JD Journal » legal economy

Job Market for New Grads Edges up

joshua — Wed, 16 Mar 2011 21:38:42 +0000

According to NALP, the job market for new grads is edging back upwards after two years of falling indicators, but has not yet returned to pre-recession numbers. In a press release issued today, NALP said the new numbers reflected a “…soft bounce in the market.”

The biggest gainer was the job offer rates for summer interns, which shot up 18% to 87.4%. A large improvement to be sure, but still below 2008′s 89.9%. And even though the percent of summer interns being offered a job is increasing, the overall number of interns is still down, with a national average of 9 interns compared to the highwater mark of 15 set in 2007. The good news is that this is still an improvement over the 7 interns per firm in 2009.

Revenue Flat for Locke Lord in 2010

joshua — Wed, 09 Feb 2011 18:23:27 +0000

Locke Lord Bissell &Liddell is reporting flat revenues for 2010 but an 8.5% increase in net income. Profit per partner was just under $1 million, but because 2009′s ppp was reported based on August head counts compared to this years use of a full year’s worth of data, no comparison is possible.

In 2009 Locke Lord reported $399 million in revenue compared to 2010′s $396.4 million, less than a 1% swing. Net income jumped a little more than $10 million, from $128 to $138.9 million in the same time period. Firm chair Jerry Clements said that the firm’s partners are pleased with the results and pointed to REIT, white-collar crime defense, internal investigations, health care, appellate, insurance transactional and regulatory as well as various litigation practices as the firm’s strong practice areas in 2010.

Morning Roundup

joshua — Tue, 08 Feb 2011 17:40:46 +0000

Good morning everyone! Today is Tuesday, February 8, and here’s a quick look back at yesterday’s news…

Things appear to be calming down a little in Cairo…

More firms are reporting their 2010 numbers, we have information from Cadwalader and Dechert…

2010 was the slowest year for partner laterals since 2000…

and the January numbers are out from the Labor Department – the legal sector is expanding again…

Revenue Down, Profits Up at Cadwalader

joshua — Mon, 07 Feb 2011 19:06:05 +0000

For the fourth consecutive year, revenues are down at Cadwalader. That’s the bad news. The good news is that profits per equity partner ticked up slightly for the second year in a row.

Unlike many firms that have seen revenues fall while profits rose, Cadwalader did not have any significant cuts to operating expenses in 2010. More specifically, headcount remained relatively static. There were some major cuts in the previous 2 years, but in 2010 the headcount dropped by only three percent. The firm attributes this years per partner profit growth to strategic planning decisions and points in particular at the acquisition of some top talent from other firms early in the year.

Established in 1792, Cadwalader, Wickersham & Taft LLP is one of the world’s leading international law firms, with offices in New York, London, Charlotte, Washington and Beijing. Cadwalader serves a diverse client base, including many of the world’s top financial institutions, undertaking business in more than 50 countries on six continents.

Partners Sit Tight in 2010

joshua — Mon, 07 Feb 2011 18:46:14 +0000

After a fast start, the lateral market for partners cooled substantially in 2010, with the lowest number of partner laterals among major law firms since 2000. The low numbers are attributable to both firms and partners being more cautious; the firms are more cautious about expanding and partners are more cautious about the firms they are joining.

The number of partners that switched firms in 2009 was artificially high, driven by several large firm closures. A full 15% of partner laterals in 2009 came from 4 firm closures. 2010 lacked the high profile closures but had a significant number of partner moves as a result of a few large mergers. The Hogan Lovells merger and the Sonnenschein deal contributed 90 laterals to the yearly total.

Revenue Down, Profits Up at Dechert

joshua — Mon, 07 Feb 2011 17:48:24 +0000

Dechert, llp

For the second straight year, revenues at Dechert dropped in 2010 although profits continued to go up. During the same period the number of equity partners held steady but total headcount dropped by over 8% from 2008 to 2009 and 12% from 2009 and 2010. According to Dechert’s Chairman Barton Winkour, the headcount reduction occurred almost entirely in mid 2009, but that means those lawyers were counted for half a year in 2009 and not at all in 2010.

