JD Journal » senior associates

Hughes Hubbard Thaws Salaries, Issues Bonuses

joshua — Mon, 25 Jan 2010 17:44:08 +0000

Hughes Hubbard is thawing out salaries and junior associates are getting a double bump, placing them where they would have been had there been no salary freeze. Senior associates are splitting the difference, with the class of 2004 and beyond getting bumped up but not quite as far. Of course, this further muddies the water of the “market rate” situation.

In addition to salary raises, Hughes Hubbard associates are getting their 2009 bonuses. Those that made their billing target of 1950 hours will get a bonus on the Cravath scale. However, there are above market bonuses being paid out to associates that hit 2100, 2300 or 2500 hours last year.

Hughes Hubbard & Reed LLP, an international law firm based in New York, is ranked number one in New York and number two nationally on The American Lawyer’s A-List of the “top firms among the nation’s legal elite.” AmLaw also ranked the firm #4 in “Top Growth Firms” among the nation’s 200 largest firms over the last 10 years.

Orrick Moves Away From Lockstep

joshua — Thu, 03 Dec 2009 22:50:06 +0000

Orrick presented its new compensation plan to its associates today, and there was much rejoicing. Unlike many firms that cut base salaries with discretionary bonuses, Orrick kept the $160k starting salary for first year associates. After that associates will be arranged in three tiers, associates, managing associates and senior associates. The three tier system is something we’ve seen from several firms that have abandoned lockstep this year, but Orrick also has multiple pay scales within each tier. At the high end, senior associates will pull down a base salary of $250k, plus bonuses. In addition, Orrick says it will pay bonuses at market rate plus an additional discretionary amount of 5-15%, depending on tier. This is a very competitive structure and should make Orrick a strong competitor for recruitment. The salary changes will begin in 2010 but the firm says it will pay bonuses for 2009 based on this structure.

More Bonus News – And it’s a Little Different

joshua — Thu, 03 Dec 2009 01:38:04 +0000

Two more firms have announced their bonus schedules and they’re a bit different from the Cravath scale.

Sullivan & Cromwell is paying bonuses ranging from $7500 to $35,000 depending on class year. The only change is at the high end where senior associates will receive $5000 more than at firms on the Cravath scale.

Patton Boggs is doing things differently. They are paying bonuses based on both class year and the number of billable hours by which an associate exceeded their target goal. The scale ranges from $5000 to $45000. You’ll note that it’s lower on the low end and higher on the high end, but more importantly it cuts out completely anyone that missed their target goal for billable hours. Given the state of the legal economy I have to wonder how many associates won’t be getting a bonus at all, and of those that do, how few are hitting that top mark.

Patton Boggs also told its associates that those that missed their billable hour target by a large enough amount would receive a salary cut. Missed by 300 hours? That’s a 10% pay cut. Missed by 500 hours? That’s a 20% pay cut. And since salaries are remaining frozen, that means a third year associate that missed by 500 hours will receive $122,000 next year while new first years get $160,000.

Cleary Gottlieb Follows Cravath on Bonuses

joshua — Fri, 06 Nov 2009 21:49:21 +0000

Cleary Gottlieb Gottlieb has confirmed their bonus schedule for this year, which falls right in line with Cravath. Cravath was the first major law firm to announce its year end bonuses. The bar was set so low by Cravath that it’s no great feat for other firms to meet it. Gottlieb

Like Cravath, bonuses at Cleary Gottlieb this year will range from $7500 for first year associates up to a cap of $30,000 for the most senior associates. Of course it could always be worse… at least there are no pink slips attached to the checks.

Cleary Gottlieb Steen & Hamilton has 12 offices and 900 attorney spread around the world. It is headquartered in New York City, which also houses its largest office.

Hogan & Hartson Lays Off 30 Senior Associates

Erik Even — Fri, 10 Jul 2009 18:03:20 +0000

Hogan & Hartson has let go 30 senior associates this week, as part of the normal performance evaluation process.

Before the layoffs the firm employed 140 senior associates, defined as sixth-years or later. Those let go are said to have met basic performance standards, but were not progressing towards partnership.

Those affected have four months to find alternate employment.

In May, JDJournal tipsters reported that Hogan & Hartson was conducting stealth layoffs. And in April, the firm cut 93 support staff.

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.

Orrick Abandons Lock-step Compensation for Associates

Erik Even — Wed, 01 Jul 2009 20:35:01 +0000

San Francisco’s Orrick, which laid off 300 employees in March, is abandoning lock-step compensation for associates.

Under a lock-step scheme, associate salaries are determined entirely by how long the associate has been with the firm.

Orrick’s new compensation model places associates on the partner track into one of three levels: Associate, Managing Associate, and Senior Associate. Compensation will be based on level, and clear guidelines for moving up through the levels will be provided.

Associates not on the track to partner will be on a personalized program called the Custom Track.

The firm is also expanding its associate training, mentoring, and feedback systems.

