Big Law Associate Scale Stagnates as Partner Profit Soars

First-year associates at firms following the so-called “Cravath scale” made $205,000 last year. How does that stack up to those fresh-faced lawyers’ wages a decade ago? Not that well when adjusted for inflation.

Recession: Adjusted for inflation, first-year salaries are down nearly 20% since pre-recession highs and up a mere 4% since 2010, according to data from biglawinvestor.com. Meanwhile, partner profits at many firms have soared past inflation rates.

Management: “Most compensation systems will highly value the business generator—the rainmaker,” said Michelle Fivel, a partner at Major Lindsey & Africa who recruits associates for law firms. Roy Strom has more in the latest Big Law Business column.

DAILY BRIEF

In-House

Citgo Lawyer Becomes Company’s Ethics, Compliance Chief
Citgo Petroleum Corp., the Houston-based oil refiner controlled by Venezuela’s state-owned oil and gas giant, has tapped its top in-house lawyer to serve as its new compliance chief.

Angel Investor Pishevar Brings Perkins Coie Lawyer In-House
A partner from Perkins Coie, a law firm known for its work in emerging companies and technology, is moving in-house to work with angel investor and entrepreneur Shervin Pishevar.

Business of Law

Novartis Demands Outside Counsel Make Tough Diversity Guarantees
Novartis AG is demanding that its 22 “preferred” Big Law firms make specific diverse staffing commitments for each engagement with the pharma giant—or face punishment in the form of reduced payments.

What’s So Bad About the Billable Hour?
John Chisholm advises professional service firms on how to end the practice of charging clients by the hour. A lawyer for four decades and the former managing partner of two large firms, he says it leads to unethical behavior and runaway costs. In December, for example, a judge earmarked $77.5 million of the Equifax Inc. data breach settlement for lawyers, which left most consumers with less than $7 each.

Government

White House Scraps New Job for DOJ Lawyer Who Oversaw Stone Case
The Trump administration is withdrawing the nomination of a former federal prosecutor to oversee sanctions at the Treasury Department, according to two White House officials.

Ethics

Ohio Lawyer Sanctioned for Soliciting Work from Accused Killer
An Ohio attorney who visited a woman jailed on murder charges and sought to represent her was publicly sanctioned by the state’s highest court for violating an ethics rule prohibiting attorney solicitation.

Judiciary

Ex-Kavanaugh Clerk, Gibson Dunn Partner Tapped for Judgeships
President Donald Trump plans to nominate a former Brett Kavanaugh clerk and a Gibson Dunn partner, both women, to federal judgeships in New York, the White House said.

New York Pick Among Four Confirmed for District Court Seats
The U.S. Senate confirmed four of President Donald Trump’s nominees for federal district courts in Alaska, Missouri, Illinois, and New York, adding to the president’s efforts to reshape the federal judiciary.

WAKE-UP CALL

Cooley’s Deal Work Aids Revenue Growth to $1.33 Billion
In today’s column, Seyfarth Shaw hired a “powerhouse” group of litigation partners from Arnold & Porter in New York; Baker McKenzie expanded its California deal team to 23 lawyers; and Brown Rudnick’s London office grabbed three tech-focused corporate partners from Baker Botts.

PRACTITIONER INSIGHTS

INSIGHT: Reasons You—and Your Firm—Should Level Up on LinkedIn in 2020
Social media platforms such as LinkedIn have several advantages for firms and lawyers, writes Lauren Banyar Reich, CEO and founder of public relations firm LBR PR. She says these benefits include increasing a firm’s reputation and promoting its brand and the talents of its lawyers.

INSIGHT: Federal Circuit Helps Clarify Patent Eligibility for Tech Improvements
A Federal Circuit ruling restoring a software patent highlights how courts are interpreting the eligibility test set forth by the U.S. Supreme Court in 2014. Manatt partner Irah Donner examines the ruling and provides practical guidance to consider when applying for a patent.

INSIGHT: CCPA Ink Still Wet While Signatures Being Collected for ‘CCPA 2.0' Ballot Initiative
Businesses are scrambling to comply with the California Consumer Privacy Act, with enforcement set to start July 1. Meanwhile, ‘CCPA 2.0' waits in the wings while a CCPA co-creator seeks signatures to get it on the November state ballot. Husch Blackwell LLP’s Malia Rogers examines the new provisions in CCPA 2.0 and their potential impact.

INSIGHT: Capitalism Steps Up as Climate Change Threatens to Reshape Markets
Some of the world’s largest corporations are taking significant steps this year in the fight against climate change. The Climate Service’s Joseph Lake takes a look at the biggest players to watch this year as well as upcoming regulatory and political implications.

INSIGHT: PR Campaign for Amrock Should Concern All Trade Secret Holders
HouseCanary’s $740 million jury award for intellectual property theft by Amrock has been criticized as too high, with broad legal implications for future trade secret litigation. HouseCanary attorney Ricardo Cedillo, with Davis, Cedillo & Mendoza Inc., says that criticism is advancing a dangerous narrative that should concern entrepreneurs, investors, and business leaders who may one day need trade secret laws to protect their IP.

WORKFLOWS

Cooley’s Deal Work Aids Revenue Growth to $1.33 Billion
Honigman’s Chicago office added partners Donald Horvath to the Real Estate department from Jenner & Block, and Kelli Mulder to the Litigation department from Kirkland & Ellis | Lewis Roca recently added Steven J. French and Kurt S. Prange as associates to the Intellectual Property practice group in Los Angeles; Gary Bendinger, John Gray and John Thorpe as members to the Litigation practice in Phoenix; and Michael Cabrera as an associate to the Regulatory & Government practice in Reno | Baker McKenzie’s M&A practice added attorney Lisa Fontenot to the San Francisco office (from Gibson Dunn) and M&A expert Derek Liu to its Palo Alto office (from Wilson Sonsini Goodrich & Rosati) | Goulston & Storrs announced that Craig Todaro has joined its Boston office as a director in the Real Estate Group | Womble Bond Dickinson hired attorney Jasper Mason as Of Counsel to the Energy & Natural Resources Sector Team in Houston | Dickinson Wright added Timothy M. Strong as a Member in the Phoenix office | Gordon Rees added Patrick Burns as a partner in the Commercial Litigation and Employment practice groups in the Washington and Alexandria, VA offices; he rejoins the firm from PilieroMazza PLLC | Duane Morris & Selvam LLP hired Jonathan E. Crandall as a director in the Singapore office and as a partner in Duane Morris in New York from Clifford Chance | Kilpatrick Townsend & Stockton recently added Leah M. Farmer as an associate to the Labor & Employment Team in the Litigation Department in Atlanta | Jackson Lewis said that Nigel L. Wilkinson has joined the Washington office as a Principal | Littler has hired Lawrence D. Levien to its Washington office from Akin Gump Strauss Hauer & Feld LLP | Alston & Bird has added Joseph Burby as a partner to its white-collar defense and corporate investigations capabilities in Atlanta; he rejoins the firm from Bryan Cave Leighton Paisner LLP.

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