Total profits at the firms were up close to 1% and profits per partner went from $1.96 million to $2.01 million. Winkour attributes the increase in profitability to the firm’s ability to change its profile along with the changing legal landscape. Reducing the number of lawyers involved in real estate law while adding a financial institutions practice group, for example.

With offices throughout the United States, Europe, and Asia, Dechert LLP is an international law firm focused on financial services and asset management, corporate and securities, tax law, business restructuring and reorganization, complex litigation and international arbitration, life sciences, labor and employment, intellectual property, and finance and real estate.

Bingham McCutchen had Record High Numbers in 2010

joshua — Thu, 03 Feb 2011 22:16:37 +0000

In another sign that the legal economy is once again growing, Bingham McCutchen is reporting record breaking numbers for 2010. Gross revenue went up 2% to $873 million and profits per equity partner jumped 12%, up to $1.62 million. Unlike many firms whose increased profits are due in part to decereased headcount, Bingham’s numbers are attributable to an aggressive expansion plan that included the acquisition of a 120 lawyer tax firm in Washington DC and the opening of the firms second European office in Frankfurt.

More And More Firms Consider Alternative Fee Structures

eric — Thu, 13 May 2010 18:36:48 +0000

The hourly rate could be facing some competition. According to bizlex.com, a site that focuses on business in Lexington, Kentucky, many firms are offering a more varied assortment of billing choices.

According to the article, the idea of offering alternative fee structures has been batted around in the legal community for years.

But why hasn’t it been implemented?

David Smith, managing partner of the firm Stoll Keenan Ogden, one of several attorneys who were interviewed for the bizlex piece, cited several factors as to why the time is ripe to consider options beside the per-hour rate: “‘… from decades of chatter about the hourly rate, frustration with people as far as how much legal fees cost, (client) frustration with the continuing inflation of hourly rates … the financial crisis, and particularly businesses that use legal services from large law firms are very squeezed, … they’re searching for cost savings.’”

What it comes down to is how much firms value the attorney-client relationship. Most firms have enjoyed long-standing relationships that span years. To put it simply, the old adage of sticking together through thick and thin couldn’t be more apt for both firms and their clients. Sticking together sometimes means creative thinking and offering alternatives that help everyone’s bottom line.

Legal Sector Job Losses Continues to Decline

joshua — Fri, 05 Mar 2010 18:01:26 +0000

The number of job losses in the legal services industry continued to decline in February, according to the latest report from the U.S. Bureau of Labor Statistics released Friday. The legal services sector shed 100 jobs last month, a decrease from the 1,100 jobs that were lost in January. During the past 12 months 37,100 legal service industry jobs were cut.

The news comes on the heels of a report this week that 26 percent of law firms in the U.S. planned to expand in the second quarter of 2010. Overall in the U.S., 36,000 nonfarm payroll jobs were shed in February. The unemployment rate managed to hold steady at 9.7 percent.

Morning Roundup

joshua — Thu, 04 Mar 2010 14:30:04 +0000

Good morning everyone! Anyone else ready for it to be Friday? Bad news, friends, it’s only Thursday, March 4. Here’s a look back at yesterday’s news…

AIG’s former GC, Anastasia Kelly, has joined DLA Piper…

A survey of Big Law shows 26% of firms are poised to expand…

And another shows that corporation are looking to save money by expanding in house counsel…

Lawyers for Civil Justice is starting an ambitious review of the FRCP…

The DOJ has filed a $300 million suit against lawyers and insurance companies involved in a PCB contamination settlement…

Baker Donelson is forming a gaming industry group…

NALP reports that summer associate offers are at a 17 year low…

and Jackson Lewis had a good year in 2009…

Revenue and Profits down, PPP up at Dickstein Shapiro

joshua — Mon, 01 Mar 2010 18:06:42 +0000

As a firm, Dickstein Shapiro shared the country’s economic woes in 2009 with revenues dropping by 4.78% and profits dipping 5.17%, but the partnership still managed to do ok. Per partner profits were up 6.76% to just over $1 million. The discrepancy is due to an 11% reduction in the number of equity partners firm wide. The number of non equity partners rose slightly and non equity partner compensation jumped by a little more than 8% to an average of $525,000.

