at least from the associate p.o.v. (The current $7,500 market rate for first-years is just 0.23% of Cravath’s profits per partner. Back in 2007, first-year bonuses equalled 1.36%.) Despite these numbers, if history has taught us anything, it is that you can kill anyone Biglaw’s rank and file will follow Cravath’s lead.
Cravath is among the most profitable firms in the world. We thought it would be interesting to see what the implications of matching Cravath are for those firms with much lower profit margins. Which firms’ partners willingly take the biggest hit by keeping up? Are these firms arguably more “generous”? After the jump, check out those firms that pay the largest percentage of PPP in bonuses.
It’s late October, so Biglaw bonus news could drop any day now. In 2010, Cravath didn’t kick off the season until November 22. But back in 2009, Cravath announced bonuses on November 2. And in 2007 — yes, the glory days, before the Great Recession — Cravath announced bonuses, regular and “special,” on October 29.
In light of the economic gloom and doom, including the possibility of a double-dip recession, it wouldn’t be shocking if bonuses are modest this year. Better to conserve the cash and avoid layoffs, right? Or maybe repeat what happened in 2010 and save some money for spring bonuses in a few months, when firms might have a better idea of the direction of the economy?
Regardless of how bonuses turn out, there are other pockets of good news in the world of large law firms — even news requiring law firms to open their wallets. Check out the growing number of firms that offer the perk we’ve dubbed the gay gross-up….
Yesterday was the tenth anniversary of the day a little-known heroin addict called Russell Brand turned up for work dressed as Osama Bin Laden, and was promptly fired by his then-employer, MTV.
After some ensuing years knocking around the lower echelons of British light entertainment, Brand got himself together and landed a role presenting the VMAs — from which he launched himself into mega-stardom when he branded George W. Bush a “retarded cowboy fella.”
Now, you don’t get career paths like that in law. Having said that, I do know of a London Biglaw associate who was once asked to replace his brightly-coloured socks with a more sober pair in advance of an important client meeting, in which he performed impressively.
Please don’t interpret that as a snarky suggestion that all lawyers are boring. As legal market-watchers well know, many attorneys — especially the litigators — are often anything but. They’re just good at hiding the madness. Usually, anyway….
Almost half (48%) of Career Center survey respondents said they were too busy billing on the Labor Day holiday to fire up the barbie. That’s more than the 35% of survey respondents who reported working on the Fourth of July, but less than the 73% of respondents who worked on Presidents’ Day, and the 66% of respondents who worked on MLK Day.
The most popular reasons given for skipping out on the Labor Day celebrations were:
56% said that nobody specifically asked them to do work, but they had work they needed to get done. 29% said a partner or associate asked them to do work. 14% said a client asked them to do work. 10% said they needed the hours. 7% said everyone else in their office was working. 3% said that Labor Day is not recognized as an official firm holiday.
Now let’s find out in which practice areas and at which Biglaw firms associates were most and least likely to work on Labor Day….
* “Dominique Strauss-Kahn Gets Off, As Did Everyone Else Who Stayed In His Room At The Sofitel.” Or: what you don’t want to know about your high-end hotel room. [Dealbreaker]
* F**k yeah — trademark law! Or: some reflections on the “immoral or scandalous” bar to trademark registration, by fashion lawyer Chuck Colman. [Law of Fashion]
* The New Jersey Supreme Court just issued a major new decision calling for changes in the way that courts handle eyewitness identifications — an issue that will also be going before SCOTUS in the coming Term. [The Innocence Project]
* Congratulations to Professor Neal Katyal, former acting U.S. solicitor general, who’s apparently headed to Hogan Lovells. [Am Law Daily]
Have you ever dreamed of changing the Biglaw model, of making the law firm a pleasant place to work? If so, we might have just the opportunity for you.
Some Hogan Lovells attorneys were recently offered the opportunity of a lifetime, courtesy of “The Office of Mr. Monfort in Partnership with Hogan Lovells International.” Mr. Monfort invites all Hogan Lovells employees to join the Lawyers Transformation Program, which will “allow a lawyer to identify the excesses and wrongdoing of the current law firm model in order to accomplish the transition into a long-term and sustainable law firm approach.”
In case this wasn’t sufficient to get Hogan Lovells attorneys on board, the invitation goes on to list in detail the crazy lofty ideals of the Lawyers Transformation Program, promising nothing short of revolution and greatness.
