Barbara M. Boudreaux, a first-year corporate finance associate with Munsch Hardt Kopf & Harr in Dallas, says she starts her days reading The Wall Street Journal to keep up with changes in the economy that might affect clients and client industries.
“As scary as it seems out there, it’s a good time to be in my group,” says Boudreaux, who works on restructuring and bankruptcy matters. “Regardless of how the economy is doing, there are always going to be clients who need advice on how best to manage their business and finances.”
With a larger first-year associate class for the first time in several years and an offer rate for fall 2009 jobs to recent summer associates that mirrors previous years, it might appear that the hiring activities of Texas’ largest firms are a counterpoint to economic trends. Yet these are decisions that were made in the third quarter of 2007 and 2008, respectively — prior to the current financial crisis.
Boudreaux is one of 446 associates beginning their careers with 23 of Texas’ largest firms. According to Texas Lawyer‘s New Associates Survey, the 2008 first-year class is 5.2 percent larger than it was in 2007 at the same 23 firms. The state’s 25 largest firms, as listed on Texas Lawyer‘s “The Texas 100″ poster published April 28, 2008, were asked to participate in this year’s survey. Of those 25, 23 provided information. Brown McCarroll and Thompson, Coe, Cousins & Irons decline to participate.
The 2008 associate class at the 23 firms is larger than 2007′s, because Texas firms have been growing over the past few years, particularly in the financial markets practice areas, says William C. Cobb, founder of Cobb Consulting in Houston.
“When they made those offers back last summer [2007], that was before the financial crisis,” he says referring to recent bank failures, the mortgage financing troubles and Congress’ $700 billion financial bailout plan.
As a result, Cobb says, he expects firms will be cross-training young attorneys so they can handle, for example, bankruptcy as well as transactions. [See "Tough Transactional Times," Texas Lawyer, Oct. 20, 2008, page 3.] “Some associates coming in will be moved around,” he says. He says new associates are easier to transfer into different practice areas, because they are still learning and have lower billing rates.
“It’s tougher for associates six or seven years out to make that transition,” he says.
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