Associates didn’t fare as well with two rounds of layoffs and a salary freeze. This year, associates at the firm are being paid using a merit based system rather than lockstep compensation.

Revenue Declines Slightly at Arent Fox

joshua — Wed, 24 Feb 2010 19:46:14 +0000

2009 looks a lot like 2008 at Arent Fox where revenue fell slightly to $216.5 million from the previous year’s $222.5 million. Profits per partner came in at $800,000, the same as in 2008, and revenue per lawyer was $690,000, a slight drop from 2008. The firm finished the year with the same number of partners as it had in 2008, but kept per partner profits flat despite a slight dip in revenue by cutting 5% from its expense budget and prepaying some 2009 expenses in 2008.

The real estate practice took a hit in 2009 but the decline in real estate law was balanced out by a strong showing in litigation, particularly within the IP practice group.

Arent Fox has nearly 350 attorneys with offices in Los Angeles, Washington D.C. and New York.

Profits, Revenue Up at Jenner & Block

joshua — Wed, 24 Feb 2010 19:35:57 +0000

Jenner & Block reported gross revenue of $367 million in 2009, a 6 percent increase from the previous year. Profits per partner jumped 33 percent to $1.1 million and revenue per lawyer was up 8 percent to $855,000. Per partner profits showed a markedly stronger increase than revenues in part because the firm dropped down to 128 partners, a decline of 17%.

Last year Jenner & Block opened a new office in Los Angeles, and the firm says it plans to continue its expansion this year, particularly in terms of hiring more laterals.

Jenner & Block has around 450 attorneys with offices in New York, Chicago, Los Angeles and Washington D.C.

Morning Roundup

joshua — Thu, 18 Feb 2010 12:25:25 +0000

Good morning! Today is Thursday, February 18, and here’s a quick look back at yesterday’s headlines…

Citizens are nearly united against the Citizens United ruling…

Kilpatrick Stockton picked up a pair of partnersfrom Winston & Strawn…

The DoJ issued indictments in two noteworthy cases…

Another study shows fewer lawyers are making partner during the recession and recovery…

Latham & Watkins saw a decline in revenue in 2010, but per partner profits were up…

A pair of Chicago firms are moving into new digs…

Allen & Overy is opening up in Qatar…

Kaye Scholer has a new co-managing partner…

Gibson Dunn increased revenue and per partner profits last year…

While things remained steady at Greenberg Traurig…

Morgan Lewis Reports Large Drop in Profits

joshua — Thu, 11 Feb 2010 17:35:00 +0000

Morgan Lewis reported sharp drops in revenue and per partner profits for the 2009 fiscal year. Revenues fell by 5%, from $1.12 to $1.07 billion and per partner profits fell by 15%.

Although 2007 was a rough year for most firms, the numbers for Morgan Lewis may look worse than they actually are. The firm ends its fiscal year on September 30, so the numbers for 2009 cover the very worst of the recession and don’t include 4th quarter 2009 when the economy started recovering. Per partner profits took such a large hit because although the total number of lawyers at Morgan Lewis declined by about 6% due to deferrals and layoffs, the number of partners rose by 5%. Morgan Lewis had a strong year for lateral hires, bringing in 55 new partners.

Morgan, Lewis & Bockius LLP was founded as Morgan & Lewis in 1873. It has 1,400 lawyers in 22 offices worldwide.

Lateral Market Heats Up

joshua — Tue, 09 Feb 2010 21:22:19 +0000

The lateral market for 2010 is expected to be brisk and we’ve already seen some big moves in the first month and a half of the year. This is following a record high for lateral moves in 2009, although some of that can be attributed to mergers or failing firms.

Big moves so far this year include a team of energy lawyers that joined Cooley Godward from Alston & Bird and 13 White & Case lawyers that jumped to Latham & Watkins in London.

As earning statements are released from various firms, partners are able to get a sense of which firms had the best grasp on the economic situation of 2009. This, coupled with a slow rebound of the economy may have some partners casting about for options, and firms are anxious to bring on partners with profitable practices.

