Wilson Sonsini

Updated Salary Freeze Round-up: Even More Firms on Ice

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pay freeze salary freeze pay cut law firm.jpgAs we noted in yesterday’s Morning Docket, even the New York Times has taken note of the salary freeze trend at law firms. The Times reached out to Above The Law’s own David Lat for the story:

Although many associates are angry about the freezes, others are relieved, said David Lat, founding editor of AboveTheLaw.com, a blog about law firms and the profession.

“There is this sense that firms didn’t act prudently during the boom and now they are getting religion, and that it’s better late than never,” Mr. Lat said. “Many associates we have spoken to think the freeze probably saved jobs.”

At the beginning of the month, we did a round-up of firms that have frozen 2009 salary rates at 2008 levels. That list was 16 firms long. Since then, quite a few other firms have announced freezes. Due to frequent requests, we’re updating the round-up list since the number of firms with freezes (that we know of) has more than doubled, to 33 32. Check out the as-comprehensive-as-we-can-make-it list, after the jump.

Recently announced salary freezes include “solid ice freezes” at Blank Rome and Townsend and Townsend and Crew; and “Slurpee freezes” at Bingham McCutchen, Fish & Richardson, and Texan firm Andrews Kurth.

Memorandums, as well as a new list of all firms with “solid ice” and “Slurpee” freezes, after the jump.

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Nationwide Layoff Watch: Major Downsizing at Wilson Sonsini (45 Lawyers, 68 Staffers)

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wsgr logo.JPGMajor news coming out of Wilson Sonsini Goodrich & Rosati. The firm just announced that 45 attorneys and 68 staff were laid off:

[I]t is with regret that we announce that the firm will be downsizing our associate, legal support, and administrative ranks, with 45 attorneys and 68 staff directly affected. Members and staff managers will meet with their teams today and tomorrow to inform them of the details of this decision. Please know that the firm is extremely grateful to all of the affected employees for their contributions, and we will work with them and provide resources to ease their transitions.

In light of that news, the salary freeze and bonus news for those who are left doesn’t really sting that much:

[W]e will not be making associate step salary increases this year, but we will be paying out bonuses based on the criteria and structure developed by the Associate Bonus Program Steering Committee and announced last fall (additional details to follow shortly). Legal support and administrative staff will not receive merit bonuses in January, but the firm will be making profit-sharing contributions in the spring to all eligible plan participants equal to 9.5 percent of their eligible compensation, as we have in previous years.

Best of luck to the 113 people suddenly out of work. Keep your heads up.

Check out the full firm statement, after the jump.

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Sign of the Times: No More Bubbly at Wilson Sonsini

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wsgr logo.JPG

Here is just one small indication that law firms everywhere are feeling the pinch. As is customary at many firms, a firm-wide email went around Wilson Sonsini today congratulating all of the associates who passed the July 2008 bar exam.

The happy message reads as follows:

Congratulations to our attorneys who passed the July 2008 state bar exams! Please make sure to reach out and congratulate them. This is a big accomplishment!

Well, “!” I say. Everybody enjoys knowing that their accomplishments are recognized.

But last year’s WSGR recognition was a little more remarkable. Last year, this was the happy message that was sent around the firm:

Congratulations to our associates who have recently passed state bar exams!

To celebrate their success, we will be sending a bottle of champagne to our newest bar passers shortly! Please make sure to reach out and give them your personal congratulations. This is a big accomplishment!

Can you spot the extra sentence?

Firms cannot afford to be frivolous during these tough times, but would a $40 bottle of mediocre champagne really break WSGR’s financial back? According to the firm’s list 53, associates passed the July 2008 bar. That’s just over $2,000 in alcoholic costs.

Even if Wilson Sonsini had done the same thing this year that they did last year, the firm would have still saved some money. 72 people passed last year’s exam.

It’s pretty funny to see all the ways firms are trying to stretch a dollar. I hope the recession doesn’t get any worse, or else firms will have to start eliminating “complimentary” bathroom soap.

We have of course heard of other cost saving maneuvers happening at WSGR. If you know what we’re talking about, send us a tip.

