Steven Davis’s memo stated as much: “Some recent partner departures have been consistent with the firm’s strategic planning for 2012, and we expect some additional partners to leave.” The Daily Journal article provides support for this:
Recruiters and consultants have reported many Dewey partners are shopping themselves around the legal market, including a 20-partner group in New York, comprised mainly of insurance partners, who are being courted by DLA Piper LLP and Hogan Lovells US LLP. In February, DLA Piper LLP snagged the former co-head of Dewey’s insurance group and executive committee member William Marcoux in Washington, D.C. In January, Hogan Lovells picked up Dewey insurance partner Francis Monaco in New York. At least one recruiter believes DLA Piper is using Marcoux as leverage to bring more Dewey insurance partners to the firm.
How many partners has Dewey lost in 2012 so far, on a net basis? Here’s a numerical tally, from Am Law Daily (assigning a value of one point to each lateral partner gained or lost, and a half-point for each counsel, of counsel, senior adviser, or specialist):
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Dewey & LeBoeuf, -9. The firm’s finances have been a hot topic in the legal blogosphere of late, and the addition of an eight-partner South African team couldn’t make up for the loss of 16 partners in the first two months of 2012.
A net loss of about nine partners for this point in the year — we’re not yet done with the first quarter — is significant. But its importance shouldn’t be overstated either, as some commenters on our prior post emphasized:
Here’s what is going on. The top guys have their guaranteed contracts and don’t want to share. The group leaving are quality attorneys (for the most part) who are the up-and-comers or mid-range partners. In other words, guys who can claim a portable book of business, but not enough of one that Dewey had to take them seriously. It hurts the depth of the bench, and is a big loss, but not firm implosion stuff. At least not yet. As long as the big partners keep bringing in their work, other partners and counsel will step up to fill these roles.
See also:
Looks like a mix [of partners leaving]. Some deadweight being told to leave, others leaving because while they are successful, they aren’t in the inner circle. There is the Cadwalader model which is one rainmaker making $10 million a year supported by a bunch of service partners making $600,000. Not much room in that model for the partner with a $3 million book of business who is too busy to provide support to the rainmaker.
Right now it seems Dewey is trying to stabilize itself. A firm spokesperson told Legal Week, the U.K. publication, that the firm is putting lateral hiring on hold for now, having brought in over 30 new partners last year. This seems like sound strategy. Before it goes out on another hiring spree, Dewey should focus on integrating and maximizing the productivity of its recent lateral partners.
And, of course, on paying them. Because it’s hard to make it rain when you’re getting nickel and dimed.
Dewey deferring some rainmakers’ compensation [Daily Journal]
The Am Law 200’s Leaders and Losers in Lateral Hiring Through First Two Months of 2012
[Am Law Daily via ABA Journal]
Dewey Cost-Cutting Prompts Departures [Legal Week]
Earlier: Dewey Have Comment on Recent Developments? Yes — Firm Is Cutting 5 to 6 Percent of Personnel
Dewey Have a Plan of Action?
Where’s LeBoeuf? An Update on Doings at Dewey
Collected ATL coverage of Dewey & LeBoeuf