February 2010 TOP LATERAL HIRES Photo by Nanette Kardaszeski The Group at Cozen O’Conor. Photo Caption on page 10. A Supplement to table of contents TL2 TL3 TL4 TL6 Looking at the Lateral Partner Market in What Associates Need to Know About Our Top Lateral Hires List And the Runners Up Are... 2010 Lateral Moves TL2 • Top Laterals TUESDAY, FEBRUARY 16, 2010 February 2010 Looking at the Lateral Partner Market in 2010 BY ROBERT B. NOURIAN ROBERT B. ously considered by firms. lowing: Special to the Legal, PLW NOURIAN is manag- So what changes lay ahead in 2010? Will the • Regulatory-focused practices: These ing principal of Coleman lateral market loosen up? If firms are hiring, include antitrust and competition, health care, s the business and law firm communi- Nourian, a legal search and what will they be looking for in incoming part- and financial services. With regulations con- ties breathe a sigh of relief as the books staffing firm founded in ners? tinuing to increase and enforcement now on are closed on 2009, the focus has been 1985. Along with his man- I think, for one, the market will loosen up, the rise, lawyers with regulatory expertise are A agement responsibilities, he turning squarely on the game plan for 2010. albeit marginally. While the business and legal increasingly in demand to help keep clients out Law firm leaders are hopeful that they have the maintains an active search communities often have short memories, they of trouble. practice focused on partner intensive period of crisis management behind aren’t so short that law firms have forgotten the • White-collar defense: This area will also level search and high-level them and a period of growth and investment in-house search. He also recent pain of having to quickly cut overhead, remain very active, with clients continuing to ahead. A significant component of the growth works with small law firms seeking appropriate merger lay off lawyers and have very unpleasant con- get in trouble as a result of robust and increas- and investment plan for most firms involves opportunities with larger firms. Prior to entering the versations with underperforming partners. ing government enforcement. With the current targeted lateral partner hiring. recruiting profession, Nourian practiced law as a cor- Recently going through this retrenchment federal administration, there seems to already Before looking at the lateral partner market porate attorney for major New York City and period will certainly temper enthusiasm for any be an uptick in investigations and enforcement in 2010, however, it’s useful to summarize 2009 Philadelphia law firms. He can be contacted at rnou- new spending. actions. A high-ranking Department of Justice for context. In 2009, with the large law firm [email protected]. And while profits may not look too bad when official recently said that “[c]ombating health world experiencing a decline in revenues, cli- reviewing 2009 results, those numbers largely care fraud is a top priority of the Department of ents positioning themselves for survival, and ously consider making a move. The thresholds derive from having made large cost cuts, not Justice.” They’ve been backing that up with major peer firms dissolving, many partners with for lateral partner movement were higher on from increased work. The challenge for 2010 is additional investigations. And with more state- a significant client base were asking the follow- both ends: the individual partner’s end and the to increase revenue, since there isn’t much, if ments of enforcement intent and clear activity ing questions: incoming firm’s end. any, excess cost remaining in the system. in the foreign corrupt practices area and other • Is my law firm financially healthy and is it In the 2009 climate of high risk and uncer- As clients are working to limit outside legal areas, it seems very clear that there will be a positioned well enough to survive a sustained tainty around the country’s economic health expenses, including by resisting rate increases constant and growing need for highly compe- downturn or a new financial shock to the and, on a micro basis, the stability and health of and forcing alternative fee arrangements, law tent white-collar defense lawyers. economy? a partner’s primary clients, many partners were firms need to grow their top line fees. They can • Commercial litigation: While clients have • Does it know where it’s going? If so, does it reluctant to layer on the added risk (no matter do this by organically adding new clients (a day- been keeping a pretty tight lid on “discretion- have the right strategy, the financial resources how slight) of making a move to a new firm, to-day struggle) or adding revenue by taking on ary” litigation, there are some claims and dis- and the right management to get it there? despite the benefits it may have provided. On new partners and groups who come with a putes that were deferred over the past 12 to 18 • If it does get there (wherever that is), is that the law firm side, with mandates to rein in significant fee base and new client relation- months that clients may revisit in a new, more likely to be a place where my practice fits? Or overhead and associate costs and trim back ships. stable economic climate. Some of these claims will the firm structure and resources either be unproductive partners, it was politically unfea- So for 2010, most large firms will be actively may be deemed good investments and worth too much or too little for the needs of my prac- sible for most firms to take any chances on seeking to add partners with practices that are the cost to pursue. This, along with simmering tice and clients? incoming lateral partners. That meant not deemed complementary to the firm’s existing recession-born disputes, should help drive addi- Although they were asking questions and making investments that weren’t virtual sure practices and clients that can hopefully provide tional commercial litigation. having legitimate concerns, many partners things. As a result, only partners with large and cross marketing opportunities. While litigation will likely be more active, were sitting tight in 2009, unwilling to seri- highly predictable practices were being seri- Key hot areas for 2010 will include the fol- Partners continues on TL7 February 2010 TUESDAY, FEBRUARY 16, 2010 Top Laterals • TL3 What Associates Need to Know About Lateral Moves BY FRANK MICHAEL D’AMORE FRANK MICHAEL being good lawyers, simply could not make value. Special to the Legal, PLW D’AMORE is the found- that transition. Despite all their contribu- This means that associate candidates will er of Attorney Career tions, more junior lawyers — who cost a need to point to specific experience that he recession has turned associate Catalysts, www.attycareers. firm less money — were coming up from meshes with a firm’s need, as opposed to career paths upside down. Legions com, a Pennsylvania-based behind to replace them, which is a harsh just generalized exposure to certain aspects Tof associates unfortunately lost legal recruiting and consult- reality that they didn’t understand until it of a practice. Moreover, in a market glutted their jobs, and countless others who were ing firm that focuses on law hit. with unemployed associates, firms clearly eager to start their careers were deferred firm mergers and partner As such, if this recession teaches associ- have the upper hand and thus can hold out and shunted toward short-term positions placements. He is a former ates anything, it is the value of looking for true stars. As such, doing well and hav- they never envisioned. Even those whose partner in an AmLaw 200 ahead and not just blissfully plugging along. ing experience are likely not to be enough firm, general counsel in pri- jobs were spared were impacted, as com- Engaging in firm citizenship, being a team to lateral as an associate. vately held and publicly traded companies, and vice pensation systems in many firms were over- player and collaborating with others Associates should be able to cite accom- president of business development. He can be reached at hauled to better fit the new world order. [email protected]. remains important, but those essentials plishments that unmistakably separate them There will be quite a few long-term should not obscure the need to also focus from others who are vying for the same effects from these changes, most of which, traditionally carried over to life as an asso- on where one’s career is going and how to opportunity. This actually is valuable for in this writer’s opinion, will be beneficial ciate, especially in big firms, as young law- best improve it. associates, since the examination is much for associates. This is not meant to trivialize yers were neatly put into classes, where This will now confront associates head- the same as what they will face in making a the pain caused by a job loss or the effect of base compensation and bonuses were in on if they venture into the lateral market. lateral partner move later in their career having compensation decreased, both of tight ranges that barely caused significant Those who think they don’t need not worry (although a book of business will also be which can have serious consequences. differentiation. about this should think again, as the odds of important then). Examining all those effects is outside the This methodology created a false sense anyone starting and finishing his career in From an associate’s perspective, making scope of this article. of security. Associates worked quite hard, one firm are infinitesimal in this era.