Simpson Thacher gets tough on associates
A year into the credit crunch, Simpson Thacher & Bartlett has become the latest US firm to review associate levels following the slowdown in M&A work.
The firm has taken the unusual step of introducing a mid-year performance review for its associates. It is understood that the benchmark for associates to reach in order to keep their jobs is significantly higher than in previous appraisals.
Market sources have suggested that up to 30 associates have been asked to consider their positions as a result of the review.
Simpson Thacher chairman Pete Ruegger denied the firm was making credit crunch-related layoffs. However, another Simpson Thacher source said: “What we’re doing is being harder in our performance review process. People who are viewed as not performing have been given the opportunity to find another job.”
The insider added that, while Simpson Thacher’s core practices were “still active”, its 2008 revenue is expected to be noticeably down on 2007’s.
“There’s a definite slowdown,” the insider said. “We will not make layoffs. We feel we’d rather take the hit during a downturn than get rid of people because there isn’t enough work to do.”
Readers' comments (4)
John | 11-Aug-2008 7:04 pm
riiiiight.
So if you pick your 30 lowest-performing people and get rid of them because business is slow, that's a layoff; but if you pull an unscheduled review, talk to everyone, and *then* get rid of your 30 lowest-performing people, that's mowing the lawn? Please. Other firms are admitting it: why can't they?
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Anonymous | 12-Aug-2008 1:50 am
harder performance reviews
I nominate "harder performance review" for euphemism of the year.
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Anonymous | 12-Aug-2008 9:41 am
Only rumors....
I work at the firm and I don't understand this article : we've always had a midyear review process. What is so "unusual" and "new" then, since this has already existed for many years ? I can understand that people dislike performance reviews (me included) but the boring and sad truth is that this is not new and has always existed at the firm, and is a common practice in other peer firms.
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Anonymous | 14-Aug-2008 5:00 pm
lies
I know for a fact this is happening and has happened to at least 2 people I know. And that is a lot considering people won't talk about it if they are told future employers will be told they are in good standing. And its BS that there is a mid year review always. Maybe for newbies, but after the first mid year review you get only yearly reviews. Being called for a "review" only 6 mos or so after your yearly review should send off red flags.
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