Hello from Tampa, Florida, site of the 2013 annual education conference of the Association for Legal Career Professionals (aka NALP). Elie Mystal, Brian Dalton and I have been attending some excellent panels, catching up with old friends, and making new ones (although some law school folks here have given Elie the stink eye).
Yesterday I attended an interesting panel entitled “Homegrown or Not: Lateral Hiring vs. Law Student Recruiting.” The important topic drew a standing room only crowd….
Despite rumors of impendinglayoffs, many people thought that 2012 would be the year that Biglaw would make its comeback after being dragged through the wringer of the recession. You’d think that Biglaw’s “solid performance” last year would’ve served as an indicator of its hiring needs, but as with most predictions having to do with Biglaw, you’d be wrong.
The numbers are in for the fall 2012 summer associate recruiting season, and they’re nothing to write home about. In fact, according to the latest National Association for Law Placement (NALP) report, the median and average numbers of summer offers made to 2Ls took a tumble.
In an uncertain economy, this depressing kind of recruitment activity may be the new normal for Biglaw….
Back in 2011, the National Association for Law Placement (NALP) produced an extremely useful chart for people trying to figure out where to start their Biglaw careers. The chart, which tracks buying power based on starting salaries for associates, is a great way to find out where you’ll get the most bang for your buck if you land a lucrative Biglaw gig.
NALP’s Buying Power Index continues to use New York City ($160,000) as the baseline. It takes the median starting salary for the class of 2011 and the cost of living index for NYC and sets that figure at 1.00. Cities with a better purchasing power than NYC have a value greater than 1.00. In all, 76 cities have been ranked.
When we first wrote about this, associates in New York City were crestfallen when they found out that their city was number 42 on the list — they realized they were essentially throwing their money down the drain. This year, NYC has tumbled even further down the list.
How badly are they getting screwed, and where can you go if you want greater purchasing power?
* NALP is becoming the harbinger of doom for law practice. Here’s some cheerful news: the percentage of female associates in Biglaw dropped for the third year in a row. Perhaps they’re going the way of the Clifford Chance mommy. [National Law Journal]
* Biglaw hotties are coming to a continent near you! Davis Polk & Wardell will be adding a litigation practice to its existing shop in Hong Kong, and they managed to poach two big name Clifford Chance litigators in the process. [DealBook / New York Times]
* According to the ACC, in 2012, base salaries for general counsel rose 1.9 percent, while cash bonuses dropped 7.9 percent. But really, who’s going to complain about a six-figure bonus? [Corporate Counsel]
* A Delaware jury ruled that Apple infringed on several patents in a mobile-device technologies case filed by MobileMedia Ideas. Somewhere, Samsung’s bigwigs are laughing their asses off. [WSJ Law Blog (sub. req.)]
* A woman was arrested in Spain for trying to smuggle in cocaine from Colombia. Seems pretty standard, except for the fact that she was hiding the coke in brand new breast implants — three pounds of it! [CNN]
Ed. note: This is the first in a new series, “Across the Desk,” from Bruce MacEwen and Janet Stanton of Adam Smith Esq. and JDMatch. “Across the Desk” will take a thoughtful look at recruiting, career paths, professional development, human capital and related issues. Some of these pieces will have previously appeared, in slightly different form, on AdamSmithEsq.com.
As noted in the American Lawyer recently, the lateral recruiting boom of recent years continues unabated. As the Am Law article points out, “At the same time [as they’re focused on hiring lateral partners], firms appear to be homing in on their poor performers. Nine out of 10 survey respondents said their firm has ‘unprofitable’ partners, and seven out of 10 said their firms have partners at risk of being deequitized or ‘put on performance plans.’ As one survey respondent put it: ‘There are too many partners without sufficient billable work.’”
Now, wouldn’t you think it would make sense — if firms are worried about underperformers — to pay some attention to associates as well as partners? After all, some of those associates should, speaking theoretically at least, be your future partners.
Yet there’s unrebutted evidence that firms look at the wrong criteria when hiring associates….
Greetings from San Francisco, home of the world champion Giants, surprisingly noisy trolley cars, and the faint smell of cannabis pretty much everywhere. We’re in town to attend Ark Group‘s conference on “The Brave New World of Entry-Level Recruiting,” which examines how the world of law student recruiting by firms has changed (and will continue to evolve) since the onset of the Great Recession. Moderated by Bruce MacEwen, who kicked off the proceedings by framing the day as an opportunity for “frank conversation” between schools and firms, the conference featured an absolute Murderers’ Row of industry thought leaders, including Orrick‘s Ralph Baxter, legal academia’s apostate Paul Campos, NALP’s Jim Leipold, Indiana/Maurer‘s Bill Henderson, three Biglaw hiring partners, and deans from Berkeley, Stanford, and Hastings.
