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Wilson Sonsini

Wilson Sonsini To Adopt Performance-Based Bonuses

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.

Continue reading "Wilson Sonsini To Adopt Performance-Based Bonuses"

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

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

Google Calls Viacom A Freedom-Hater

Viacom v Youtube.jpgLast year, Viacom filed a $1 billion suit against Google-owned YouTube, asserting widespread copyright infringement. We predicted a smackdown, and that day has come.

Viacom filed an amended complaint [PDF] last month, saying it had found over 150,000 unauthorized clips of copyrighted material on YouTube. In its answer [PDF], Google says YouTube responds properly when made aware of copyrighted content, and said Viacom's suit threatens our way of life... pretty much. From the Associated Press:

A $1 billion copyright infringement lawsuit challenging YouTube's ability to keep copyrighted material off its popular video-sharing site threatens how hundreds of millions of people exchange all kinds of information on the Internet, YouTube owner Google Inc. said.

Google's lawyers made the claim in papers filed in U.S. District Court in Manhattan as the company responded to Viacom Inc.'s latest lawsuit alleging that the Internet has led to "an explosion of copyright infringement" by YouTube and others.

The back-and-forth between the companies has intensified since Viacom brought its lawsuit last year, saying it was owed damages for the unauthorized viewing of its programming from MTV, Comedy Central and other networks, including such hits as "The Daily Show with Jon Stewart."

It's sad that MTV no longer has the spirit of rock-and-roll rebellion and has officially become The Man.

In Google's corner are Wilson Sonsini, Mayer Brown, and Bartlit Beck. In Viacom's corner are Jenner & Block and Shearman & Sterling.

Google vows not to settle, saying it will take the case to the Supreme Court if necessary. Let the law firms rejoice!

Google: Viacom's YouTube suit threatens freedom [Associated Press]
Google's Answer To Complaint [PDF] [IP Democracy via Paid Content]
Google vows to keep fighting Viacom [Business Week]
Google Case Spells Windfall For Lawyers [Forbes]

Earlier: Coming Attractions: Viacom - YouTube - Google Smackdown

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

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.

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

Fall Recruiting Snafu Watch: You Know They Really Don't Want You When...

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

Smile If You Work at Wilson Sonsini

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.

Public Humiliation, Courtesy of Your Friends at Wilson Sonsini

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."

Fall Recruiting Open Thread: Vault 36-40

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

Continue reading "Fall Recruiting Open Thread: Vault 36-40"

Daniel Weiser, R.I.P.

Daniel Weiser Daniel J Weiser Abovethelaw Above the Law blog.jpgThis happened a few days ago, but we only found out about it just now. We pass along the information for your edification (see links below).

We won't comment further. If you decide to comment, please do so responsibly. Thank you.

Accidental asphyxiation likely killed attorney [InsideBayArea.com]
Coroner investigating Daniel Weiser's death [Palo Alto Online]
Daniel J. Weiser bio [Wilson Sonsini Goodrich & Rosati]

West Coast Pay Raise Watch: Wilson Sonsini Raises With One Hand, Takes Away Bonus With the Other

Wilson Sonsini Goodrich Rosati WSGR Above the Law blog.JPGAlong the lines of Heller Ehrman's recent announcement, here's another pseudo-raise from a West Coast firm. Earlier this afternoon, a source at Wilson Sonsini informed us:

A memo will be distributed later today with the details, but we received a VM a few minutes ago. Essentially, there will be "raises" to match market in places where there has been movement. This is defined as DC, CA, TX. NYC was already at $160k.

BUT the raise will be "mitigated" by an offset in the bonus structure. Also, Seattle and Salt Lake City are excluded from the "raise."

The memo, which a second source at the firm verified for us, appears after the jump.

