Symbol of What Big Law Is All About: Maybe Not Cravath Any More ...

 It used to be that shorthand for talking about large powerful law firms was sliding in the brandname "Cravath." Cravath symbolized the peculiar structure, ways of doing business, power and wealth in that niche. In a series on posh living quarters, Cravath lawyers had been featured.

In addition, for years in terms of associate compensation Cravath had been the market-maker. Now, as Law.com notes, that law firm if experiencing unprecedented change and not of the usual kind. It is no stretch to conclude that the entity we once knew as Cravath may never be Cravath again.

The most attention-getting aspect of the shifting identity of Cravath is partner flight. The game in law, as in all professional services, has been about the names on the marquee. Prospects decide on whom to hire not because of the firm's brand per se but on the basis of the individual star players, their track record and the teams they have nurtured. However, with client churn and overall stiffer competition among firms the game has been stepped up. Poaching sagas that are taking place between Kirkland and Ellis and Paul, Weiss dominate the headlines. The strategies have become guerrilla. 

Another change at Cravath is the move away from only promoting from within. Part of its ethos had been homegrowing its seasoned team. Now it is hiring laterals. 

It also has established the NonEquity Partner tier. Will that merely create the illusion of retaining talent without really introducing value for the firm, clients and for associates? 

The issue is a hot one on professional anonymous networks such as Fishbowl and Reddit. Way back in 2020, Roy Strom at Bloomberg Law outed the negatives associated with NEP. Among the beefs is that typically very few make it to Equity Partner. Also, there is not necessarily any job security. Abovethelaw had covered the terminations of NEPs at Kirkland and Ellis. Professional anonymous networks point out that some NEPs make less overall than senior associates. 

Meanwhile other law firms are developing the muscle to take over leadership of the law firm sector. They could be The Next Cravath. 

Milbank, for example, has become a market-maker. 

Paul, Weiss is willing to invest its financial resources into what goes into dominance, be it in the ability to recruit and hold onto stars or support political candidates. It is interesting to observe that, very quickly after Cravath set associate salaries for 2024, Paul, Weiss matched. 

The more there is speculation about what is going on at Cravath the more that could signal partners to continue to exit. That kind of downward trajectory is becoming more common in these volatile times. Disney may never be Disney again. Citi may never be Citi again. Donald Trump may never be Donald Trump again.

In most cases you have only one shot in communications. Jane Genova is a communications coach and content-creator. Complimentary consultation (please text 203-468-8579 or email janegenova374@gmail.com)

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