San Francisco, California-based Orrick Herrington & Sutcliffe was founded in 1863, and has over 1,100 lawyers worldwide in 21 offices. The firm’s day-to-day administrative operations are centralized at a Global Operations Center in Wheeling, West Virginia.

Minter Ellison Lays Off 11 Lawyers, 35 Staff

Erik Even — Thu, 14 May 2009 22:08:36 +0000

Australia’s Minter Ellison has laid off 11 lawyers and 24 support staff from its Adelaide, Sydney, Melbourne and Brisbane offices.

The redundancies targeted senior and junior associates in the firm’s property, construction and finance practices.

There are no current plans for further redundancies.

Minter Ellison is one of the largest full-service law firms in the Asia-Pacific region. It has over 280 partners, 1000 lawyers and 1,000 support staff. In Australia it is considered one of the top commercial law firms.

Tipster: Stealth Layoffs at Hogan & Hartson [Update]

Erik Even — Thu, 14 May 2009 16:30:16 +0000

A JDJournal tipster informs us that layoffs are underway at Hogan & Hartson.

The layoffs include senior associates who were not up for promotions. The tipster tells us “this was never an ‘up or out’ track until now.”

We don’t yet know any numbers, or which practices are being affected.

In April the firm let go 93 support staff, and cut associate pay.

If you have any information about layoffs at Hogan & Hartson, please send us a confidential tip!

UPDATE

Another tipster writes in, and makes a startling allegation:

Hogan & Hartson’s associate attorney layoffs have not just started. Associates have been being laid off since last, December to my knowledge. Most dispicably, the firm is laying off mostly minorities in its first wave of “letting you go when things just don’t work out.” Don’t be confused however, white associates are also being let go. They offer no severance pay or anything else. Associates [are even] being asked to turn in their BlackBerries, or [the cost] will be taken out of their last check.

Tipster: More Stealth Layoffs at Duval & Stachenfeld

Erik Even — Thu, 23 Apr 2009 20:43:53 +0000

A tipster told us in January that New York City’s Duval & Stachenfeld was laying off an undisclosed number of first and second year associates.

Now a JDJournal tipster has more to sat about stealth layoffs at the firm.

Edited for clarity:

In addition to its previously reported layoffs of junior associates, D&S has also recently laid off and/or constructively laid off (slashing compensation 30-65% with a modest buy-out offer) a few more senior associates, as well as a few non-equity and at least one equity partner.

Some have been removed from the firm’s web site, but at least a half dozen of the departed lawyers are still listed on the site.

Is this tipster “disgruntled?” He or she signs off with:

… Hoping to be in the next wave.

Have anymore details? Let us know with a confidential tip!

Founded in 1997, Duval & Stachenfeld LLP provides legal advisory services. The firm focuses on areas such as bankruptcy, litigation, real estate, restructuring, securities and construction.

Hahn & Hessen Announces New Partners

Erik Even — Thu, 15 Jan 2009 23:14:29 +0000

New York’s Hahn & Hessen LLP has announced that Daniel M. Ford and Edward L. Schnitzer have been made partners in the firm. Both men were formerly senior associates.

Ford represents financial institutions and borrowers in structuring, negotiating and closing a wide variety of domestic and cross-border financing transactions. He came to the firm from White & Case in 2004. A magna cum laude graduate of Case Western Reserve University School of Law, Dan was a member of the Law Review and was elected to the Order of the Coif.

Schnitzer represents creditors, unsecured creditor committees, debtors and trustees, with a concentrated expertise in all levels of bankruptcy-related litigation. He was an Assistant District Attorney in Bronx County, and served as a Staff Attorney with the Division of Enforcement of the Securities and Exchange Commission. A 1997 graduate of Columbia University School of Law, and a Harlan Fiske Stone Scholar, he has been with the Firm since 2001.

Founded in 1931, Hahn & Hessen LLP is a full service commercial firm serving primarily financial institutions and creditors holding distressed debt.

Kirkland & Ellis Showing Associates, Partners the Door

Erik Even — Fri, 09 Jan 2009 21:32:03 +0000

Kirkland & Ellis is edging some senior associates and income partners toward the door as part of its “regular annual evaluation process.”

The Chicago-based firm has asked the lawyers to look for other work as the economy slows work in some areas. According to rumors, the firm has asked up to 25 non-equity or “non-share partners” to leave.

The law firm has long had a large 250-to-300-lawyer group of income partners, also known at the firm as non-share partners, because it tends to promote lawyers to this level earlier in their careers than some other firms, typically moving them up the chain from associate level after they’ve been at the firm a little more than six years. These lawyers are well-paid, making between $275,000 and $400,000, and unlikely to leave on their own.

The economic meltdown has slowed work in a variety of practices, including the real estate, corporate, securitization and transactional areas. Some practice groups, such as restructuring and bankruptcy, have seen a rise in demand.

Via The NLJ.