Tracking COVID-19's effect on V100 associate pay/layoffs Forum

[lawlo]

Rx associate at 2000 YTD.

[Anonymous User]

As a BigLaw Structured Finance attorney (which CWT calls "Capital Markets" for some reason) who is familiar with BigLaw Structured Finance billing practices and also some of the types of transactions that CWT' works on, I can say with a fairly high degree of confidence the only "flat fee" work they might be doing is Freddie Mac Multifamily "Agency CMBS" offerings, which are relatively cookie cutter and high volume so any changes to precedent deals are minor. However, my guess is that wouldn''t account for more than 20% of their revenues in a typical year. The vast majority of BigLaw structured finance transactions are actually pretty complex and hard, and in my experience CWT is regarded as "elite" in most of those as well.

What drags CWT down ultimately vs. peers is being mediocre or worse in pretty much every other practice that more prestigious NYC BigLaw firms live on, including having virtually no Buy-Side or Sell-Side M&A work. Also, fwiw, revenue per lawyer (RPL) is the only metric that comes close to approximating how "bespoke" or "high value" a typical associate's work is, and CWT's is fairly respectable at $2.1 mm. Given the state of the rest of the firm's practices, presumably their structured finance folks have an RPL way above that. JMTC.

Thank you for this info. When people on this board refer to 'Capital Markets,' are they also typically referring to 'Structured Finance'? Or do you think that's mostly a CWT thing?

Sorry if it's an obvious question, and thank you for sharing your thoughts.

[Anonymous User]

As a BigLaw Structured Finance attorney (which CWT calls "Capital Markets" for some reason) who is familiar with BigLaw Structured Finance billing practices and also some of the types of transactions that CWT' works on, I can say with a fairly high degree of confidence the only "flat fee" work they might be doing is Freddie Mac Multifamily "Agency CMBS" offerings, which are relatively cookie cutter and high volume so any changes to precedent deals are minor. However, my guess is that wouldn''t account for more than 20% of their revenues in a typical year. The vast majority of BigLaw structured finance transactions are actually pretty complex and hard, and in my experience CWT is regarded as "elite" in most of those as well.

What drags CWT down ultimately vs. peers is being mediocre or worse in pretty much every other practice that more prestigious NYC BigLaw firms live on, including having virtually no Buy-Side or Sell-Side M&A work. Also, fwiw, revenue per lawyer (RPL) is the only metric that comes close to approximating how "bespoke" or "high value" a typical associate's work is, and CWT's is fairly respectable at $2.1 mm. Given the state of the rest of the firm's practices, presumably their structured finance folks have an RPL way above that. JMTC.

Thank you for this info. When people on this board refer to 'Capital Markets,' are they also typically referring to 'Structured Finance'? Or do you think that's mostly a CWT thing?

Sorry if it's an obvious question, and thank you for sharing your thoughts.

Anon above. Exclusively a CWT thing to knowledge. Technically a lot of structured finance work is capital markets work, but it’s asset-backed securities offerings rather than corporate equity or debt offerings. “Capital Markets” at most firms means those attorneys who work on traditional corporate equity/debt offerings, while asset-backed securities offerings would run through their Structured Finance practice. CWT, as far as I can tell, doesn’t have anyone doing equity/debt offerings in their Capital Markets practice, and their work would fall under Structured Finance at other BigLaw firms.

[Anonymous User]

As a BigLaw Structured Finance attorney (which CWT calls "Capital Markets" for some reason) who is familiar with BigLaw Structured Finance billing practices and also some of the types of transactions that CWT' works on, I can say with a fairly high degree of confidence the only "flat fee" work they might be doing is Freddie Mac Multifamily "Agency CMBS" offerings, which are relatively cookie cutter and high volume so any changes to precedent deals are minor. However, my guess is that wouldn''t account for more than 20% of their revenues in a typical year. The vast majority of BigLaw structured finance transactions are actually pretty complex and hard, and in my experience CWT is regarded as "elite" in most of those as well.

Having looked at their bills on other transactions, it's not just Freddies. They may be looser fee structures, but still functions within certain fee caps or expected fees.

[Anonymous User]

FWIW, Milbank had a town hall state of the firm today. Our chairman said that this will be a record-setting year by all financial metrics (hours, revenue, billings, etc.). Obviously in large part due to restructuring (to the point where we're turning matters down), but other practice groups (cap markets, project finance, lit, M&A) have all outperformed expectations.

[Anonymous User]

FWIW, Milbank had a town hall state of the firm today. Our chairman said that this will be a record-setting year by all financial metrics (hours, revenue, billings, etc.). Obviously in large part due to restructuring (to the point where we're turning matters down), but other practice groups (cap markets, project finance, lit, M&A) have all outperformed expectations.

Any idea what hiring in the restructuring group will look like over the next couple of years? I'll be coming out of a DE/SDNY BK clerkship in Fall 2021, and Milbank is of interest to me. Would also love to know more about the group in general,if you have any insight.

[parkslope]

FWIW, Milbank had a town hall state of the firm today. Our chairman said that this will be a record-setting year by all financial metrics (hours, revenue, billings, etc.). Obviously in large part due to restructuring (to the point where we're turning matters down), but other practice groups (cap markets, project finance, lit, M&A) have all outperformed expectations.

I was thinking earlier that bonuses would almost certainly be cut by 50% or more, but now I'm starting to think that won't be the case. Maybe a smaller cut. How could firms justify halving bonuses when they've had record-setting years? That won't go over well. Especially when costs are great reduced to no business travel, food at meetings, office supplies, etc.

