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Law360

Female Partners Say Firm Bias To Blame For Pay Gap

By Nick Brown, July 07, 2010

The salary gap between male and female partners may be a result of fundamental biases in law firms' compensation practices -- not a reflection of women's family obligations, according to a new survey of female partners.  Female partners are deeply dissatisfied with their compensation -- on average, 22 percent less than their male counterparts -- and reject the idea that parenting and other familial duties are holding them back, according to a report released Wednesday by the Project for Attorney Retention and the Minority Corporate Counsel Association.  Instead, women say their paychecks are curbed by acts of gender bias, such as denial of origination credit and being squeezed out of leadership roles with clients they helped bring in.

The report, titled "New Millennium, Same Glass Ceiling? The Impact of Law Firm Compensation Systems on Women," polled nearly 700 female partners at major and midsize law firms on compensation practices in the industry.  Only one-third of income and minority partners, and less than half of equity partners, reported being satisfied with their compensation, a stark departure from the 75 percent satisfaction rate related by male partners.  About one-third of respondents said they'd been bullied, threatened or intimidated out of origination credit, a key factor in setting compensation at many major firms. Other women reported a lack of opportunity to participate in client pitches.  More than 70 percent of female minority partners and 58 percent of equity partners said they had participated in client pitches that yielded work for their firms, but were denied the shot to do the actual work.  Women also have a tougher time earning raises, Joan C. Williams, PAR's director, told Law360...

Jack Zaremski, founder and president of Hanover Legal Personnel Services Inc., said women he had worked with were more concerned with compensation.  "It's an uphill battle, not only for women but for all minorities, and I don't think there could be any good-faith dispute about the fact that there's a discrepancy," he said.  Zaremski is glad groups are putting pressure on firms to address the problem, he added, noting that some law firms have taken steps independently to correct compensation disparities while others remain behind the curve.  But Zaremski also tried to put the issue in perspective, stressing that mistakes made by firms have not been made on purpose.  "There are no conspiracies," he said. "It's not like these law firms have these white guys going in and saying, 'Okay, we're going to discriminate based on gender now.' The assumption has to be, partners are by and large good people. But change is not an easy thing to implement and there's always going to be resistance."

 

Law360

Law360 Picks Most Innovative Managing Partners

June 11, 2010

When times are tough, the tough get going. Or in the case of Law360's most innovative managing partners, they kick open doors, blaze trails and figure out ways for their firm to not only survive but thrive in a time of crisis.  Over the past two years, major outfits have folded, thousands of associates have been sent packing and law school graduates have faced an uncertain future as the recession rocked the legal industry... Some of those who made our list eliminated first-year associates or restructured the partnership track while others engineered massive mergers or expanded operations tenfold. Still more saw the alternative billing wave coming and looked to institutionalize the change ahead of client demands and changing economic conditions...

But vision alone is not what makes these individuals a success, according to Jack Zaremski, the president and founder of New York-based recruiting firm Hanover Legal Personnel Services Inc.  "You need to have great people skills, tremendous business savvy, spectacular judgment and an appetite for risk-taking," he said. "These are the character traits that translate into revenue in the long run."

...

Law360

Yale Law Survey Names Top 10 Family-Friendly Firms

By Erin Fuchs, May 03, 2010

Yale Law Women released the results Monday of its annual survey of the Vault Top 100 Firms' work-life balance policies, naming WilmerHale and Sidley Austin LLP among its top 10 family-friendly firms for the second year in a row.  The survey found that BigLaw is beginning to embrace flexibility for its attorneys. According to YLW, 100 percent of the Vault 100 firms that answered its survey have granted lawyers' requests to work part-time, and 6.3 percent of the attorneys at these firms worked part-time in 2009.

BigLaw has also become more amenable to nontraditional career paths that are conducive to raising families, YLW revealed. Twenty-four percent of the law firms that answered their surveys offer "off-ramp/on-ramp" programs that allow attorneys to leave the firm for years at a time to pursue other areas of the law or to raise families.  Still, the YLW survey found that major law firms have a long way to go when it comes to promoting women. Only 28 percent of the lawyers who were promoted to partner in 2009 at the firms surveyed by YLW were women, and women made up just over 19.4 percent of the partnership at those firms.

The survey attributed the gender gap in firm leadership in part to the fact that women are more likely to use family-friendly policies than their male counterparts. More than 37 percent of the firms surveyed provided gender-neutral parental leave, but on average women receive 16.4 weeks of parental leave while men receive only 6.3 weeks.  More than 96 percent of women at the firms surveyed used every bit of their parental leave, while only 51.4 of fathers took advantage of that leave.  Moreover, the survey found that while firms made part-time work available, attorneys who took advantage of it rarely advanced to senior positions. Only 10.7 percent of the lawyers working part-time at the firms surveyed were partners.  Four of the firms that appeared on the top 10 list made YLW's family-friendly list in 2009, as well: Arnold & Porter LLP, WilmerHale, Sidley Austin and Mayer Brown LLP.  The six others named this year are Debevoise & Plimpton LLP, Dorsey & Whitney LLP, Kirkland & Ellis LLP, Mintz Levin Cohn Ferris Glovsky & Popeo PC, Perkins Coie LLP, and Steptoe & Johnson LLP...

Jack Zaremski, founder and president of Hanover Legal Personnel Services Inc., has said that giving lawyers the chance to live their own lives outside work benefits both the attorneys and the firms. "The next step in getting firms to being healthier places is to start addressing and focusing more on the area of work-life balance," Zaremski said. "It's something that we cannot neglect to do in the long run."  The vast majority of female lawyers seeking his assistance in making a lateral move almost immediately ask whether firms provide flexibility so that they can take care of their families, Zaremski said.  But that flexibility should apply to all workers, including men who want to take care of their children and lawyers who want time to pursue their outside-of-work passions, he said.

...

Law360

Firms Tackle Volcanic Ash-Related Travel Struggles

By Christie Smythe, April 19, 2010

With many jet-setting attorneys temporarily grounded by Iceland's volcanic ash cloud, law firms are finding themselves in logistical disaster mode, tracking down lawyers throughout the world, making the most of technological resources and refreshing plans for handling the unexpected.  A spokeswoman from Linklaters LLP counted that as many as 15 lawyers either based in New York and traveling elsewhere or who had traveled from abroad to New York were stranded as of Monday because of the European air service disruptions.  Other firms, including Paul Hastings Janofsky & Walker LLP, Allen & Overy LLP, Freshfields Bruckhaus Deringer LLP and Foley Hoag LLP, also reported having some attorneys stuck in various cities, although some firms said they are handling those situations by relying on videoconferencing or other means to allow attorneys to work remotely.

Legal business consultants say firms with the most sophisticated information technology systems are likely not feeling much of an impact from the roughly week-long suspension of most air travel from Europe -- which authorities hope to begin lifting starting Tuesday, according to The New York Times...  But even the best technology cannot help firms in situations where an in-person appearance makes a definite difference, such as when pitching a client or negotiating a deal, said Jack Zaremski, founder and president of legal consultancy Hanover Legal Personnel Services Inc.  "As great as this technology is, the fact that these lawyers are stuck abroad right now is definitely an impediment" to getting some work done, he said. "Even if the attorneys are able to log into their systems and work as if they're home, the fact that they're not able to interact on a face-to-face basis with people definitely has a cost."

...

Law360

Mintz Levin Sticks With $160K Starting Salary

By Julie Zeveloff, April 06, 2010

Having posted strong profits for the fiscal year, Mintz Levin Cohn Ferris Glovsky and Popeo PC has confirmed that associates' starting salaries will remain at $160,000, although the firm's 2009 summer class is still deferred until January 2012.  ... The firm's newest class of first-year associates started Monday...

While Mintz was one of the first to defer its class of 2010 associate start dates, more than a few major law firms, including Davis Polk & Wardwell LLP, Kirkland & Ellis LLP and Simpson Thacher & Bartlett LLP, told associates at the end of March that they would start by the end of 2010, American Legal Media reported... The newfound certitude marks a dramatic departure from the near-doomsday scenarios that played out across major firms last year, when the industry axed more than 4,600 attorneys and 12,000 total employees.

The rash of deferrals first picked up steam in March 2009, when Latham & Watkins LLP told incoming first-years to hold off until mid-December 2009 and offered some associates the chance to further defer until October 2010 in exchange for a $75,000 stipend.  Blank Rome LLP, Mayer Brown LLP, Cravath Swaine & Moore LLP and Seyfarth Shaw LLP soon followed suit, and by July the trend had spread like wildfire throughout the industry. DLA Piper and White & Case LLP that month deferred newbies until 2011, and Weil Gotshal & Manges LLP told associates to sit tight until 2012.  Several firms, including Milbank Tweed Hadley & McCloy LLP and Morgan Lewis & Bockius LLP, canceled their 2010 summer associate programs altogether.

Now that firms are almost ready to start adding to their ranks again, legal recruiters and analysts see a glow -- albeit a faint one -- at the end of the tunnel.  "We're seeing a pickup in the lateral market, there's no question, and it looks like we're getting a little further each day from the tsunami that was 2009," Jack Zaremski, founder and president of Hanover Legal Personnel Services Inc., told Law360 in March.

Law360

Relief In Sight As Associate Start Dates Take Shape

By Nick Brown, March 31, 2010

After a year plagued by record-setting cuts and uncertain futures, many law firms are committing to definite 2010 start dates for first-year associates, a sign that the legal industry may finally be pulling itself up by its bootstraps, experts say... The newfound certitude marks a dramatic departure from the near-doomsday scenarios that played out across major firms last year, when the industry axed more than 4,600 attorneys and 12,000 total employees. Dozens of firms pushed back start dates for 2009 law school graduates, some as far down the road as 2012.  ... 

"We're seeing a pickup in the lateral market, there's no question, and it looks like we're getting a little further each day from the tsunami that was 2009," said Jack Zaremski, founder and president of Hanover Legal Personnel Services Inc. ...  "This news about start dates could be great for the class of 2010, but if you're one of the people left over from 2009 and you're still waiting, maybe it's not so great," he said.  Zaremski said firms likely won't be able to hire everyone to whom they initially made offers because the 2010 market won't bounce back strongly enough to make room for everyone pushed back from 2009. ... But uncertainty is a fact of life, not a symptom of the legal industry, Zaremski said.  "All you can know is what you can see in the distance," Zaremski said. "And what we see is, it looks like we're moving further and further from the storm and into calmer waters."

...

Law360

Rising Legal Stars Under 40

March 23, 2010

These days, keeping your job at a law firm feels like a victory in and of itself, especially for younger attorneys who have seen their ranks decimated by layoffs and cutbacks. That's what makes the myriad professional accomplishments of the 120 individuals chosen as Law360's Rising Legal Stars all the more impressive...

With competition at law firms as stiff as ever, making your mark as an under-40 lawyer has become an increasingly difficult task, said Jack Zaremski, the founder and president of Hanover Legal Personnel Services Inc.  "You've always had your stars, but the young stars of today are, by and large, brighter than the stars of 100 years ago," he said. "Clearly, law firms are much more difficult and competitive than they have ever been before."

