JD Journal » non-equity partners

Group Asks NALP For More Accurate Partnership Info

joshua — Thu, 08 Apr 2010 17:02:00 +0000

Citing a desire to better understand law firm diversity, a group of scholars and legal professionals sent a letter asking the NALP to include non-equity partners in information on Biglaw firms it disseminates to the public.

The 75-strong group, led by author and Massachusetts Appeals Court Judge Fernande Duffly, believes adding information on non-equity partners would give a better picture on diversity at member firms of the NALP. The letter notes an equal number of men and women graduate law school, but women comprise only 16% to 17% of equity partners at major law firms. Minorities account for only 5.4% of law firm partners, according to the letter.

“While many law firms have taken steps to address this problem, progress has been slow and difficult to measure. The continuing disparities at the equity partnership level have a significant and far-reaching impact on the legal profession, including by reducing the number of women and minority attorneys who are positioned to apply for judgeships or assume leadership roles in the community,” the letter states.

The NALP, formerly known as the National Association for Law Placement, said earlier this year it would not be able to provide such information because law firms were “unable or unwiling to provide the information requested in the new equity/non-equity partner categories.”

According to the organization, many firms said they would not provide such information because of privacy and confidentiality issues.

Revenue Down, Profits Up at Latham Watkins

joshua — Wed, 17 Feb 2010 16:55:57 +0000

While gross revenue at Latham & Watkins decreased five percent to $1.821 billion in 2009, profit-per-partner managed to rise by five percent to $1.902 million. Helping to account for the rise in PPP was a big increase in net income from $786 million to $844 million.

The numbers are a big improvement from 2008 when the firm’s profits were down 20.5 percent. That resulted in the layoffs of 190 associates and 250 staff in March of last year. Currently there are 1,880 attorneys at Latham Watkins, down from 2,102. The number of equity partners grew from 436 to 444 and the number of non-equity partners grew from 122 to 131.

Latham & Watkins was founded in 1934 and has 29 offices around the world.

Greenberg Traurig Has Steady Year

sara — Wed, 17 Feb 2010 13:34:11 +0000

2009 was a steady fiscal year for law firm Greenberg Traurig. Gross revenues decreased 2.9% to $1.17 billion. Profits per equity partner increased 0.15 of a percent to $1.311 million. The compensation pool for non-equity partners increased 3.94% to $222 million. The number of non-equity partners working at the firm increased more than 10% to 585. The total number of partners increased from 824 to 877. Greenberg opened two new offices in London and White Plains, New York, which accounts for the growth in partners.

Founded in 1967 and headquartered in Miami Florida, Greenberg Traurig has approximately 1,800 lawyers in 35 offices around the world.

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.

Ruden McClosky Cuts Compensation

Erik Even — Tue, 30 Jun 2009 16:48:09 +0000

Florida’s Ruden McClosky, which laid off two lawyers and 18 staff in May, is cutting associate and non-equity partner compensation by 8%.

Equity partners are not likely to receive the holdbacks of 18% of their pay.

The firm is struggling, as it relies heavily on real estate transactional work, which has been negatively affected by the global economic meltdown. Ruden McClosky has been shedding attorneys since last year.

Fort Lauderdale, Florida’s Ruden McClosky is a law firm specializing in intellectual property law, litigation, banking & finance law, and general corporate law.

Howrey Lays Off 25 Staff

Erik Even — Sun, 19 Apr 2009 18:46:21 +0000

Washington DC’s Howrey has laid off 25 secretarial staffers.

Cuts came in all offices except Palo Alto and New York. Those affected are getting severance packages, health care assistance and outplacement.

In addition, Howrey is demanding that non-equity partners contribute capital; and all partners, equity and non-equity, will be able to contribute voluntary capital, and some have already agreed to do so. The firm’s press release hints that these “voluntary” contributions may not be so voluntary.

Additionally, all partners, Equity and Non-Equity, will now able to contribute voluntary capital and several have already agreed to do so. All these are signs of their commitment and dedication to the Firm and its plans for growth.

Huh. Better cut that check.

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.

Bilzin Sumberg Cuts Attorneys, Staff

Erik Even — Tue, 24 Feb 2009 16:47:55 +0000

Miami’s Bilzin Sumberg Baena Price & Axelrod has cut some attorney and staff positions.

The firm, founded in 1998, declined to say exactly how many positions were cut.

Sources say at least two attorney and two secretary positions in the firm’s corporate and real estate areas were cut. The attorney positions included a non-equity partner in the corporate practice and a real estate associate.

The firm’s lawyers are busiest in its litigation, bankruptcy and workout practices.

Wildman Harrold Lays Off “Approximately” 10 Attorneys [Update]

Erik Even — Mon, 12 Jan 2009 22:40:20 +0000

Wildman Harrold Allen & Dixon has confirmed that the Chicago-based law firm has laid off “approximately” 10 attorneys. About half are non-equity partners and the rest are associates.

If anyone knows how you can lay off “approximately” 10 attorneys, please comment below. Approximately 1,000, that I get. Approximately 10? You’re not sure if it’s 9, or 11? Maybe it was 9.8 attorneys? What’s the exact margin of error here? Could someone at Wildman Harrold stick their head out of a cubicle and get an accurate count?

But I digress.

No one practice area was targeted, the firm said. The layoffs were part of a standard annual review process, although “obviously the current economic conditions bring heightened attention to these otherwise normal business processes.”

Seven attorneys will join the firm this month, including three new partners who formerly were with a California affiliate of New York City-based Dreier; and four new associates who will be arriving later in January.

UPDATE

We now know that Wildman fired five income partners and five associates.