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Correction:Salsbury’s Stake” should have made clear that neither Salsbury’s conduct nor the conduct of the company’s legal department was called into question specifically in connection with the accounting problems at the company in either of the independent reports on the company. The item also should have referenced the bankruptcy examiner’s final report, which was issued in January 2004 and which amended a June 2003 interim report. The final report said that Salsbury was not responsible for corporate governance at the company until April 2002, after which time the examiner found no evidence of corporate governance failures. SURVEY: PAY RISES FOR IN-HOUSE LAWYERS Corporations across the country have beefed up many of their in-house lawyers’ salaries and bonuses, according to a survey conducted by consulting firm Altman Weil. The increases this year extend beyond chief legal officers to lower-ranked and non-managerial positions, says Milwaukee-based James Wilber, who heads up Altman Weil’s services to corporate law departments. The study, now in its 25th year, noted that chief legal officers, their deputies, and division general counsel saw increases of between 5 and 8 percent. (The median legal salary for chief legal officers this year is $275,000.) Other senior attorney positions were up between 4 and 5 percent. But the survey also indicated that recent graduates’ salaries declined by 1.5 percent, and staff attorney salaries decreased by more than 3 percent compared to the year before. Despite a few declining numbers, Wilber says he senses companies are ready to spend more on their in-house departments. “In general we’ve seen an uptick in the economy. And this is more optimism that companies are going to be doing better,” Wilber says. Not only is compensation beginning to increase, but also companies are likely to hire more lawyers as well, Wilber says. “I think that’s going to be the inevitable result of this,” he says. Wilber says many legal departments are in the process of returning to the hiring levels of five or six years ago. In part, it’s a cost-saving measure: Companies are realizing they can save money by keeping work in-house instead of farming it out. For his part, Jeffrey Lowe, head of the D.C. office of the recruiting firm Major, Hagen & Africa, says he has seen little change for in-house salaries. But, he says, “I think the big change is the increase in the number of attorneys being hired.” Recruiting in-house attorneys represents one-third of Major, Hagen’s business, Lowe says. Wilber also notes a longer-term trend: Companies are offering fewer guaranteed salaries. Pay is increasingly reliant on bonuses tied to the performance of each individual and the company. Along those same lines, the survey did show double-digit increases in bonuses. Chief legal officers, whose median annual bonus was $120,000, showed the smallest increase at about 5 percent. The bonuses for other positions spiked by 14 to 45 percent. The median bonus for division general counsel: $78,750. And senior attorneys with more than eight years’ experience received $22,000. — Christine Hines SALSBURY’S STAKE Former MCI/WorldCom General Counsel Michael Salsburyfound a home last week as a partner in the D.C. office of Chadbourne & Parke. The struggling telecom company’s top lawyer resigned in June 2003 after two independent reports on the company’s accounting shenanigans. The reports claimed that the MCI legal department didn’t provide adequate oversight and safeguards against senior management’s misconduct — including inflating earnings by nearly $4 billion since 2001. Salsbury says he will work with two other telecom partners in the firm’s Washington office. “We’ll focus on regulatory and transactional issues arising out of consolidation trends in communications sectors. There is clearly going to be a fair amount,” Salsbury says, adding that the firm represents some small and midsize communications clients and is looking to expand its client roster to include larger public companies. Salsbury says he has no continuing relationship with MCI. — Lily Henning THE ENFORCER Thomas Newkirk, the associate director of the Securities and Exchange Commission’s Enforcement Division, will be joining the D.C. office of Jenner & Blockas a partner in the firm’s securities litigation practice in late November. Newkirk, who has spent more than 20 years in government and led the SEC investigations of Arthur Andersen, Tyco, and Cendent, among others, was brought on to build up the firm’s SEC enforcement practice. “This is a critically important area of the law,” says Paul Smith, managing partner of the D.C. office. “We are very, very pleased that someone of his experience and expertise is joining us. We are very lucky.” For his part, Newkirk says he was attracted to Jenner & Block because it has such great talent. “I just felt very comfortable with them,” he says. — Bethany Broida REMEMBERING SCHMIDT Media and First Amendment lawyers and advocates are mourning the loss of one of their leading lights and staunchest warriors. Richard Schmidt Jr., 80, longtime counsel to the American Society of Newspaper Editors and partner at Cohn and Marks, died Oct. 17 at his home on Capitol Hill. Despite declining health in recent years, Schmidt never lost his indignation about government secrecy or his passion for the public’s right to know. But his courtesy and self-deprecating manner — he took to introducing himself as “the oldest living American” at meetings — won friends even among the wariest adversaries. A one-time Denver broadcaster and lawyer who fought successfully in the 