Earlier: More Shock Doctrine: Wilmer Hale ‘Clarifies’ Late Night Meals Policy

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Wilson Sonsini To Adopt Performance-Based Bonuses

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recession california associate pay raises.jpgIt is still way too early to get hard numbers on what Biglaw bonuses will look like for 2008. But because of the economic downturn, we expect it will be a rocky bonus season.

As readers of The Shock Doctrine will note, it is important to be aware of fundamental changes to the way bonuses are paid out. You don’t want something to slip in under the guise of a (massive) market correction.

Yesterday, Wilson Sonsini Goodrich & Rosati announced that 50% of their bonuses would be paid out based on performance evaluations. According to the firm, the change was made in response to associates’ concerns:

To: All Wilson Sonsini Goodrich & Rosati Associates, Of Counsel, Special Counsel, and Staff Attorneys
From: John Roos
Date: September 25, 2008
Re: FY09 Associate Bonus Program

As always, the firm is committed to providing a competitive compensation package to our associates. We also are committed to listening to feedback from our associates and making adjustments to our approach to compensation as appropriate. Recently, the firm’s associates have voiced concerns about the bonus program’s heavy emphasis on billable hours. In response to those concerns and after a long and careful review of the associate bonus program, we’re pleased to announce a new component to the bonus program focused on qualitative performance factors.

[Redacted] will be sending out a memo shortly with more details on the changes, but I’d like to give you a brief rundown on the changes, as well as the process that led to them. In essence, the total bonus opportunity will consist of three independent components:

– a basic level of bonus paid at 1,900 hours;

– an adder paid at 2,100 hours; and

– a variable bonus based on work quality and overall contribution to the firm.

You’ll note that the new bonus program allows us to continue to reward high-billing associates for their hard work–a factor that many associates pressed us to maintain–but it also allows us to reward those who are exceptional performers in other ways.

More from the memo, including explanation of the qualitative bonus component, after the jump.

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Fall Recruiting Open Thread: Vault 41-50 (2009)

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comparing.jpgWe’re back with another installment in our series of open threads on the Vault 100. This is an opportunity for insiders to sound off on their firms for the benefit of wannabe potential first-year and lateral associates.
Here are the next ten on the Vault list, with prestige scores in parentheses:

41. Baker Botts LLP (6.096)
42. King & Spalding LLP (6.066)
43. DLA Piper (6.039)
44. Baker & McKenzie (5.982)
45. Wilson Sonsini Goodrich & Rosati (5.976)
46. Boies, Schiller & Flexner LLP (5.974)
47. Morgan, Lewis & Bockius LLP (5.941)
48. Dewey & LeBoeuf (5.924)
49. Fulbright & Jaworski LLP (5.906)
50. McDermott, Will & Emery (5.892)

The most interesting set of “notable perks” in this bunch can be found at Boies Schiller. On the upside, there is an annual trip to Jamaica for attorneys and their families — in December, no less — but on the downside, it’s a “sweatshop run by a genius.” This makes us think of David Boies as the legal profession’s Santa Claus — who likes to take the elves to Montego Bay.
We invite the curious to ask questions about these firms, and for those in-the-know to take pity.
Earlier: Vault 100 Open Threads – 2009

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Associate Bonus Watch: Wilson Sonsini, Akin Gump (DC), Quinn Emanuel

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associate bonus watch 2007 law firm Above the Law blog.jpgHere are a few quick updates on the associate bonus front:
1. Wilson Sonsini: On Monday night, the firm issued a long and complicated memo, which we’ve posted in all its glory after the jump. Since we haven’t taken math since high school calculus, it went a bit over our head.
General reaction to the WSGR bonus news was less than positive. From one tipster: “My friends there are pretty pissed in light of Latham’s bonuses.” From another:

“Some constituent groups (those with low hours) are happy. Other groups (people who work for a living) are less happy. All associates outside of New York are upset that New York special bonuses were paid without a minimum hours requirement.”

