transparency

“No, I’m cool that you might be making twice as much even though you skipped out to go to the Katy Perry concert.”

Propaganda is only partially about justifying horrible things to the masses. It’s also about salving the doubts of the oppressors. How can they be wrong when there’s a 70-foot statue dedicated to their divinity right there?

The slow march to opacity is one of the single worst developments in the Biglaw model over the last several years. Whether in the name of some half-baked strain of libertarian idealism or just to keep from being publicly judged by ATL readers, a few firms have increasingly moved compensation packages into a black box, starting with complex bonus award structures, then hiding even those frameworks, and now some even hide base compensation.

It’s an awful practice, and while some have the reputation to get away with it, it’s certainly frowned upon by lawyers and prospective lawyers steeped in the notion that this is a collegial profession.

So one firm put their public relations flaks on drafting a spirited defense of their black box so they can sleep better at night….

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…To Take A Survey

We here at ATL want to know what world’s largest legal audience — ours, of course — thinks. Hence, we ask our audience a lot of questions. Our Insider Survey, which is soon coming up on its 15,000th respondent, provided the raw materials for the creation of our Law Firm and Law School Directories, as well as features on various specific organizations, locations, and practice areas. To supplement our Insider Survey data, we also take a closer look at specific aspects of institutions, such as compensation and social media policies. Additionally, we check in with our readers for their take on topical events, including presidential politics and Obamacare. Today, we have a look at a handful of our ongoing survey projects: Social Media, Stipend/Advance, and Health Insurance. But first, we are looking for help with a new research initiative.

There is probably no other industry as obsessed with the concept of “culture” as the legal profession, particularly in the world of law firms. Many firms view their culture as a key element of their distinct place in the competitive marketplace. But what does that even mean? Is there consensus on what constitutes culture? Do clients notice or care? We would like to dig deeper into these questions. As a first step in this project, we are looking for a small group of currently practicing law firm attorneys who are willing — in complete confidence — to give us about twenty minutes of their time to answer some of our questions concerning the realities of what defines firm culture. Preference will be given to attorneys who have lateraled between firms. We will be conducting this project in partnership with our friends at Adam Smith Esq. and JD Match. If interested, please email us here.

Apart from the never-ending Insider Survey, ATL has three ongoing surveys which we hope will bring greater transparency to subjects of interest to our readers. Here’s a quick glimpse at where they stand today…

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Ed. note: This is a new series 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 have previously appeared, in slightly different form, on AdamSmithEsq.com.

Three years ago I published What Laterals Need to Know: A Modest Proposal, which essayed the thought that firms had an obligation to disclose certain information about the firm in advance to a prospective lateral partner.

At the time I wrote, I treated it more or less as a thought experiment, but we now see that shirking that obligation can come back to bite firms with sharp and large teeth right here in the real world, as seen in Henry Bunsow’s high-profile suit against Dewey’s former leadership (accusing them of running a “Ponzi scheme,” and alleging he’s out $1.8-million in lost capital, among other damages). The gist of Bunsow’s action is that Dewey’s leadership painted a misleadingly rosy picture of Dewey’s financial health, and failed to disclose its obligations in deferred compensation. Bunsow further alleges that former chairman Stephen Davis withdrew his own capital investment after he was forced out of his leadership role and “took those funds personally to the disadvantage of the firm and his fellow partners.”

My three-year-old proposal was that firms be obliged to prepare the equivalent of a Private Placement Memorandum for laterals — equally available to incumbent partners as well, of course.

I also noted that the reaction of most readers would probably fall into polar camps: That my proposal was “fascinating” or else “preposterous”….

double red triangle arrows Continue reading “Time for the Law Firm PPM?”