Despite continued international economic volatility and uncertainty, recent associate hires have had pockets of strength.
In a scan of the 622 top law firms tracked in The Leopard List during the 3rd Quarter, 2008:
+ Skadden has hired / appointed 172 associates (+15.4%)
+ Weil, Gotshal, Manges: 155 associates (+20.2%)
+ Goodwin Procter LLP: 102 associates (+19.3%)
+ Cravath, Swaine & Moore LLP: 96 associates (+20.5%)
+ Winston & Strawn: 76 associates (+14.5%)
+ Fried, Frank, Harris, Shriver & Jacobson LLP: 73 associates (+15.5%)
+ Cleary, Gottlieb, Steen & Hamilton: 63 associates. (+12.1%)
Since many established law firms have traditionally managed risk and credit exposure well, how might they view recently hired associates with lower compensation/billable hourly-rate ratios? Despite ever-present consolidation risk and cost-cutting measures in the current economic environment, associates remain favorable investments.
Logically, then, these associates can be well positioned to have the longevity to develop their niches during the starting years of their practice. At the same time, the landscape may be right for these favorably priced attorneys to develop a career path through lateral moves earlier in one's career than usual. This can be especially important when an associate's caseload does not reflect strategically advantageous legal experiences. Some longer-term trends present potential areas of practice that are compatible with the rapidly shifting macro-economic environment:
+ There is an international clarion call for oversight, regulation, and litigation in the financial markets that is creating demand for third-party and in-house multi-national representation.
+ President-Elect Obama has already gotten involved on the federal and state levels in promoting regional environmental inspection and has addressed additional federal regulation. Nation-states, corporations and international organizations continue to receive significant cultural and political pressure. Additionally, alternative energy sources, and their corresponding risks, create the need for complex legal representation.
+ Non-governmental organizations are increasingly seeking a roll in national and corporate credit structuring (IMF, WTO, The World Bank).
+ Multi-national mergers and acquisitions have taken on increased breadth and complexity (InBev – Anheuser Busch, SouthEast Asian and Middle Eastern Sovereign Wealth fund investments).
+ Intellectual Properties face increased multi-national competition. Regulation and oversight increase accordingly, as equally developed regional companies pursue similar global market segments.
In all, whether these associates belong to firms with more exposure to merger or credit risk or those firms that possess the aforementioned opportunities, associates should be prepared to identify career paths further out than the current fiscal quarter. In this light, establishing longer-term relationships with well-connected recruiters in multiple markets is not ‘pant-leg tugging,’ it is a hallmark of the agile legal professional. Visit the Leopard Solutions Legal Recruiter Directory