Corporate Associates Lack Skills As transactional practices make a come-back, firms are finding a lack of mid-level associates with real experience. The problem is two- fold – lawyers admitted in 2000 and 2001 have not had the opportunity to work on the mergers and acquisitions necessary to hone their skills. At the same time, partners’ expectations of the skill level of mid-level associates remain at pre-recession levels. The result is a very strong, lateral hiring demand for senior associates who would normally be considered too close to partnership consideration to hire.
High Turnover Drives Marketing Director Compensation In many firms, the position of Marketing Director is a revolving door. The problem seems to be that firms tend to hire either candidates who are too highly qualified for the level of authority the firm is willing to delegate or under-qualified for the partners, expectations. The result is rapidly increasing salary levels for marketing directors – often rivaling or exceeding what firms are paying CFOs or IS Directors.
Associate Billing Rates
Class Year
East
Central
West
2002
$250
$165
$204
2001
$275
$176
$240
2000
$304
$187
$270
1999
$329
$206
$298
1998
$350
$220
$320
1997
$370
$238
$342
1996
$403
$252
$356
Law firms are finding increased associate rates as a “below the radar” means of boosting profits. Many general counsels focus on the highest partner and lowest associate rates, all but ignoring mid-level associates. The result, for some firms, is compression of partner rates and large rate jumps between first and second year associates. For benchmarking purposes, the chart is from a survey of law firms with over 100 attorneys late last year as published in the newsletter, Partner Report.
Outsourcing Hits Law Firms UK “Magic Circle” firms have moved substantial portions of their litigation support and document production work to India to cut costs. Allen & Overy moved half of its document production department to southern India last year and Eversheds is in the process of reviewing all of its back-office functions for outsourcing potential. Although Wall Street’s Milbank, Tweed, Hadley & McCloy is considering moving some transcription work to India, most firms don’t have the volume to justify moving work overseas.
Wellness Programs With skyrocketing health insurance costs, some firms are revisiting wellness programs as a comparative inexpensive response. White & Case offers onsite health seminars, blood pressure monitoring and weight loss groups. Arnold & Porter pays associates and staff a $200 annual bonus if they exercised an average of three times a week. Kirkpatrick & Lockhart plans to design a weight loss program around activities selected through a questionnaire they circulated to all lawyers.
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