In Defense Of Kasowitz Benson (Plus The Firm's Bonus Announcement)
Things are going very well at Kasowitz Benson, thank you very much, and the firm's success was reflected in strong bonuses.
A round of applause for Kasowitz (and its bonuses).
After our Friday afternoon story about goings-on at Kasowitz Benson, we received an impressive amount of responses from readers coming to the defense of the firm. It sounds like things are going very well at KBTF these days — and lawyers at the firm want the world to know.
Let’s start with the bonuses. They were paid at the end of January, mostly at the market aka Cravath scale, with a few top performers getting above market and a few underperformers getting below market. Most folks are happy:
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- “[O]ur bonuses were full market, pretty much across the board (90%+ of associates who made previously-disclosed target got full market), and some even got an above-market bump. Everyone I know is pretty busy, and things seem pretty good.”
- “I was ecstatic to receive an above-market bonus. Working on substantive matters directly with partners. Everyone is incredibly busy and morale is pretty high – certainly no panic around here.”
- “I can confirm some associates got ‘above market’ bonuses. We’re not talking Wachtell, but above market is above market. Personally I was really happy with what I ended up receiving considering the hours I billed in 2015…. I am aware of some people not being happy with theirs, but what they received is in line with their billing. Hypothetically speaking, should anyone really complain about billing 1800 and still taking home more than $250k? Not in my opinion…”
The improved bonuses were actually part of a broader effort at the firm to improve associate life:
The firm has worked really hard over the last year to improve associate morale and listen to and address complaints, including revamping the bonus criteria (and making it more transparent), getting rid of the salary increase hold-back, replacing everyone’s computers, and starting an associates’ committee. I believe associates are very happy with their compensation this year. I certainly am. The firm is busy and is a great place to work.
New computers and an associates’ committee are nice, but getting rid of the pay raise hold-back is nicer. Kasowitz used to “raise” salaries in January, but not start paying the higher salaries until July — meaning that anyone who lateraled in the first half of the year left money on the table. That unfortunate policy is now history (thanks in part to the light we shed on it, we understand; you’re welcome, Kasowitz associates).
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These reforms seem to be succeeding:
[T]he people who are here now are really happy to be here. At Kasowitz, we’ve always been able to seek out the type of work we want, there’s a lot of camaraderie, a LOT more opportunity for substantive work than other shops, and a lot of pride about the kind of work we do. It feels like lately management has also been hyperaware of making sure we know we can have a say, are happy, and not overworked.
As for the layoffs that took place last year and the year before, some at Kasowitz believe that the firm has “right-sized” itself and that no more cuts are in the offing. As one source said, the prior cuts occurred due to “[t]he changing nature of the legal business, not having an up and out policy, and a record of not conducting layoffs (even of underperforming associates) during the years when other firms were laying people off left and right.” With the fat trimmed, the firm is positioned well for the future.
That brings us to the bigger picture: how are things going at Kasowitz, and how will the firm be affected by the move of Robin Cohen’s sizable insurance recovery group to McKool Smith? Our Friday story quoted a tipster characterizing it as a major loss, but other sources disagreed. For example:
[T]the Insurance Recovery Group was extremely well-regarded — some of my best friends at the firm, and in life, are a part of that group. It is disappointing to see them go and we will miss them. While I do not know the facts precipitating Robin Cohen’s departure, I do not believe it to be a significant blow to the firm’s viability…. [T]o suggest that the sky is falling constitutes extreme hyperbole.
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A second tipster threw a little shade in Cohen’s direction:
Her group’s focus is certainly not the focus of the firm in general, and if we end up being smaller firm overall because we’re more concentrated in general commercial litigation and securities litigation, for example, then so be it. Also, rumor has it that her group (which is sizable with all its associates) was a bit in the red of late, despite its widespread recognition. So firm-wise financially speaking, it’s not going to be a negative as far as I know. Definitely don’t mean to bad mouth them, though. It’s obviously a well respected group. I don’t think it means much in the grand scheme of the firm.