Some of the accomplished young lawyers honored by Law360 as rising stars have reached career milestones worthy of attorneys twice their age.  At the age of 36, Akin Gump Strauss Hauer & Feld LLP partner Steven Maslowski led the damages phase in the record-breaking case brought by client Centocor Ortho Biotech Inc. against Abbott Laboratories, helping to secure a jury award of $1.67 billion -- the largest patent infringement verdict in U.S. history.Sheppard Mullin Richter & Hampton LLP partner Michael Scarborough, 39, is U.S. national counsel defending international electronics giants in price-fixing litigation over cathode ray tubes, static random access memory and dynamic random access memory chips, and liquid crystal display products.  DLA Piper's Heidi Levine is a partner in the firm's product liability group and, at 39, is lead national counsel for General Electric Co. and subsidiary GE Healthcare in defense of the companies' injectable contrast agent Omniscan.

At the age of 36, Paul Weiss Rifkind Wharton & Garrison LLP partner Susanna Buergel earned a precedent-setting victory for client Citigroup Inc. in the Delaware Chancery Court in 2009, winning dismissal of a shareholder action over the bank's investment in the subprime lending market.  Winston & Strawn LLP partner Amanda Sommerfeld, 38, secured a landmark victory as lead counsel arguing that California's meal and rest break laws were preempted by federal laws governing labor agreements.  Williams & Connolly LLP partner Kannon Shanmugam has argued 10 cases before the U.S. Supreme Court -- more than any partner in the firm's history after founding partner Edward Bennett Williams. The appellate practitioner successfully argued Tellabs v. Makor Rights, which heightened the pleading standard in federal securities fraud cases. Shanmugam is 37...

Given that firms can differ as to what talents and abilities are valued above all else, young attorneys' success often depends on the culture of the firm, Zaremski said.  "Law firms are owned by their equity partners, and at some firms, this group is focused virtually exclusively on its own compensation," he said. "At other places, there is more of the sense of the family of the law firm."  But the changing nature of the law firm model has been a big factor in raising the competitive stakes, as young attorneys struggle with the sheer volume of colleagues, Zaremski said.  "Generally, the partner track has gotten longer," he said. "In the past, law firms were much less leveraged, partners were doing a lot more of the work and there were fewer associates."  With more young lawyers coming into law firms to begin with than ever before, those who can make a name for themselves are increasingly exceptions to the rule, Zaremski said.  "Generally speaking, it is a tremendous tribute and recognition of outstanding talent and ability of a young person to be able to rise to the top at a major law firm," he said. "More so now and more so all the time."

 

Law360

All Rise: Ex-Judges Can Give Your Firm A Boost

By Nick Brown, March 18, 2010

While the leap from sitting on the bench to appearing before it isn't as natural as it sounds, some firms and judges that have joined forces say the union can be a perfect match.  Judges, they say, bring their knowledge of appellate law and a familiarity with creative litigation tactics, while firms can offer that extra cash and a new home for judges when their time on the bench expires... 

Judith Kaye, chief justice of New York's highest court for 16 years, joined Skadden Arps Slate Meager & Flom LLP after retiring from her post in 2008, and said the firm had allowed her to work on the types of public interest projects she had long wanted to pursue...  Russell T. Lloyd, a former Texas state judge and now attorney at plaintiffs firm the O'Quinn Law Firm, said he had been able to provide the firm with an expert's perspective on the litigation process... Federal district judges make about $169,000 per year, appellate judges pull in a shade less than $180,000 and Supreme Court justices make $208,000, according to the Congressional Research Service's 2008 report for Congress... Macey Stokes, head of the appellate division at Baker Botts LLP, said her firm hired Thomas R. Phillips, former chief justice of the Supreme Court of Texas, for his willingness to handle his work himself, rather than delegate... And Baker Botts isn't the only firm to snag judges whose reputations precede them. Former Homeland Security Secretary and federal appellate court Judge Michael Chertoff, as well as ex-Delaware District Judge Roderick R. McKelvie, recently joined Covington & Burling LLP. Former U.S. Attorney General and federal Judge Michael Mukasey now works at Debevoise & Plimpton LLP... Former Pennsylvania state Judge Rob Byer, now head of the appellate division at Duane Morris LLP, returned to private practice after losing the 1992 election, and said he never looked back.

Many firms are actually reluctant to recruit from the bench; they're concerned about hiring someone without established clients and worried about the appearance of pursuing those meant to appear unbiased and objective, said Jack Zaremski, founder and president of Hanover Legal Personnel Services Inc... And [hiring] considerations differ among firms with unique business plans, values and priorities, Zaremski explained. "Some firms are more pragmatic, some are idealistic," he said. "But there will be some common questions that will be asked. Firms will consider a judge's business contacts, whether they're likely to bring business, whether they possess any particular expertise."  Some judges may land jobs for their sheer talent, reputation or connections, but more often than not, judges must compete on the same plane as anyone else, which is why the judge-to-lawyer move is not as common as it could, or perhaps should, be, Zaremski said. "Judges are extremely talented lawyers," he said. "My sense is, if they want to make the transition, they can make it successfully."

 

Law360

Firms Look To Cash In With Work-For-Free Strategy 

By Erin Marie Daly, March 16, 2010

The recent recession saw many law firms increasing their pro bono workloads as a way to keep their client rosters full, but some are putting a new spin on working for free, legal industry experts say.  Unlike past recessions, when firms tended to scale back on pro bono matters, the severity of these troubled economic times has led many firms to offer pro bono services in order to retain and attract clients, as well as keep their lawyers busy...

In a particularly unusual variation of this business development strategy, some firms have gone beyond the traditional pro bono model by taking on big-dollar cases for major clients -- for free...  "It doesn't seem like a very sophisticated way of doing business that comports with the really elite firms," said Jack Zaremski, founder and president of legal consulting and attorney placement firm Hanover Legal Personnel Services Inc.  Still, he said, law firms are businesses, and if a paying client has fallen on hard times, some firms may feel it's in their own best business interest to offer to work on a matter for no charge.  "It's all about maintaining good business relations," he said. "The most sophisticated firms treat client relations as an art, not a science. There's much more competition for business these days, and firms need to stay in the good graces of their best clients."  But while the decision to take on more unpaid work in the midst of an economic downturn is often a smart choice, the firms that have used the strategy most successfully are those that have carefully weighed the benefits against the costs, according to Zaremski. "Any way you slice it, the bottom line is that there's a concrete cost associated with taking on pro bono work," he said. "It doesn't diminish a firm's gross revenue, but it does diminish its net profit. The question is whether the benefits of investing in a pro bono matter are worth the costs, especially in a downturn."

Importantly, he said, part of what defines a firm's stability and prestige is the ability to withstand a financial crisis. Not coincidentally, the firms that are generally considered to be top-notch are also considered to be the most stable -- and those are the firms that have tended to invest more in pro bono matters, Zaremski said.  "They view the downturn as part of the natural economic cycle, and see it as an opportunity," he said. "And they know that oftentimes, business is generated directly from contacts that attorneys make in nonprofit-generating interests. These relationships can ultimately lead to revenue-generating business."

Zaremski ... said there will likely be some retrenching as the economy picks up, because the vast majority of law firms are, in the end, motivated by business concerns. "All businesses try to maximize revenues and profits, and law firms are no different," he said. "In an upturn, there's more business to be done, and firms are primarily in the business of generating revenue, so there will be less motivation to invest in pro bono."

 

Law360

Morgan Lewis Reveals Details On New Pay System

By Julie Zeveloff, January 20, 2010

Morgan Lewis & Bockius LLP on Wednesday offered associates additional insight into how the firm will calculate base salaries and bonuses now that lockstep compensation has fallen by the wayside.  In an e-mail to associates, Morgan Lewis chair Francis M. Milone said the firm had awarded base salary increases of up to $25,000 and incentive bonuses of up to $35,000, although the memo did not divulge how many of the firm's 685 associates reaped those rewards...  "While an attorney's relative performance has served as the driving factor in awarding bonuses in recent years, it has played less of a role in setting base salaries," Milone wrote, noting that factors such as the quality of an attorney's work, value provided to clients and pro bono commitments, were given increased weight this year.

According to industry expert Jack Zaremski, merit-based pay and promotions ultimately benefit law firms by forcing them to become more efficient and competitive and giving associates incentive to work harder. However, abandoning lockstep comes with its own costs, said Zaremski, founder and president of Hanover Legal Personnel Services Inc.

 

Law360

McDermott Trims Starting Pay, Ditches Lockstep

By Erin Fuchs, January 12, 2010

McDermott Will & Emery LLP said Tuesday that its associates will now start out with a lower salary and earn raises and promotions based on performance, making it the latest firm to respond to the recession by discarding its lockstep system.  The firm doesn't aim to cut total associate compensation, partner Jeffrey Stone said. "We ultimately think the gross number will be neutral," said Stone, chair of the firm's management committee. "This is about aligning performance with compensation."  Under the new system, first-year associates will start out making $145,000 a year plus bonus rather than $160,000. The firm will now evaluate associates based on business management, client services and leadership; these evaluations, in turn, will determine their salaries, bonuses and billing rates.  The new system's competence-tied billable hours will better serve clients, Stone pointed out. "A client doesn't care whether somebody graduated from law school one year ago, three years ago, or five years ago," he said. "The pricing and compensation should reflect value, not just tenure."

In December, Seyfarth Shaw LLP sent an e-mail to all firm attorneys saying it planned to introduce a new merit-based pay system in January and gradually phase out its current system over the course of 2010.  WilmerHale LLP also announced plans in December to abandon lockstep compensation in favor of a performance-based model...  Also in December, Orrick Herrington & Sutcliffe LLP unveiled a new three-tiered associate salary structure to replace the old lockstep compensation method.  Recognizing that associate attorneys advance at different speeds and harbor varying career objectives, the firm said that in 2010 it would begin to filter associates into three categories -- associates, managing associates and senior associates...

While the days of automatic raises and promotions for lawyers may be waning, legal experts have warned that getting rid of lockstep comes with its own costs, including tolls on morale, recruitment, perceived firm prestige and an added administrative burden.  "The bottom line is it comes down to a cost-benefit analysis," said Jack Zaremski, founder and president of Hanover Legal Personnel Services Inc.

 

Law360

Shift From Lockstep Pay Rife With Perils, Experts Say 

By Erin Fuchs, January 08, 2010

The days of automatic raises and promotions for corporate lawyers may be waning, but experts say that before firms take the plunge and scrap lockstep pay altogether, they should assess the potential impacts of a performance-based system -- including the toll it could take on recruitment and morale.  Many big-league firms -- including Seyfarth Shaw LLP, WilmerHale LLP and Orrick Herrington & Sutcliffe LLP -- have responded to the recession by revamping their old compensation models and moving away from lockstep.

According to industry expert Jack Zaremski, merit-based pay and promotions ultimately benefit law firms by forcing them to become more efficient and competitive and incentivizing associates to work harder. However, he cautioned, abandoning lockstep comes with its own costs.  "The bottom line is it comes down to a cost-benefit analysis," said Zaremski, founder and president of Hanover Legal Personnel Services Inc.

