New Career Paths for Lawyers
May 31, 2007
Many lawyers today seek unconventional career paths. Instead of career ladders that envision uninterrupted, full-time, upward movement toward partnership, lawyers now think in terms of career lattices that include lateral moves, flexible work schedules, and occasional periods away from practice altogether. This highly mobile 'free agent' lawyer population creates a dilemma for law firms. Firms need a stable group of lawyers to serve their clients and become the firm's future partners and leaders. Rather than risk losing lawyers, many firms are trying inventive approaches to create more flexible career paths. Here are five current trends.
Jumping Ship (and Taking the Crew): Can Law Firm Partners Solicit Their Firms' Employees?
May 31, 2007
Recently, several prominent partners have left their law firms to set up shop with a competing establishment. As was the case in each of these instances, a partner seldom leaves the firm alone — often staff, associates, and even other partners join the new endeavor. May a departing partner solicit others to join him or her without violating fiduciary duty to the original firm? At what point must the departing partner notify the partnership of his or her efforts to recruit firm employees? This article suggests that partners may solicit attorneys and staff of their original partnership without violating their fiduciary duty, as long as the manner of their solicitation conforms to their fiduciary duty.
Subordinate Bias Liability: The 'Cat's Paw' Doctrine
May 31, 2007
Everyone knows that a manager who expresses discriminatory views and then fires or disciplines an employee belonging to the disfavored group may create a claim against the employer. But what happens when an unbiased manager relies on the recommendation of another supervisor who, unbeknownst to the decision maker, is a raging bigot?
Lost in the Clamor: Final Code '415 Regulations
May 31, 2007
Times have certainly changed. The U.S. Department of the Treasury ('Treasury') issued two sets of regulations in early April that impact employee benefits. The first set was final regulations addressing the benefit and contribution limits for qualified pension plans under Internal Revenue Code ('Code') §415. The second set, issued a week later, was final regulations governing nonqualified deferred compensation under Code §409A.
Where Does All That Associate Money Go?
May 31, 2007
Kathryn Cole, a 25-year-old who earned her J.D. last year from the University of Michigan Law School, accepted a position at Quinn Emanuel Urquhart Oliver & Hedges, LLP in Silicon Valley. Her starting pay was $135,000, but before she even began working she got a $10,000 raise. Then in January, just a few months into the job, her salary went up another $15,000.
Firms Hunting for Stars Re-examine Partner Compensation
May 31, 2007
Cleary Gottlieb Steen & Hamilton LLP managing partner Mark Walker is old school when it comes to partner compensation. He sees no reason to change Cleary's seniority-based lockstep scheme, in which the spread between the highest- and lowest-paid partner is less than 3:1. It's a no-hassle system — no long meetings explaining bonus decisions and no disputes among partners over credit for bringing in business. And it is the foundation of Cleary's culture, Walker says, which emphasizes the collective over the individual. If the firm is not a magnet for hot lateral candidates who want to be paid like A-Rod, that's okay with Walker. 'My view is that if someone says I'm not going to Cleary Gottlieb because [another firm] is guaranteeing me a salary of X, then they don't belong at our firm anyway.'
Confronting Corrupt Practices: Maintaining a Moral Compass in International Business
May 31, 2007
<i>Hide a dagger in a smile. Murder with a borrowed knife. Loot a burning house.</i> If you cannot anticipate these and the other classic 'Thirty-Six Stratagems' that are widely studied and practiced in China, you may be perilously unprepared to pursue business, including legal business, in the world's largest market. And while China may be an extreme example, analogs of these deceptive and sometimes corrupt practices appear in other cultures worldwide.
