Ed. note: The Aspiring Lateral, a new series from Levenfeld Pearlstein, will analyze a variety of issues surrounding lateral moves, drawing on the firm’s experience in the lateral market as well as the individual experiences of LP attorneys. Today’s post is written by Rob Romanoff, the Managing Partner of Levenfeld Pearlstein.
When it comes to the ultimate departure, you can’t take it with you. When it comes to professional departures, however, it’s a different matter entirely. Whether or not you can take it with you — that is, whether your clients will follow you to a new firm — is a very open question indeed, and a critical one in any lateral candidate’s recruitment.
But how much portable business is enough to catch the eye of suitor firms? How can lateral candidates even determine the amount of their portable business? And how do they actually go about moving it? Let’s consider these questions in turn…
Ed. note: The Aspiring Lateral, a new series from Levenfeld Pearlstein, will analyze a variety of issues surrounding lateral moves, drawing on the firm’s experience in the lateral market as well as the individual experiences of LP attorneys. Today’s post is written by Peter Donati, the chair of Levenfeld Pearlstein’s Labor & Employment Group and the head of its Compensation Committee.
We’ve been conditioned to believe that lateral moves are all about money. Popular thinking — which may not be far from the truth — holds that law firms, held in collective thrall by the American Lawyer’s profit-per-partner numbers, focus on lateral hiring as the first step in a virtuous cycle that will increase their PPP metric, in turn attract more profitable laterals, and so on and so on. Laterals themselves, meanwhile, are viewed as economic actors lured away from their firms primarily through the prospect of increased, or guaranteed, compensation.
(Given the prominent role that guaranteed compensation is said to have played in the downfall of Dewey, and the pains Weil Gotshal took to point out its relative lack of compensation guarantees when announcing its recent layoffs, this particular carrot may be falling out of fashion. Even Weil conceded, however, that it has compensation guarantees in place for first-year laterals.)
In light of the focus on dollars in connection with lateral moves, it may surprise the reader to hear the head of a compensation committee say that in many cases, lateral candidates do not talk enough about money. To be more specific, lateral candidates often don’t scratch beneath surface questioning about their prospective new firm’s compensation system. If they did, their answers would inform them more deeply not only about their future paychecks, but the character of the firm they are considering….
Last week, we wrote about reductions to the ranks of lawyers and staff at WilmerHale. We noted that the cuts, made in connection with twice-annual performance reviews, seemed to focus on IP litigation and on the Boston and Palo Alto offices.
Today we bring you additional information about the reductions, which look a lot like stealth layoffs. They seem to be more widespread, in terms of offices and practice areas, than previously reported.
And they might be due to some earlier overhiring, reflected in an interesting email we received….
Last September, we wrote about the mysterious departure of Lee Smolen from Sidley Austin. Smolen, former head of Sidley’s real estate practice in Chicago and a member of the firm’s executive committee, departed without comment or a known destination. When that happens, something interesting is usually afoot.
Earlier this month, the other white shoe dropped. A lawyer ethics commission in Illinois leveled charges against Smolen arising out of his time at Sidley.
What has he been accused of? And what does his new law firm have to say about it?
But this has started to change over the past few years, as managing partner Thomas Reid discussed in an August 2011 interview with Am Law Daily. In the August 2010 to August 2011 period, DPW hired a half-dozen prominent lateral partners.
And the lateral hiring spree continues (although not without the occasionalsnag). Let’s hear about Davis Polk’s latest high-profile hire, a new lateral partner at Paul Hastings, and an addition to the leadership of Orrick….
Biglaw partners may not be having coke-fueled orgies on piles of cash any more, but partners are still doing well compared to mere mortals.
In fact, the biggest rainmakers are doing really really well compared to many of their colleagues. According to Steven Harper, the Northwestern professor and author of The Lawyer Bubble: A Profession in Crisis (affiliate link), the highest-paid Biglaw partners used to make three times more than their run-of-the-mill colleagues. Today, rainmakers can pull down ten times more.