Law360 took a look at the top factors that law firms should consider when deciding whether to overhaul their pay and promotion systems, and the specific steps that they should take before abandoning lockstep...

The toll on recruitment is the biggest price of killing lockstep, according to Zaremski. Top law students are attracted to firms that can guarantee them salary increases during their associate years, he pointed out.  "Lockstep offers a certain amount of stability and security to attorneys," he said. "When you get rid of lockstep, one of the effects is going to be that you're going to diminish your ability to some extent to effectively recruit."  If firms do go that route, Zaremski said, they should emphasize to prospective recruits the positive aspects of a merit-based system: a more efficient, competitive law firm that has the potential to earn greater profits...

Zaremski, who stressed the benefits of nixing lockstep, conceded doing so could make associates unhappy. "If they're not promoted when they think they should be -- or their salaries aren't increased when they think they should be -- it's just another reason for associates to be embittered and discontent," he said...  Zaremski said that the internal competition that could result from merit-based pay could actually benefit the firm as a whole.  "I generally think competition is a good thing," he said. "There are benefits. The question is, do the benefits outweigh the costs? That's always the question." ...  In addition to possibly dampening morale and stifling recruitment efforts, Zaremski said that aborting lockstep promotions and raises creates more work for firm management... 

Finally, taking away the guarantee of promotions and pay raises could diminish a firm's prestige, according to Zaremski, who pointed out that some of the most prestigious firms -- such as Debevoise & Plimpton LLP and Simpson Thacher & Bartlett LLP -- offer lockstep promotions through retirement. "It's considered a sign of stability and health and confidence on the part of the firms to be able to maintain lockstep, by and large," he said, adding that abandoning lockstep "inures to the detriment of firms with respect to their perceived prestige in the marketplace."  But the bottom line, Zaremski said, is that firms must now survive in a more competitive marketplace and in a tough economic climate.  "The job of these firm managers is to keep their ships afloat and also make them as efficient and profitable as they can," he said.

Still, he added, "if these were easy decisions to make, firms would have made them a long time ago."

Law360

Change May Be Coming To Firm Staffing Models 

By Shannon Henson, December 08, 2009

While the associate ranks have been hardest-hit by the downturn, a Law360 survey shows many large law firms still have high ratios of associates to partners -- a staffing model some legal consultants say needs to change.  According to a Law360 survey, some law firms have retained staffing structures that have ratios as high as five associates to one partner. Of the responding firms, Paul Weiss Rifkind Wharton & Garrison LLP has the highest ratio of associates to partners, with a U.S. staff of 572 associates and 102 partners.  Other firms with high ratios of associates to partners included: Cleary Gottlieb Steen & Hamilton LLP, which reported 463 associates and 112 partners; Debevoise & Plimpton LLP, which has 424 associates and 114 partners; and Cravath Swaine & Moore LLP, which reported 357 associates and 88 partners... 

Jack Zaremski, founder and president of Hanover Legal Personnel Services Inc., said Wachtell Lipton Rosen & Katz, which is highly profitable, has long operated with a low ratio of associates to partners. "It's part of how they attract the best talent," Zaremski said. "Lawyers know going in that they will work hard, but there is a good chance that they will make partner."  The floundering economy has undoubtedly forced law firms to become more efficient, producing more work in less time, Zaremski said.  But he questioned whether the recession would have a lasting impact on staffing philosophies, saying the ratio of associates to partners will remain a function of the economy and how much business a firm can generate.  ...

 

Law360

Atty Scandals Don't Have To Taint Firm: Experts

By Erin Fuchs, November 05, 2009

Ethics scandals, such as the arrest of a Ropes & Gray LLP associate for alleged insider trading and claims that a Troutman Sanders LLP partner scored kickbacks, can cast a pall over an entire firm even if only one attorney gets nabbed, industry experts say...

The news at Ropes & Gray and Troutman Sanders actually pales in comparison to the Dreier debacle and the corruption at the plaintiffs firm Milberg Weiss LLP, said Jack Zaremski, founder and president of Hanover Legal Personnel Services Inc.  Four senior partners at Milberg Weiss were ultimately convicted in a scandal that Zaremski said still hurts the firm's ability to attract talent, even though the firm managed to emerge from the storm as Milberg LLP... 

While neither incident rises to the level of a Dreier or Milberg scandal, the allegations involving Troutman's Leonard Grunstein have more potential to do damage to that firm than the allegations involving the Ropes & Gray attorney because in the former instance a high-level partner rather than a rogue associate is involved, Zaremski said  "Troutman Sanders is more significant," Zaremski said. "Senior people have more of an impact on the general character of the firm ... It's more of a poison that has the power to infiltrate downward." 

The allegations against Grunstein involve a hefty sum of money. The U.S. Department of Justice has accused him of playing a role in a scheme to get $50 million from drug supply giant Omnicare Inc., in exchange for continuing pharmacy contracts with nursing homes.  Meanwhile, Ropes & Gray associate Arthur Cutillo was arrested as part of an ongoing probe into insider trading at hedge funds and stock trading firms that last month ensnared Raj Rajaratnam, founder of Galleon Group.

The two firms reacted to the crises differently. Troutman Sanders issued a statement saying Grunstein would take a leave of absence until the matter is resolved, expressing the firm's confidence that he'd return to work.  Ropes & Gray, however, yanked Cutillo's name from its Web site, saying in a statement that the firm was "deeply disappointed to learn about this situation, which suggests an extreme breach of this person's duty of trust to our clients and to the firm."  Zaremski suggests using the latter strategy, saying firms should distance themselves from attorneys once they're under the cloud of an investigation...

Zaremski, meanwhile, said that firms shoulder a certain amount of responsibility when a partner gets caught in a scandal.  He pointed to the "truly great" firms -- Cravath Swaine & Moore LLP, Simpson Thacher & Bartlett LLP, Debevoise & Plimpton LLP and Cleary Gottlieb Steen & Hamilton LLP, to name a few -- that he said have been able to evade major scandals involving partners.  "There's much less tolerance for any character flaws" at those firms, he said.  Firms can take several steps to discourage lawyers' illegal activity, according to Zaremski, such as increasing their internal oversight and investigations into attorneys' behavior that might "cross the line," he said.

Firms can also bring on more ex-prosecutors to create an atmosphere of intolerance of illegal activity, he said.  "The more of those types you have on board, the more likely it is that there's going to be an aura at these firms of oversight and zero tolerance for any sort of criminal activity," he said. "If your partner is a former federal prosecutor, you're probably going to be a little more wary of engaging in criminal activity."

 

Law360

Laterals Turn Up Their Noses At Equity Partnership

By Shannon Henson, November 02, 2009

Some attorneys have become increasingly reluctant to join law firms as equity partners, an about-face that comes amid concerns about liability, profitability and the viability of law firms in the economic downturn, legal industry consultants said.  The downturn has prompted attorneys to scrutinize professional moves more than ever before, consultants said. That has led some lawyers to ask firms if they can join as of counsel or as a nonequity partner -- a trend that was unheard of only a year or two ago...

In some situations, "being nonequity is akin to an employee of the firm. As an equity partner, you are an owner, so once you have ownership you also have liability. There are benefits associated with partnership, but there are also obligations and a certain amount of risk," said Jack Zaremski, founder and president of Hanover Legal Personnel Services Inc., a legal consulting and attorney placement firm.  Zaremski said people were considering nonequity "more seriously than they might have before the crisis" because people are simply more risk-averse when times seem precarious.  "But it really is case-by-case," he said. "Most young, ambitious attorneys who see themselves as leaders or aspire to be leaders almost invariably prefer equity. It's rare to see a star performer opt for nonequity."

 

Law360

Firms Use Recession To Snag Corporate Talent

By Shannon Henson, October 06, 2009

While work and opportunity for corporate finance attorneys has yet to return to prerecession levels, a number of law firms are turning the economic downturn into a chance to snap up top corporate and mergers and acquisitions attorneys, according to legal industry consultants.

The market is improving for corporate finance lawyers, who were among the most adversely affected by the downturn, consultants said, and the biggest moves in the lateral market have been made by law firms using the recession to stock up on talented practitioners who suddenly found themselves in limbo.  "As is often the case, the reward is great for people who make an investment in tough times," said Jack Zaremski, founder and president of Hanover Legal Personnel Services Inc., a legal consulting and attorney placement firm. "So the firms that were able to essentially buy when the market was low are now reaping the rewards."

For example, Bingham McCutchen LLP acquired McKee Nelson LLP, a finance-driven firm, in August. Through layoffs and attrition in the tough economic times, McKee Nelson had lost a significant number of attorneys.  By the end of February, McKee Nelson had shed roughly 11.5 percent of its staff. Its structured finance practice once boasted 120 members and stood at around 20 at the time of the acquisition.  Meanwhile, Bingham wanted to add McKee Nelson's strengths in tax, financial institution litigation and structured finance to its law firm, Bingham chairman Jay S. Zimmerman said at the time.  Nixon Peabody LLP also picked up two former McKee Nelson partners to lead a new securitization and structured finance team.  "Now that the economy is picking up, in all likelihood, they are going to turn out to be great investments," Zaremski said... 

When the financial markets rebound fully and laid off attorneys trickle back into law firms, consultants may see less money in their paychecks, they said.  Industrywide trends in reduced compensation will hold true for attorneys in corporate finance and mergers and acquisitions, Zaremski said.  "In all likelihood, they will not be looking at the same compensation as they were during the boom times," he said. "It's just very much a buyer's market."

 

Law360

Tips For Firms On Making Flextime Work

By Anne Urda, October 05, 2009

Flexible time schedules are gaining in popularity as more attorneys demand a better work-life balance, but in order to make the schedule a win-win, firms need to become a partner in the process, legal experts say. Though law firm layoffs still abound, more and more are looking at alternative measures in order to cut costs while keeping the pool of talented lawyers happy, experts said.

"Flexible work arrangements are certainly a good thing for firms," said Jack Zaremski, the founder and president of New York-based recruiting firm Hanover Legal. "Firms simply need to do more to make the work environment more healthy for everyone involved, and flexibility is always a good thing."  But establishing a flexible work arrangement can often prove tricky for both the firms and the individual attorneys, who fear the potential stigma and backlash attached to pursuing a customized schedule... One of the most significant pressures on firms right now is to provide healthier work environments for all their attorneys, Zaremski said. "The most common complaint that I hear as a recruiter for law firms is that attorneys have no control over their lives," he said. "Needless to say when people lose control, they inevitably become unhappy, and that often leads to an unhealthy environment as well." ...

 

Law360

Firms' 'Ego'-Driven Salary Structure Can't Last: Experts

By Nick Brown, October 02, 2009

While plenty of leading law firms have frozen or slashed associate salaries amid the current recession, just as many have remained dedicated to the status quo -- a devotion that may be rooted more in ego than loyalty, some experts say. Roughly half the AmLaw 20 firms -- including White & Case LLP, Sidley Austin LLP, K&L Gates LLP and Mayer Brown LLP -- have yet to announce freezes or reductions in associate salary, despite sustaining heavy economic blows. K&L Gates, for example, laid off at least 36 attorneys and 79 staff members in March but has not announced pay cuts to associates. The decision of whether or not to cut associate salaries depends on a great deal more than the economic landscape, legal experts say.