Continue reading "West Coast Pay Raise Watch: Wilson Sonsini Raises With One Hand, Takes Away Bonus With the Other"

Skaddenfreude: Chadbourne, A Word on Wilson Sonsini, and an Open Thread

100 dollar bill Above the Law Above the Law law firm salary legal blog legal tabloid Above the Law.JPGEarlier today, we published salary data for Wilson Sonsini. We quoted a poster who was disappointed that the raise was retroactive only to February 1st. We then received this clarification from a source at the firm:

Our raise was made retroactive to February 1 rather than January 1 because we have a February 1 fiscal year start. Compensation matters are always handled as of February 1.

In addition, bonuses were 15 percent higher this year because partner profits were up 15 percent. Staff bonuses were also 15 percent higher.

We are very busy at WSGR these days -- cranking on all cylinders!

We also (finally) received confirmed information about Chadbourne & Parke. We reprint it after the jump.

Continue reading "Skaddenfreude: Chadbourne, A Word on Wilson Sonsini, and an Open Thread"

Skaddenfreude: 'W' Firms, and Morning Open Thread

100 dollar bill Above the Law Above the Law law firm salary legal blog legal tabloid Above the Law.JPGWe don't have memos, but we can confirm associate pay raises at two large law firms:

(1) D.C. powerhouse Wiley Rein & Fielding, former home of the new White House counsel, Fred Fielding; and

(2) Wilson Sonsini Goodrich & Rosati, home of Silicon Valley legal god Larry Sonsini (although a god who, in the past year or so, has shown signs of being fallible).

More details, plus your comments, after the jump.

Continue reading "Skaddenfreude: 'W' Firms, and Morning Open Thread"

Morning Docket: 12.15.06

* Justice Scalia on judicial paychecks. [Associated Press]

And meanwhile...

* "It was just a matter of time before well-heeled business and other interests would expand their influence-peddling efforts, and begin pouring large amounts of money into previously sleepy judicial campaigns." [TimesSelect (pass-through link) via How Appealing]

* No more melting coins for the value of the metals. [ABC]

* Natalee Holloway's family files wrongful death suit in Aruba. [MSNBC]

* "Accuser in Duke lacrosse case about to give birth." [SI.com]

* HP board terminates advisory relationship with Silicon Valley superlawyer Larry Sonsini. [New York Times via Dealbreaker; WSJ Law Blog]

Viet Dinh Is One Hungry Guy

viet dinh.jpgRemember Professor Viet Dinh? If not, here's what we previously wrote about him:

Dinh represents venture capitalist god Thomas Perkins, in Perkins's (rather tense) dealings with HP's board and lawyers [concerning the HP spying controversy].

Dinh, for those of you visiting from other planets, is one of the highest-flying legal eagles in the country. He's a former high-ranking official at the Justice Department, current professor at Georgetown Law, and former Supreme Court clerk (to Justice Sandra Day O'Connor).

The American Lawyer recently published an interesting article about the HP controversy and the troubles it has caused for Larry Sonsini, one of Silicon Valley's top lawyers. We haven't had the chance to read it closely; but one of you highlighted this little tidbit:

Over a Washington, D.C., lunch in which Dinh quickly downed three glasses of wine, three orders of oysters and a seafood gumbo, the former government lawyer recalled he was startled when [Thomas] Perkins first told him about the leaks investigation.

Well! It seems that the super-cuddly professor has quite an appetite.

Perhaps Professor Dinh is still haunted by his childhood as a refugee from war-torn Vietnam? Relax, Viet -- everything is all right. You are a millionaire, and you don't need to worry about where your next meal is coming from. (And if you run out of food late one night, you can always eat the prestige of that SCOTUS clerkship.)

Our question to Professor Dinh: Given your voracious appetite, how do you stay so slim?

Where Will the Troubles End for Sonsini and HP? [The American Lawyer]
Hewlett-Packard Lawyer Dinh Gives Washington the ‘Viet-Spin’ [New York Observer]

Earlier: Viet Dinh: Still As Cuddly As Ever

Musical Chairs: 11.15.06

musical chairs 2 Above the Law legal blog above the law legal tabloid above the law legal gossip site.GIFNew Partners:

* Proskauer Rose: Fourteen new partners, three new senior counsel. Names here.

