The Services Safari Blog posted this yesterday:
Calling all Lawyers… The Bear Stearns Collapse
The following is an excerpt:
Shareholder litigants are going to be talking about this one tonight and tomorrow. Let’s recap the fall of Bear Stearns stock price and market value the last year:
Stock price last year: $159/share – market cap:
The Wall Street Journal has a post called: Big-Law Associates Facing 2008 Salary Cap by Dan Slater.
Here is a key paragraph from that post from which my title was derived:
"We called around to firms to find out whether associate salaries, called economically-irrational in some quarters, have finally (or, at least, for now) hit
The worst market crisis in 60 years: "recession or worse"? Says who? The 80th richest man in the world, George Soros, (estimated net worth of 8.5 Billion according to Forbes). Is Mr. Soros toying with the "D" word: "Depression" when he says "recession or worse"?
I recommend that you read the entire Financial Times
Here’s the actual quote:
Lawyers are smart, but this herd mentality seems absolutely irrational, economically speaking — and not because the compensation is too high. The top law firms have been stuck in copycat mode for years. As soon as one of them raises salaries for associates, the others fall in line almost immediately.
Later
The New York Times Business section included an article yesterday called: For Lawyers, Perks to Fit a Lifestyle.
The article alluded to a variety of perks including money, candied apples, milkshakes, car discounts, valet services, wine, office parties, in-office gourmet meals on silver platters, nap rooms, child care, emergency nanny services, sabbaticals and even
Supplemental to my post "Sharp Pin Approaching Associate Salary Balloon", my friend and Edge colleague Robert Millard has created a post which may impacts the context for discussing associate salaries. He explains his title: America’s Two Legal Professions with the graphic above. Read his post for a detailed explanation. Sometimes critical change is too subtle
Today’s front page Wall Street Journal Online article is compulsory reading for all law firm Managing Partners and H.R. professionals:
Hard Case: Job Market ?Wanes for U.S. Lawyers – Growth of Legal Sector Lags Broader Economy; Law Schools Proliferate
By AMIR EFRATI, September 24, 2007; Page A1
While the article admittedly says:
“For graduates of
Would you listen to the General Counsel of Sun Microsystems, if he said:
“I do believe that there may be times when a $1,000/hour fee is warranted”
“…just yesterday, I read of another example of how law firms continue to be primarily focused on maintaining profits through consolidation and growth of headcount.
"Leading London-based international law firms are starting to feel a chill from the world market turmoil that may threaten the industry’s unprecedented profits boom."
Read the whole Financial Times story: UK law firms hit by market turmoil
“Ford & Harrison, a 190-attorney labor and employment firm, has tossed out billable-hour requirements for first-year associates. The program aims to close the practical-skills gap of law school education and increase value to clients. The firm also hopes it will enable associates to handle meatier matters more quickly.“ according to Leigh Jones of The National