"It's a calculated business decision, basically," Jack Zaremski, founder and president of New York-based legal consulting firm Hanover Legal Personnel Services Inc., told Law360. "Firms are trying to stay competitive." Zaremski invoked an auto-related analogy, comparing elite firms to Lamborghinis. "In tough financial times, clients may be more willing to settle for a Mercedes, which is still a high-quality product," he said. "Some firms realize this, and cut salary, knowing they will not attract quite as high a talent base, but they can offer clients services at a slightly lower rate." But not all firms go that route, Zaremski said. "You'll always have firms that want to maintain that top-notch standing," he said. "There will always be a niche for the Lamborghini." ...

Zaremski acknowledged that cutting associate salaries isn't the only way a firm can save money, pointing out that several firms have held off on bonuses and decreased pay for partners...

 

Law360

Pro Bono Boom Will Outlast Recession: Experts

By Erin Fuchs, September 22, 2009

The U.S.' deepest recession since the Great Depression has spurred attorneys and firms to ferret out more pro bono work to stay busy and network, but that surge is part of a trend that will grow as the economy recovers: firms using unpaid work to make connections and train green associates, legal industry experts say.  As the economy stabilizes and firms adopt permanent cost-cutting measures, clients will appreciate firms' shouldering the expense of training associates through pro bono work, said Jack Zaremski, founder and president of legal consulting and attorney placement firm Hanover Legal Personnel Services Inc. "I certainly think there will be more pro bono work going forward essentially because of increased pressure on firms to not force clients to pay for the training of associates," Zaremski said...

 

Law360

In Obama Era, DC May Become New Legal Hot Spot

By Shannon Henson, August 19, 2009

As a result of the likely increase in regulation from the Obama administration, so many law firms are looking to boost their capabilities in Washington that some consultants say the nation's capital could replace New York as the legal industry's power center.  According to legal consultants and recruiters, law firms are considering increasing their manpower in the Beltway, and more attorneys are spending time in Washington.  However, some industry observers doubt there will be a permanent shift in power because few clients are based in the capital, and the bulk of the work available there will always revolve around the government...

New York and D.C. have long catered to different audiences, said Jack Zaremski, founder and president of legal consulting and attorney placement firm Hanover Legal Personnel Services Inc., adding that he doesn't believe the legal industry will experience the "cataclysmic shift" that some people are predicting.  "The fact that New York is the hub of the financial sector is not going to change, at least not in the near future," Zaremski said. "The landscape of New York finance and New York law has undergone some significant changes, obviously, over the last year or so, but that doesn't change the fact that New York remains the center of financial activity worldwide."

 

Law360

Backlash Fails To Discourage Firms' Carcass-Picking

By Anne Urda, August 14, 2009

In the wake of several prominent law firms' collapses, suits against former partners and their subsequent legal homes have started to spring up, but the threat has done little to dampen firms' willingness to welcome those that survive the wreckage, legal experts say.  Over the past year, Heller Ehrman LLP, Thelen Reid Brown Raysman & Steiner LLP, and Thacher Proffitt & Wood LLP have all imploded under the strain of the economic crisis, leaving some of the country's top legal talent without jobs.  While many of those attorneys were snatched up in the immediate aftermath, some are now facing legal action from former employees and others as the dust begins to settle...

That's not to say that firms should not do what they can to protect themselves from falling prey to bad situations, though, said Jack Zaremski, founder and president of Hanover Legal Personnel Services Inc., a New York-based legal consulting and attorney placement firm.  "One thing that firms like to avoid whenever possible is conflict of any sort," Zaremski said. "Firms typically will do as good a job as they can to check on the history of the incoming partners and associates' business."  That should include conflict checks, as well as scrutiny of the liabilities that might come from future lawsuits, he said.

"A firm looks at whether it makes sense to bring these attorneys on board," Zaremski said. "It really varies with every firm. What works for firm A may not work for firm B." ... Zaremski pointed to the collapse of Dreier LLP, which sunk after sole equity partner Marc Dreier was accused of swindling millions from investors.  "For some, just being associated with Dreier was a taint, and some firms were reluctant to have anything to do with people who had that taint," he said. "Others were less so and saw skill sets and business that would be valuable to the new firm. That evaluation always takes place on a case-by-case basis."  At the end of the day, due diligence is the key so that firms have their eyes open with respect to incoming hires, no matter what the situation may turn out to be, Zaremski said.  "They need to do this not only when it comes to matters like avoiding conflicts, but also existing and potential liabilities of all sorts," he said. "That always needs to be weighed against the skills and business that the attorney is bringing to the firm."  "If the positive outweighs the negative, the candidate is more likely to come on board," Zaremski said.

 

Law360

Top Firms for Women Offer Work-Life Balance

By Erin Fuchs, August 12, 2009

A survey released Tuesday on the "50 Best Law Firms for Women" features firms -- including Sidley Austin LLP, WilmerHale LLP, Jenner & Block LLP and Foley Hoag LLP -- that offer lawyers flexible hours and other options to achieve work-life balance, a goal experts say has fallen by the wayside amid the recession... The survey took into account firms' flexible-hour and reduced-hour policies, as well as the number of women in leadership roles at the firms, among other factors...

Jack Zaremski, founder and president of Hanover Legal Personnel Services Inc., agreed that giving lawyers the chance to live their own lives outside work benefits both them and the firm -- especially during a recession.  "It's intuitive that firms will operate more efficiently and more effectively not only by improving their own economics," Zaremski said, "but also by providing environments in which their own lawyers can be healthy and which allows for attorneys to have satisfying lives outside of the practice of law."  Still, he said, firms have been focusing mostly on maintaining their economic viability during the recession. "The next step in getting firms to being healthier is to start addressing and focusing more on the area of work-life balance."  "It's something that we cannot neglect to do in the long run."

The vast majority of female lawyers seeking his assistance in making a lateral move almost immediately ask whether firms provide flexibility so that they can take care of their families, Zaremski said.  But that flexibility should apply to all workers, including men who want to take care of their children and lawyers who want time to pursue their outside-of-work passions, he said.  Zaremski pointed out that he has taken the time to participate in five Iron Man Triathlons, the fifth one taking place in Japan...

Law360

Suing Over Fees Should Be Firms' Last Resort: Experts

By Erin Fuchs, July 29, 2009

Big-league law firm Schulte Roth & Zabel LLP's legal action over a $2.83 million tab it alleges went unpaid signifies the lengths more firms will have to go to in order to get paid in lean times, law firm watchers say. But industry experts warn that litigation against clients can ruin client-firm relationships and hurt firms' reputations. Firms should exhaust other strategies before taking their grievances to the courtroom, they advise...

Regardless of whether firms want to go to court, the recession is forcing some to do just that. On Monday, Schulte filed a summons for its hedge fund client, Highland Capital Management LP, to serve a notice of appearance in the Supreme Court of the State of New York. Schulte's summons lists more than 45 invoices totaling over $2.8 million, which the firm contends the hedge fund didn't pay. The invoices start on June 24, 2008, and run to July 7, 2009. The fund has already struck back at the firm in a written statement. "We believe Schulte Roth overbilled the firm and its funds for legal services," the statement said. "Highland has paid Schulte Roth nearly $1 million in good faith, and has made every effort to resolve this issue with them."

But even with the bad blood that can come from law firms suing their own clients, the Schulte action shows that cash shortages might force reputable firms to go after sizable unpaid bills in court, according to Jack Zaremski, founder and president of Hanover Legal Personnel Services Inc., a New York-based legal consulting and attorney placement firm. Zaremski described Schulte as "one of the great American law firms."

The lawsuit doesn't reflect the firm's incompetence at collecting on its debt; rather, it's a sign of the times and of a recession that has hurt businesses across industries, he said. "In better times, Schulte might not have sued," Zaremski said. But now "there's less money coming into the firms. Firms need to do what they can in order to collect money due to them." Still, he cautioned that litigation should remain a last resort in any client-service provider relationship. When disputes inevitably arise, smart businesses will do whatever they can to avoid suing current or former clients, Zaremski said...

 

Law360

Downturn Drives Firms To Seek Rent Savings: Experts

By Erin Fuchs, July 21, 2009

Cadwalader Wickersham & Taft LLP's putting out feelers for cheaper digs for its London offices reflects an industrywide impulse to reduce rent in the midst of a recession, according to experts.

While most firms won't uproot their offices right away, experts say they're already subleasing space, exploring cheaper options for the future and even renegotiating the leases they signed in boom times. "Right now the name of the game is cutting costs across the board," said Jack Zaremski, the founder and president of Hanover Legal Personnel Services Inc., a New York-based legal consulting and attorney placement firm.  Before the recession, "there was clearly a trend among not only law firms but businesses to spend more money than was really necessary on all sorts of things. Fancy office space was certainly one of those," Zaremski said...

 

Law360

Less Can Be More When Wooing Corporate Counsel 

By Anne Urda, July 17, 2009

As law firms struggle to stay afloat and attract new business in difficult economic times, corporate counsel are finding themselves being hotly pursued. But it takes a lot more than a golf invitation or a fancy dinner to woo corporate clients these days, according to legal experts...  Some law firms have turned toward the "swarming technique," with representatives besieging the general counsel with social invitations in an attempt to lure them to the firm for their outside legal needs ... [but] such methods are only effective up to a certain point...

That's not to say that you have to be totally hands-off, according to Jack Zaremski, the founder and president of Hanover Legal Personnel Services Inc., a New York-based legal consulting and attorney placement firm.  "It is essential to maintain the current client relationship, and it does need to be nurtured," Zaremski said. "In the current market, where corporate counsel are under immense pressure to cut costs, they are going to compromise on a certain amount of quality and frills in order to find a more affordable service provider."  

While law firms may be interested in attracting more work, they should not take anyone for granted these days and would be wise to pay attention to their current stable of clients, he cautioned. "In a competitive market like this, everybody's fair game," Zaremski said. "Nobody owns any client or client relationship.  [C]orporate counsels' own jobs are in jeopardy, and they are only going to be successful to the extent that they can make the case that they are getting the best quality available at the cheapest price available."

 

Law360

Lawyers' Benefits Next On Chopping Block: Experts

By Erin Fuchs, June 11, 2009

McDermott Will & Emery LLP's recent memo to associates that it will slash their benefits packages by July 1 portends a coming wave of law firm reductions in employees' plans as firms scramble to cut corners in tight economic times, industry experts predict...  While law firms won't likely publicize benefits cuts, industry experts say that benefits packages -- which can make up a significant portion of overall compensation -- represent the next wave of cuts as the recession drags on.