Morning Roundup

joshua — Mon, 08 Feb 2010 12:30:27 +0000

Good morning everyone! Today is Monday, February 8, and it’s time to look back at Friday’s news…

Clyde & Co opened its third US office in New Jersey…

January was another bad month for the legal sector, with another 1,100 jobs lost…

Bernstein Liebhard abandoned its endeavor for Florida state pension work after admitting to inaccuracies in its application to the state committee…

Barnes & Thornburg added 5 laterals in Atlanta…

Mintz Levin’s consulting affiliate has a new senior vice president…

Several major firms in DC took a half day due to weather…

The Glover Park Group has a new managing director of its government affairs practice…

Cooley Godward picked up a team of energy lawyers from Alston & Bird…

Another partner has moved to Latham from White & Case…

Pomerantz is investigating Koss Corp. on behalf of its investors…

Fried Frank has new office space in DC…

Manatt named a new partner in LA…

and President Obama nominated two more US Attorneys…

Revenue and Profits Down at Goodwin Procter

joshua — Fri, 29 Jan 2010 21:18:42 +0000

Goodwin Procter’s gross revenues fell 4% in 2009 to $658 million and per partner profits dropped 3% to $1.27 million. Although discouraging, in a year marked by layoffs, deferrals and salary cuts it could have been much worse. The good news is that the firm is not taking it out on its associates, at least the ones that haven’t been laid off. The firm is paying bonuses and although associate salaries have not been restored to where they would be without a freeze, they have been thawed and bumped up one level, without a base salary cut.

Managing partner Regina Pisa expects revenues to stay flat in 2010 with increased work in real estate and real estate capital as the recovery heats up.

Goodwin Procter LLP employs 900 attorneys in Boston, Los Angeles, New York City, Silicon Valley, San Diego, San Francisco, and Washington DC.

Profits per Partner up 7% at Wilmer Hale

joshua — Mon, 25 Jan 2010 22:49:02 +0000

After a rocky first half of the year, Wilmer Cutler Pickering Hale & Dorr posted a seven percent per partner profit increase last year, going from $1.08 million to $1.16 million. Total firm revenue was down slightly overall, but so was the partner headcount at 318, down from 330. The number of associates was up, despite mid year layoffs.

According to the firm, revenues in the first half of the year were down but made a strong recovery in the second half of the year, lead by the IP practice group which had a 10% growth in business. Also doing well were the bankruptcy practice and the anti-trust practice.

Wilmer Cutler Pickering Hale & Dorr LLP has twelve offices across the US, Europe and Asia. It was created in 2004 through the merger of the Boston’s Hale & Dorr and the Washington’s Wilmer Cutler & Pickering, and employs a little under 1000 attorneys worldwide.

Bonuses and Thaws at Wilson Sonsini

joshua — Mon, 25 Jan 2010 22:21:56 +0000

Wilson Sonsini is thawing salaries, and using the Cooley Godward model. First years are getting $160k, third years are making $170k (had their been no salary freeze they would be drawing $185k) and to avoid paying second and third years the same, the second year associates are getting $165k.

Associates at Wilson Sonsini are also getting their year end bonuses. There are two tiers of bonuses, one for any associate that billed 1900+ hours and a higher tier for those that hit 2100 hours. The second tier of bonuses is higher than the Cravath scale, ranging from 9k to 45k.

All in all, this is fairly good news coming from a firm that laid off over 100 last year and recently laid off 20 more staffers.

Wilson Sonsini was founded in 1961 in Palo Alto, California and also has offices in Austin, New York, San Diego, San Francisco, Seattle, Shanghai, and Washington, D.C.

Staff Cuts at Wilson Sonsini

joshua — Wed, 20 Jan 2010 22:38:35 +0000

2009 has come and gone but the legal economy continues to struggle, a point made clear by today’s move at Wilson Sonsini. The firm laid off 20 staff and is providing an unspecified amount of separation pay along with some transition support assistance.

Wilson Sonsini laid off 113 last year, 68 of them staff. This year’s round of cuts isn’t nearly as deep, so hopefully we’re nearing the bottom.

