New York is the largest legal market by number of employees in the country. It`s the financial center of the United States (and many would say the world), so much of the practice is driven by corporate work and all New York-based companies have financial institutions as clients. Other potential customers may include consumer goods companies and retail businesses. A high percentage of the world`s most respected law firms call New York City home, and many of the world`s most prominent clients travel there to provide legal services. These clients may be large or small, but they are likely to have needs ranging from transactions to regulatory litigation. As a result, companies that serve these clients tend to offer a wide range of services in their New York office. More than 10 percent of Fortune 500 companies are headquartered in the city, including Verizon, Pfizer, American Express and Time Warner. New York has the highest proportion of foreign employers of any U.S. city: one in ten jobs in the private sector is with a foreign company based in New York, and after the Brexit vote, the city overtook London to become the most popular place for foreign commercial real estate investors. A large number of foreign law firms, including four of the five Magic Circle firms in the UK (Clifford Chance, Linklaters, Allen & Overy and Freshfields), have offices in New York and D.C. to serve international clients doing business in the region, as well as to compete in the US market themselves. While the growing legal demand has been a boon for law firm assets, it has also created a growing appetite for legal talent that has already begun to conflict with the changing work preferences of lawyers. In response to this new competition for talent, many companies have increased their compensation.
In fact, employee compensation alone has increased by double digits, resulting in higher overall costs for many law firms. Learn about the latest trends in the legal industry in Lexis New York also has many types of law firms – from large international firms with multiple offices to smaller, reputable boutiques. Large New York companies determine the employee compensation market – not only for the city, but for other major legal markets across the country as well. Outside of New York, however, only a small handful of companies reach the top of the New York pay scale. Finally, despite the general slowdown in economic growth, the legal market continues to grow globally. While practice areas such as mergers and acquisitions, restructurings and bankruptcies, and employment have continued to show promise over the past year, the demand for lawyers in a number of groups has increased significantly. The need for high-calibre lawyers has created an environment in which lawyers recognize their value and look forward to the next step in their careers. Unfortunately, the ability of these lawyers to secure placements continues to be just as fierce. Standards are still incredibly high, while the lure of in-house moving attracts more and more top performers away from private practice. Another factor of change in the New York legal market has been rising wages. The constant pressure over the past year and a half to offer partners the best possible compensation package on the market has been taken very seriously, and its domino effect continues to be seen in every New York law firm. From Milbank recently increased the scale to increase the Cratath scale premium, another major factor in retaining and onboarding employees across the city (and the global legal market as a whole) depended on pay and bonus increases.
Almost every law firm on the market has begun to understand the importance of compensation and truly appreciate the value of their employees` work, but is that enough to keep them from jumping ship? Columbia, Cornell, and New York University are the holy trinity of Empire State law schools, but they are not a panacea, and we interviewed employees of major law firms working in Fordham, St. John`s, Cardozo and Brooklyn School of Law. Of course, it is quite possible to study at one of the other major legal institutions in the country (or the world) and make the trip to the Big Apple. While companies in many regions are looking for a demonstrable commitment to the region you`re applying to, it`s less important in New York City: knowledge of the legal market is reason enough to set up shop there. It`s more important to be able to explain why you want to work for the company you`re interviewing with – Chambers Associate profiles are a great guide to getting started, but the more research you invest, the better. New York has more than 175,000 lawyers and the legal market generates more than $430 billion annually. Over the past couple of years, however, the legal market in New York has changed dramatically. Long hours, intense office culture, and lack of flexibility left associates and partners working their fingers to the bone to meet deadlines and meet bonus goals with what seemed to be endless in sight. Thanks to Vault`s recently released regional rankings, we now know which major law firms dominate the legal scene in Manhattan.
This ranking is based on the tabular votes of employees who were asked to rate companies on a scale of 1 to 10 based on their prestige in the region. New “State of the Legal Market Report 2022” shows that the legal market has remained resilient, even though countless challenges remain for many law firms Legendary author E.B. White has called New York “the capital of the world.” He probably hadn`t stopped thinking about the future of legal practice as a multinational when he said that, but it would have been right to do so, because there is no better way to access international law than to practice in the Big Apple. “There is very open communication” with most global companies, “apart from the time difference, there is really no problem working with Paris or London. You learn so much more from people from different backgrounds. Language skills will do you good if it`s a path you want to take (and in New York in general, since the city speaks literally hundreds of languages). Employees told us, “Coming with a language is a big advantage, it can happen often and keep you busy with cases you wouldn`t otherwise have,” although many assured us, “It`s not essential. The most important thing is to be interested in both U.S. law and work with international clients. Many law students and lawyers have long dreamed of one day working in New York, the city that never sleeps (especially if they end up employed by Biglaw).
New York firms are considered the crown jewels of the legal profession, and it is in New York that firms typically set the stage for the salaries and bonuses of top lawyers across the country. But which company is considered the best in the Big Apple? The annual report examines the performance of U.S. law firms and breaks down the factors that compel companies to take a longer-term strategic view of their market positions. You`d expect to be well compensated for your hard work, and you`d be right to do so.