"There's no question in my mind that every firm is reassessing its benefits plans along with every other aspect of its costs in order to trim down and get back into sync with the realities of the current market," law firm consultant Jack Zaremski said. Zaremski, president of Hanover Legal Personnel Services Inc., a Manhattan-based law firm consulting and attorney placement firm, said more prosperous times didn't only inflate lawyers' salaries. The bull market also led firms to throw lavish holiday parties and try to one-up each other with the perks they offered - including employee benefits packages, Zaremski said.  "Now the sense is [law firms] are feeling that the benefits packages were too generous, at least to the extent that they realize that they have to cut them now," he said. "Hindsight is 20/20 at the same time. At the time when McDermott was offering its enhanced benefits packages, it didn't feel like it was being overly generous." "It's just a different market," Zaremski added, "and a different ball game."

That market creates a situation where law firms have to trim everywhere they can. But it also allows firms to cut compensation, even benefits packages, without fear that associates will flee the firm, according to Zaremski.  "Right now we're in a situation where attorneys are by and large happy to be employed. So firms are empowered to make cuts while we're in the midst of this difficult recession without having to fear that associates are going to jump ship," he said. "Because associates can't really jump ship right now," Zaremski added...  Still, some experts, such as Zaremski, say the cuts are a wise move and should be made permanent -- even after the recession.

 

Law360

Microsoft Drops K&L Gates From Preferred Firm List

By Christie Smythe, May 14, 2009

K&L Gates LLP, a firm tied to Microsoft Corp. founder Bill Gates' father, has been dropped from a list of the company's preferred law firms, falling in line with a trend in which personal relationships are sometimes taking a back seat to other business concerns in the selection of outside counsel, according to legal industry experts.  The firms that made the list after the company's recent review include Cadwalader Wickersham & Taft LLP, Covington & Burling LLP, Davis Wright Tremaine LLP, Fish & Richardson PC, Orrick Herrington & Sutcliffe LLP, Munger Tolles & Olson LLP, Perkins Coie LLP; Shook Hardy & Bacon LLP, Sidley Austin LLP and Weil Gotshal & Manges LLP, Microsoft spokesman David Bowermaster told Law360 on Thursday... "We solicited competitive bids from a number of firms and conducted an extensive review. That led to a selection of 10 firms across the country," Bowermaster said in an e-mailed statement forwarded by an outside public relations consultant...

While they could not comment on Microsoft's decision specifically, some legal industry and law firm recruitment consultants said corporations were generally trying to be more cost-conscious in the recession, leading them to put business concerns above relationships in making counsel hiring decisions.  "Clearly, the bottom line cash aspects of the relationship are more important now than they have been since I can remember," said Jack Zaremski, president of Hanover Legal Personnel Services Inc., a New York-based law firm consulting and attorney placement firm. "Representation of corporations is becoming more business-driven in the current market as opposed to relationship driven," Zaremski said. "That being said, people still want to do business with people they know and [with whom they] feel comfortable and have a track record."

 

Law360

Recession-Driven Practice Areas Weak In '09: Report

By Erin Fuchs, May 11, 2009

The legal practice areas such as employment and intellectual property law at major U.S. firms that usually see boon times amid economic meltdowns have actually suffered in 2009, according to a new report... The report found that employment practices performed weakly in 2009 compared to 2008, as did intellectual property law. The report also found that litigation was flat in 2009, possibly due to its growing costs. The famously recession-driven practice area of bankruptcy, however, hasn't disappointed business restructuring attorneys. Business activity increased 13.2 percent in 2009 compared to a year ago, according to Hildebrandt.

Jack Zaremski, president of Hanover Legal Personnel Services Inc., a Manhattan-based law firm consulting and attorney placement firm, said that while firms were cutting corners on some recession-driven practices, bankruptcy is simply too important not to spend money on. "The service you're providing basically has to be perceived as essential to the business of the client. Bankruptcy is essential. You wouldn't go to a second-rate doctor for cancer," he said. "You don't want to mess with something that is going to keep your business alive or to cause it to go under," Zaremski added. 

Practice areas such as intellectual property and employment, however, aren't seen by clients as being as crucial as the restructuring of their business, he said.  Employers will still need to defend themselves against intellectual property and employment suits, but they might not turn to the major league legal players that are part of the Hildebrandt index to do so, he said.  Faced with an economic downturn, Zaremski said, clients might end up sending their work to smaller firms outside of New York City, which charge less than the major firms. They also might handle IP and employment cases in-house. 
 

Law360

Billable Hour Leaves Firms Vulnerable To Attack

By Anne Urda, May 08, 2009

Some clients, more leery than ever of being overcharged, have taken to the courts recently and launched overbilling suits against major law firms...  Jack Zaremski, president of Hanover Legal Personnel Services Inc., a Manhattan-based law firm consulting and attorney placement firm, believes that overbilling charges may drop off in New York City in the coming months.  "I think it's going to be less of a problem rather than more of one, because I feel we are turning a corner with respect to the downturn," he said.

"My sense is that clients might be going a bit too far in questioning the integrity and honesty of great law firms."  ...  "I think that the overzealousness with which clients are going after firms with respect to the way they bill is going to come back to haunt them," he said. "The legal market is a two-way street and attorneys have a choice as to who they represent."  Once a client gets a reputation as being difficult, it can be harder to find good representation, according to Zaremski.  "The market is starting to turn, and clients are going to find they are not quite as empowered when the competition for any business was at its peak," he said...  People have short memories and forget things are cyclical and that what you do today might have repercussions tomorrow."

 

Law360

April Shows Steep Decline In Law Firm Layoffs

By Anne Urda, April 29, 2009

After a brutal March, the number of lawyers laid off in April fell off more than 80 percent, marking a low for 2009 and suggesting that law firms may be turning toward other means to cut costs and meet client demands in a still-struggling economy.  According to a Law360 analysis, 160 lawyers have been laid off in April, a significant downturn from the whopping 1,121 lawyers that lost their jobs in March and the 1,045 let go in February. Staff firings are also down, with 340 legal professionals shown the door in April, as opposed to the year-high 2,129 members in March and the 978 staff members in February.

But whether the layoff slow-down is permanent or merely an aberration remains to be seen, according to Jack Zaremski, president of Hanover Legal Personnel Services Inc., a Manhattan-based law firm consulting and attorney placement firm.  "I think firms are in a little bit of a holding pattern right now," he said. "By and large, they have made significant layoffs but there are still a lot of questions as to where the economy is headed. There are still lots of doubts - have we really stabilized or are things going to get worse?"  Regardless of what happens in the short-term, the economic crisis has changed the way law firms do business going forward, according to Zaremski.  "They are more sensitive to the demands clients are placing upon them to be as efficient as possible and are acting accordingly," he said. "There is more and more competition for a limited amount of business. Going forward, layoffs will be a normal part of doing business, as in the realm of finance and banking."  Firms appear to be increasingly interested in exploring alternative ways to save money these days, rather than simply letting people go, Zaremski said.  "Apart from layoffs, firms are also working hard to come up with alternative fee arrangements," he said. "Firms are more sensitive to the market now and are going with the flow of the market. They have been forced to learn some hard lessons about irrational exuberance and indefinite growth."

Some have instituted salary freezes and cuts as a way to keep afloat with the current staff and satisfy client demands.  For instance, Nixon Peabody LLP just decided to reduce starting compensation for new and summer associates, dropping starting salaries for both incoming and summer associates to $145,000 "in major financial centers," according to a statement from Richard F. Langan Jr., the firm's managing partner and chief executive officer. Nixon Peabody said that part of the reason for this move is to "maintain staffing levels in the best interests of our clients," suggesting that law firms have trimmed as much fat as they can while still getting the job done.

More firms appear to be moving in this direction as well, with Chadbourne & Parke LLP recently announcing that it plans to make cuts to the salaries of associates and others in an attempt to avoid any further reductions to its work force.  But that does not mean the mass layoffs are a thing of the past already, according to Zaremski. "It remains to be seen," he said. "More layoffs are possible if the stability turns into a downturn again, but firms also want to be prepared for an increase in business and don't want to lay off too many people." ... While firms will no doubt go back to hiring if there is a sense that the market is going to pick up and more deal work will be coming through, they will not be quick to forget the hard-learned lessons of this "defining" period, Zaremski said.  "They are going to be much more fluid and flexible, which is a good thing," he said. "Firms are very conscious of restructuring and following a different approach. There is no stigma associated with layoffs anymore and going forward they are going to be more competitive and more efficient."

 

Law360

Howrey Axes 25, Seeks More Capital From Partners

By Erin Fuchs, April 20, 2009

As the economic crisis continues to strap law firms for cash, Howrey LLP has eliminated 25 secretarial positions and asked its Level I partial equity partners to pony up capital for the first time and equity partners to up their own contributions...  The moves come as firms nationwide are trimming staff and cutting costs in an effort to weather the economic storm.

Amid tight times, more firms have turned to their partners for capital, according to law firm consultant Jack Zaremski. "Given the downturn in the economy and the decrease in revenue ... there's just less cash available to firms," said Zaremski, president of Hanover Legal Personnel Services Inc., a New York-based law firm consulting and attorney placement firm. The economic crisis has [also] made it more difficult for firms to secure bank financing, Zaremski said. "They need to look for alternative sources" of income, he said. In the fall, DLA Piper also asked income partners to contribute capital to the firm, Zaremski noted...

While every partner might like her own secretary, firms are doing away with luxury and trimming anywhere they can, Zaremski said. Firms have historically resisted changing the way they do business, but the crisis could force them to institute fundamental changes, he said. "They have to be hit on the head with a sledge hammer in order to change the way they do business," Zaremski said. "This economic downturn is so severe and so intense that it's the equivalent of being hit in the head with a sledgehammer," he said.

Law firms would be well advised not to forget about the tough times if and when the economy improves, according to Zaremski. "My view is that some of the[se] changes ... are going to stick and take hold."

 

Law360

Auditors Create Sticky Situations for Firms, Clients

By Anne Urda, April 03, 2009

With money tight and fears high, some clients are cracking down on potential billing abuse by looking to auditors for help - creating a contentious set-up that could backfire on clients and cost law firms some jobs, according to legal experts... "I think there will be more of a tendency for clients to scrutinize the billing arrangements they have with firms as the economic situation continues to deteriorate and businesses become more competitive," said Jack Zaremski, president of Hanover Legal Personnel Services Inc., a Manhattan-based law firm consulting and attorney placement firm. "The billable hour lends itself to inefficiency - there is no question about that."

"[However], if clients insist on checking up on lawyers' work, they could make it difficult for the firm to provide the service that has been requested and they may end up with a lower quality service provider," he said.   "There needs to be balance and accommodation on both ends." ...  Zaremski said that it is important that clients remember that while they may have the advantage now, that might not always be the case. "We will come out of this at some point in some way," he said. "The storm will not last forever and people will remember how law firms and also clients reacted in a very difficult environment.  Behavior during this difficult time will have repercussions into the future."

