JD Journal » reed smith llp

Reed Smith and Thompson & Knight Merger Called Off

marvins — Fri, 07 Jan 2011 22:11:38 +0000

The much awaited merger between Reed Smith LLP, a global law firm with over 1,600 lawyers, and Thompson & Knight LLP, a US-based firm with around 350 lawyers, was called off. Talks of merger have been circulating the legal industry over the recent months until the management of both firms announced that the potential merger was dismissed. Based on the statement released on Thursday, the merger plan was cancelled even before the proposal was submitted to the partnership of both firms for a vote. However, both firms asserted that they will continue to have good working relationship.

Gregory Jordan, Reed Smith global managing partner, said that their firm has nothing but good words for Thompson & Knight. However, today is not yet the best time for a merger. “We are very impressed with Thompson & Knight’s lawyers, practices, and clients. Both firms are coming off record years in terms of profitability, but we cannot get all of the pieces in the right place now.” Jordan assured that their firm would continue to be a partner in other means. “Reed Smith would continue to partner with Thompson & Knight “on shared work” as his firm pursues its strategic initiatives and serves its clients.”

Jeffrey Zlotky, Thompson & Knight global managing partner, noted that merging with another law firm is not an easy task. “A large number of issues have to align to make a merger work.”

Based on the Am Law 100 financial data in 2009, Reed Smith registered gross revenue of $942 million. The firm’s profits per equity partner reached $1 million. Meanwhile, AM Law 200 record showed that Thompson & Knight’s gross revenue was $224 million. Its profits per partner were $855,000.

Morning Roundup

joshua — Wed, 25 Aug 2010 12:57:01 +0000

Good morning everyone! Today is Wednesday, August 25th. Here’s a quick recap of yesterday’s stories.

Reed Smith added leading IP strategist Marc Kaufman to its Washington D.C. office…

For four years running, Greenberg Traurig had more attorneys listed in the annual The Best Lawyers in America Guide than any other firm…

Barnes & Thornburg hired Peter Zura as a partner in its IP division…

DLA Piper gained a 5 person IP team from Hogan Lovells…

TEX-ABOTA Inc. named Richard A. Sayles, acclaimed courtroom lawyer, “Trial Lawyer of the Year”…

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.

Reed Smith Cuts Associate Salaries by 10%

Erik Even — Wed, 20 May 2009 17:53:55 +0000

Reed Smith is decimating associate salaries, cutting pay 10% across the organization.

From the memo:

…Reed Smith has adopted many changes to our business in response to global economic conditions… Among other things, this has meant lower compensation levels for partners. Today, we are announcing another change which we believe is appropriate to further sound business operations. Effective July 1, 2009, we will reduce associate salaries in the U.S. by 10% across the board. We will set the salaries for our incoming class of U.S. associates at a later date, but the new salaries will be at least 10% lower than current first year levels.

In Europe and the Middle East, the firm is freezing current associate salaries; and it will set the starting salary for newly qualified UK associates approximately 10% lower than the current level. Asian operations are not affected.