The only problem? Hogan Lovells, not surprisingly, has no idea who Mr. Monfort is. Find out how you can join the Biglaw utopia movement and read the Hogan Lovells response, after the jump.
I feel like I’ve stepped into a time machine that has taken me all the way back to 2009.
According to an internal memo obtained by Above the Law, the international law firm of Hogan Lovells is offering a voluntary separation program to U.S. staff. The memo, posted in full below, talks about needing to bring the firm’s support staff into alignment with overall firm needs.
The program is voluntary, but as we learned during the height of the recession, “voluntary” programs don’t always stay optional….
* The perp walk is illegal in France. It’s not clear from this article how the French view the crip walk. [Sacramento Bee]
* Carl Icahn, the Blockbuster bankruptcy, insider-trading charges, and a golden retriever wearing comically huge sunglasses. This story touches on three of those things. [Bloomberg]
* Hogan Lovells fired a partner who falsely claimed $1.6 million in expenses. To put that in perspective, that is $1.6 million more than I have. [Am Law Daily]
* A Brooklyn juror died of a heart attack while listening to testimony. And that’s… sad, I guess. But the story goes on to note that “The juror, who was unemployed, was said to be ‘happy’ to be collecting a check for his service on the case which was expected to go on for about a month.” Man. [New York Post]
* Sammy Alito batted down 10 popular misconceptions about the Supreme Court in a speech on Monday. Chief among these myths is that Justice Sotomayor listens to a lot of Buena Vista Social Club on her Zune. Sonia never really got into that album, Alito noted. [St. Louis Post-Dispatch via ABA Journal]
* Meanwhile, Justice Thomas wondered in a speech whether critics of the Supreme Court suffer from a “disease of illiteracy or laziness.” So is your face, Justice Thomas. So is your face. [Fox News]
Greetings from lovely Palm Springs, California, home to the 2011 annual education conference of the Association for Legal Career Professionals (better known to many of you as NALP). The setting is beautiful, the weather is fabulous, and the conference panels have been stimulating thus far. Who needs SXSW?
Yesterday I attended a very interesting session, covering a topic near and dear to the hearts of many Above the Law readers. The apt title of the panel: “From Black Boxes to Glass Houses: Evolving Expectations of Law Firm Transparency.”
The lively discussion covered a wide range of topics — and also offered some advice for law firms for dealing with the increased transparency of the digital age….
When you talk to a prospective lateral about your firm during their first meeting, the conversation can go deep, sideways, and in circles. There is so much to share and discuss. What path of a dialogue can you follow to get better odds of a favorable conclusion?
Consider this template as a model you can use to discuss your firm’s opportunity. This simplifies the conversation and gives you a mental framework so the discussion is meaningful, relevant and moves things forward.
The Four P’s
In my transition from retained corporate executive search to legal search, I saw that there were many levels of complexity in the move of a partner transitioning from firm A to firm B. In placing an executive in a corporation, it was simple because of the linear nature of relationships in corporations. In a law firm, because of the multi-layered aspect of the interdependent relationships that each partner must manage with others, the dialogue is much more involved.
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.
We currently have a very exciting and rare type of in-house opening in China at one of the world’s leading internet and social media companies. Our client is looking for an IP Transactional / TMT / Licensing attorney with 2 to 6 years experience. The new hire will be based in Shenzhen or Shanghai. Mandarin is not required (deal documentation will be in English) but is preferred. A solid reason to be in China and a commitment to that market is required of course. This new hire will likely be US qualified (but could also be qualified in UK or other jurisdictions) and with experience and training at a top law firm’s IP transactional / TMT practice and could be currently at a law firm or in-house. Qualified candidates currently Asia based, Europe based or US based will be considered. The new hire’s supervisors in this technology transactions in-house team are very well regarded US trained IP transactional lawyers, with substantial experience at Silicon Valley firms. The culture and atmosphere in this in-house group and the company in general is entrepreneurial, team oriented, and the work is cutting edge, even for a cutting edge industry. The upside of being in an important strategic in-house position in this fast growing and world leading internet company is of the “sky is the limit” variety. Its a very exciting place to be in China for a rising IP transactional lawyer in our opinion, for many reasons beyond the basic info we can share here in this ad / post. This is a special A+ opportunity.
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