Agreeing on this point is former Kirkland & Ellis partner Steven Harper (whose apparent pro-associate stance may make him a sort of Biglaw apostate). As Harper points out, “equity partner profit trees have resumed their growth to the sky. As the economy struggled, Cravath’s average partner profits increased to $2.7 million in 2009 and to $3.17 million in 2010 … That’s not ‘treading water.’ It’s returning to 2007 profit levels — the height of ‘amazing’ boom years that most observers had declared gone forever. Watch for 2011 profits to be even higher.”
And yet associate bonuses remain stagnant at 2009 levels. Furthermore, as ATL commenter “The Cravath Cut” is so fond of noting, when viewed as a percentage of profits, bonuses appear especially measly, at least from the associate p.o.v. (The current $7,500 market rate for first-years is just 0.23% of Cravath’s profits per partner. Back in 2007, first-year bonuses equalled 1.36%.) Despite these numbers, if history has taught us anything, it is that you can kill anyone Biglaw’s rank and file will follow Cravath’s lead.
Cravath is among the most profitable firms in the world. We thought it would be interesting to see what the implications of matching Cravath are for those firms with much lower profit margins. Which firms’ partners willingly take the biggest hit by keeping up? Are these firms arguably more “generous”? After the jump, check out those firms that pay the largest percentage of PPP in bonuses.
On Friday, the firm of Mayer Brown announced supplemental bonuses for its U.S.-based associates (a few hours before Quinn Emanuel, which we’ll write up on Monday; we try to limit weekend writing because so few of you are around to read it).
This week — in between tweeting some really funny stuff (such as how I want to blow up airports — it was so funny!), buying up every last can of Four Loko that I could get my hands on, and forwarding Skadden employee evaluations to all of my friends — I spent the rest of the time tracking the news articles and blog posts I wanted to cover in The Rundown.
Among other things in this edition, a prominent e-discovery company offers its predictions for 2011, a big fish swallows a little fish, and we engage in more Touro talk (this time positive).
There is even a crossword puzzle — seriously, a crossword puzzle…
As we said yesterday, there’s still time left in the year for associates to crank out some billable hours to hit their targets. There’s still time to participate in our hours survey, where the early returns suggest that many of you are quite busy.
That’s a good thing, especially if you are at Mayer Brown, New York. No, the firm hasn’t released bonus information yet. In fact, the firm hasn’t even released its 2011 payscale.
But Mayer Brown is telling people how many hours they need to hit in 2010 in order to be eligible for a 2011 raise…
We’re surprised that more people in the legal profession don’t know about Kasowitz Benson. The firm is relatively young by Biglaw standards — founded in 1993, as a spin-off from Mayer Brown — but very successful. Much of this success is traceable to the leadership of Marc Kasowitz, who continues to run the firm with an iron hand (even though it’s twenty times larger today than at its founding; it started with 18 lawyers and is now up to 350).
Earlier this week, Nate Raymond of the New York Law Journal took a detailed look at the Kasowitz firm. Let’s take a look at some of the highlights….
We’ve gotten away from plowing through the latest Vault Rankings, but fear not. Your firm is coming up soon.
We’ve been through the top 30 firms. But now we’re getting into a group of firms that really utilized the cost-cutting measures of salary cuts and layoffs to weather the recession of 2009. Did these guys take a big prestige hit? Not really. Here’s the next batch of firms:
Simmons & Simmons and Mayer Brown have called off merger talks, the two firms have confirmed in a joint press statement sent today (29 June). The statement confirmed that the two firms have held preliminary talks about a potential merger but have jointly decided not to go through with a combination.
So what are the reasons behind termination of the talks?
The financial services boutique of BuckleySandler, which launched just a little over a year ago, is expanding at a rapid clip. At the time of launch, it had about 50 attorneys (most of them from the firm formerly known as BuckleyKolar); now it’s approaching 100.
The two latest hires are noteworthy. From the BLT:
BuckleySandler is continuing its push to recruit top-level lateral partners. Today, the firm brought on David Krakoff, who previously co-chaired Mayer Brown’s white collar litigation practice, and Christopher Regan, also a former Mayer Brown partner.
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.
The JOBS Act created new tools for companies to publicly advertise securities deals online. As a result, thousands of new deals have hit the market and hundreds of millions in capital has been raised, spurring a wealth of new business development opportunities for attorneys.
Fund deals, startup capital raises, PIPE deals and loan syndicates are just a handful of the transactions benefiting from the JOBS Act. InvestorID FirmTM is a platform designed to help attorneys equip their clients with the workflow, marketing and compliance tools to publicly solicit a securities offering online. By providing clients with the tools to painlessly navigate the regulatory landscape of general solicitation, InvestorID FirmTM helps attorneys add value above just legal services.
The Jumpstart Our Business Startups Act (JOBS Act) went into effect in 2013 and permits Regulation D offerings of securities to be advertised publicly. This means that funds and companies can now use social media, emails and web sites to market transactions to new “accredited” investors.
However, with these new powers come new pain points. InvestorID FirmTM provides a secure, fully hosted, cloud-based platform with a breadth of tools for your clients, including: