Market Trends
Welcome to the Center for Career Strategy & Advancement’s Market Trends webpage!
Our goal is to provide our assessment, as well as third party information regarding overall hiring trends in the legal marketplace, and to link to recent articles providing detailed analyses and updates.
What we are seeing
The market for legal services continues to increase as a proportion of the GDP. Click here for a graph which shows the consistent growth in legal services revenues over the past twelve years. The market for attorneys, which had been steadily growing across the country, is stabilizing in reaction to the economy. There appear to be some minor regional variations with hiring on the East and West Coasts slightly outpacing hiring in the Midwest. Within the law firms, promotions to equity partner are slightly down, with equity partnerships at some firms decreasing. Non-equity partnership is the fastest growing segment of the attorney population. Overall, growth in total attorneys has exceeded growth in revenue per lawyers, suggesting that last year’s associate salary increases are now being felt as demand for legal services declines.
In terms of practice areas, as economic growth has slowed down, so too has corporate work, particularly M&A, finance, and commercial real estate. Changes in the marketplace have caused a cutback in mortgage-backed securities practices, with related attorney layoffs at some firms. Bankruptcy and general litigation practices are expected to pick up. Some law firms have delayed the start date for Class of 2008 entry-level attorneys and it will not be uncommon for associates to work on matters outside of their primary practice group in the short-term. Law firm mergers are again on the rise, as is global expansion, particularly in Asian markets.
While there has been a slowdown in overall attorney hiring, law firm hiring for summer associate programs has remained healthy, but fairly stable for the past few years. Last fall, larger employers increased the number of schools they visited and went “deeper” into the class in terms of GPA, a trend that is expected to continue as firms seek to identify the best talent available. Mid-sized firms have focused more on recruiting new lawyers from local schools and in some cases, decreased visits to schools outside of their geographic region. Law school applications have decreased nationally and law schools are not increasing class size, thus employers are once again experiencing a more competitive market for second-year students. As detailed here, over the past two years, while the number of law graduates from the top schools has remained the same, the number of associate hires by NALP employers has increased which is good news for students. Starting salaries among the large firms in the larger markets remain at $160,000. The salary increases at the largest firms put financial pressure on mid-sized firms.
Midway through 2008, the demand for legal work has decreased in response to economic factors and the legal market is down from a year ago, but still strong. The expectation is that decreases in certain practice areas will be offset for increases in others.
Diversity
The overall percentage of ethnic minorities of the 255 largest U.S. firms (209 respondents) jumped to 12.4 percent from 11.3 percent in 2006 and 10.4 percent in 2005 according to The Minority Law Journal's Diversity Scorecard. The percentage of minority partners, however, is only up slightly from 5 percent in 2006 to 5.7 percent in 2007. The individual law firm with the highest percentage of minority attorneys, 25.3 percent, is Paul Weiss Rifkind Wharton & Garrison ( New York) . Diversity in partnership is increasing, with 11 percent of all new partners being lawyers of color. Wilson Sonsini Goodrich & Rosati has the highest percentage of minority partners, 15.1 percent, and Greenberg Traurig reported the highest total number of minority partners, 58. -- The Minority Law Journal, 5/1/07
