* Louisville coach Rick Pitino promised his players that he’d get a tattoo if they won the NCAA tournament. I’m hoping Peter Kalis makes the same pledge if K&L Gates makes its projected annual profits. [Huffington Post]
* Hey, Houston readers! Since I’m in town for our event tonight, I wanted to give a plug for the OKRA Charity Saloon. I visited last night and it was great — a beautiful space and all the profits go to a charity that you get to vote on (one ballot for each drink you get). An all-around great idea. So if you’re looking for a location for your next happy hour… [OKRA Charity Saloon]
* James Poulos makes a good point: it may put you horribly, horribly in debt, but education is still a good thing. [Forbes]
* Tomorrow check out our newest series: Unofficial Orientation to Law School. We will be video chatting with students, professors, and hiring managers about how 0Ls can successfully launch their legal careers. This series is presented by LexisNexis, BARBRI, and Law Preview, a BARBRI Company. [Above the Law]
* Have you ever wanted to see puppets set to the L.A. Law theme song? No? Well, after the jump you can see it anyway….
Roger Ebert passed away last week, robbing us of a great film critic and an equally insightful social critic. Ebert loved the movies and his critical ire was only raised when films failed to live up to the standards he’d set in his own mind.
But one genre of film seemed to give Ebert consistent fits — the legal movie. From drama to comedy, if the film found its way into a courtroom, Ebert was likely on the wrong side of public opinion. As a tribute to the critic, we’ve gathered some of his reviews to pass final verdict on Ebert’s understanding of the legal genre….
Biglaw reporting season continues. But this year we have an interesting twist: K&L Gates decided to share (covered by Lat and Bruce MacEwen, among others). Thankfully, the sharing is not of the “we overstated our revenue by a couple hundred million, and owe a bunch of old and retired partners way more than that anyway” variety. Rather, the firm released financial information that goes a little beyond what you see in your typical Biglaw firm reports (which I previously discussed).
While I have seen the firm hailed as courageous in some quarters, I am reluctant to declare this a huge leap forward towards Biglaw financial transparency. For one, there are other firms that put out even more complete “annual reports,” like Allen & Overy (thanks to an ATL commenter for that reminder), a firm that seems to be hanging on to a lockstep compensation model for partners. Second, as Lat pointed out, there are even internal sources within K&L Gates asking the types of questions that the firm’s “enhanced” report does not answer.
Personally I find a few things about this whole to-do interesting and a bit frustrating….
As we mentioned this morning, preliminary reports suggest that profits and revenue at large law firms were up in 2012. As we noted yesterday, some firms — e.g., litigation powerhouse Quinn Emanuel — enjoyed double-digit increases in gross revenue and net profit.
Of course, these firm financial reports, reported to and compiled by the American Lawyer magazine, are not as detailed as they could be. They certainly aren’t as detailed as the quarterly and annual reports filed by publicly traded companies, even though a fair number of Biglaw firms have revenues and profits that exceed those of public companies.
And they probably never will be, at least as long as U.S. law firms are private partnerships rather than publicly traded companies. But at least one firm is opening the door a crack and letting more light in….
* Law School Transparency? Nay, Biglaw Transparency! Peter Kalis, global managing partner of K&L Gates, just opened the kimono wide on his firm’s financial performance in an “unusually detailed” fashion. [Wall Street Journal (sub. req.)]
* Talk about a pain in the pocketbook: although profits per partner and revenues are up overall, one firm saw shrinkage of 16 percent in PPP. [Thomson Reuters News & Insight]
* The ABA is just now thinking of trying to find someone who will audit the graduate employment data that law schools release each year. Gee, it only took 15 fraud lawsuits to get the ball rolling. [National Law Journal]
* Oh my God, you guys, carrying six figures of law school debt on your shoulders is “unsustainable” in the long run, especially when your salary sucks. This is new information that no one’s heard before. [News-Gazette]
* Former U.S. Attorney Jim Letten is now Tulane Law’s new assistant dean for experiential learning. For the school’s sake, hopefully he’ll be able to control his students better than he did his AUSAs. [Tulane Hullabaloo]
* “You’re a cold-blooded murderer and I’ll stare you down until I die.” Drew Peterson was sentenced to 38 years in prison for the murder of his third wife. A sequel to the Lifetime movie is likely forthcoming. [Reuters]
Our friend Bruce MacEwen has written a trenchant analysis of the predicament currently facing the large law firm business model: Growth is Dead: Now What? In the words of Paul Weiss chair Brad Karp, the book “is an extraordinary body of work that reflects enormous insight and ought be required reading by managing partners of law firms,” as well as “a much-needed wake up call for our profession.”
Originally a twelve-part series on Adam Smith Esq., Growth is Dead will soon be released as a paperback. Next Tuesday, February 26, ATL will host a salon-type event for law firm partners in celebration of this release, at a sleek new venue in a convenient area of Manhattan. Peter Kalis, global managing partner of K&L Gates and author of the foreword for Growth is Dead, will introduce Bruce, who will then (briefly) discuss his book and take a few questions. This will be followed by a free evening of cocktails and thought-provoking conversation. We’ve had a robust response so far, but limited spaces are still available. Law firm partners, please join us; you can RSVP here.
By way of preview, we spoke with Bruce about his book. How did it come about? What did he find out in the course of writing it that was most surprising? Encouraging? Discouraging?