[Anonymous User]

FWIW, Milbank had a town hall state of the firm today. Our chairman said that this will be a record-setting year by all financial metrics (hours, revenue, billings, etc.). Obviously in large part due to restructuring (to the point where we're turning matters down), but other practice groups (cap markets, project finance, lit, M&A) have all outperformed expectations.

I was thinking earlier that bonuses would almost certainly be cut by 50% or more, but now I'm starting to think that won't be the case. Maybe a smaller cut. How could firms justify halving bonuses when they've had record-setting years? That won't go over well. Especially when costs are great reduced to no business travel, food at meetings, office supplies, etc.

Milbank anon who posted about the meeting. Based on how candid our chairman was today, I would be shocked if Milbank has bonuses lower than last year -- it wouldn't go over well. They've been making an active push to be seen as a top tier firm, and market bonuses, leading on raises in the last few years, and allowing all incoming associates to start in October will go a long way in recruiting.

[Anonymous User]

I am a rx associate at a firm that cut pay and worked 220 hours last month. On pace for 290 this month but work is slowing down.


I am starting to get emails from recruiters saying firms are offering signing bonuses to rx associates. Is this true?

Is it worth it to later as a late mid/ rising senior

[Anonymous User]

I am a rx associate at a firm that cut pay and worked 220 hours last month. On pace for 290 this month but work is slowing down.


I am starting to get emails from recruiters saying firms are offering signing bonuses to rx associates. Is this true?

Is it worth it to later as a late mid/ rising senior

Band 1 creditor side rx anon: can confirm that signing bonuses are being offered to mids / seniors. My sense is it's K&E / Weil (who need bodies) and firms trying to make the jump (S&C) that are willing to fork out cash.

Deciding to lateral is very personal and depends on how you feel at your current firm, whether you're trying to make partner, whether you have client relationships (and if so, are they portable?), etc. Difficult to say anything generally.

[tbp140]

What is an rx associate? Tried to Google it but all that came up was pharmacy law?

[Trout et al]

What is an rx associate? Tried to Google it but all that came up was pharmacy law?

restructuring, insolvency, bankruptcy

[decimalsanddollars]

What is an rx associate? Tried to Google it but all that came up was pharmacy law?

restructuring, insolvency, bankruptcy

rx, also known as bk, b&r, etc.

[Anonymous User]

I am a rx associate at a firm that cut pay and worked 220 hours last month. On pace for 290 this month but work is slowing down.


I am starting to get emails from recruiters saying firms are offering signing bonuses to rx associates. Is this true?

Is it worth it to later as a late mid/ rising senior

I am a restructuring midlevel that lateraled during the pandemic and got a big signing bonus

[tbp140]

Have anyone's pay cuts been reversed?

[JusticeSquee]

FWIW, Milbank had a town hall state of the firm today. Our chairman said that this will be a record-setting year by all financial metrics (hours, revenue, billings, etc.). Obviously in large part due to restructuring (to the point where we're turning matters down), but other practice groups (cap markets, project finance, lit, M&A) have all outperformed expectations.

I was thinking earlier that bonuses would almost certainly be cut by 50% or more, but now I'm starting to think that won't be the case. Maybe a smaller cut. How could firms justify halving bonuses when they've had record-setting years? That won't go over well. Especially when costs are great reduced to no business travel, food at meetings, office supplies, etc.

Milbank anon who posted about the meeting. Based on how candid our chairman was today, I would be shocked if Milbank has bonuses lower than last year -- it wouldn't go over well. They've been making an active push to be seen as a top tier firm, and market bonuses, leading on raises in the last few years, and allowing all incoming associates to start in October will go a long way in recruiting.

Milbank is now a MARKET MAKER, so I'm confident that bonuses this year will be FLAT.

[Anonymous User]

.

[blair.waldorf]

V29 trimmed headcount in its HK office.

So Proskauer?

[Anonymous User]

Anyone heard any news on Baker Botts and interim bonuses.

[Anonymous User]

Cravath forcing associates into vacation, saying it won't roll over vacation days into the next year, offering voluntary retirement packages to staff, and asking staff to leave.

[Anonymous User]

Have anyone's pay cuts been reversed?

I'm curious about this as well. My firm has not provided an update re: when things might go back to normal, but business does seem to have picked up considerably.

[Anonymous User]

Have anyone's pay cuts been reversed?

I'm curious about this as well. My firm has not provided an update re: when things might go back to normal, but business does seem to have picked up considerably.

Same. We're business as normal, just as busy (if not more) than pre-COVID. Weekly national calls but no mention of reversing the pay cuts.

[Anonymous User]

Cravath forcing associates into vacation, saying it won't roll over vacation days into the next year, offering voluntary retirement packages to staff, and asking staff to leave.

What is the purpose of forcing associates into vacation? Aren't they still paid? Is this happening for both corporate and litigation?

[2013]

Cravath forcing associates into vacation, saying it won't roll over vacation days into the next year, offering voluntary retirement packages to staff, and asking staff to leave.

What is the purpose of forcing associates into vacation? Aren't they still paid? Is this happening for both corporate and litigation?

They probably don’t want to have to pay out accrued vacation days that associates aren’t using right now when they lateral.

[esther0123]

Cravath forcing associates into vacation, saying it won't roll over vacation days into the next year, offering voluntary retirement packages to staff, and asking staff to leave.

What is the purpose of forcing associates into vacation? Aren't they still paid? Is this happening for both corporate and litigation?

I think firms have to keep a certain cash reserve if they have a certain amount of accrued PTO. I don't remember if this is an accounting rule or state law requirement. Also, the firm doesn't have to pay out associates if/when they leave the firm.