Wilson Sonsini has offices in Palo Alto, Austin, New York, San Diego, San Francisco, Seattle and Shanghai. Prior to last year’s reductions, the firm had about 620 attorneys. The firm specializes in business, securities, and intellectual property law.

What Recession? K&L Gates Tops $1 Billion in Revenue

joshua — Fri, 15 Jan 2010 20:12:11 +0000

Unemployment is hovering at just over 10%, some states have seen home foreclosure rates as high as 25%, the economy continues to shed jobs, law firms are slashing salaries, retail sales continue to drop, but someone forgot to mention all of this to Pittsburgh based K&L Gates.

K&L Gates is one of the first major firms to report its 2009 revenues and the picture it paints stands in stark contrast to the doom and gloom on the nightly news. Revenues for the firm were up 8% to $1.034 billion and profits per partner were up by 1%.

The growth was driven by K&L Gates aggressive expansion which included the March merger will Bell Boyd & Lloyd, and new offices overseas in Singapore, Frankfurt and Dubai. Although the firm laid off 36 associates in March, overall the attorney nose count grew by approximately 150 to just over 1,700 total.

Layoffs at Seyfarth Shaw

joshua — Fri, 15 Jan 2010 18:20:19 +0000

Seyfarth Shaw is letting go of approximately 40 people, 20 lawyers and 20 staff. It’s been rough over at Seyfarth over the past year and they’ve taken several steps to keep costs down. In December, the firm cut salaries as part of a move toward merit based compensation. In November, it re-deferred half of its already deferred first years for an entire additional year, while cutting the salaries of the first years lucky enough to actually start working. In August, the firm announced that it would not have a summer program in 2010 and in May, Seyfarth laid off 50 people and cut some salaries.

Chicago’s Seyfarth Shaw LLP is a full-service law firm founded in 1945. It has ten offices, nine of which are in the United States. The firm is well known for its labor and employment, employee benefits, litigation and business services.

Morning Roundup

joshua — Tue, 12 Jan 2010 12:25:56 +0000

Good morning everyone! Today is Tuesday, January 12, and here’s a look back at yesterday’s stories.

Thomas Russo has been offered the GC job at AIG…

A court in New York has rejected the SEC’s attempt to broaden its case against B of A…

Another 2100 legal jobs were lost in December, according to the BLS…

The Supreme Court has temporarily blocked broadcasts of the proposition 8 trial…

and Latham & Watkins is opening an office in Houston…

Salary Thaw and Bonuses at Arnold & Porter

joshua — Mon, 04 Jan 2010 16:15:31 +0000

At the start of 2009 Arnold & Porter announced that it was freezing salaries but held out the hope that some or all of the difference might be paid out later if economic situations warranted. At the end of December a firm wide memo went out in which Arnold & Porter announced that all associates in good standing would be receiving the full difference between their frozen salaries and the salary they would have otherwise earned in one lump payment. Furthermore, salaries have been unfrozen for 2010, with everyone getting bumped up a year. Arnold & Porter will also be paying unspecified bonuses for 2009 based on a combination of billed hours and subjective reviews.

Founded in 1946, Arnold & Porter LLP is an international law firm based in Washington DC, which is well known for its trial, corporate, and antitrust work; and for its pro bono commitments and support for progressive causes.

ABA’s Loan Relief Proposal for Law Graduates Rejected by Congress

Aine Ford — Mon, 28 Dec 2009 20:12:47 +0000

Despite recent efforts from the American Bar Association to help recent law school graduates defer their student loans, neither the Obama administration nor Congress have gone along with the ABA’s proposal.

Carolyn Lamm, ABA President, said last week that the association will keep pushing by building support for student loan relief for recent graduates.

The ABA has been lobbying the Obama administration in response to the growing debt of recent graduates who have been unable to find jobs because of the recession.

Lamm says that she and other ABA officials have met with aides on Capitol Hill, at the U.S. Department of Education and in the White House to press their case, so far without success. She goes on to say that while they are interested in education and in helping, they have yet to find a solution.