Under the WSGR bonus system, in certain class years, a lawyer in New York who billed 500 hours less than her counterpart outside New York could wind up with a bigger bonus.
2. Akin Gump (Washington, DC): On rather short notice — the email went out at around 1 p.m., announcing a meeting at 5 p.m. — a meeting to talk about bonuses was held on Monday in the D.C. office of Akin Gump. Here’s the bottom line:

[T]he gist was that bonuses “ranged from $1,000 to 75,000,” which basically means that if you are a first year (or any associate who started in the fall) you got $1,000, and the most senior associates who are most valued got $75,000. Associates were also told that the average was $25,000. This was not broken down by class year, hours, or any other details that may tell you whether you’ll be compensated well or terribly.

Lovely. Guess they think transparency is overrated
3. Quinn Emanuel: At Quinn Emanuel, in contrast, management is fairly transparent, and communication is relatively open (at least by Biglaw standards). How many senior partners of major law firms write open letters to ATL, as John Quinn did recently?
Anyway, two pieces of news. First, yesterday QE gave supplemental bonuses today to laterals, recalculating how they pro-rated (a subject of prior controversy). Second, they provided some information — albeit not terribly specific information — about billable hours and 2008 bonuses. Memo after the jump.

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Fall Recruiting Snafu Watch: You Know They Really Don’t Want You When…

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rejected rejection letter Above the Law blog.jpgGetting rejected by a law firm and having lots of your classmates learn about it: embarrassing.
Getting rejected by a firm you didn’t even apply to: priceless.
I’m afraid I must reject your rejection [TJ's Double Play]
Earlier: Public Humiliation, Courtesy of Your Friends at Wilson Sonsini

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Smile If You Work at Wilson Sonsini

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teeth grinding tooth Wilson Sonsini Goodrich Rosati Above the Law blog.jpgHere’s an amusing anecdote from a West Coast reader:

Went to visit a dentist in Palo Alto for a routine cleaning the other day. When I told him I was an attorney, he quipped: “So, do you grind your teeth? Lawyers are notorious for grinding teeth.”

And then, unprompted and somewhat gratuitously, he added, “Especially those guys at Wilson Sonsini — they’re the worst.”

Granted, my dentist’s views could be somewhat skewed given WSGR’s major presence in Palo Alto. Nevertheless, I hope WSGR has a good dental plan.

And that recruiting has figured out how to use the bcc field.

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Public Humiliation, Courtesy of Your Friends at Wilson Sonsini

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Wilson Sonsini Goodrich Rosati WSGR Above the Law blog.JPGHere’s a tale from the fall recruiting trenches, from a 2L at Columbia Law School:

I got my first rejection yesterday, from Wilson Sonsini Goodrich & Rosati. It was not through your typical form letter; it came via mass email.

And by “mass email,” I mean “the email address of everyone who got rejected is listed in the ‘to:’ field.”

CLASSY. Maybe WSGR wanted all the “rejects” to know each others’ identities, so they can from a support group?
To its credit, the firm realized that it screwed up:

They then left a voicemail apologizing and explaining that it was an “honest mistake,” and they hope it doesn’t affect my opinion of the firm. Personally, it doesn’t bother me — we all had lots of interviews, which lead to lots of rejections (and lots of callbacks).

But I can see why other people would be bothered by it, and I think the firm deserves some attention for (1) not putting in the effort to send actual rejection letters (this was even signed by “Attorney Recruiting Department”) and (2) not knowing the difference between “to:” and “bcc:.”

We concur. Hence this shout-out to Wilson Sonsini — and the reject-o-bots in its “Attorney Recruiting Department.”

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Fall Recruiting Open Thread: Vault 36-40

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Orrick Building 405 Howard Street San Francisco Above the Law blog.jpgHere are this morning’s firms (in Vault 100 order, prestige scores in parentheses):

36. Wilson Sonsini Goodrich & Rosati (6.308)
37. Linklaters (6.301)
38. Orrick Herrington & Sutcliffe (6.244)
39. Freshfields Bruckhaus Deringer LLP (6.204)
40. Proskauer Rose LLP (6.195)

You’ll note that one of these firms is Linklaters, which we recently wrote about. We reprint two emails from Linklaters sources, taking issue with our prior coverage, after the jump.
The Vault Top 100 Law Firms [Vault]
Earlier: Vault 1-5; Vault 6-10; Vault 11-15; Vault 16-20; Vault 21-25; Vault 26-30; Vault 31-35

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