 

Law360

Economic Anxiety Could Kill Firms' Urge To Merge

By Erin Fuchs, March 30, 2009

Despite predictions that the ongoing economic crisis could spur more law firm mergers this year, some legal experts contend that the linkups don't ultimately save firms a significant amount of money and that the fear of taking on another firm's finances could deter firms from joining forces. "The instability of the market makes it difficult for law firms to get an accurate read on merger partners these days, which is one reason firms are merger shy," said Jack Zaremski, president of Hanover Legal Personnel Services Inc. "You're not seeing so many mergers take place right now because, as in any difficult market, people tend to be more risk-averse. So every decision is scrutinized more," Zaremski told Law360. "Merging is a risky business," he added, pointing out that the marriage of Thelen Reid & Priest LLP and Brown Raysman Millstein Felder & Steiner LLP preceded Thelen's demise..."

Despite merger fears created by the recession, the economic crisis has also brought to light the recognition that firms need to become more efficient -- and sometimes efficiency means combining forces with another firm," Zaremski said. "Firms recognize that they need to merge because they need to be more competitive and more efficient, but it's especially hard for firms to take a jump like that in uncertain times," he said.  Zaremski predicts more mergers as the economy improves and firms become more certain of their own finances and those of potential partners. "[The mergers] might make them not only more efficient, but also more competitive," he said. "Some firms might see themselves in a better position to weather the next economic storm."

 

Law360

Not All Attorneys Face Bleak Times

By Shannon Henson, March 26, 2009

Though every day seems to bring news of firm layoffs, attorneys in bankruptcy, white collar crime, executive compensation and a few other practice areas should stay busy, and some may even see a spike in work opportunities. Work is either plentiful or will increase in fields ranging from employment to securities in litigation relating to the economic downturn, as the Obama administration starts to implement its policies.  However, consultants cautioned that even partners and associates in busy areas may be greeted with pink slips and compensation cuts. "If you're not productive or aren't carrying your weight, you're going to potentially be a target of a layoff or, at the very least, compensation cuts, whether you are a partner, an associate, a staff attorney or a legal secretary," said Jack Zaremski, president of Hanover Legal Personnel Services. 

However, certain practice areas are busier than they have been in any other period in recent times. Bankruptcy and restructuring work is the big winner as more and more companies find they can't make a go of it. "Bankruptcy is the consummate countercyclical area," Zaremski said. "Bankruptcy attorneys are unquestionably more valuable than they were before the crisis. It is like being a real estate associate during the real estate boom. Just a year ago real estate and finance attorneys were extremely valuable, and now no one will hire them." ... Legal observers believe white collar work will be abundant given the "massive fraud in our economy," according to Zaremski.  However, he cautioned attorneys who practice in the area not to get too comfortable. "There's no question that associates and partners in bankruptcy and white collar crime are being reviewed and asked to leave if they aren't producing, even though, by and large, people are expecting those practice areas to carry more than their normal share of the load," Zaremski said.

 

Law360 

Partners Gulp As Clifford Chance Votes To Scale Back

By Anne Urda, March 20, 2009

As Clifford Chance LLP holds a vote on cutting back on the size and shape of its partnership, other firms are likely to take stock of their own partnership structures as they continue to grapple with navigating through a seemingly endless economic storm, according to legal experts... "Certainly, other firms are doing it or are seriously considering it," said Jack Zaremski, president of Hanover Legal Personnel Services Inc., a Manhattan-based law firm consulting and attorney placement firm. "This is not unique to Clifford Chance. Everybody is being evaluated up and down no matter their rank at the major law firms." While there are still vestiges of security in the partner designations at places like Sullivan & Cromwell, Simpson Thacher & Bartlett and Debevoise & Plimpton, to name a few, the idea that partnership is akin to academia's tenure track is now long gone, according to Zaremski. "At the old, large primarily New York-based firms, the equity partners still enjoy a bit of tenure," he said. "With the exception of the truly great old firms, though, it's just business. Everybody's being evaluated along the same lines." ...

In the wake of the economic crisis, law firms are beginning to understand that they have to operate more and more like businesses and that status should not trump the bottom line, according to Zaremski.  "At this point a $20,000 paralegal has a better chance of being retained than an $800,000 partner who is viewed as being a drain on the bottom line," he said.  "Distinctions that might have had significance in the past, don't so much anymore." Yet, not everyone is in danger, as firms are still hoping to trim the fat rather than cut into the muscle. "Really, the muscle is what's driving the firm forward and keeping it afloat," Zaremski said. "If you are a significant rainmaker and are bringing a substantial amount of business to the firm, you will still be safe by and large. Those with portable business are life preservers -- firms are holding on for dear life." That's not to say, however, such people cannot be turned out if the firm where they are practicing turns out to be unstable. "The ship can capsize," Zaremski said. "New York is on the ocean, and we are in the midst of a serious storm."

With three major firms closing shop in the last three months, Zaremski predicts that more casualties are to come. "Very frankly, there is no guarantee that we are going to get out of this, and there is a question of what everything will look like after the storm. It could be a very, very different picture," he said. "These days, law firms are forced to think of themselves in a pure business sense. It's a matter of survival." ... "Historically, once you did make that jump to partner, you were thought of as protected," Zaremski said. "But partnership doesn't imply ownership anymore. I think you will see a leaner and meaner management across the board and more rigorous review and more frequent review.

 

Law360

More Partner Lateral Moves Than Ever Expected In '09

By Shannon Henson, March 12, 2009

Amid the economic downturn and widespread associate layoffs, a record number of partners will make lateral moves in 2009, legal consultants predict. There is more job movement in unstable markets such as the current one because lawyers don't want to wait it out at poorly performing firms, consultants said. The economic downturn has also prompted many partners to reassess their careers and consider whether they are in the best spot for the long haul, experts said.

Last year, there were more than 2,500 partner lateral moves across the country -- a record-setting number, said Jack Zaremski, president of Hanover Legal Personnel Services. "Partners are looking for more stable ships, so to speak. And a lot of firms are unstable right now," he said... Partners are more comfortable with switching firms because the perception of partner movement has also changed in recent years, said Zaremski. "Lateral partner movement has become de-stigmatized, and that's a significant factor," Zaremski said. "As little as five years ago, it was something that was really shunned upon. A certain kind of loyalty was expected, and partners were supposed to stay where they were. That mentality almost doesn't exist at all anymore. Now, partners are expected to be exploring options. It's just business." ...

 

Law360

Ditching Deadweight Partners Can Buoy Firms: Experts

By Erin Fuchs, March 11, 2009

Responding to the report that DLA Piper's United Kingdom offices have recently shed 7 to 8 percent of their partnership, a prominent New York legal consultant said that cutting deadweight at the highest levels could help firms stay afloat amid the recession.  On Wednesday, a leaked memo revealed that up to 8 percent of DLA Piper's partners have recently left its U.K. office, Legal Week reported. The memo said that since June the London office has hired only 37 employees but lost 145, according to the report...

Law firm consultant Jack Zaremski told Law360 on Wednesday that the loss of partners could affect DLA Piper either positively or negatively, depending on whether these partners contributed to the firm.  The firm could suffer if it lost moneymaking partners, said Zaremski, president of New York-based legal recruiting company Hanover Legal Personnel Services Inc.  But, he added, "If what they're losing is essentially deadweight, it will help." The most salient lesson lawyers should glean from the DLA Piper cuts is that law firms are targeting partners for layoffs just as much as they're targeting associates. "Your mere status is no longer sacrosanct," he said. "It's no longer going to guarantee anything.""The mere fact that you have partner status doesn't assure you of anything these days," Zaremski added. "You have to be pulling your weight more and more at these firms."

He also pointed out that DLA Piper is one of the firms with the greatest amount of partner movement right now in both directions.  Hanover reported last month that DLA's U.S. offices gained 58 partners in 2008 but lost 37 partners -- making it both one of the nation's biggest lateral losers and one of its biggest winners.

 

Law360 

McGuireWoods Cuts Salaries For New Associates

By Ryan Davis, March 06, 2009

McGuire Woods LLP said Friday it had cut salaries for the first-year associates who will join the firm in September by 10 percent. A firm representative also said McGuireWoods was freezing salaries for all current associates at 2008 levels, but was not planning any layoffs and has not rescinded any job offers. The firm has not announced any layoffs to date...

Jack Zaremski, a law firm consultant and president of New York-based legal recruiting company Hanover Legal Personnel Services Inc., predicted last year that salary freezes would be the tip of the iceberg if the economic dip continued. "Everybody understands that there is tremendous inefficiency in the legal market. They are going to have to trim a lot of fat going forward, and that might be reflected in decreased compensation," Zaremski said last year. "Law firm associates might have to be flexible with their salaries if they wish to keep their jobs in a time of such economic crisis, according to Zaremski.  "All these things that associates were getting used to in boom times, they might just have to accept the fact that we're in a very different economic climate now," Zaremski said. "Great firms are making difficult decisions about how to stay afloat." ...

 

Law360

Technology Threatens To Displace Associates Further

By Anne Urda, February 20, 2009

As law firms seek to restructure operations to survive the current recession, legal experts predict that technology will cut into the work previously performed by associates as firms wrestle with dueling pressures of how to keep costs low and clients happy... Jack Zaremski, a law firm consultant and president of New York-based legal recruiting company Hanover Legal Personnel Services Inc., said that the issue is not about leverage or technology as much as it is about the bottom line. "The issue is being as efficient as possible," he said. "If there are situations where technology can do work that attorneys used to do - whether they were associates, counsel or partners - firms will be much more inclined to use technology." 

Right now, firms must not only consider how to cut costs but also how to retain clients in the current buyers' market, Zaremski said. "When you start out as an associate in law school, you don't really know anything but often firms are billing out first-year associates at $300 an hour and up," said Zaremski. "If I were a client paying for somebody who doesn't know anything, I would think that's exorbitant and a waste of money and it is."  For years, clients have essentially been paying for associates to learn the ropes and get up to speed, but those days may be numbered. "Clients are much more empowered to make demands that they might not have felt they needed or could make before," he said. "All this time that clients were in effect paying law firms for training their associates ... some of the firms are going to feel more pressure to maybe absorb those costs themselves." ... "I think some firms may start re-evaluating the billing rates of their associates, and make those rates become more in sync with the real value and associate expertise that they are bringing to the table," said Zaremski. 

If firms are able to reduce the costs passed onto their clients by embracing technology and other cost-cutting measures, such a move could in turn make them more competitive in the marketplace, according to Zaremski. "I certainly see corporate clients working with law firms on how to contain costs and firms actively offering to help," he said. "There is not an infinite amount of money to go around or even that feeling anymore. So firms are going to have to compete for the business there is and for the money that is being spent." ...

Zaremski also believes that some of the work may be shipped elsewhere as firms continue to look for the point of equilibrium between quality and cost. "My sense is that we are going to see more outsourcing," he said. "If firms believe that they can maintain the quality of work and lower costs, they will seriously consider outsourcing where they might not have before."  Given the unusual economic circumstances firms face, they will not hesitate to employ whatever weapons are at their disposal even if they shied away from doing so in the past, Zaremski said.  "Areas that used to be considered safe and sacrosanct" no longer exist, he said. "Nothing is certain anymore," Zaremski added. "This is much more about pure business and being as competitive as possible in an increasingly difficult marketplace." ... "Right now, firms are feeling empowered, in a sense, to make cuts where they otherwise might have felt less compelled or able to do so," he said. "The environment is just so tough that it's not only accepted but expected." ... [T]he sense is that we do not see the light at the end of the tunnel right now in terms of recovery, and there are hard times ahead for the indefinite future," said Zaremski. "As long as we're in tough economic times, firms will be looking to cut costs wherever they can."

