JD Journal » first-year associates

Morning Roundup

joshua — Fri, 27 Aug 2010 12:05:37 +0000

Good morning everybody! Today is Friday, August 27th. Here’s a quick look back at yesterday’s stories.

Many associates at Orrick, Herrington & Sutcliffe received pay raises…

Sidley Austin added to its international trade and Latin America practices….

Former pitcher Roger Clemens will be arraigned Monday in on charges he lied to Congress about his use of performance-enhancing drugs…

Orrick Associates Get Bump in Pay

joshua — Fri, 27 Aug 2010 00:12:30 +0000

Most associates at Orrick, Herrington & Sutcliffe are receiving pay raises, according to a report from Legal Pad. While not a return to lockstep compensation, second-year associates will havetheir compensation bumped to $170,000 from $160,000 beginning in January, and third-years will have salaries increased $15,000 to $185,000.

The salaries of first-year associates will remain at $160,000 in top markets.

Legal Pad reports managing associates will earn between $210,000 and $250,000 next year and senior associates will earn up to $265,000 in base salary.

Orrick spokesman David Schaefer told the Web site the plan does have lockstep elements in the early years, but will begin to vary more at the “managing associate level.” That’s because the firm “doesn’t want to judge lawyers too early in their career development.”

Orrick, Herrington & Sutcliffe LLP is a global law firm with more than 1,100 lawyers in 22 offices in North America, Europe and Asia. The firm focuses on litigation, complex and novel finance and innovative corporate transactions.

Cooley Litigation Head Says Business is Rebounding

joshua — Mon, 19 Apr 2010 21:37:39 +0000

A report out of the Bay Area indicates things are looking up for the legal sector, at least in California.

The Recorder caught up with Mike Rhodes, a partner at Cooley Godward and head of its 300-lawyer litigation group, who painted a brightening picture for law firms. He said “in terms of hours, people are working a lot harder than a year ago,” and estimated litigation hours are up 10 percent nationwide and 15 percent in the Bay Area.

Rhodes noted that all five of Cooley’s first-year associates that started at its San Diego office in January are on schedule to get at least 1,800 billable hours.

“It’s not hard for me as a partner to sell my own time,” Rhodes said. “The better indicator of where you are as an institution is if you can fully engage fresh graduates in this economic climate.”

While business is picking up, Rhodes conceded it may be a while before hiring catches up. He said firms are part of what’s been called a “jobless” recovery from the recession.

“The economy looks better, but (overall) job creation is still lagging,” Rhodes told The Recorder. “Law firms are still in a bit of that mindset as well.”

Specializing in technology, Cooley represent venture capitalists and entrepreneurs in emerging fields. The firm is headquartered in northern California and has offices in technology hubs around the country.

DLA Piper Associates Getting Pay Raise

joshua — Fri, 16 Apr 2010 16:43:10 +0000

Associates at DLA Piper are receiving a 10 percent pay raise that will return salaries to their pre-recession levels, the firm announced Thursday in an internal memo.

The pay increase puts first-year associates salaries at $160,000 in major U.S. markets and $145,00 in secondary markets, the National Law Journal reports. DLA Piper had already raised salaries at its New York office to $160,000 back in January.

DLA Piper U.S. Managing Partner Terry O’Malley told National Law Journal the raises are not the result of a stronger job market, but was rather intended to retain mid-level associates. That led the firm to “implement raises for all associates instead of doing so piecemeal.”

DLA Piper is one of the world’s largest law firms. It has 3,500 lawyers practicing in 67 offices in 29 countries.

Vinson & Elkins Make Good: First-Year Associates Begin Oct. 4

joshua — Tue, 13 Apr 2010 20:26:28 +0000

Reports out of Texas indicate Vinson & Elkins has tabbed Oct. 4 as the day its 2010 first-year associates can begin their careers at the Houston-based firm. The Texas Lawyer reports hiring partner Tom Leatherbury announced the news March 29. Starting annual salaries will be $160,000.

Vinson & Elkins expects 49 first-year associates to accept the job offers. The firm is also offering Jan. 4, 2011 as a potential start date in case associates face a conflict with the October date.

The Texas Lawyer reports Vinson & Elkins followed the lead of many firms last fall when it made job offers to 2009 summer associates, but did not specify specific start dates or salaries. Leatherbury said Vinson & Elkins has had a particularly strong first quarter, which included a large number of energy transactions, “and we’re ready to get our new lawyers onboard.”

Vinson & Elkins is an international law firm with more than 700 attorneys and offices in 13 major cities around the world.

Chadbourne Tells Deferred Associates to Look Elsewhere

joshua — Thu, 18 Mar 2010 15:59:26 +0000

Chadbourne & Parke revealed yesterday that 11 of its 2009 first-year associates, which had been deferred to a 2010 start date, will not be offered jobs with the firm.

