The median age of U.S. lawyers is on the rise in a way that cannot be explained by a decline in law school enrollment. Is this due to the decrease in entry-level jobs for law school graduates? Or have the increased number of women lawyers (and related high attrition rates) contributed to this trend?
Over the past few months, we’ve offered extensive coverage of Bingham McCutchen, the once high-flying law firm that’s now struggling to survive. Bingham has remained mainly mum during these trying times.
This week, however, managing partner Steven Browne — who took over earlier this year from Bingham’s longtime leader, Jay Zimmerman — has been on a charm offensive. He gave interviews to the Boston Globe and the Wall Street Journal, which along with the American Lawyer ran long pieces on the state of affairs at the firm. We’ll share with you the new and most notable material from all three stories.
Before we get to the substantive stuff, though, let’s check out the Wall Street Journal’s interesting choice of a photo for its Bingham piece….
Earlier this month, we reported on Bingham McCutchen and Morgan Lewis & Bockius’s agreement to merge. The 750-lawyer Bingham firm has been going through a rough patch lately, so news of the deal with 1,200-lawyer Morgan Lewis sounded like a rescue to some observers.
But rescues come with terms and conditions. What are the ones at issue here? There’s good news for some Bingham partners, and bad news for others….
September is shaping up to be a busy month for law firm merger news. On the heels of the Locke Lord / Edwards Wildman deal, we’re getting word that Bingham McCutchen and Morgan Lewis have reached an agreement to merge.
The news doesn’t come as a shock. Rumors of a Bingham/Morgan combination have been circulating for months. There was talk that such a deal could trigger some partner departures, and those departures have already come to pass (presumably removing from the picture some potential objectors to a merger).
Let’s have a look at what a Morgan Bingham — or Bingham Morgan, or maybe just a bigger Morgan Lewis, if no name change takes place — might look like….
There’s no Biglaw intercity rivalry that can match the one between London’s venerable Magic Circle and New York’s elite white-shoe firms. Both groups of firms are the clear alpha dogs in their markets, attracting the top talent and most lucrative clients.
There are, however, some significant differences between the two groups in how they operate. For example, U.K. firms tend to follow a lockstep (rather than “eat what you kill”) compensation model. Last month, friend of ATL Bruce MacEwen took a deep dive into the relative performance over the last several years of the Magic Circle firms versus their New York cousins. The piece is highly recommended: it’s chock-full of data, and its findings suggest the groups are moving in different directions….
In the not-so-new normal, clients continue to refuse to pay full freight for inexperienced first-year attorneys to work on their legal matters — or, as one law firm recently mused, “client demand for first year associates has declined.”
What’s a Biglaw firm to do?
It seems that one firm has found a pretty good solution to this problem: make someone else hire those lawyers to work as junior in-house lawyers, and then bring them into the fold as associates after they’ve gained some real-world experience.
Which Biglaw firm has teamed up with a big bank — the biggest bank in the U.S. — for this program?
Some have wondered whether Bingham might “fall victim to its own strategy” — i.e., whether the firm, which grew in power and profitability by swallowing up other firms, might itself get eaten up by a rival.
So what’s the latest on the Bingham merger talk front? And what might happen if the talks go further?
And, of course, we have covered compensation. We’ve done two posts so far looking at associate comp in the 1990s, in New York and in other cities — Atlanta, Boston, Chicago, Dallas, Houston, and Los Angeles.
Today we’ll close out the series with an overview of associate pay in the remaining markets of Philadelphia, Pittsburgh, San Francisco/Palo Alto, and Washington, D.C….
Hop in the DeLorean and travel back in time with us.
Labor Day weekend is here. So let’s talk about… labor! In the Biglaw salt mines.
In response to our earlier Flashback Friday posts about associate compensationin the 1990s, we received a few requests for information about billable hours back then. People wanted to know how hard associates had to work back in the day for that $83,000 starting salary.
It’s a good question. You hear anecdotal evidence going in both directions. Sometimes people who have been in the profession for a long time talk about how hard they had to work before technology made things so much easier, recalling the bad old days of never-ending, hard-copy due diligence or document review. On other occasions, though, old timers reminisce about the good old ways when law was more of a profession and less of a business; sure, lawyers earned less, but they had lives — or , at least, better work-life balance.
Which picture holds more truth? Here’s some data….
As part of a nationwide tour, Above the Law is coming to the great city of Chicago.
Join preeminent law firm management consultant Bruce MacEwen, Katten Muchin Chicago managing partner Gil Sofer, and JPMorgan Chase & Co. assistant general counsel Jason Shaffer for a panel discussion (sponsored by Pangea3) on the evolutionary and market forces bearing down on the law firm business model. Come on by Thursday, November 20, at 6 p.m., for thought-provoking discussion, food, drink, and networking.
Space is limited and there will be no on-site registration, so please RSVP
Average law school debt for graduates of private universities hovered around $122,000 last year. With only 57% of new attorneys actually obtaining real lawyer jobs, recent graduates have a lot to consider when it comes to managing their student loan payments. Thanks to our friends at SoFi, today’s infographic takes a look at student loan debt, including the possible benefits of refinancing for JDs…
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.