 

Law360

Even Partners Face Ax As Law Firms Cut Deeper

By Christie Smythe, February 4, 2009

Layoffs at law firms are spreading to the partner ranks, as a recent announcement by Clifford Chance LLP shows, indicating that seniority is now taking a back seat to harsh economic realities, even for the biggest fish in the legal pond. The international firm announced Wednesday that it would "review the shape and size of the firm's partnership," in a move that "is likely to result in an overall reduction in partner numbers" if approved by the firm.

Until this past year, attorney layoffs in general at major firms were somewhat taboo, and the partner level was often considered as solid as tenure at a university, said Jack Zaremski, president of legal recruitment and consultancy firm Hanover Legal Personnel Services. But all that has changed with the current recession, he said. "It just all comes down to basic business," Zaremski said. "If you're not sufficiently successful, you're going to be a target of a layoff."

 

Law360

Crisis Could Bring Opportunity For Female Lawyers

By Anne Urda, January 16, 2009

While the economic crisis has hit the legal market particularly hard over the past year, some legal experts predict the financial turmoil may prove to be a rare opportunity for female attorneys as they continue to vie for their place in what many still consider to be a man's world...

[T]hough layoffs are taking place left and right at the major law firms, the reshuffling could work to female attorneys' advantage, according to Jack Zaremski, a law firm consultant and president of New York-based legal recruiting company Hanover Legal Personnel Services Inc. "I am very optimistic [as to] the impact that all the law firm turmoil will have on women in Big Law," he said. "There are going to be opportunities for female attorneys as well as other diversity groups."

With firms beginning to re-evaluate their business strategy, they have a chance to embrace a retooled development plan, and some may look to retain more women and minorities, according to Zaremski. "Firms are in restructuring mode," he said. "The layoffs are at least in part motivated by the recognition of the need to trim a significant amount of fat from the law firm machines and produce more efficient firms going forward as a result." Part of that will be implementing certain policies that make law firms better and healthier places, with women likely to be the beneficiaries of such changes.  "It is pretty universally accepted that enhanced diversity, which includes the hiring and elevation of female attorneys, is part and parcel of a healthier, better work place at law firms," Zaremski said... Many women are also stymied by the notion that they will shortly leave to start a family or do something else, according to Zaremski. "There is no question that it's still an issue," Zaremski said. "I think it's naive to not think that part of the consideration as to whether or not it will be a successful hire is the extent to which they are available to work." ... "Even with the possibility that they will take time off or go on maternity leave, the benefit to the firm of having high-quality female attorneys certainly outweighs the costs," Zaremski said.  More and more firms are beginning to embrace that idea as they seek to restructure their outfits in the midst of the crisis, Zaremski said. "There are a great many players, and some are better managed and some are worse managed. We just saw four of the AmLaw 200 firms disappear over the last year."

Zaremski pointed to the recent suggestion made by Cravath Swaine & Moore managing partner Evan Chesler to do away with the billable hour at law firms as a sign that the times are changing. "Part of his idea is to make law firms more efficient and healthier places," Zaremski said. "It's all related in the sense that some places just have a better understanding and appreciation [of] how it is in the firm's benefit to have prominent and talented female attorneys, not only as part of their staff but as part of their management."  Zaremski predicted that the firms that seize the opportunity to hire and promote talented female attorneys would be the ones to thrive in these tumultuous times. "Firms at the forefront of increasing the involvement of women in management and more broadly are much more likely to be successful in the future -- similar to how firms that are on the forefront of other aspects of diversity hiring and promotion of minority groups do well," he said.

Most people agree that there are significant problems with the way firms have been operating, with the dearth of women and other diversity groups a factor, according to Zaremski. "Firms still have a long way to go, and it's a great opportunity for women," Zaremski said. "There is a tremendous amount of support to do things like recruit extraordinarily talented women and also promote them to positions of management within firms."  As always, some firms will take more advantage than others during the economic crisis to make changes, Zaremski said. "Turmoil presents opportunities for the implementation of some good policies," Zaremski said. "You have to be ready, willing and able, and courageous enough to change the old and entrenched ways of doing business." ...

 

 

Milberg rides Madoff

By Hilary Potkowitz, January 5, 2009

Bernard Madoff is said to have ruined many a fortune, but for one law firm, history's largest alleged Ponzi scheme is opening the door for a comeback... Some in the legal community think it will take more than a few prominent hires to dissipate the cloud of disdain. "I'd still feel uncomfortable placing attorneys at Milberg," says Jack Zaremski, president of legal search firm Hanover Legal Personnel Services Inc. "You don't go from your name partners acting criminally, and the firm negotiating a plea agreement in order to stay in business, to becoming a respected player in the New York legal community in the space of a year."

 

Law360

Struggling Thacher To Advise On Bailout

By Ryan Davis, December 18, 2008

Thacher Proffitt & Wood, which last week began seeking a merger to avoid dissolution, has been selected by the U.S. Department of the Treasury to advise on the government's Wall Street bailout. In a statement Wednesday, the Treasury said Thacher will be paid no more than $500,000 to help the government handle investments that involve purchasing toxic asset-backed securities...  "My first reaction is that it's great for Thacher Proffitt that the government is expressing confidence in them," said Jack Zaremski, a law firm consultant and president of New York-based legal recruiting company Hanover Legal Personnel Services Inc.  "It doesn't surprise me that Thacher Proffitt is getting a contract with the government.  There are great attorneys there even though the firm is unstable."  However, the small size of the contract means that it "doesn't seem very significant" to the firm's overall viability, he added. Zaremski said that it's likely the government and Thacher Proffitt took into account that the firm could dissolve and allowed for the attorneys working on the bailout to take the work with them to new firms in that event.

 

Law360

Latham & Watkins Opts for Salary Freeze

By Anne Urda, December 16, 2008

Seeking to reduce costs, Latham & Watkins has opted to freeze associate pay for the upcoming year as the firm attempts to stick to a no-layoff pledge in the midst of the financial crisis...  Jack Zaremski, a law firm consultant and president of New York-based legal recruiting company Hanover Legal Personnel Services Inc., contends that Latham's management likely only took the step after staring at decreased revenues for 2009 and calendar year 2008. "Latham is one of the planet's great law firms," Zaremski said. "I think that it would be somewhat inappropriate to assume that they are doing anything underhanded. My interpretation would be that they are just making these decisions based on the difficult economic climate."

Associates must be reminded that they are not the only ones who are taking home less money than desired, with partners forced to cut back in these times as well, Zaremski said. "Certainly, partners are anticipating taking home less money, and I would imagine their decision is to just spread that decrease with respect to revenue across the board," he said. "I don't think it's anything pointed at the associates or making any statement." ... "With more and more legal layoffs taking place every day, a firm's ability to maintain the associate salary structure is somewhat of an achievement in and of itself, Zaremski said. "Right now, we're really in an economic and political tsunami," Zaremski said. "Given the storms we are in, people should by and large appreciate the fact that they have a job and employment and a place to go to work every day."... 

Law firm associates do need to mentally readjust to the difficult times they now face rather than pine for days gone by, according to Zaremski. "Associates have become used to making significant bonuses in boom times, but we're not in boom times anymore," Zaremski said. "All these things that associates were getting used to in boom times, they might just have to accept the fact that we're in a very different economic climate now. Great firms are making difficult decisions about how to stay afloat." If the economy does not improve in the next year or so, attorneys could be looking at far worse than salary freezes, Zaremski said. "I would anticipate that attorneys across the board will be looking at decreased compensation, certainly if the economy doesn't improve," he said. "Everybody understands that there is tremendous inefficiency in the legal market. They are going to have to trim a lot of fat going forward, and that might be reflected in decreased compensation." Given the universality of the current economic crisis, Zaremski doubts that the move will damage Latham's reputation or recruiting efforts in the long run. "I think Latham has a very long history of a tremendous work product attracting some of the very finest attorneys in the legal community," he said... "[T]he more savvy attorneys will have an appreciation that Latham is doing what they have to do."

If anything, Latham might come out on top by being perceived as exercising sound business judgment in such trying times, according to Zaremski... "Perhaps Latham should be given some credit for having the courage to take a stand and say, 'Look, times of indefinitely increasing associate compensation and bonuses are suspended at the very least until we have a better sense of what the economic future holds for us,'" Zaremski said. While negative publicity is always tough to weather, Latham may be in a better position in the end for just biting the bullet and taking the hit now, according to Zaremski... "It stands to reason that freezing salaries and reducing bonuses are two of the most obvious ways to prevent costs from escalating, and I am sure firms are going to be doing a lot more than that," Zaremski said. "Those firms that are scared of adverse publicity might end up paying a price in 2010 if the economic downturn continues..."

 

Law360

Arrest the Death Knell For Dreier LLP: Experts

By Anne Urda, December 8, 2008

... "It stands to reason that there is tremendous unrest, instability and insecurity at Dreier for the lawyers still there," said Jack Zaremski, a law firm consultant and president of New York-based legal recruiting company Hanover Legal Personnel Services Inc. "The entire management of the firm was left in the hands of Dreier as the sole equity partner. As a result, the whole firm has been left in the lurch." The demise of Dreier is not a question of if but when, given the firm's apparent lack of a backup plan, Zaremski said. "This is a horrible example of a firm that wasn't hedged with respect to its own management," he said. "When you have a sole equity partner, in the aftermath of a calamity, the firm might very well cease to exist." ...

"I would venture to say that as many as half of Dreier's attorneys will have a very difficult time if the firm does indeed collapse," said Zaremski. "For those that won't be able to find other employment, this is a great opportunity to venture out on their own or explore options outside of the practice of law." Zaremski predicts that some of the displaced attorneys will be welcomed with open arms at other firms, depending on the portability of their business. "If you are in a countercyclical area such as bankruptcy, white-collar or employment, or if you have substantial portable business, it should not be difficult to find another firm," Zaremski said... For the attorneys left, the key is to move quickly since their value continues to diminish as more and more is revealed about Dreier, according to Zaremski. "Everybody on the market understands that this is a close-out sale," Zaremski said. "They do not have an infinite amount of time to find the best future home. They need to find something quickly." "Whether clients follow their former Dreier attorneys to their new homes remains to be seen, but some business is sure to be lost in the transition given the circumstances, according to Zaremski... "Right now, attorneys in the firm are in a frenzy as to what to do next," said Zaremski. "They are a ship without a rudder, and we are in a tsunami facing multiple storms -- economic, political transition, etc. There could not be a worse time to be left rudderless."

 

Law360

Kirkland & Ellis' Unlimited Vacation Policy: Pointless?