In a statement provided to Above the Law, the firm said it is unable to expand its first-year class even with the brightening economic outlook.

“Despite improving economic conditions generally and at Chadbourne, our most recent near-term projections led us to conclude that we could not justify increasing the first-year class beyond its current size and that there would be no positions available for the 11 deferred individuals,” the firm said.

According to the report, the deferred associates have already received stipend payments of $73,000 from the firm.

New York’s Chadbourne & Parke LLP, founded in 1902 by Thomas L. Chadbourne, employs 400 lawyers and tax advisers in 13 offices in nine countries. Chadbourne is best known for its global practice in project finance and energy, international insurance and reinsurance practice, multi-jurisdictional litigation in courts from Rhode Island to Russia, and corporate transactions.

Winston & Strawn Outlines Associates Salaries

joshua — Mon, 22 Feb 2010 19:32:25 +0000

According to an internal memo to associates, Winston & Strawn is thawing salaries while also ending lockstep compensation.

The memo from Thomas P. Fitzgerald outlines an associate pay-scale beginning at the market rate of $160,000 for first-year associates. However, it also states associates salaries “will range up to the maximum base compensation levels set forth below.”

There is little detail given in the memo with regards as to how associates could reach the maximum, other than saying associates salaries “will be determined on a case-by-case basis based on seniority, performance and productivity factors and will be communicated separately to each associate.”

The increases will be retroactive to Feb. 1.

Winston & Strawn associates pay scale:

Class Year

2009 $160,000

2008 $170,000

2007 $185,000

2006 $210,000

2005 $230,000

2004 $250,000

2003 $265,000

2002 $280,000

Merit Based Pay at Drinker Biddle

joshua — Tue, 19 Jan 2010 19:35:24 +0000

Drinker Biddle is moving to a merit based pay system, becoming the latest in a string of major law firms to abandon lockstep compensation. Under the new plan associates in their second year and beyond are broken down into four tiers. Each tier has a baseline salary but the firm is quick to emphasize that final salaries will recognize the individual contributions an associate makes to the firm’s success and could rise well above the minimum salaries. There are also two separate scales for major markets such as New York, and offices in other locations.

Associates in New York, Chicago, Washington DC and California will have base salaries of $145k, $165k, $185k, and $250k depending on tier, with the top tier reserved for those expected to make partner within two years. Outside the major markets, salaries range from $130k to $185k. Abovethelaw.com is reporting that this represents a salary cut for 53% of Drinker Biddle’s associates, but that’s based only on minimum salaries for each tier and may not be reflective of final salaries.

This system applies to associates in their second year and beyond. Drinker Biddle is continuing its new first year program, as reported here. First year associates will undergo extensive training while drawing salaries of $105k, and clients will be charged a reduced rate for any work done by this group.

Drinker Biddle & Reath LLP was founded in Philadelphia in 1849. The firm has more than 650 attorneys in 12 offices in the US. Its largest offices are in Philadelphia; Chicago; Florham Park, New Jersey; and Washington, DC.

Salary Cut at Pillsbury Winthrop

joshua — Thu, 07 Jan 2010 16:54:37 +0000

Pillsbury’s first year associates outside of New York are receiving a salary cut, down to $145k. Any first year that bills in excess of 1950 hours will receive an additional $15k bonus. First years in the New York office will continue to receive $160k.

Salaries for 2010 have not yet been set and for the moment all associates are being paid at 2009 levels. When compensation levels are set, any raises will be made retroactive to January 1. In addition, 2009 bonuses will be paid at the end of this month.

Pillsbury Winthrop Shaw Pittman is an international law firm with offices located throughout the US and globally, including key financial centers New York, London, Tokyo and Shanghai.

Is There a New Standard for Bonuses?

joshua — Fri, 04 Dec 2009 20:52:52 +0000

Up until this week, the scale for bonuses seemed pretty set in stone with every firm falling in lockstep with Cravath. But earlier this week Sullivan & Cromwell dared to be different. Of course, it’s only different if you’re a senior associate in which case you’ll get an extra $5000, small consolation for not being made partner. For everyone else, it’s exactly the same as the Cravath bonuses.

Never the less, at least one firm is jumping on the Sullivan & Cromwell bandwagon. Paul Weiss gave its associates the news today. $7500 for the first years, $35,000 for the seniors, and the same sliding scale for everyone else.

More Bonuses

joshua — Wed, 25 Nov 2009 21:11:24 +0000

-Insert cookie cutter story here-

Debevoise & Plimpton announced bonuses today. Second verse, same as the first… I’m rapidly running out of new and creative ways to say this, so here it is – it’s the same bonus schedule first issued by Cravath, then followed by Cleary Gottlieb, Skadden, Wilkie Farr, Simpson Thatcher, and Davis Polk. $7500 for first year associates, seniors get $30k, and everyone else is on a sliding scale somewhere in between.

