Law firm consultants have endless advice about how best to compensate partners at firms. The consultants analyze the extremes: Lockstep compensation avoids quibbles about pay, but it may reward less productive older partners at the expense of the young turks. Eat-what-you-kill compensation rewards people who bring in business, but may cause bitter fights over client origination credit or cause partners to hoard their clients.
Various permutations on those extremes have their own advantages and disadvantages. But riddle me this: Why don’t we see consultants debating the pros and cons of pure black-box compensation? Under this system, the managing partner (or a small committee) sets compensation for each partner in the firm. There is no specific formula for allocating the spoils, and partners are forbidden from discussing their compensation with each other. Each partner is told what he’ll make in the coming year (either as an absolute number or as a projected draw assuming the firm hits 100 percent of budget), and the process is over.
At least a few large firms use black-box compensation systems, so this subject surely deserves a moment’s thought. What do you think of a black-box compensation system — good, bad, or indifferent?
Writing at Above the Law brings you fame, if not fortune: Two different groups (an ABA Committee and a CLE outfit) recently asked me to help design courses that would be irresistible to all in-house lawyers. These guys wanted me to pick topics for “must attend” programs — events that no in-house lawyer could afford to miss.
My first reaction was this: Are you kidding me?
If I’d stumbled onto the “must read” topic for all in-house lawyers, don’t you suppose I would have shared that insight in these columns? If I knew what everyone really wanted to know, would I still be filling my twice-weekly slot here at ATL with random musings and pontifications?
But my second reaction was better: Now, at long last, I’ve figured it out….
At law firms, you only occasionally hear people criticizing lawyers for not “being proactive.” Maybe that’s the nature of the beast: When you’re a litigator at a firm, you’re always considering what moves to make, anticipating the other side’s responses, and planning several moves ahead. Being proactive is the name of the game.
But I often hear in-house lawyers either being criticized (or criticizing others) for not being sufficiently proactive. How can you prove to the world that you’re proactive?
There are two parts to this puzzle: First, you can create the illusion of proactivity. This takes no effort at all, and it will impress people. Do it! Second, you could actually be proactive. This takes a little effort; I’ll leave it to you to decide whether the game is worth the candle. But at least consider being proactive; you might enjoy it, and it might be good for your career . . . .
Quick! I’m an in-house lawyer! How are my legal skills?
Admit it: You just thought to yourself, “So-so. The guy couldn’t hack it at a law firm and wanted a 9 to 5 lifestyle, so he took his mediocre skills and moved in-house. I’ll try not to be transparently condescending when I talk to him on the phone.”
I believed that, too, until I went in-house. (That was a joke. How do you put a smiley face on a blog post?)
A moment’s thought reveals that I’m a bundle of legal prejudices, and I suspected that others were, too. So I did a Rorschach test of some lawyer-friends. I named categories of lawyers, and I asked my friends to give their immediate reactions to those categories.
We’ve done some hiring recently, and people seem to have three types of résumés.
Some résumés start with an “Executive Summary” that consists largely of the applicant explaining that the applicant believes that he (or she) is a great guy (or gal). I’m not quite sure how that distinguishes the applicant from the seven billion other folks who share this planet with us:
“A fast-paced, fast-track, high-falutin’ individual with exceptional interpersonal, communication, and persuasive skills, as well as boyish good looks and a toothy grin; who leads by example and coaches and develops others to deliver high performance; blah, blah, blah.”
To my eye, this is “telling, not showing.” You think you’re great? Wonderful. But, other than your own say-so, is there anything about you that might objectively indicate that you’re correct? Have you ever, for example, achieved something that’s worth talking about? If so, perhaps your résumé should find an excuse to lead with that.
Other résumés also start with an “Executive Summary,” but of a different type . . .
Here’s something that never crossed my mind before I moved in-house, but it affects both the nature of in-house legal jobs and outside counsel’s relationship with in-house lawyers.
ParentCo has three business units: Gadgets, Widgets, and Muppets.
ParentCo will have a general counsel. Beyond that, however, ParentCo’s Law Department could be set up in one of two ways: (1) there may be three lawyers, one of whom is the chief counsel for Gadgets, one for Widgets, and one for Muppets, or (2) ParentCo may have a litigation counsel, an M&A counsel, and a contracts counsel, each of whom support all three business units.
In the first situation, the lawyers for the business units are generalists, helping their specific business units with whatever legal matters arise. In the second situation, the lawyers are substantive experts, helping all three business units with matters that fall into the lawyers’ areas of expertise. An in-house lawyer’s work environment turns in part on which structure the corporation’s law department uses, and outside counsel can better serve clients if counsel know how a law department is organized….
Pay attention to the game when you go to the ballpark.
* If anything, baseball stadiums need less netting to prevent fans from catching foul balls. And if your six-year-old gets clocked in the head by a batted ball, it should be a lesson to wealthy fans in great seats to pay attention to the goddamn national pastime instead talking on your cell phone or watching the scoreboard or doing whatever non-baseball activity that distracted you from the 2-2 count with the lefty up at bat. [Legal Blog Watch]
* Here’s a great review of Mark Hermann’s book: Inside Straight, that focuses on Hermann’s use of the commenters in his material. This will provide excellent research for my own project: How I Became An Affirmative Action Walrus. [Simple Justice]
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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