* Baker Botts: Eighteen (!) new partners. Names here.

* Wilson Sonsini: Thriteen new partners. Names here.

(Only two members of the class of 1998. How long is the WSGR partner track as a practical matter?)

At Risk:

* Some are speculating that William Haynes II, general counsel to the Department of Defense, will be replaced after CIA Director Robert Gates gets confirmed as Secretary Donald Rumsfeld's successor (as expected).

But with his Fourth Circuit nomination in limbo, where would Haynes go? The Legal Times suggests that he'll end up with "a high-powered legal job at one of the nation's top defense contractors," which sounds likely to us.

Deceased:

* Anthony Lapham, counsel at Goodwin Procter and former general counsel to the CIA, at the age of 70, of a heart attack.

Proskauer Rose Promotes 17 Attorneys [Proskauer Rose LLP]
Baker Botts Announces New Partners for 2007 [Baker Botts LLP]
Firm Names 10 New NY Partners [NYLawyer.com]
Firm Raises 13 to Partnership [NYLawyer.com]
Will the Pentagon's Top Lawyer Follow Rumsfeld Out the Door? [NYLawyer.com]
Law Blog Obituary: Goodwin Procter’s Anthony Lapham [WSJ Law Blog]
Anthony A. Lapham, 70, Former C.I.A. Lawyer, Dies [New York Times]

Morning Docket: 10.04.06

burka burqa burkha burqha.jpg* An investigation by the Justice Department Inspector General reveals that the Bureau of Prisons doesn't have enough staff to monitor communications of imprisoned terrorists with the outside world, including mail and phone calls. [Washington Post]

(And what about Instant Messenger? "What ya wearing?" "A burka." "Love to slip it off you...")

* The Supreme Court kicks off October Term 2005 -- and J. Lo is in the house. José Antonio López's appeal raises the question of what constitutes a “felony punishable under the Controlled Substances Act” (which the Court has grappled with before, and surely will again). [New York Times; Los Angeles Times; Washington Post]

* That wacky Ninth Circuit ruling from earlier this year, holding that arresting the homeless for sleeping on streets and sidewalks constitutes "cruel and unusual punishment," may be coming home back to the shelter to roost. It could jeopardize Los Angeles's attempted crackdown on homeless encampments. [Los Angeles Times]

* Larry Sonsini's reputation has been tarnished by his involvement in the HP and options backdating scandals. But he's got all his life to live, he's got all his love to give; he will survive... [WSJ Law Blog]

* Ex-Comverse Technology CEO Kobi Alexander, wanted back in the United States on options backdating charges, is granted bail by a Namibian court, over U.S. objections. Those starstruck Namibians! Ever since Brangelina, they're suckers for the rich and (in)famous. [Associated Press]

Legal Fee Voyeurism: Seeking Submissions

cash pile or money pile.jpgLast week, the New York Law Journal brought us news of this sizable transaction:

Freescale Semiconductor Inc., the third-largest chipset maker in the nation, has been acquired by a consortium of private equity groups, led by The Blackstone Group and consisting of The Carlyle Group, Texas Pacific Group and Permira Funds. The Austin, Texas company is valued at $17.6 billion; the purchasers will also pay off Freescale's debts, amounting to $1.25 billion, making the total worth of the transaction roughly $19 billion.

Here are the firms involved in the deal, a veritable legal fee bonanza:

Skadden, Arps, Slate, Meagher & Flom led representation for the entire consortium, while Cleary Gottlieb Steen & Hamilton assisted in advising every group except Blackstone and Fried, Frank, Harris, Shriver & Jacobson counseled Permira. Palo Alto, Calif.-based Wilson Sonsini Goodrich & Rosati represented Freescale.

WOW -- more law firms than you can shake a stick at. This deal's a permanent employment act for corporate lawyers.

