Over the past year or so, we’ve heard a steady trickle of negative news out of Dickstein Shapiro. The trickle has turned into a stream, so it’s now time to share what we’ve learned.
Let’s start with the numbers — grim numbers. Yesterday the Legal Times reported on what it described as Dickstein’s “worst year in more than a decade.” Revenue fell by 20 percent in 2013, and net income dropped even more sharply, by 35 percent. According to the Legal Times, the firm’s 2013 net income of $36 million is the lowest the firm has seen since before 1998, its first year on the Am Law 200.
Chairman James Kelly tried to spin this performance as “restructuring” and “investment,” as the firm focuses on its core practice areas. According to Kelly, “We made a strategic commitment to be a market-leading specialty firm. We decided we’re not going to be everything to everyone.”
“Everything” would appear to include “employer.” Let’s hear about the firm’s headcount cuts — affecting partners, associates, and staff — and check out the severance agreement that one source leaked to us….
I had the pleasure of spending much of last week in Seattle, for the 2014 Annual Education Conference of the Association for Legal Career Professionals (aka NALP). On Thursday afternoon, my colleague Brian Dalton and I, along with Guy Alvarez of Good2bSocial, gave a well-attended presentation on new media strategies that work.
I unfortunately had to leave the conference early to speak at another symposium (the Marquette Law conference on law clerks). But while at NALP, I did attend a number of informative panels, centered around two topics: (1) lateral hiring at law firms and (2) federal judicial clerkships.
Here are some themes that emerged from the three lateral hiring panels I attended:
I’ve now written more than 250 columns at Above the Law; I’m invoking a point of personal privilege.
Neil Falconer (of Steinhart & Falconer in San Francisco) passed away last week at the age of 91. He was an extraordinary lawyer, a fine man, and a mentor to anyone who had the sense to listen. Between 1984 and 1989, I learned from Neil what it meant to be a lawyer – “be a sponge; soak up the law;” “never tell a small child not to stick peanuts up his nose;” “you take as long as necessary to solve the problem; let me worry about the bill” – and I later dedicated The Curmudgeon’s Guide to Practicing Law to him. I expected to shed a tear when I read his obituary, but I didn’t expect to be dumbstruck. Words are a terribly feeble way to encapsulate a life. And sometimes you’re paid back, years later, for even the smallest of gestures. Here’s a link to Neil Falconer’s obituary in the San Francisco Chronicle. Rest in peace, Neil. And thank you.
Thinking about Neil caused me to reflect on the decision that I made, 30 years ago, to work at a small firm (of 20 lawyers) on the West Coast.
Everyone told me that I was nuts: “You can always move laterally from a big firm to a small one, but you can’t move laterally in the other direction!” “You can always move from a big New York firm to a firm in California, but you can’t move west to east!” “You have to start by getting the ‘big firm experience.’ Then you can always move to a small firm.” “Go to a big firm! That’s how you keep your options open!”
The conventional wisdom isn’t always right . . . .
Ed. note: Please welcome Above the Law’s new poet-in-residence, Qui Tam. You can read the rest of his law-related poetry over here.
In football, a lateral pass by definition cannot go forward. I thought about that in the merry-go-round lateral market of the mid 00s; a whole lot of sideways movement and shuffling around, most of it just trying to put off a little longer the oncoming inevitability of a bone-crunching tackle in the form of Biglaw up and out. Two lateral experiences…
Some former partners of the dearly departed Dewey & LeBoeuf claim that the firm could have survived if not so many partners had defected in the final months. The wishful thinking theory of these Dewey defenders is that if the firm could have held on to more of its top rainmakers, the plan of paying everyone back (slowly) and waiting for work to pick up might have succeeded.
Perhaps learning from Dewey, the leaders of embattled Patton Boggs have been trying to get partners to commit to staying as the firm restructures. Not long ago, managing partner Edward Newberry declared that about 90 percent of the firm’s partners agreed to stick around.
But 90 percent is not 100 percent. Today brings word of more Patton partners headed for the exits. How many? Who are they? And where are they going?
Last week, we wrote about lawyers leaving Faruqi & Faruqi, the litigation boutique that’s locked in an ugly legal battle with a former associate, Alexandra Marchuk. Marchuk’s lawsuit accuses F&F partner Juan Monteverde of severe sexual harassment and alleges that the firm’s leaders turned a blind eye to his misconduct.
We asked our readers for more information about the recent Faruqi departures. Well, ask and you shall receive. We have the details on the lawyers who left — as well as info about how Faruqi is looking for laterals, and how much it pays them (hint: not enough)….
Alexandra Marchuk’s headline-grabbing lawsuit against her former firm, Faruqi & Faruqi, has generated a lot of headaches for the firm. It has given rise to some bad PR. It has created client concerns. It has distracted the firm from its mission of shaking down corporate America vindicating shareholder rights.
And is it now causing the high-profile boutique to lose lawyerly talent? Here’s what we’re hearing….
We’ve all been so transfixed by the Patton Boggs meltdown that we’ve temporarily lost track of some other law firms that are facing challenges right now. The most prestigious name on the list: Weil Gotshal & Manges.
After last summer’s layoffs and partner pay cuts, WGM experienced a rash of partner defections. Some of these were true losses for the firm, but others were chalked up to Weil’s strategy of becoming leaner, more capital-markets-centric, and ultimately more profitable.
Has this revamping of the firm manifested itself in the form of higher partner profits? Not yet. In fact, in 2013, revenues and profits at Weil fell….
Ed. note: This is the latest installment in a series of posts on lateral partner moves from Lateral Link’s team of expert contributors. Michael Allen is Managing Principal at Lateral Link, focusing exclusively on partner placements with Am Law 200 clients.
The “Legal” world versus the “legal” world. The actual practice of law versus the construction of practices and firms. These are diametrically different disciplines, and while the demand for “Legal” work influences the “legal” world phenomenon of lateral hiring, many other market conditions dictate demand and compensation for partners.
Partners are often sequestered from the tedious details of the lateral market and, consequently, they often undersell themselves to firms and subsequently become underpaid. If you’re a partner looking to make a move, here are 5 beginner’s tips to maximize your lateral partner compensation package: