Wake Up Call: Latham ‘Stub Years’ to Get Special Bonuses

In today’s column, facing a tough market for talent, some mid-level firms are trying to match their Big Law rivals on associate compensation; insurance attorneys are questioning a reported $9,000 per hour in fees awarded in a Florida workers’ compensation case; White & Case launched a “real time” survey of 58 global competition authorities.

• Leading off, Latham & Watkins, the second biggest U.S. law firm by revenue, just before Christmas told its most junior associates, who joined in 2021, that they will get $2,500 when it pays out special bonuses Dec. 30. Almost no other Big Law firms have done that for so called stub-year associates, reports a legal blog. (Above The Law)
• Facing fierce competition for talent, many Big Law firms this year said they’ll pay associates the two-part Cravath/Davis Polk market standard for year-end bonuses, which totals up to $138,000, depending on year of seniority. Some firms omitted 2021 associates from their memos for Cravath scale bonuses ranging up to $115,000.
• Above The Law, which said Latham plans to announce and pay out its regular year-end bonuses in January, reports that until Latham’s move, “virtually all firms” have skipped stub-year associates when they announced their special bonus payouts; associates at Haynes and Boone and Locke Lorde said their firms are paying Cravath/Davis Polk-level bonuses. (Above The Law)
• Some midsize firms, which typically have 25 to 200 lawyers and often operate regionally, are offering similar salaries and bonuses to big firms. Other midsize firms have decided against trying to compete with Big Law on compensation and instead are focusing on other benefits to try to hold on to talent. (Reuters)

Lawyers, Law Firms

• With the Covid-19 omicron variant surging across the country, the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., said Monday it will hold hearings for its January argument session by telephone. (BLAW)
• Workers’ compensation defense insurance attorneys are criticizing legal fees awarded in a recent Florida settlement—more than $1 million on a $3.9 million total award—which for one attorney would amount to $9,100 per hour. (Insurance Journal)
• U.S. merger filings hit a 20-year high in calendar 2021, according to White & Case’s new merger control filing survey. The firm said the “real time” survey includes data from 58 global competition authorities. (WhiteCase.com)
• The Hong Kong Bar Association is preparing to elect a new chair as mainland China’s crackdown has pushed dozens of other civil society organizations to fold. (Financial Times) Chinese scientists say they’ve programmed an artificial intelligence tool that can identify and prosecute crimes and “with 97% accuracy.” (New York Post)

Laterals, Moves, In-house

• U.S. Attorney General Merrick Garland appointed former Jones Day partner Randy Grossman, recently acting U.S. attorney for California’s Southern District, to permanent U.S. attorney. (Justice.gov) Garland appointed longtime Oregon federal prosecutor Scott Asphaug, recently acting U.S. attorney for Oregon, to interim U.S. attorney, to lead the office until President Joe Biden appoints someone to permanently take the role. (The Oregonian) Garland appointed former U.S. Attorney for Kentucky’s Western District John Kuhn as U.S. attorney for the District of Alaska. (Justice.gov)
• Fintech company Stavvy hired Angel R. Hernandez, a former director at the U.S. Government National Mortgage Association, known as Ginnie Mae, to be head of its industry and regulatory affairs. He was most recently vice president of capital markets with the Housing Policy Council. (The Title Report) Armstrong Teasdale said it promoted 12 attorneys to income partner and six to equity partner effective Jan. 1, 2022. The promotions are across the firm’s core practice groups and seven U.S. markets. (ArmstrongTeasdale.com)