Take the Money. Then Run! Part 2
-My son, Harrison, during his graduation from Cornell.-
Since I gave up my national newspaper column with 3+million readers several decades ago, nothing has drawn the response that I have received from my article about my Ivy League son, Harrison, and why he should consider getting a JD along with his MBA.
Lawyers from top schools working at top firms can be making $500,000 by the time they are 30-31 years old. That’s a lot of money. But it raises a lot of problems for young lawyers who are able to get into the big leagues. The chief problem is staying there!
The gravy train runs on a very short track. The attrition rate at Big Law is about 20% per year (18% to 26% in the last few years). Some sage online said the half-life of a Big Law Associate is 3.1 years. That means many are counseled OUT by age 28-30. This is where the problem begins.
Most of these young lawyers are not going to be able to lateral to another Big Law firm. Skadden is not going to hire a young reject from Cravath. The best a youthful, laid-off lawyer can expect is that their firm will hook them up with one of its clients as a junior in-house counsel, or they will find a job with a smaller, much less prestigious law firm. Either way, they are facing a salary cut of hundreds of thousands of dollars, money they will never see again.
The truth is that these disenfranchised ex-Big Law Junior and Midlevel Associates ARE NOT WORTH THE MONEY THEY WERE BEING PAID.
The law firms know this –they are buying talent for its future potential and what it may become over time. And just like the NY Giants $140 million investment in Daniel Jones, sometimes a promising prospect comes up short.
These 20-something lawyers don’t know diddle-squat yet – they haven’t yet had the opportunity to handle complex, meaty cases. When it comes to law, they couldn’t shine the shoes of most of my clients, who are talented, experienced lawyers in their 40s, 50s and 60s from solo to mid-size law firm practices who are making less than a first- or second year Big Law associate.
I feel sorry for the young lawyers who lose their jobs. For many, it’s the first time they have failed. They did great on their SATs, were magna cum laude at their Top 20 colleges, aced the LSATs, went to T14 Law Schools, made Law Review, and were hired by premier global law firms. Then the boom is lowered and they are in deep feces. And deep debt.
They could have college and law school loan payments of more than $2,000 per month. They are often living in apartments that are running $2,500 a month. Their Ferragamo shoes are $1,400 per pair. Membership at the Racquet Club is $300 per month. I don’t blame them if they are spending their money this way – hell, if I were 29 again and making a mint, I am not sure if I’d have the discipline to put it into a 401K and not into an M4. (Actually, I would have the discipline, but I was boring when I was that young).
One of these young ex-Big Law kids sought out my help after he lost his job. At the time, he was making around $400,000. After a few conversations, I did not accept him as a client because it became clear that he did not have any marketable talent. He told me no employers would even look at him, and he was selling his vintage Jaguar convertible to be able to pay his rent. I wanted to help him, but I don’t accept cases where I feel we can’t win. I have to believe my clients can bring significant value to an employer or I don’t take their cases. The guy ultimately found a job at an upscale coffee shop in Scarsdale.
Some young Associates make it through the Junior and Midlevel ranks and get into Year 6. I think my son Harrison could make it. But my advice to him was that as a 6th year, he should quit Big Law and get a life. I said he should either go in-house or focus on the business side of his education, and use his MBA.
Why this advice? I will address Life in Big Law in an upcoming edition. Stay tuned.
If you are an attorney and you’ve been thinking about exploring your career options and or discovering “what else is out there” for you, but are not sure how to even start the process, get in touch with our team today for a virtual cup of coffee. You will receive a confidential, no-cost consultation to discuss your situation and goals, and will also get expert advice on how to launch your job campaign.