We have partner profits on the brain here at Above the Law. Earlier today, we wrote about a law firm that instituted a 20 percent holdback on partner pay — a move that was met with anger by some.
In that story, we noted the “continued expansion in the gap in power and pay between what we’d call ‘super-partners’ — partners in firm management and major rainmakers, who are often one and the same — and rank-and-file partners.” You can see this yawning chasm in the disparities in partner pay that exist within the same firm. As partner turned pundit Steven Harper has argued, partners aren’t true “partners” when they are paid and treated so differently.
New information from the American Lawyer shows how extreme some of these gaps between partners have gotten….
The law firm of Dewey & LeBoeuf now finds itself in Chapter 11, but the story of Dewey has not yet reached its end. We’ll now turn the pages in the Bankruptcy Reporter.
Yesterday Judge Martin Glenn of the U.S. Bankruptcy Court allowed Dewey to use cash collateral to fund its wind-down operations, even though this collateral should really be seen as belonging to the firm’s secured creditors. Judge Glenn initially denied this request, at least when it was coupled with giving the secured creditors a lien on recoveries from future litigation. In deciding to let Dewey tap into the cash, Judge Glenn did not decide what the lenders might get in exchange for letting the firm use their money. That will be decided later, at a June 13 hearing.
With things quieting down on the Dewey news front, let’s turn to analysis. Here are some insights into what brought Dewey down and what other firms can learn from its fall, from a former managing partner who now works as a consultant to the legal industry….
A retail business owner asked me why I don’t believe in pay-per-click advertising or spending money on SEO strategies for my practice, as it has worked well for his stores. So I asked him: “What would you do if you needed a lawyer?” “I would call someone, get a name, and then look that person up,” he said. “You wouldn’t just do a Google search?” “No, never. After I got a name, I would check out the lawyer’s background, maybe see if he’s written anything that gives him credibility.”
No kids, he’s not talking about cute tweets or postings with links on a Facebook Fan Page. He’s talking about real writing, and he’s talking about getting your name from real people.
Now I know that I’m wrong, don’t know what I’m talking about, and am facing a sure death of my practice by suggesting that there are other ways of getting your name out there besides vomiting all over every social media platform, but it’s okay. When it all dries up, I’m sure I will have plenty of job offers from the wildly successful lawyers of the commentariat.
For those wondering if the life of a lawyer will ever be anything more than keeping track of your Google prowess by taking calls of, “I found you on the internet. How much do you charge?,” I have good news — it can be. There are actually real people out there that are looking for quality. It’s not that they found you first; it’s that they found you after a little research. If you’re going to be the type of lawyer that is found after someone gives your name, you might as well have something on the internet that evidences you have done more than just listen to some unemployed lawyer’s advice on building a practice.
My ideas are all free, and if you’re not afraid to use your real name, you may get some benefit from using them….
Hey, have you read Above the Law for like one single minute in the past month? If so, you probably know that we’re having this big blogger conference on March 14th at the Yale Club. Yeah, the Yale Club. You’ll be able to recognize me: I’ll be the only big… blogger guy surreptitiously holding a can of crimson spray-paint.
Speaking of coming, you should come. We’ve got CLE and all that. Click here to buy tickets to get CLE credit for listening to bloggers scream about stuff on the internet.
To refresh your memory, details on the panel that I’m moderating — almost entirely sober, mind you — follow.
My panel is called Blogs as Agents of Change, and we’re going to talk about whether all of these spilled pixels are actually making a difference. You know my view… just ask Lawrence Mitchell, but here are the panelists:
So you spent a considerable amount of time courting, selling and maybe even doing some friendly stalking of that attractive lateral partner candidate with a sizable book. After he or she ignored your emails and didn’t return your calls, a few weeks go by and you read a press release in the legal media announcing the recent move to a competing firm.
Rats. Another one got away from you. You cringe when you consider how much time was spent in meetings that did not bear fruit. Your heart aches when recall how you were led to believe this was a marriage made in heaven.
You have been rejected.
The sting of rejection is painful, even for fancy law firms. But you need to find a way that you can turn this disappointment into a legitimate learning experience.
No, this isn’t a pre-party before we come back next fall for the real thing. This IS the real thing. Quinn Emanuel is pushing the envelope on recruiting. The party is now. This is when you meet the partners and associates face to face. This is when we begin the dance that could land you an offer for your second summer BEFORE school starts in the fall.
First: You come to the party. Second: If you like us, you send your resume after June 1, 2014. Third: If we like each other, you get an offer.
We’re not waiting for fall. We’re not doing the twenty minute thing. This party is the real thing!
We hope you’ll join us, and look forward to meeting you.
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