Nothing to see here, move along…

Hard Times at Seyfarth Shaw

joshua — Fri, 20 Nov 2009 20:14:47 +0000

Seyfarth Shaw has told half of its deferred associates that they will not be starting in January as planned. Instead, they are being redeferred to October 2010, and will receive a stipend of $2000 dollars per month starting in January. If that wasn’t enough bad news, Seyfarth is also cutting the salaries of first year associates by five to ten percent. One can only hope that the deferral stipends aren’t subject to those cuts.

Yes, it’s nice to get paid $2000 a month to do nothing, and yes, it’s possible in some parts of the country to live on that kind of money, but in general biglaw doesn’t have offices there. Keep in mind that we’re talking about lawyers that graduated in June, got a job, and are now having to wait almost a year and a half to start working – assuming that things improve enough to start at all. With more firms pushing start dates back to October of next year, are there going to be jobs available for the 2010 grads?

Reed Smith Cuts Salaries

joshua — Tue, 10 Nov 2009 17:51:59 +0000

Just a few weeks after announcing it was moving away from lockstep compensation and doing away with associate classes, Reed Smith is cutting associate salaries by 20% for all incoming associates and reducing their billing rates by an equal amount. This move is certain to be popular with clients who are unhappy with paying full rates for new lawyers, in effect paying for on the job training.

Billable hour targets for first year associates have also dropped from 1900 to 1700 so that the new lawyers can take advantage of new training programs.

Founded in 1877, Reed Smith LLP employs 1500 attorneys in 23 cities worldwide. The firm counsels 28 of the top 30 US banks, and 10 of the world’s 12 largest pharmaceutical companies. In addition to the United States, Reed Smith has offices in the United Kingdom, continental Europe, Asia and the Middle East.

Incoming Associate Class Split, Half Will do Pro Bono Work at Reduced Salary

joshua — Thu, 29 Oct 2009 20:47:35 +0000

Incoming associates at Kaye Scholer will all start in January, right on (deferred) schedule. The only thing is, half of them will be paid $100,000 less per year than their colleagues. The class was divided based partially on practice group preference and to a certain extent, arbitrarily. Instead of extending the deferrals for half the class, Kaye Scholer is putting them to work in the pro bono department and paying them $60,000 per year plus benefits. This mirrors the stipends being paid by several other firms, who are turning the deferred associates out on the street to do public service law.

Is this an improvement? Tell us what you think.

Arent Fox Revokes Offers to New Associates

joshua — Thu, 24 Sep 2009 20:23:00 +0000

On Monday we reported that Alston Bird was deferring its deferrals again, indefinitely. Arent Fox has taken a different approach. Rather than indefinitely extend deferrals, the firm has chosen to revoke the offers of several new associates. Those whose offers have been revoked have been paid $20,000 in compensation.

Arent Fox is a Washington, DC, based firm with three offices and 350 attorneys. It has a strong lobbying practice along with a broad array of practice groups.

Fulbright & Jaworski Lays Off 6 Associates, 4 Staff

Erik Even — Thu, 23 Jul 2009 17:18:03 +0000

Blawgs are reporting that Fulbright & Jaworski has laid off six associates and four staff at its Los Angeles office.

Five of the associates targeted were first-years.

If you have any details about layoffs at Fulbright & Jaworski, please — send us a confidential tip!

Founded in 1919, Fulbright & Jaworski LLP employs over 1,000 lawyers in 16 locations in Austin, Beijing, Dallas, Denver, Dubai, Hong Kong, Houston, London, Los Angeles, Minneapolis, Munich, New York, Riyadh, San Antonio, St. Louis and Washington, DC.

Howrey Adopts Apprenticeship Model for First Years

Erik Even — Mon, 22 Jun 2009 20:45:47 +0000

Howrey, which laid off 25 staff in April, is adopting an “apprenticeship” program for its incoming associates, similar to that proposed by Drinker Biddle in May.

Under Howrey’s Tier 1 Program, new associates will spend only one-third of their time in their first year on billable client work. The rest will be spent on pro bono work and training programs.

In the “Howrey Academies,” associates will be taught writing, get assigned to trial teams, plus other programs.

In year two, associates will work on client secondments, judicial externships, and other advanced development opportunities. Billable hours in the second year will be capped at about half of total hours.

The bad news? The Tier 1 Program will be limited to a select number of associates each year. Compensation is annual salary of $100,000, plus $25,000 upon acceptance of the job offer to defray law school loans or third year law school expenses.