1950s to bring cameras into Colorado courts, Schmidt was a friend of fellow Coloradan Byron White, the late Supreme Court justice. After White retired, Schmidt once recalled, they would get together at the Monocle restaurant to “swap lies about the good old days.” Schmidt mentored generations of media lawyers, says Robert Corn-Revere, a D.C. partner at Davis Wright Tremaine. Says Floyd Abrams, partner at New York’s Cahill Gordon & Reindel: “Dick Schmidt was a giant in the development of First Amendment law and in the protection of journalists from the hordes of people — legislators and judges included — who view themselves as super-editors.” Friends will gather at the National Press Club Nov. 20 to honor Schmidt’s memory. — Tony Mauro RELOADED Two lawsuits against the gun industry — one filed by the D.C. government, another by nine District residents — are getting another chance. The suits, which seek to hold firearms makers and distributors liable for gun injuries and deaths, were dismissed by D.C. Superior Court Judge Cheryl Longnearly two years ago. A three-judge panel of the D.C. Court of Appeals partially reversed Long’s ruling, allowing the plaintiffs to proceed on a single claim. The plaintiffs filed motions asking that the case be heard by the entire nine-judge appellate court. On Oct. 21, a majority of the court agreed to do so. “Obviously, we’re very encouraged by the decision,” says Dennis Heniganof the Brady Center to Prevent Gun Violence, which filed an amicus brief on the plaintiffs’ behalf. The lead lawyer for the defendants, Thomas Fennellof Jones Day, could not be reached for comment. A hearing on the matter has not yet been scheduled. — Tom Schoenberg BAD GRADE America’s colleges and universities still discriminate against women when making tenure decisions — at least that’s the conclusion of a report from the D.C.-based American Association of University Women Legal Advocacy Fund. According to the report, though women represent more than half of the lower-level, nontenured lecturers and instructors at colleges and universities, they still face difficulties climbing the academic ladder:Just one in three associate professors and one in five “full” professors are women. AAUWLegal Director Leslie Annexsteinsays women in male-dominated fields like chemistry, physics, and engineering have traditionally met with the most resistance. But law faculties have more work to do as well, she says. A report last year from the Association of American Law Schools found that while two in three untenured law lecturers are women, just one in four “full” professors and one in seven deans are. — Jason McLure SETTLED One of five racial discrimination suits stemming from the annual Memorial Day Black Bike Week near Myrtle Beach, S.C., was settled last week. The complaint filed on behalf of a dozen bikers and the National Association for the Advancement of Colored People by Patton Boggspartners Rick Talismanand Mark Savitclaimed that, in 2002, The Yachtsman hotel required guests during Black Bike Week to sign a 34-point contract. Guests who signed agreed to refrain from profanity, wash dishes daily, and provide copies of photo identification. The complaint alleged that during the largely white Harley Week, held just two weeks earlier, The Yachtsman did not ask guests to sign a contract, charged lower rates, and required a significantly smaller room deposit. As part of the settlement, The Yachtsman did not admit to discrimination, but agreed to permanently drop the contract, pay an undisclosed sum to a fund for past guests affected by its policies, and compensate the plaintiffs for costs and attorney fees. Three NAACP suits against eateries that close during the Black Bike weekend — filed by Lori Searcyand Paul Hancockof Hogan & Hartson— are still pending; as is a suit against the city of Myrtle Beach by Michael Navarreand counsel Paul Hurstof Steptoe & Johnson. — Jason McLure REMOVED Three military officers will be removed from the six-member panel assembled to hear war crimes cases at the U.S. Naval Base at Guantánamo Bay, Cuba. John Altenburg Jr., the appointing authority for military commissions, ruled last week that Air Force Lt. Col. Timothy Toomey, Marine Col. R. Thomas Bright, and Army Lt. Col. Curt Coopershould be disqualified from commission proceedings due to doubts about their impartiality. But Altenburg rejected a series of defense challenges to presiding officer Army Col. Peter Brownback III, including one based on statements Brownback made prior to the proceedings that suggested he did not believe speedy trial rules applied to military commissions. Altenburg called the remark “too casual,” but said it did not demonstrate “a clear inability to render a fair and impartial ruling on speedy trial issues.” Oral arguments on legal motions are scheduled to begin Nov. 2 in two commission cases. — Vanessa Blum CAMPUS CASH Minority students at eight law schools can now compete for a $4,000 scholarship and a summer associate position with Womble Carlyle Sandridge & Rice. Winston-Salem, N.C.-based Womble began a scholars program to benefit students of the University of Virginia, Howard University, Emory University, the University of North Carolina, and other Southern law schools. The firm, which will fund one scholarship at each school, has partnered with the Thurgood Marshall Scholarship Fundand the law schools to interview students and select winners. Candidates in their second year of law school will be judged on academic and community service records, as well as on their individual and professional development. — Christine Hines

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