Wake Up Call: Top Firms’ 2021 Best in a Generation, Report Says

In today’s column, the demand wave that carried the top 100 U.S. firms to record profits in 2021 could ebb in 2022; firms’ problems retaining associates were more “talent tornado” than “Great Resignation”; a top litigation boutique is offering big signing bonuses for associates who did federal or appellate clerkships.

• Leading off, the 100 biggest U.S. law firms expanded their gross revenues by almost $16.5 billion in 2021 to reach $127.4 billion overall, 14.8% better than in 2020, in the group’s “best financial results in a generation,” according to American Lawyer’s latest Am Law 100 report.
• The report shows Kirkland & Ellis became the first firm to pass $6 billion in revenues, while Latham & Watkins passed $5 billion. Wachtell, Lipton, Rosen & Katz became the first to top $8 million in profits per equity partner, while average PEP for the Am Law 100 overall surged 19%. (American Lawyer)
• But 2021’s big wave could start to ebb in 2022. (American Lawyer) After a year of big demand growth and talent shortages for many firms, there are signs that demand may be slipping, this report says. (American Lawyer)
• Law firms’ problems retaining associates in 2021 were more “talent tornado” than “Great Resignation,” the head of NALP Foundation said. The foundation’s new report, based on data gathered from 125 U.S. and Canadian law firms, showed firms’ average associate attrition rate hit a historic high in 2021 but that was outpaced by even bigger growth in associate hiring. (NALPfoundation.org)

Lawyers, Law Firms

• Top litigation boutique Susman Godfrey said it will pay $125,000 bonuses to associates who join the firm after doing one clerkship at the federal district or appellate level and $150,000 to associates who did two clerkships. United States Supreme Court clerks will get an additional bonus and credit toward partnership, the firm said. (SusmanGodfrey.com)
• Elon Musk, who has said he’s buying Twitter to make it a forum for free speech, reportedly criticized the social network’s chief legal officer Vijaya Gadde for blocking the New York Post from Twitter because of its article about Hunter Biden. (Bloomberg News) Gadde, also said to be responsible for Twitter’s decision to ban former President Trump, “cried” during a virtual meeting of legal staff she called to discuss what ownership by Musk could mean for them, a report says. (Politico)

Laterals, Moves, In-house

• Morgan, Lewis & Bockius bankruptcy practice chief Kurt Mayr left to become a partner at Glenn Agre Bergman & Fuentes, a bankruptcy and trial boutique launched in 2021 by former Kasowitz Benson attorneys; K&L Gates brought aboard maritime and finance lawyer Felisa Sanchez as of counsel in Houston from Foley & Lardner; Cozen O’Connor hired IP litigator Noelle Engle-Hardy as a member in Toronto. (Cozen.com)
• Management-side worklaw firm Littler said its network firm in Spain, Abdón Pedrajas Littler, added a six-lawyer team and a new office in Valencia, its third in the country. The office will be led by partner Javier Molina, joining with the team from law firm Cuatrecasas; Shipman & Goodwin said tech attorney Marc Lombardi, recently deputy general counsel at Yale New Haven Health System, joined the firm as leader of its privacy, cybersecurity and data innovation practice group. ( ShipmanGoodwin.com)
• Pico Quantitative Trading LLC, a financial market tech provider, recruited former Revlon executive and top lawyer Lauren Goldberg as general counsel and corporate secretary. Goldberg, a former New York federal prosecutor, spent time as a Fried Frank associate early in her career and was recently executive vice president, GC and secretary at real estate operating company VEREIT, Inc.; energy storage company GlidePath Power Solutions LLC hired veteran energy industry in-house attorney Deonne Cunningham Nauls as general counsel; JumpCloud, which provides enterprise software for managing remote employee workstations, named corporate and M&A attorney Eric Gunning, currently deputy GC and corporate secretary at Molson Coors Beverage Company, as its chief legal officer. (Yahoo!)

Technology

• Faegre Drinker launched an interdisciplinary team to advise clients across industries on regulations and risk management associated with artificial intelligence technologies. (FaegreDrinker.com)