In their second year at the firm, participants will receive an annual salary of $125,000 and a $25,000 bonus upon successful completion of the program, and entry into Tier 2 of Howrey’s associate development program. Higher compensation may be offered to candidates with special qualifications, such as advanced technical degrees or clerkships.

Howrey LLP was founded as Howrey, Simon, Baker, & Murchison in 1956, and was the first national anti-trust law firm. It has more than 700 attorneys in 17 locations worldwide.

Gardere Wynne Sewell Slashes New Associate Salaries

Erik Even — Wed, 06 May 2009 22:47:09 +0000

Gardere Wynne Sewell, which laid off an undisclosed number of attorneys and staff in March, has cut salaries for incoming new associates from $160,000 to $145,000.

Second years will have their salaries cut to $150,000.

The firm says its clients have complained that new associates were overpaid.

Based in Dallas, Texas, Gardere Wynne Sewell LLP employs nearly 300 attorneys with offices in Austin, Houston, Washington DC, and Mexico City.

Crowell & Moring Reducing Salaries for Some Lawyers

Erik Even — Fri, 24 Apr 2009 16:48:09 +0000

Crowell & Moring has told as many as 20 lawyers across the firm that their salaries will be reduced in light of reduced hours. First year associates were not affected.

Crowell requires at least 1,900 billable hours from all of its lawyers. If a lawyer gets as low as 1,600 hours, the firm intervenes to determine the source of the problem and to fix it. The firm says salary cuts are a last resort.

There is no tiered compensation.

Crowell has not yet held any layoffs in the global recession, and would like to avoid doing so.

Crowell & Moring LLP is an international law firm with more than 450 lawyers. Based in Washington, DC, the firm also has offices in New York, London, Brussels, Los Angeles, and Orange County, California.

Update: Hogan & Hartson Reduces Pay for Certain First-Year Associates

Erik Even — Fri, 03 Apr 2009 16:59:57 +0000

Yesterday Hogan & Hartson laid off 93 US support staff.

Today we learn more about changes in compensation for associates who joined the firm in Fall 2008.

Hogan offers two compensation tracks for its associates; those who bill 1,950 hours per year plan earn at least $160,000, while those on the 1,800-hours plan earn at least $145,000.

Starting yesterday, the firm moved associates who aren’t on track to bill at least 1,850 hours to the reduced salary track.

Associates can move back up to the higher salary level by billing 1,950 hours by the end of this year. They can count up to 100 pro bono hours toward their billable hour totals. If they log more than 1,850 hours but less than 1,950, they will be compensated proportionally.

The firm says it hopes the changes will not be carried over into 2010.

Founded in 1904, Hogan & Hartson is the oldest major law firm headquartered in Washington, DC. It is a global firm with more than 1,100 lawyers in 27 offices worldwide, including offices in North America, Latin America, Europe, the Middle East, and Asia.

Morris, Manning & Martin Rescinds Offers, Cancels Summer Program

Erik Even — Wed, 18 Mar 2009 23:01:40 +0000

Atlanta-based Morris, Manning & Martin has rescinded offers to six of its incoming first-year associates, and canceled this year’s summer associate program.

The firm will pay the “laid off” first-years their $5,000 starting bonus. The firm says it rescinded offers to the six 3Ls because it does not have enough work for them.

The firm has transferred associates from its corporate and real estate departments into litigation.

If the economy recovers, Morris Manning says it will offer jobs to the 3Ls whose positions it has rescinded.

The cancellation of the summer associate program affects nine law students, eight 2Ls and a 1L. The firm plans to resume the program if the economy improves, and will make a decision on its 2010 program by this summer.

Morris Manning laid off four associates this year, but does not plan to make any additional reductions.

Thacher Wants Salary Advances Back

Erik Even — Sun, 08 Mar 2009 17:07:03 +0000

Dissolving Thacher Proffitt & Wood is pursuing its former first-year associates over money provided for bar expenses.

The firm’s dissolution committee and bank are going after the former associates for repayment of salary advances issued last year to cover their bar and start up expenses.

Omer “Jack” Williams, a former Thacher managing partner who chairs Thacher’s seven-member dissolution committee, says associates knew the money was a loan when they took it. “In the exit interviews, we made it clear we anticipated they would pay their loans back,” he said.

Perhaps when the associates joined the firm, they made it clear they expected to be employed so they could pay the money back.

Williams says the committee hasn’t taken any legal action to collect the loan balances and hasn’t discussed what it will do if associates don’t pay.

Thacher, which had nearly 200 lawyers firmwide, was forced into dissolution in December, before the new associates had a chance to fully repay the loans out of their salaries.

Latham & Watkins, which last week laid off 190 associates firmwide, will not seek to get back the bar stipend it paid associates.

DLA Piper also isn’t requiring recently laid-off associates to pay back salary advances.

Bankrupt Heller Ehrman also won’t pursue repayment.