Geographic and Practice Area Briefs
| Southeast, February 2007 | Real Estate, September 2007 |
| Northern California, March 2007 | |
| Los Angeles, April 2007 |
Recent News
Geographic Markets | Student & Bar Issues | Public Interest & Pro Bono | Corporate & Client Issues
Salary & Market:
Number of Legal Jobs Steadily Declining, Federal Stats Show, National Law Journal, October 7, 2008Hiring Booms, But Firms See Bust Ahead, Legal Times, October 6, 2008
Welcome to the Future: Law After the Boom, American Lawyer, September 30, 2008
Associate Pay Unlikely to Rise, Legal Times, September 29, 2008
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Cashing In While You Can, Legal Times, September 29, 2008
U.S. Could Emerge as Major Player in Suits Stemming From Financial Crisis, New York Law Journal, September 22, 2008
Corporate Law Firms See Dark Days Ahead, New York Law Journal, September 16, 2008
Fast Job Cuts Could Lead to Regrets, National Law Journal, August 29, 2008
BigLaw Storm Warning, New York Lawyer, August 21, 2008
Associates Survey 2008: The Paycheck Report, American Lawyer, August 1, 2008
Once Hot Phoenix Legal Market Cools Down, National Law Journal, July 23, 2008
What's Hot And What's Not in The Legal Profession, American Bar Association, June 20, 2008
Associate Salary Spikes Pinch Partner Profits, Recorder, February 27, 2008
D.C. Associate Bonuses 'Fairly Healthy' This Year, Legal Times, February 4, 2008
Leaner pay, bonuses may be reality in 2008, National Law Journal, January 7, 2008
Rich Lawyer, Poor Lawyer, American Lawyer, December 18, 2007
Lawyers salaries projected to rise 5.4% in 2008, National Law Journal, October 23, 2007
Large Calif. Firms Contemplate Raising Salaries Again, Recorder, October 8, 2007
2007 Associate Salaries Chart, Cal Law, October 2007
Hard Case: Job Market Wanes for U.S. Lawyers, Wall Street Journal Online, September 24, 2007
Is All Quiet on the Law Firm Merger Front?, Legal Intelligencer, August 24, 2007
About that huge salary: It's a longshot, National Law Journal, July 9, 2007
Some Firms Cutting Bonuses to Cover Cost of Rising Salaries, Recorder, May 16, 2007
Do Large Firms' Partner Class Numbers Hint at Strategy for Nonequity Partners?, National Law Journal, April 16, 2007
What's Next for D.C. Associate Salaries?, Legal Times, February 6, 2007
Most Calif. Firms Still Not Matching N.Y. Associates' Pay, Recorder, January 31, 2007
McKee Nelson's Associate Raise Sets a New Bar for D.C. Firms, Legal Times, January 29, 2007
Skadden Bumps Up Associate Pay to $160,000, Legal Times, January 25, 2007
2006 bonuses hold at Milbank, Cravath, Cadwalader, New York Law Journal, December 12, 2006
Even Paper Tigers Need Technological Taming, Legal Tech Newsletter, July 13, 2006
Associate Salary War Moves to Midwest, National Law Journal, June 15, 2006
Survey Shows Rising Salaries at Texas Firms of All Sizes, Texas Lawyer, May 3, 2006
Gardere and Munsch Hardt Raise Associate Salaries, Texas Lawyer, Apr. 12, 2006
More Pay for Associates at Winstead, Fulbright, Baker & McKenzie, Texas Lawyer, Apr. 11, 2006
Chicago Firms Raise Associate Salaries to $135,000, Law.com, Mar. 20, 2006
Dechert Raises First-Year Pay to $135K, Legal Intelligencer, Mar. 2, 2006
Associate-Raise Party Has Its Holdouts, Recorder, Feb. 15, 2006
Four More Firms Boost First-Year Pay to $145,000, New York Law Journal, Feb. 10, 2006
A Key Factor for Associate Raises: Location, Location, Location, Recorder, Feb. 9, 2006
More Law Firms Boost Pay for Associates, New York Law Journal, Feb. 9, 2006
2006 Salary Forecast: Larger Paychecks, New York Law Journal, Feb. 3, 2006.
As Salaries Rise, So Does the Debt , National Law Journal, Feb. 1, 2006
As Times Get Better, So Do the Bonuses, National Law Journal, Jan. 23, 2006
Firms Show Modest Growth in New Partners, National Law Journal, Mar. 21, 2006
Will Law Firms Take First-Years' Money Pot Off the Boil?, Legal Intelligencer, Mar. 8, 2006
Law Firm Mergers Show 'Bigger Is Better' Theory Prevails, National Law Journal, Jan. 31, 2006
Firms:
Big Deals Go Belly Up Amid Market Crisis, American Lawyer, October 2, 2008Heller Starts Dissolution Process, Recorder, September 29, 2008
Who Loses Out in Wachovia Sale to Citi?, AmLaw Daily, September 29, 2008
Dropping the Billable-Hour Rule, a Year Later, National Law Journal, September 08, 2008
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Who Represents America's Biggest Companies 2008: Labor Pains, Corporate Counsel, August 18, 2008
Barnes & Thornburg Cuts Summer Associate Program, National Law Journal, August 7, 2008
Akin Gump Restructuring to Increase Profits, Legal Times, July 31, 2008
Alston Seals Calif. Deal, Adds 94 Lawyers, Fulton County Daily Report, July 31, 2008
With 96 More Layoffs, Cadwalader Faces Its 'Cataclysmic Event', New York Law Journal, July 31, 2008
200-Lawyer Firm Offers Shorter Hours, Smaller Paychecks, New York Lawyer, July 8, 2008
A Firm of Equals, American Lawyer, July 1, 2008
Pace of New Law Firm Offices Is Brisk, National Law Journal, June 25, 2008
Lessons of The Am Law 100: Is the Golden Age Over?, American Lawyer, April 30, 2008
Top Law Schools Tighten Their Hold on NLJ 250 Firms, National Law Journal, April 14, 2008
As Deals Plummet, Law Firms Focus on New Opportunities, New York Law Journal, April 10, 2008
Thelen Lays Off 26 Associates, 85 Staffers, Recorder, March 20, 2008
How Law Firms Can Stay Afloat When a Recession Strikes, Law.com, March 5, 2008
New-Partner Growth Takes a Hit, National Law Journal, February 12, 2008
Allen & Overy Claims Pole Position in 2007 Debt Capital Markets Tables, Legal Week, February 8, 2008
Latham Leads Strong Year in L.A., Could Surpass Skadden as Top-Grossing Firm, Recorder, February 8, 2008
Law Firms Hold Tight to Their Slots on Annual 'Best Companies' List, Recorder, January 23, 2008
Reed Smith Grows Revenue 38.5 Percent, Legal Intelligencer, January 10, 2008
Litigation Department of the Year: Kirkland & Ellis, American Lawyer, January 2, 2008
Law Firms Face Gray Area as Boomers Age, American Lawyer, December 10, 2007
Thacher Proffitt Warns Associates of Looming Layoffs, New York Law Journal, November 28, 2007
Law firms bracing for hedge fund suits, National Law Journal, November 26, 2007
McDermott Will to Add Lower-Paid Associates, Recorder, November 2, 2007
Midsize Law Firms Go for Big Changes, National Law Journal, October 23, 2007
Lawyers Make Leap From Biglaw to 'Pocket' Firms, Recorder, October 22, 2007
Chicago firm asks associates to choose between pay levels, National Law Journal, October 11, 2007
Dallas Firm Cuts Billables for First-Years, National Law Journal, October 9, 2007
Partners Approve Merger Between Dewey and LeBoeuf, New York Law Journal, September 27, 2007
Locke Liddell and Lord Bissell Finalize Merger, Texas Lawyer, September 13, 2007
Are Two Venerated D.C. Law Firms Destined for a Slow Fade?, Legal Times, September 11, 2007
Baker & McKenzie's Profits per Partner Top $1 Million Mark, New York Law Journal, August 16, 2007
Duane Morris moves to larger Chicago office, National Law Journal, July 27, 2007
K&L Gates in Merger Talks With Dallas' Hughes & Luce, Texas Lawyer, July 27, 2007
Kilpatrick Beefs Up North Carolina Office in Response to Competition, Fulton County Daily Report, July 26, 2007
Are Three Heads Better Than One for Mayer, Brown?, Legal Times, July 23, 2007
Are Big Firms Warming Up to Alternative Fee Deals?, Recorder, July 11, 2007
Dechert Cracks the Code for Am Law 100 Success, American Lawyer, May 14, 2007
Midsized Firms Could Benefit in Climate of Firm Switching, Legal Intelligencer, April 5, 2007
IP Boutiques: Keeping Up With the Joneses, IP Law & Business, March 29, 2007
Alston & Bird Raises First-Year Pay Yet Again, Fulton County Daily Report, March 14, 2007
Jenkens Blesses Branch Exodus, Lawyers Say, Texas Lawyer, March 6, 2007
Does the Future Belong to Cadwalader?, New York Law Journal, February 6, 2007
Firm Leader Forecast: Mostly Sunny, American Lawyer, December 11, 2006
To Jump or Not to Jump on the Merger Bandwagon, Legal Intelligencer, November 22, 2006
Paul Hastings Opens Office in Chicago, Law.com, November 22, 2006
Firms Losing Top Talent to Clients, The National Law Journal, November 21, 2006
Reed Smith Close to Merger With Chicago Firm, Legal Intelligencer, October 17, 2006
Willkie Farr International Trade Law Group May Move to Vinson & Elkins, Legal Times, October 17, 2006
Schiff Hardin to Merge With S.F. Litigation, Recorder, September 29, 2006
Kirkpatrick and Preston Gates in Merger Talks, Recorder, September 27, 2006
Annual Survey Grants Bragging Rights to Large Firms, Recorder, August 17, 2006
IP Firms Combine Strengths, but Will the Honeymoon Last?, Recorder, July 26, 2006
Study Shows Single-Tier Firms Do Fine, National Law Journal, July 26, 2006
Richards Butler Merger May Put Reed Smith Up Against Morgan, Dechert, Legal Intelligencer, June 16, 2006
Gardner Carton Dismisses Questions About Firm's Health, Legal Intelligencer, June 7, 2006
Kelley Drye Merges With Collier Shannon, Law.com, Apr. 19, 2006
Merger Will Create Largest Law Firm in Japan, Law.com, Apr. 19, 2006
Akin Gump Bumps Associate, Counsel Pay in Texas, Texas Lawyer, Mar. 31, 2006
Fried Frank and Proskauer Rose Show Financial Growth, Law.com, Mar. 29, 2006
Pepper Hamilton Increases Starting Pay for All Offices, Legal Intelligencer, Mar. 6, 2006
Bingham McCutchen Finalizes Swidler Berlin Acquisition Agreement, Legal Times, Mar. 1, 2006
No. 1 Task for Shearman Leader: Keeping the Firm in the Top Tier, New York Law Journal, Feb. 24, 2006
Kelley Drye's D.C. Partners Favor Merger With Collier Shannon, New York Law Journal, Feb. 21, 2006
Kelley Drye in Merger Talks With Collier Shannon, Legal Times, Feb. 15, 2006
Good Times Roll for L.A. Firms, Recorder, Feb. 6, 2006
Hogan & Hartson and Dickstein Shapiro Raise First-Year Associate Pay, Legal Times, Feb. 3, 2006.
Merger of McGuireWoods and Gordon & Glickson to Create New Tech Group, Law.com, Jan. 20, 2006
Kansas City's Polsinelli Shalton Acquires Chicago Firm, Law.com, Jan. 5, 2006
Am Law 100 Firms Feel Growing Pains, American Lawyer, May 1, 2006
Law Firms Look for Success Through Networking, Legal Intelligencer, Mar. 28, 2006
What's the Right Bottom Line for Law Firms?, Fulton County Daily Report, Mar. 24, 2006
Summer Associate/Associate:
Typos and Errors Lead to Slashed Fees for Attorney, Legal Intelligencer, October 8, 2008How Associates Can Stay Safe in Uncertain Times, Legal Times, October 2, 2008
Your Career, Amid the Flood, Legal Times, September 29, 2008
For Summer Associates, It's a Wrap, Part 2, American Lawyer, August 19, 2008
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Shot at the Courtroom Helps Firms Add Talent, National Law Journal, August 8, 2008
Midlevel Survey Shows Associates Eyeing the Door, American Lawyer, August 1, 2008
It's Time for Your Midsummer Associate's Review, American Lawyer, July 10, 2008
How to Build a Book of Business as a Young Lawyer, Recorder, June 19, 2008
What the Summer Associate Needs to Know: Professionalism Is Everything, National Law Journal, June 10, 2008
Fewer Summer Associates Spread Their Wings at Big Texas Firms, Texas Lawyer, June 6, 2008
Law Firms See More Layoffs, Departures of Staff and Associates, Legal Intelligencer, June 5, 2008
Summer Associates Face a Future That's Less Certain, Legal Times, June 4, 2008
Layoffs and Legal Recruiters Confirm Associates' Hunch: It's a Buyer's Market, Recorder, May 30, 2008
Summer Associate Hiring for 2008 Wilts, National Law Journal, March 24, 2008
Big-Firm Associates: Why They Go and How to Keep Them, Corporate Counsel, February 29, 2008
Summer associates, think fast, National Law Journal, February 18, 2008
10 Survival Tips for New Associates, Texas Lawyer, December 11, 2007
For Summer Associates, Size Does Matter, American Lawyer, November 19, 2007
Commentary: A Game Plan for Survival, Legal Times, October 18, 2007
How law firms can train the global attorney, National Law Journal, August 1, 2007
Is this any way to recruit associates?, American Lawyer, August 1, 2007
Retention: a midsize priority, National Law Journal, July 16, 2007
Interest in summer jobs at top firms cools down, National Law Journal, May 14, 2007
Summer associate guide to success, National Law Journal, May 14, 2007
Does Your Law Firm Have What It Takes to Be Recession Resistant?, American Lawyer, May 3, 2007
Where Does All That Associate Money Go?, Recorder, April 16, 2007
The Real World According to Summer Associates, American Lawyer, November 27, 2006
Law firms digging deeper on campus, National Law Journal, November 27, 2006
Midlevel Associates Survey: Firms Improve, but Complaints Continue, American Lawyer, August 1, 2006
Heat Is On as Boutiques Compete for Summer Associates, Recorder, July 10, 2006
Peer Pressure Compels Law Firms to Raise Summer Associate Salaries, Fulton County Daily Report, June 8, 2006
Is Half of a Summer Associate Better Than None?, National Law Journal, May 19, 2006
First-Years Are a Hot Summer Commodity, National Law Journal, Mar. 29, 2006
Summer Hiring Increases Look Steady, Not Sizzling, National Law Journal, Feb. 24, 2006
Secrets of Superstar Associates, Litigation, Spring 2006
Law Firm Training Programs Teach by Example, Law Firm Inc., Apr. 10, 2006
Lawyer Quits Job Over Résumé Flap, Legal Times, Apr. 4, 2006
Senior Associates Wonder: Should I Stay, or Should I Go?, Legal Times, Feb. 3, 2006.
Commentary: 'Cloaking' Information and the Marketplace for Lateral Associates, Law.com, Jan. 4, 2006
More Firms Look to Associates to Take Care of Business, National Law Journal, Dec. 27, 2005
Are Same-Size Offices for Partners and Associates a Sign of the Times?, Recorder, Dec. 19, 2005
Diversity & Lifestyle:
Commentary: Part-Time Lawyer Dads Are Still a Rare Bird, American Lawyer, September 30, 2008BigLaw Associates' Pay Unlikely to Rise, But Their Hours..., National Law Journal, September 29, 2008
Four Law Firms Make Magazine's List of Best Companies for Working Mothers, National Law Journal, September 25, 2008
Inside 'women friendly' firms, National Law Journal, August 14, 2008
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Just what makes a firm friendly for women and working mothers?, National Law Journal, August 14, 2008
Law Firms Create New Models for Diversity, National Law Journal, July 31, 2008
A New Game Plan for Retaining Women at Firms, National Law Journal, July 16, 2008
Daddy Track, American Lawyer, July 1, 2008
2007 Diversity Scorecard, Minority Law Journal, 2008
Attorney's Mission Is to Erase the Stigma of Depression, New York Law Journal, March 24, 2008
Law Firms Opening Up to the Idea of Attorney Re-Entry, New York Law Journal, March 7, 2008
Some Law School Grads Don't Go the Firm Route, Recorder, February 4, 2008
Younger Female Lawyers Play by Their Own Rules, Legal Times, January 22, 2008
Survey: Women in Large Firms Advance at Same Rate, but Earn Less Than Men, Legal Intelligencer, November 29, 2007
Exit Strategies, Minority Law Journal, October 30, 2007
Beating the firm boys at their own game, Legal Times, October 25, 2007
Milwaukee Firm Gets Top 'Family-Friendly' Nod, National Law Journal, October 22, 2007
Firms Learn to Cope With Alternative Billing Plans, National Law Journal, September 11, 2007
How Much Will 'Best Law Firms for Women' List, Law.com, August 24, 2007
Move to the 'mommy train', National Law Journal, July 30, 2007
Law Firms That Offer the Best of Both Worlds, National Law Journal, July 24, 2007
How One Part-Time Lawyer Leads a Very Full Life, Legal Times, July 16, 2007
Forty-somethings with law degree opt to go solo, National Law Journal, May 14, 2007
Survey Measures Lateral Partners' Satisfaction With New Firms, Recorder, May 8, 2007
Leaving Your Legal Career Far Behind, Legal Times, February 23, 2007
'Speed' Factor Revs Up Big-Firm Love, Fulton County Daily Report, February 14, 2007
Lawyers Who Take Time Off Face Tough Return, Legal Times, September 22, 2006
Women in the profession: Staying on the job, National Law Journal, August 30, 2006
IP Practices Nurture Women With Science Backgrounds, Recorder, August 17, 2006
Commentary: Where the Women Are, Law.com, July 6, 2006
Dating Requirement No. 1: Must Love Lawyers, Texas Lawyer, Mar. 3, 2006
How to Increase Diversity at Law Firms in Four Steps, National Law Journal, Jan. 20, 2006
Clerkships:
Clerks in Paradise, American Lawyer, January 9, 2008Geographic Markets:
San Francisco Bay Area Law Firms Float on Turbulent Waters, Recorder, January 10, 2008Texas Firms Interested in Golden State, National Law Journal, January 10, 2008
Large Firms' Billing Rates Continue to Climb, National Law Journal, December 11, 2007
Building a Better Legal Profession - Boston, LSBBLP, October 10, 2007
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Building a Better Legal Profession - Chicago, LSBBLP, October 10, 2007
Building a Better Legal Profession - Northern California, LSBBLP, October 10, 2007
Building a Better Legal Profession - New York, LSBBLP, October 10, 2007
Building a Better Legal Profession - Washington, DC, LSBBLP, October 10, 2007
Building a Better Legal Profession - Southern California, LSBBLP, October 10, 2007
Law firms peel a Calif. 'Orange', National Law Journal, August 27, 2007
D.C. firms sit out merger mania. But for how long?, Legal Times, July 12, 2007
Chicago's Midsize Law Firms Look to Stay Independent, National Law Journal, July 11, 2007
Texas Hiring Shows Healthy Lateral Market, Texas Lawyer, Apr. 7, 2006
Student & Bar Issues:
Wall Street Stress for Law Grads, National Law Journal, October 08, 2008Univ. of Michigan to let some students skip LSATs, National Law Journal, September 26, 2008
It's not too late, National Law Journal, September 15, 2008
How Scared Students Should Tackle Job Interviews, National Law Journal, July 23, 2008
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Study shows gender, racial disparity of post-law school debt, National Law Journal, May 5, 2008
Minority Enrollment at Law Schools Is Faltering, New York Law Journal, February 6, 2008
N.Y. Bar Exam Takers to Get New Software in Wake of 2007 Malfunction, New York Law Journal, January 3, 2008
ABA Moves to Tighten Bar Passage Standards, National Law Journal, July 10, 2007
Attorneys Take Supreme Court Advocacy Back to School, Legal Times, July 20, 2006
A Dream Come True: No Bar Exam, National Law Journal, May 5, 2006
Law School Deans Feel Heat From Rankings, National Law Journal, May 3, 2006
So You've Failed the Bar Exam - - Now What?, National Law Journal, Mar. 24,-2006
Law Schools Think Globally, National Law Journal, Mar. 8, 2006
Parsing Alito's Clerk Picks, Legal Times, Feb. 21, 2006
New York's New Bar Exam Requirement Affects Law School Pass Rates, New York Law Journal, Jan. 17, 2006
Public Interest & Pro Bono:
Pro Bono Scorecard 2008, American Lawyer, July 2008The 2008 NLJ Pro Bono Awards, National Law Journal, January 7, 2008
Sonnenschein Builds Interest in Pro Bono Through Scholarships, Legal Times, July 26, 2007
Bills Would Ease Student Loan Payments for Public Sector Attorneys, National Law Journal, April 16, 2007
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Am Law 200 Firms Still Have Way to Go on Pro Bono, American Lawyer, July 10, 2006
Corporate & Client Issues:
Can Lawyers Fly High in Executive Roles?, Corporate Counsel, September 22, 2008Firm Lawyers Jump Ship for Quality of Life In-House, Fulton County Daily Report, July 27, 2007
General Counsel Keep Close Watch on Associate Pay Hikes, Fulton County Daily Report, July 12, 2007
Executives Rank Law Firms on Service and 'Arrogance', Connecticut Law Tribune, July 9, 2007
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Citigroup's New Hires to Take Long Route to Law Department, National Law Journal, October 12, 2006
Taking Stock of GCs' Compensation, Corporate Counsel, July 17, 2006
Arbitration's Fall From Grace, GC South, July 13, 2006
Who Has the Best Legal Department?, Corporate Counsel, Apr. 19, 2006