Ed. note: This is the first installment of The ATL Interrogatories, brought to you by David Carrie LLC. This recurring feature will give a notable law firm partner an opportunity to share insights and experiences about the legal profession and careers in law, as well as about their firms and themselves.
1. What is the greatest challenge to the legal industry over the next five years?
Although I’m tempted to do a passable imitation of a legal consultant and talk about globalization, innovation and the New Normal, all of which are important, in fact the fundamental challenge facing our industry over the next five years and beyond is to preserve the Rule of Law in a world in which an increasing number of globally significant economies have no comparable tradition and in which some governments don’t respect rights of individuals and enterprises. The world, our industry and our profession would be much different if norms we associate with the Rule of Law were defined downward as a by-product of globalization. I know it’s a stretch for an audience focused during difficult times on real and immediate career challenges to shift gears and focus on a seemingly abstract concept such as the Rule of Law. The times tend to divert all of our gazes inward. But there is no one reading this who is more self-absorbed than the least self-absorbed law firm managing partner.
We all need to do a better job when it comes to talking about and vindicating the Rule of Law in our day to day lives. I know that I do. With all of the misguided talk about vocationalism in legal education, moreover, I also worry that our law schools are not pounding away sufficiently at the foundational importance of the Rule of Law or the role of U.S. lawyers, among others, as its missionaries.
As we head into the weekend, we’re happy to bring you additional commentary from Peter Kalis, the chairman and global managing partner of K&L Gates. Earlier this week, the colorful Kalis was unanimously reelected to his leadership role by the 60 voting members of the Management Committee.
The delightfully opinionated Kalis recently gave an interview to Am Law Daily, in which he shed additional light on the state of K&L Gates. His remarks weren’t as forceful as the beatdown he administered to the firm’s anonymous detractors last week, but they are interesting….
Much like the similarly named Kelis, his milkshake brings all the boys (and girls) to the yard. Peter Kalis, the chairman and global managing partner of K&L Gates, just won a fifth consecutive term at the helm of the global mega-firm. As noted in the firm’s press release, which we received here at Above the Law, the 60 voting members of the Management Committee supported Kalis unanimously.
Kalis assumed leadership of the firm in 1997, back when it was called Kirkpatrick & Lockhart. On Kalis’s watch, the firm conducted eight mergers, including the combination with Preston Gates & Ellis that resulted in the “K&L Gates” moniker. When Kalis took the helm, Kirkpatrick & Lockhart was a regional firm with six offices, all in the Eastern time zone of the United States. Now K&L Gates boasts almost 2,000 lawyers in 41 offices on four continents.
But growth brings with it growing pains. Let’s discuss those, and get some information about partner capital contributions at the firm….
A college graduate without student loan debt is akin to reading a kind quote about Kim Kardashian in a tabloid—it’s rare.
In the past eight years, student loan debt has nearly tripled to a whopping $1.1 trillion, and in the past 10 years, the percentage of 25-year-olds with such debt has risen from 25% to 43%
It’s gotten so bad, in fact, that New York Fed economists warned last month that the burden of student debt could stilt consumer spending by twentysomethings, as well as further hamper the recovery of the housing market and economy.
To get a better idea of what massive student loan debt (we’re talking over $100,000 massive) looks like, we talked to an attorney who graduated with a large student loan debt. We also consulted LearnVest Planning Services CFP® Katie Brewer to see just how their repayment plans stack up.
S. Fischer, 36, Attorney Graduated: 2001
How Much I Borrowed: $100,000
What I Still Owe: $45,000
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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: firstname.lastname@example.org.
Deal flow has clearly picked recently up for most US associates, counsels and partners in Hong Kong/China and Singapore. We are on the phone with a lot of these folks on a daily basis, many of whom we have known for years. Further, the head of our Asia team, Evan Jowers, and Kinney’s founder and president, Robert Kinney, frequently meet in person with leading US partners in Asia to assess their needs and keep on top of the inside scoop at as many firms as possible. The need for legal recruiting help in Asia from experienced recruiters appears to be live and well. In March, Evan and Robert were in Beijing at such meetings, in April, Evan was in Hong Kong, and for half of June Evan will be in Shanghai and Hong Kong. Thus its pretty easy for us to tell when there has been an across-the-market pick up in capital markets and corporate work.
On an average day in Asia when Evan and Robert visit firms, they typically have 5 to 9 meetings a day, mostly with US partners in the market. The reason they have these meetings is not simply because Kinney makes a lot of US attorney placements in Asia and that a particular firm may have openings; instead these are just visits with friends. After years of working together as business partners, the folks at Kinney are actually these peoples’ friends. The firms Kinney work closely with in Asia (which is just about every law firm – call us if you want to know the one firm in the world we will never place anyone with again, ever, and why) look forward to the visits, or at least act like they do. After seven years in the market, many of the client partners are former associate candidates. Also, these US partners see Kinney as a very good source of market information as well, because they know how deep their contacts are in the market and how frequently they are speaking to counterparts at peer firms.
The traditional job application and interview process can be impersonal, and applicants often struggle to present themselves as more than just the sum of their GPAs, alma maters, and previous work history. ATL has partnered with ViewYou to help job seekers overcome this challenge. ViewYou NOW Profiles offer a unique way for job seekers to make a personal, memorable connection with prospective employers: introduction videos. These videos allow job candidates to display their personalities, interpersonal skills, and professional interests, creating an eDossier to brand themselves to potential employers all over the world. Check it out today!