If you are a Biglaw partner and have only one title to hawk, I hope you are at a really top-tier firm. Because “partner” is no longer enough to impress clients. Especially in this age of multiple industry “guides” eager to anoint mortal lawyers with honorifics befitting your typical episode of Game of Thrones. (I am sure there is a female head of litigation somewhere who would relish being called Mother of Dragons, or a managing partner in Silicon Valley who would not mind being thought of as Lord of the Vale.) Between Chambers, Super Lawyers, Best Lawyers in America, and others, there are plenty of possibilities to supplement “partner” with something more.
Of course, the race for titles happens internally at Biglaw firms as well. Factor number one is prior business generation. Rainmakers are given titles by their fellow partners, like farmers seeding clouds for future rainfall. Every firm has at least a managing partner or CEO, numerous practice group heads, and an executive committee. Some firms, typically those of the “eat what you kill” variety, also exhibit a form of “title inflation,” with co-chairs galore and sub-department chieftains abounding. Plus office-level “chairs” — it is always a hoot when there is a local head of litigation for a branch office with three litigators. Especially when the branch office is a major city, with dozens of robust litigation practices at other Biglaw firms for clients to choose from. Everyone who has been granted a title uses it when marketing outside the firm. Who would want to hire a regular partner for a bankruptcy matter when you can have the co-chair of the Boston office’s (two-member) restructuring department handling things?
First, an offer: I thought I had retired my “book talk” about The Curmudgeon’s Guide to Practicing Law when I moved to London last fall. But I’ll be in the States for a few weeks in late May and June, and I’ve been asked to dust off the talk and give it a few times — at the annual meeting of the Association of Defense Trial Counsel in Detroit, and again in Chicago for Kirkland & Ellis and Greenberg Traurig. So long as I’ll have to flip through my notes and re-learn the talk, I might as well give it for your group, too. Please let me know by email if your law firm is interested.
Second, today’s thesis — and it’s a backwards one: Law firms think more highly of you for the years when you’re not working at the firm.
I’ll start with the easy example: I moved as a sixth-year associate from a small firm in San Francisco to a huge firm in Cleveland. When I arrived at the huge firm in Cleveland, partners treated me surprisingly well. Why?
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.
It’s that time of year again when JDs are starting to apply for 2L summer jobs and 2L summers are deciding which practice area to focus on.
For those JDs with an interest in potentially lateraling to or transferring to Asia in the future, please feel free to reach out to Kinney for advice on firm choices, interviewing and practice choices, relating to future marketability in Asia, or for a general discussion on your particular Asia markets of interest. This is of course a free of cost service for those who some years in the future may be our future industry contacts or perhaps even clients.
For some years now Kinney’s Asia head, Evan Jowers, has been formally advising Harvard Law students with such questions, as the Asia expert in Harvard Law’s “Ask The Experts Market Program” each summer and fall, with podcasts and scheduled phone calls. This has been an enjoyable and productive experience for all involved.
If you are considering a virtual law practice, you know that many of today’s solo firms started that way. But why are established, multi-attorney law firms going virtual?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Reduces malpractice risk
Enables you to gather the best attorneys to fit the firm, regardless of each person’s geographic location
Leverages mobile devices and cloud technology to enable on-the-spot client and prospect communication
Transitioning in-house is something many (if not most) firm lawyers find themselves considering at some point. For many, it’s the first step in their career that isn’t simply a function of picking the best option available based on a ranking system.
Unknown territory feels high-risk, and can have the effect of steering many of us towards the well-greased channels into large, established companies.
For those who may be open to something more entrepreneurial, there is far less information available. No recruiter is calling every week with offers and details.
In sponsorship with Betterment, ATL and David Lat will moderate a panel about life in-house and we’ll hear from GCs at Birchbox, Gawker Media, Squarespace, Bonobos, and Betterment. Drinks, snacks, networking, and a great time guaranteed. Invite your colleagues, but RSVP fast, as space is limited.