Wall Street Firm Davis Polk Moves to Modified Lockstep Pay

Davis Polk & Wardwell has made a major shift in its compensation structure, moving from a strictly lockstep model in which partners are paid solely based on seniority, to a modified lockstep that will allow the firm more flexibility.

Breaking Ranks: With the move, Davis Polk breaks ranks with fellow Wall Street firms Cravath, Swaine & Moore, Cleary Gottlieb, and Debevoise & Plimpton, which all maintain a strictly lockstep system. Some firms have moved away from the model in recent years as it can restrict the ability to attract talent from rivals.

Switching Gears: Davis Polk managing partner Neil Barr told Bloomberg Law the wheels were set in motion for a review of the firm’s partner pay system back in January. “The firm is strategically focused on measured growth and we are cognizant of the market environment in which we find ourselves,” he said.

Meghan Tribe has the story.

DAILY BRIEF

Law Firms

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Elizabeth Prelogar is an appellate litigator at Cooley, has argued seven Supreme Court cases, and has handled numerous appeals in federal and state courts around the nation. Her practice covers a wide range of civil and criminal matters, including high-stakes constitutional, white collar, and regulatory issues.

Wife in Jones Day Couple’s Suit Says Judge Misread Equal Pay Law
A female lawyer suing Jones Day for sex-based discrimination and other bias says a federal court mistakenly dismissed her claim she was paid less than male attorneys in her group because she is a woman, based on a misinterpretation of the Equal Pay Act.

In-House

Former Celgene, Portola Lawyers Land New Big Pharma Roles
Pharmaceutical mergers and acquisitions activity has made up a large percentage of global deals even during the pandemic, the fallout from which has several top lawyers in the industry finding new homes.

EPA General Counsel Announces Departure from Agency
The EPA’s top lawyer, Matthew Z. Leopold, is leaving the agency after a nearly three-year stint and a mixed record in the courtroom.

Ethics

Trial Judge Scolded for Telling Defendant Federal Court ‘Sucks’
A trial judge who told a defendant during plea negotiations that the federal judicial system “sucks” and he would likely get a lighter sentence if he went to trial had the sentencing portion of the trial taken away from it by the Eighth Circuit Thursday.

Utah Solicitor General Accused of Misrepresentation by Judge
A federal judge says Utah’s new Solicitor General made a “material misrepresentation” in a federal case in Florida earlier this year, and has ordered her to show cause why she shouldn’t be sanctioned.

Also in the News

Attorney Ben Crump Talks Death Threats and Push for Equal Justice
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WAKE-UP CALL

Ropes Offers ‘Voluntary’ Deferral for Associates
In today’s column, Big Law firms will likely see lower revenues for 2020, but many will still manage to post profits, an analysis says; the U.K. legal services sector had a strong July for revenues, new data show; Big Law firms, corporate counsel, and a pro bono group are teaming up on a new racial justice initiative; New Jersey’s state supreme court gave a thumb’s up for law firm trade names; a lawyer known for spurring the antitrust investigation into Microsoft says the DOJ will need outside lawyers and a new strategy to go after tech giants; France’s biggest law firm settled its suit accusing accounting giant KPMG of unfair competition.

PRACTITIONER INSIGHTS

INSIGHT: Covid-Related ‘Physical Loss or Damage’ Is Subject to Interpretation
As case law evolves on insurance coverage for Covid-19 business losses, insurers are telling both their insureds and the courts that the virus’s presence does not constitute “physical loss of or damage to property,” the event typically required to meet policy requirements. Benjamin D. Tievsky, counsel at Pillsbury Winthrop Shaw Pittman LLP, looks at recent court decisions and advises that complaints against insurers be properly pleaded and carefully worded.

INSIGHT: Covid-19 Shapes Priorities for SEC’s Event, Risk Examination Team
The Covid-19 pandemic and its impact on “market events” will help set a path for priorities for the Securities and Exchange Commission’s new Event and Emerging Risk Examination Team. Marc Gilman, general counsel at Theta Lake, says the EERT could turn to remote work, Reg BI, and cybersecurity issues.

INSIGHT: Lessons From TD Bank’s $122 Million CFPB Settlement
TD Bank’s recent settlement with the CFPB is a reminder for financial institutions to be more specific in disclosing fees to customers. Balch & Bingham attorneys offer steps for banks to mitigate the chance of an enforcement action, including documenting costumer consent and changing sales tactics.

WORKFLOWS

McDermott Will & Emery hired Morrison & Foerster partner Tracy Bacigalupo to its Transactions practice in New York | Davis Wright Tremaine added transactional lawyer Carolyn (“Carrie”) Casselman as a partner in New York from Paul Weiss | Reed Smith hired Kevin D. Keenan as a partner for its global Transportation Industry Group in Houston from Hogan Lovells | Fenwick said that Kristine Di Bacco has rejoined the firm as a corporate partner in its Startup & VC Practice in its Mountain View, CA office | King & Spalding‘s Corporate, Finance and Investments practice group hired partners Darren Gardner, Amanda Sonneborn, and Dominic Hodson from Seyfarth Shaw; Gardner and Hodson will reside in San Francisco, and Sonneborn will split her time between Chicago and Los Angeles | Milbank announced that trial lawyer Alex Romain will join the Litigation & Arbitration team in Los Angeles from Irell & Manella | WilmerHale‘s Boston office hired Sarah Hogan as a partner to its Life Sciences team | Fisher Phillips has added Raymond Perez as of counsel in the Columbus, OH office.

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