And Freescale isn't the only eleven-figure transactions announced in recent weeks. It's small potatoes compared to the $33 billion HCA buyout over the summer.

Now, the important stuff: How much did these firms earn for their work on this transaction -- or any other recent transactions you're aware of?

Unlike the (much larger) fees of investment bankers, the advisory fees of law firms in M&A deals are usually not disclosed in public filings. So if you have any reasonably informed guesses -- or, better yet, actual knowledge -- of the filthy lucre firms have bagged for this or other recent deals, please email us (subject line: "Legal Fee Voyeurism"). Thanks!

NY Partners and Associates Working on Billion Dollar Deals [New York Law Journal]

Musical Chairs: 09.13.06

musical chairs above the law legal blog above the law legal tabloid above the law legal gossip site.GIFThe latest news on the most notable moves within the profession:

Government to Private Sector:

* Seth Silber, to Wilson Sonsini (as counsel), from the FTC. (Quips our tipster: "What a lovely week to join that particular firm!")

New Office Openings:

* Crowell & Moring -- aka "Cruel & Boring"*** -- is opening a New York office. They've grabbed litigator William McSherry, from Arent Fox, and patent lawyer Janet McLeod, from Dorsey & Whitney, to kick things off.

* The exceedingly profitable, Houston-based Susman Godfrey is opening a New York office, headed by name partner Stephen Susman.

Lateral Private Sector Moves:

* Bankruptcy guru Paul Basta, to Kirkland & Ellis, from Weil Gotshal & Manges.***

* Patent litigators Joseph O'Malley and Bruce Wexler, to Paul Hastings (NY), from Fitzpatrick, Cella, Harper & Scinto.

*** "Cruel and Boring" is just a silly nickname for Crowell & Moring that we've heard around town. We have no idea as to whether it has any factual basis. We just think using nicknames for law firms is fun.

Other law firm nicknames we've heard: Weil Gotshal & Manges = "We'll Getcha & Mangle Ya" (self-explanatory); Cravath Swaine & Moore = "The Death Star" (self-explanatory); Davis Polk & Wardwell = "The Teahouse on Lexington Avenue" (for their penchant for hiring geishas attractive Asian-American females -- don't get mad at us, we didn't make it up).

(Feel free to add more law firm nicknames in the comments to this post.)

On The Move [Antitrust Review]
Basta Says Hasta to Weil Gotshal [WSJ Law Blog]
DC Firm Opens NY Office [NYLawyer.com]
Houston Firm Opens Manhattan Office [NYLawyer.com]
Firm Adds NY Patent Litigators [NYLawyer.com]

Non-Sequiturs: 9.11.06

* Law professors remember 9/11. [TaxProf Blog]

* Heh, now we know what the law clerk to retired Justice O'Connor will be working on. [SCOTUSblog]

* HP and Wilson Sonsini: in bed together? [WSJ Law Blog]

* But enough about you; let's talk about us. [FishBowl DC]

Non-Sequiturs: 09.08.06

clarence thomas justice.gif* Larry Sonsini reminds us of why we should use the phone, and NOT email, if we're going to do something sketchy. Also, his spelling and typing skills aren't perfect. (But by the standards of Biglaw partners of his generation, he's in the 95th percentile -- assuming he typed this all himself.) [WSJ Law Blog]

* Justice Thomas is already hiring clerks for October Term 2008. Congratulations to Patrick Strawbridge, CT's latest hire (as far as we know; if you know more, please do share). [Prettier Than Napoleon]

* We agree with Michael Dimino: "The more frivolous the complaints, the better the job." But redweld cuts still hurt like hell. [PrawfsBlawg]

* The indefatigable Ann Althouse doesn't sleep with her laptop. We're surprised! [Althouse]

* Going through a Wendy's drive-thru while naked can get you arrested. You didn't know that, did you? [Concurring Opinions]

* Raffi Melkonian isn't quite as down on clerking as we originally suggested. [Crescat Sententia]