A third Kasowitz defender was the harshest towards Cohen:
Whoever told you [Cohen’s] group was ‘their best and most well regarded group’ was stroking you off. Cohen never delivered the practice she said she was bringing to the firm; her group never made money for the firm but was a substantial net taker; and she was despised as a prima donna. Kasowitz didn’t lose her, they pushed her out. She is now trying to do to McKool what she did at Kasowitz. Promise a lot of business in exchange for a large guarantee. Unless something changes dramatically, McKool will end up losing a lot of money on this gambit.
Another source at the firm, however, pushed back — persuasively, in my view — on these claims. First, given the way that Kasowitz Benson is run — i.e., it’s King Marc’s court — overpaying partners doesn’t really happen, because Marc Kasowitz himself determines everyone’s pay (and no guarantee controls Cohen’s comp at this time, considering that she arrived at the firm six years ago).
Second, Cohen and her colleagues weren’t “pushed out”; to the contrary, Marc Kasowitz invoked the 90-day-notice provision of the partnership agreement against them, presumably so KBTF can enjoy the group’s revenue for a few more months. Kasowitz rarely holds departing partners to the 90-day requirement; he did when Doug Lumish left for Latham & Watkins, but it’s hard to recall any other instance. (We understand that Kasowitz Benson and Robin Cohen’s group are in the process of negotiating an earlier departure, as is typical in such situations.)
Other Kasowitz lawyers came to Cohen’s defense as well, like this associate:
Marc Kasowitz sat the associates down in a conference room late last week and unconvincingly tried to spin the insurance group leaving as a good thing. It was uncomfortable because people by then had heard that Marc was holding the insurance group for 90 days and would not let them leave to go to McKool. Although the question was on a lot or associates’ minds, no one was going to risk asking him why he won’t let the group leave if this is supposedly such a good thing for the firm. Meanwhile, many associates are wondering what happens long term to the firm. Robin Cohen was viewed as a steadying force in the firm and the person that a lot of people believed would lead KBTF into being a more democratic place, and certainly the best (if not only) partner who had both the book of business and the charisma to step in as the leader of the firm should the situation present itself.
And here are some pro-Cohen thoughts from a partner who has been at Kasowitz for more than a decade:
Marc Kasowitz’s statement in your recent article referring to Robin Cohen’s departure as a “separation” that is going to “better position the firm” seems like an attempt at damage control. Since Robin and her group arrived six years ago, her influence and leadership skills have extended beyond her practice group. She has helped the firm focus on business goals, and worked closely with other leaders in the firm to get ahead of important strategic issues that the firm faced. There’s a reason she inspires a lot of respect and loyalty among the people who work for her, and highly-regarded firms have sought to bring her into their own practices. You don’t often find all of those qualities in one person, and she is going to be difficult to replace.
Indeed. Cohen was on Kasowitz’s management committee — the only woman on the committee, by the way — and one of the top rainmakers at the firm (after Marc Kasowitz himself).
What does Robin Cohen herself have to say? We contacted her, and she issued this statement:
We are very excited about the move to McKool Smith. However, Kasowitz Benson is a great firm and we have many wonderful friends there. The basis for my move is because of a business conflict and the need to be able to bring suit against the insurance industry in an unfettered manner. Speculation that the move is due to anything else is simply false. Our insurance coverage practice is more robust and diverse than it has ever been, in part due to the support and generosity of Marc Kasowitz during my entire six years with the firm. I look forward to collaborating with Kasowitz Benson in the future and have nothing but the utmost respect for Marc.
Bottom line: everything’s fine. Cohen and Kasowitz are parting on good terms, and even if her departure is a loss, Kasowitz will continue to thrive. As one happy associate told us, “We’re still a unique, talented firm, and a fun one at that. I’ve been here for some time now, and I wouldn’t think of moving to any other big NYC firm, much to the recruiters’ chagrin.”
We thank our many KBTF sources for coming forward with this wealth of information. If you have information you’d like to share with us, whether about Kasowitz or any other major law firm, please email us or text us (646-820-8477). Some sources complained about our not covering the good news of the Kasowitz bonuses back in January, but we didn’t cover them for one simple reason: nobody told us. We don’t have ESP; we’re only as good as our sources. If you want us to cover news about your firm, whether good or bad, you need to tell us about it, ideally as soon as it happens. Thanks.
Earlier: What’s Going On At Kasowitz Benson?
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