Quinn Emanuel Bonuses

joshua — Wed, 23 Dec 2009 00:22:13 +0000

Quin Emanuel is making its naughty and nice list. Those who were naughty are getting a lump of coal, and those that were nice are getting a bonus – in some cases a very nice bonus.

Bonuses are being paid by class depending on the number of hours billed. To qualify for the smallest bonus, an associate needs to have 2000 hours. At 2100 hours, associates hit the Cravath bonus scale, but it doesn’t stop there. Bonus go up again at 2400 hours, 2600 hours, and those that managed to bill 2800+ hours will get an even bigger bump. In this economy? Did anyone actually find 2800 billable hours? Presumably, the firm wouldn’t offer bonuses for that level without having some earners, so congratulations to any Quinn Emanuel associate earning the top chart bonuses – now take a day off!

Quinn Emanuel Urquhart Oliver & Hedges LLP was founded in 1986 by John B. Quinn. It is headquartered in Los Angeles, with major offices in San Francisco, the Silicon Valley, and New York.

News Flash – The Economy was Bad in 2009!

joshua — Thu, 10 Dec 2009 17:17:09 +0000

Hard as it may be for those who follow the legal profession to believe, the economy for the past year has been a tad rough. So says a slew of headlines, article and blog posts around the net this week. So before I fill you in on the predictions and prognostications of experts, allow me to look into my own crystal ball for a minute…

I predict that in the absence of any actual news, news organizations and blogs will run story after story about the economy for the next month, even when there are no new facts or figures to report. I predict that none of these stories will be the least bit surprising to anyone that didn’t pull a Rip Van Winkle this year. And lastly, I predict that we’ll all read them, looking for that nugget of hope to hang on to as the new year starts.

So now for the latest in what will likely be a long stream of similar articles: Citi Private Bank predicts that law firm revenues for the year are down by five to ten percent, despite increased 3rd quarter demand. Shocking, I know. From that nugget of news follows several dozen stories around the web disecting and analyzing, predicting, speculating and well… I suppose mocking.

More surprising than the overall decline in revenue is this tidbit… Law firms that cater heavily to financial services clients are – wait for it – seeing larger revenue declines than most.

Check back tomorrow for our exclusive report on this years unexpectedly high number of dogs biting mailmen.

DLA Piper Layoffs Attributed to Dubai Crisis

joshua — Mon, 07 Dec 2009 23:12:34 +0000

DLA Piper is laying off 7 attorneys and 10 staff in the Middle East in the wake of the Dubai credit crisis. This marks the third round of layoffs for the firm in the region this year with the last round happening in July. All together the firm has let go of 24 lawyers from the region this year. Not every firm operating in Dubai is hurting, however. Several British firms are playing major roles in the ongoing negotiations, as we reported last week.

DLA Piper is one of the largest law firms in the world. It is a legal services organization whose members and affiliates are separate and distinct legal entities. The organization boasts more than 3,500 lawyers in 29 countries and 65 offices.

Haynes & Boone Cut First Year Salaries

joshua — Mon, 23 Nov 2009 19:40:58 +0000

First year associates at Haynes & Boone will be starting after Thanksgiving, but at a reduced rate. The firm emailed its incoming associates and informed them that the salary for first years has been cut to $145k. The firm says that it has not decided on a pay structure for 2010 yet so this may be a temporary cut, but that seems unlikely in today’s market. The rush to $160k was fueled by competition for the best students coming out of law school and was coupled with other perks and benefits, lavish events and other promotions designed to win the hearts and minds of the next generation of lawyers. With law school enrollment on the rise and the number of biglaw jobs on the decline, the tables have turned a bit and firms don’t need to persuade recent graduates to come work for them. A job offer is enough.

Clients are also pushing for lower hourly rates, particularly from first year lawyers who are essentially getting on the job training at the clients expense. In today’s economy, firms are increasingly catering to the wishes of their clients in order to get the business and so more and more firms are offering cut rates for first year hours, or moving to alternative fee structures. None of this adds up to returning salaries to 160k next year for Haynes & Boone first year associates.

That doesn’t mean it won’t happen, and if it does happen I will happily eat my words.