By Denise Oliveira, December 3, 2008

Kirkland & Ellis LLP's decision to offer "unlimited" paid vacation for associates could boost morale at an otherwise gloomy time.  But it will be of little practical value to associates who prefer a cushy paycheck over vacation days they probably won't use.  Law firm management is getting better at understanding the need to provide associates with the means for balancing their work and personal lives, said Jack Zaremski, a law firm consultant and president of New York-based legal recruiting company Hanover Legal Personnel Services Inc. "But if in fact this is a way of eliminating the paid vacation system so that the firm isn't obliged to pay associates for unused vacation time, that's another question," Zaremski said, noting that without more information he was not passing judgment on Kirkland & Ellis' underlying motives.

 

Law360

Alternatives Abound for Law-Leery Attorneys

By Ben James, October 20, 2008

... Economic turbulence, in tandem with general dissatisfaction, has left a slew of attorneys looking for new jobs, or considering alternate career paths, said Jack Zaremski, founder and president of Hanover Legal Personnel Services Inc.  "There are more lawyers now than any time I can remember looking for work and considering other career paths," Zaremski said.  For some, the current environment could prove to be a blessing in disguise, Zaremski added.  The downturn could provide chances for attorneys to think back on what their true passions are and move in that direction, he said.  Raking in a six-figure salary can be addictive -- essentially amounting to what Zaremski called "golden handcuffs."  Once a person gets used to bringing in a lawyer's salary, it becomes hard to imagine living without it, which can limit the exploration of other options, he said.  Ultimately, what determines the best career path for a lawyer is that person's individual desires and goals, Zaremski said, adding that for those willing to take risks, opportunities abound. "Think about the tremendously wide array of possibilities out there, both old and new opportunities, and just go for it," Zaremski said. "Take the risk. Take the jump."

 

Law360

Note To Managing Partners: The Time To Act Is Now

By Denise Oliveira, October 14, 2008

The fate of law firms that have taken a hit in the current financial turmoil rests largely in the hands of their managing partners, who need to act quickly, wisely and forcefully to help their firms weather the storm, experts say... "Try to steer the ship a little more conservatively," said Jack Zaremski, a law firm consultant and president of legal recruiting company Hanover Legal Personnel Services Inc. Markets always rebound and the firm will need a strong corps in place when it does, he said, cautioning against massive rounds of layoffs. "The firms that have really acquired reputations of strength and have become attractive, especially for attorneys wanting to move laterally, are those that have avoided the temptation to reduce staff in tough times," Zaremski said. "Firms that become less attractive are those that have a reputation for acting in more extreme ways. Attorneys are very sensitive to firms and their policies vis-a-vis laying off attorneys, or retaining them," he said.

And though it may be counterintuitive, this is actually a good time for managing partners who can afford to do so to acquire new talent for the firm and build for the future.  "It's obvious, but the firms that are always hardest hit in crises like these are the ones that aren't diversified," Zaremski said, advising firms to expand their capabilities so they are less dependent on the type of deal work formerly generated by Wall Street. "And it's never too late to diversify," Zaremski added.

 

Lawyers lose jobs, Wall St. to blame

By Hilary Potkewitz, September 1, 2008

Lawyers are following bankers, as usual--right out the door.  In the wake of massive layoffs on Wall Street, law firms have been quietly letting go of staffers whose services are no longer needed now that financial deals have dried up... "New York is the most competitive legal market in the world," warns Jack Zaremski, president of legal recruiting firm Hanover Legal. "For a law firm, either you're swimming well or you're sinking."

 

Law360

Laid Off Lawyers May Have To Look Beyond Big Apple

By Denise Oliveira, August 01, 2008

In a city that reportedly has over 90,000 practicing lawyers, what happens to young and mid-level associates who suddenly find themselves unemployed in New York?  That is undoubtedly the question the 96 corporate attorneys laid off from Cadwalader, Wickersham & Taft LLP Wednesday - many of them in New York - are asking themselves...  "There is no way major firms can absorb all these attorneys," said Jack Zaremski, founder and president of Hanover Legal Personal Services Inc., an attorney placement company in New York City...  It may be easier to get hired by firms in New York City that are doing international work, or that are headquartered elsewhere but have offices in the city that focus less on the financial market, Zaremski said.

 

Layoffs hit law firms

Credit crisis means fewer transactions; more jobs will go

By Hilary Potkewitz, December 08, 2007

Over the past few weeks, several of the city's most prestigious law firms have done something that law firms do under only the direst of circumstances. They have laid off lawyers. "Having to lay off associates is the worst nightmare in the minds of law firms," says Jack Zaremski, president of placement firm Hanover Legal Personnel Services. "It can take a firm years to get rid of the stigma that they laid people off." Mr. Zaremski says he's seen a marked increase recently in the number of associates from the likes of Thacher Proffitt and Cadwalader talking with his firm. "Let's just say that we expect to be working with a lot more of them in the very near future."

 

 

Tidal Wave of Lawyers Nears, Bar Data Forewarn

By ANNIE KARNI, Staff Reporter of the Sun, December 4, 2007

Even with 91,000 practicing attorneys in the five boroughs last year, a new wave of lawyers is hitting the city, as a record number of law school students are taking and passing the state bar, according to data provided by the New York State Board of Law Examiners.  "There is a glut of attorneys in New York, and there always will be," the president of Hanover Legal Personnel Services, Jack Zaremski, said in an interview.   The total number of lawyers in America is now about 1.14 million, according to the American Bar Association, and more than one in 10 live and work in New York.

"There isn't going to be a decrease in demand for the very best talent, but that doesn't indicate much at all," Mr. Zaremski said. "There are plenty of attorneys who are happy to accept very low-level, mind-numbing positions doing whatever's at the bottom of the barrel." The surplus of lawyers has created an entire industry that places attorneys in law firms on a temporary basis, Mr. Zaremski said.

 

 

Law Firms Racing To Boast Best Pay

By Joseph Goldstein - Staff Reporter of the Sun, November 2, 2007

The race is on to see which of the city's top law firms will boast the best-paid associates...   [The] interpretation that these early and generous bonuses are meant to ward off a salary war next year has few adherents.  "That's just speculation," a recruiter, Jack Zaremski of Hanover Legal Personnel Services, said. "My instinct would be the opposite.  This is an indication that firms would be interested in taking base compensation to the next level as well."

 

Lawyers tussle over retirement age

Some top local firms reconsider policies as city pans mandates

By Hilary Potkewitz, September 2, 2007

The American Bar Association's denunciation last month of mandatory-retirement policies at law firms has sent a ripple through many of New York's top firms--more than half of which show partners the door at ages ranging from 60 to 70...  "There is no question that firms with relaxed retirement policies are magnets for older partners who are productive--much to those firms' benefit," says Jack Zaremski, president of attorney search firm Hanover Legal Personnel Services Inc. ... These advantages are helping firms like Miami-based Greenberg Traurig and Chicago-based Seyfarth Shaw develop strong, 200-plus lawyer practices in New York, says Mr. Zaremski, who has referred candidates to both firms.

 

Taking a fast track to partner

Firms opening NY offices; lawyers eager to advance find each other

By Hilary Potkewitz, July 28. 2007

"You just really aren't taken seriously as a national or international player unless you have a significant presence in New York City," says Jack Zaremski, president of legal search firm Hanover Legal Personnel Services Inc. "If you're truly interested in being a partner in New York, you should really think hard before leaving a New York firm prematurely," Mr. Zaremski warns.

 

The News & Observer, Raleigh, North Carolina

Law firms boost starting pay

Entry-level salaries rise to $115,000 as a stronger economy creates legal work

By Karin Rives, Staff Writer, February 28, 2006

It's an economic indicator of a different sort: Entry-level lawyers are making more money.  As in $115,000 a year, up from $100,000.  With graduating students finding more employment options in general, firms in Los Angeles, New York, and other big cities began to boost pay several months ago.  "It was just a matter of time before the smaller markets would follow suit," said Jack Zaremski, president of New York City-based Hanover Legal Personnel Services, which places people nationwide. "It's a domino effect."

 

 

Law firms face wage push

By Tommy Fernandez, January 2, 2006 

After holding the line for five years, the city's law firms are soon likely to feel pressure to raise attorneys' starting salaries...  This is all about marketing, about firms drawing attention to themselves," says legal recruiter Jack Zaremski, president of Hanover Legal Personnel Services Inc. "New York is the most competitive legal market on the planet. Firms will do whatever they can to put themselves in the spotlight." "My gut feeling is that this is not going to touch off a salary war--certainly nothing like what we saw during those days of irrational exuberance," Mr. Zaremski says. "To be frank, most law firms are still stunned by the excesses of five years ago."

 

New York Bulls

By Tommy Fernandez, January 6, 2006

Manhattan is back...  Wall Street is gaining momentum, and that means there's going to be more hiring in the biggest, most important areas of the legal profession in New York:  general corporate and mergers and acquisition work," says Jack Zaremski, president of Hanover Legal Personnel Services Inc.

 

Firms told:  No lip service

Over the past year, more law firms using the power of the purse to advocate for diversity at firms that represent them

By Tommy Fernandez, September 19, 2005

In the 26 years since Joan Guggenheimer got her J.D. from Columbia University, the nation's law schools have graduated growing numbers of women and minorities. Yet the vast majority of the partners at the top New York law firms are still white men... "Law firms these days are paying a great deal of lip service to the overwhelming need for increasing their diversity hires and promotions," says legal recruiter Jack Zaremski, president of Hanover Legal Personnel. "Very few are doing anything more [than that] in practice."

 

Prosecutors going private for white collar dollars

Firms vie for skilled lawyers as zealous AGs boost demand; some too pure to play

By Tommy Fernandez, July 18, 2005

David Kelley is a prime potential player in the law firm arena," says recruiter Jack Zaremski, president of Hanover Legal Personnel, who has helped many prosecutors find jobs in the private sector. "The compensation packages offered to him will be extremely interesting. The sky's the limit."

 

Out-of-towners reshape city's legal landscape;

More firms open outposts to grab share of lucrative local business

By Tommy Fernandez, April 25, 2005

The nation's law firms are storming Manhattan.  A lot of the out-of-town firms are the most ambitious in this city, when it comes to growth," says recruiter Jack Zaremski, president of Hanover Legal Personnel Services Inc. "They are driving most of the lateral movement in the New York market now."

 

Major firms held in contempt

By Tommy Fernandez, February 21, 2005

"I'd say that over half of the attorneys in New York are unhappy with their current situations," says Jack Zaremski, president of Hanover Legal Personnel Services Inc. "This makes them ripe for movement, as long as there are firms willing to offer what they want." Mr. Zaremski says that many attorneys in New York are so discontented that he is luring them away with minimal salary increases, if any. A lot of attorneys don't want heaps more money, he says, just work arrangements that better suit their needs. "In this tight market, law firms have to work harder to create cultures that actually make lawyers happy," says Mr. Zaremski, who sits on a state bar committee studying quality-of-life issues.

 

Lawyer temps give clients more power of attorneys

By Tommy Fernandez, July 21, 2003

...Some firms are loath to cede control of temp hiring to their clients, and some of these clients, in turn, are reluctant to push them.  Consequently, recruiters like Jack Zaremski, president of Hanover Legal Personnel Services Inc., are widening their efforts to target corporate officers. Executives can save a ton of money by using temps," Mr. Zaremski says. "It's just a good business proposition."