Read on for some highlights and takeaways from yesterday’s conference.
Admit it: when you applied to law school, your admissions essay was probably about your desire to help some poor, disadvantaged group of people. You walked in the door bright-eyed and bushy-tailed, ready to conquer the world one unpaid public interest internship at a time.
If by some chance you weren’t convinced to give up on your dreams of helping the disenfranchised, now that you’ve graduated, you’ve probably realized that this whole “public interest” thing isn’t exactly working out so well for you. After all, servicing six figures of debt is no easy task on a $45K salary, even with school-sponsored loan repayment assistance programs (if your school has one). As it turns out, now you’re one of those poor, disadvantaged people.
This leads to a very relevant question that was recently raised by the National Association for Law Placement: should you even consider pursuing a public interest career path after graduating from law school? Is it really worth it? Let’s take a look at some salary figures and find out….
Back in April, we brought you a story about a family who had written to Dear Abby, an advice columnist, about their child’s law school loan debt. Apparently the mere thought of assisting their darling daughter with the repayment of her $100,000+ debt load was just too much to bear. The daughter had already ruined her own life, so why should they ruin theirs too? And yet, tens of thousands of students are still willing to look this student loan debt problem in the face and laugh.
Yes, in a time where the Executive Director of the National Association for Law Placement is forced to write entire columns about the fact that there is no conceivable way he could describe the current entry-level job market as “good,” others are still considering applying to law school.
For example, today we found out that the matriarch of another family sought wisdom from an advice columnist as to whether her husband should go to law school. How did she respond? Let’s just say Dear Prudence is a little more in tune with the realities of today’s legal job market than Dear Abby will ever be….
* Oh, by the way Dewey & LeBoeuf partners, the little contribution plan you signed that received court approval last week might not protect you from your former landlord’s claims for back rent. Hope you’ve all got an extra $45 million sitting in the bank. [Am Law Daily]
* Louisiana Supreme Court Justice Bernette Johnson will finally get to claim her seat as chief justice of the state’s high court after official judicial recognition — on both the state and federal level — that the year 1994 does indeed come before 1995. [Bloomberg]
* No matter how hard law school administrators wish it were so, or how much they beg Jim Leipold of NALP, he’s never going to be able to describe the current entry-level legal job market as “good.” [WSJ Law Blog]
* NYU Law School is changing its third-year program in the hopes of making a “good” market materialize. If you ship students to foreign countries for class, maybe they’ll get jobs there. [DealBook / New York Times]
* “[W]e’re determined to do everything we can to help them find jobs and meaningful careers.” We bet Brooklyn Law’s dean is also determined to avoid more litigation about employment statistics. [New York Law Journal]
* Has the other shoe finally dropped? After the Second Circuit ruled that YSL could sell monochromatic shoes, the fashion house decided to drop its trademark counterclaims against Christian Louboutin. [Businessweek]
According to NALP, the volume of 2011 lateral hiring was up by nearly 50 percent compared with 2010, with associates accounting for almost three-quarters of the lateral traffic. Obviously, the data is not in for this year, but according to one veteran headhunter we spoke with, the revived lateral attorney market has continued through 2012. Admittedly, this trend is not a bright spot if one believes that a fast-flowing lateral market is a key ingredient in the recipe for more Deweys. But at the very least, we are in a better environment for those looking to make a lateral move.
Unlike much of the labor marketplace, legal recruitment generally has not migrated online. In the large firm context, would-be lateral attorneys continue to require the specialized knowledge and carefully cultivated relationships of the legal recruiter. Today, the ATL Career Center launches its Practicing Lawyers section, which features a Recruiter Directory, a new resource for those of you looking for greener pastures. After the jump, check out the founding members of the Directory….
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 six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months (Robert Kinney and Evan Jowers will be in Hong Kong again March 15 to 23), and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.
Are you challenged by the costs and logistics of maintaining your office, distracting you from the practice of law?
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:
Everyone is talking about the importance of Social Media in Corporate America. But it is relatively safe to say that most law firms and lawyers are slightly behind the social curve. Most lawyers, at minimum, use LinkedIn, for networking. Some even use Twitter for pushing out short, pithy content, while many have Blogs, where they write their little hearts out. The adage “it is better to give than to receive” is not always true though in the world of Social. In the Social World – it is best to listen, give back and engage.
Social Media is a communications tool that can deeply educate you about the needs and wants of your clients and prospects when used in conjunction social media monitoring and sharing tools.
Take this quick quiz and see if you know how to use Social to help you engage more with your clients or to better service the ones you have.