Skadden Bonuses Match Cravath and Cleary

joshua — Thu, 19 Nov 2009 21:02:58 +0000

If you’re an associate at Skadden Arps, the good news is not only do you still have a job, you’re getting a bonus for surviving the year. The not so good news is that it’s the same as associates from Cravath and Cleary. There had been some hope that Skadden would buck the trend, much as they did last year when it paid bonuses around double that of most firms, but such is not the case. Like Cravath and Cleary, Skadden’s bonuses run from $7,500 up to $30,000.

Skadden, Arps, Slate, Meagher and Flom, LLP is a global firm headquartered in New York City with offices in twenty-four cities around the world. Core areas of practice include mergers and acquisitions, litigation, bankruptcy, tax, and securities law.

Reed Smith Asks Non Equity Partners for a Tithing

joshua — Mon, 16 Nov 2009 18:37:38 +0000

Render unto Caesar what is Caesar’s, or so the expression goes. Now Reed Smith is asking much the same of its non equity partners. Non equity partners are being asked to contribute as much as 15% of their base salary to the company or risk losing partnership status. Gregory Jordan, the firm’s chairman, had this to say about the plan. ““It’s about not just saying you’re a partner, but actually being one. It means something. It revolves around risk-sharing in the business.” Jordan defended the move, saying that it isn’t a means to get a quick cash infusion into the company, and going on to say that Reed Smith is having “a very strong year”.

A very strong year? That doesn’t square up with the history.

In March, Reed Smith laid off 100, 26 lawyers and 74 staff.

In May, Reed Smith cut all US associate salaries by 10%.

In August, Reed Smith cancelled on campus interviews at Fordham law at the last minute, prompting the school to ban Reed Smith from on campus recruitment for five years.

Last week, Reed Smith cut the salaries of incoming associates by 20% and lowered their billing rates for work done by new associates. This came two weeks after announcing a plan to move away from lock step.

If this is a very strong year, I would hate to see what things look like in a bad year.

UK Firms Feel the Pinch

joshua — Thu, 12 Nov 2009 17:58:00 +0000

The top 100 UK firms by revenue dropped saw profits decline by an average of 30% last year, according to a new report out from PricewaterhouseCoopers. The largest decline in income came in the second tier of firms, those listed at #11-25, where partner per partner profits were down by 28%. Firms in the “magic circle”, the top ten, had per partner profits ranging from 850,000 to 1.4 million pounds, which was still a 21% drop from last year.

Over 5,000 Lawyers Laid Off During Past Year

todd — Wed, 11 Nov 2009 14:00:01 +0000

A recent survey done of the top 250 law firms in the U.S. shows a loss of over 5,000 lawyers over the past year.

5,259 lawyers, to be exact, were laid off, which amounts to a drop of 4 percent. This is the largest decline ever reported by the National Law Journal, which started collecting information in 1978. Since that time, there has only ever been two other drops recorded: one equaling less than 1 percent in 1993, and a 1 percent decline in 1992.

While the associates dropped by 8.7 percents at the large firms, partners increased by just under 1 percent.
According to law firm consultant Ward Bower, “The cuts made were done primarily to preserve workloads for partners. It suggests that work done by partners is work that associates could do.”

Fried, Frank, Harris, Shriver & Jacobson showed the largest loss, percentage-wise, with a drop of 26.4 percent, or 168 lawyers.

Latham and Watkins saw the highest amount of lawyers, by number, get the axe. That firm saw 444 lawyers lose their job, which, for the firm, equaled a drop of 19.1 percent.

Salary Freeze at Covington & Burling

joshua — Tue, 10 Nov 2009 21:43:30 +0000

Stick this one in the “It could be worse…” file.

At an all associates meeting today, Covington & Burling announced a freeze on associate salaries for all offices other than New York. Although Covington’s associates are probably not thrilled with the news, things could be worse. If Covington can reign in costs without having to lower salaries or cut jobs, it puts them a step ahead of most firms.

Back in April, Covington & Burling’s Diversity Update included a statement that they had not frozen salaries. It took longer than a month, but now we can finally link back to it.