BCG News - 11/26/08
11/26/08
Cadwalader Hold on to Rainmaker While Profits Tumble
The Lawyer has reported that Cadwalader Wickersham & Taft's profits have dropped anywhere between 20% to 65%. Wall Street was buzzing last week about the firm possibly unraveling if rainmaker Dennis Block—whose book of business is worth a reported $60m—and litigation head Greg Markel leave the firm. Cadwalader recently lost managing partner Bob Link in a power play by Block and Market after Link's strategy caused the firm to significantly dip in profits.
Buchanan Ingersoll to Cut Administrative Staff
Pittsburgh-based firm Buchanan Ingersoll & Rooney confirmed that it has been cutting staff. Firm CEO Thomas L. VanKirk said the number of legal secretaries and other administrative staff will be more than 15 but less than 25—less than 2.5 of the firm's workforce. The terminations will occur in all 13 of the firm's offices and some offices will be more affected than others, according to VanKirk. The CEO also emphasized that the cuts had nothing to do with performance issues and that many of the positions would
Simpson Thacher to Cut Bonuses in Half
In what seems to be a trend at elite law firms, Simpson Thacher & Bartlett announced smaller year-end bonuses. The bonuses—which range from a pro-rated $17,500 for first-year associates to $32,500 for eighth- and ninth-years— match the reduced rates announced Thursday by Cravath Swaine & Moore. According to Philip Ruegger III, Simpson Thacher's chairman, the numbers were essentially half of last year's.
Cadwalader Hold on to Rainmaker While Profits Tumble
The Lawyer has reported that Cadwalader Wickersham & Taft's profits have dropped anywhere between 20% to 65%. Wall Street was buzzing last week about the firm possibly unraveling if rainmaker Dennis Block—whose book of business is worth a reported $60m—and litigation head Greg Markel leave the firm. Cadwalader recently lost managing partner Bob Link in a power play by Block and Market after Link's strategy caused the firm to significantly dip in profits.
Buchanan Ingersoll to Cut Administrative Staff
Pittsburgh-based firm Buchanan Ingersoll & Rooney confirmed that it has been cutting staff. Firm CEO Thomas L. VanKirk said the number of legal secretaries and other administrative staff will be more than 15 but less than 25—less than 2.5 of the firm's workforce. The terminations will occur in all 13 of the firm's offices and some offices will be more affected than others, according to VanKirk. The CEO also emphasized that the cuts had nothing to do with performance issues and that many of the positions would
Simpson Thacher to Cut Bonuses in Half
In what seems to be a trend at elite law firms, Simpson Thacher & Bartlett announced smaller year-end bonuses. The bonuses—which range from a pro-rated $17,500 for first-year associates to $32,500 for eighth- and ninth-years— match the reduced rates announced Thursday by Cravath Swaine & Moore. According to Philip Ruegger III, Simpson Thacher's chairman, the numbers were essentially half of last year's.
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