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Expansion in der Rezession

In Zeiten nach hinten verlegter Associate-Einstellungstermine, Associate-Entlassungen und angedachter Gehaltskürzungen wirken solche Berichte wie aus einem Parallel-Universum:

A question: Could the grim economic times be a recruiting boon for firms like Wachtell, Cravath, and S&C? These firms are known for being "hard core" and intense; they're not the easiest Biglaw shops to work for. They're all known for punishing hours, especially Wachtell; Cravath has those bedbugs; and S&C has those lawsuits, filed by allegedly abused associates.

But these firms are unbelievably profitable, extremely stable financially, and so invested in their institutional prestige that they'd rather take a hit to their sky-high profits per partner than to their reputations. This makes it highly unlikely that they'd ever lay off associates or cut salaries (or, in Wachtell's case, dole out bonuses below 50 percent of base salary).

Will such super-elite firms become the "hot" firms in the next recruiting cycle, as law students with their pick of offers opt for their relative safety? Sure, there may be firms out there that are "cooler," "kinder and gentler," or more "lifestyle-oriented" than Cravath, S&C, and Wachtell. But are they worth the downside risk?

Full post as published by jurabilis - German bLAWg from Berlin. on May 24, 2008 (boomark / email).