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WHAT WE'RE WATCHING

POLICY OF TRUTH - After decades of demonstrating that the best way to get ahead in Big Law is to put work above all else, large law firms' recent attempts to promote things like mental health and wellness and remote work flexibility are (often rightfully so) being viewed with suspicion. There's a sense that every policy purportedly geared toward improving work-life balance is really just a loyalty test in disguise. Complicating matters further is the fact that not every effort to address burnout actually is being made in good faith. As the old saying goes: just because you're paranoid, doesn't mean they aren't after you. And, as we explore in this week's Law.com Trendspotter column, even well-intentioned law firm leaders face challenges in convincing their people that it's OK to decelerate once in awhile—and that's a major hindrance to addressing the very real mental health problem affecting the industry.

EVERYTHING HAS A PRICE -  It's tempting to roll your eyes at the ever-escalating associate salary wars, which this year surpassed $200,000 for first-year associates. Each year, like clockwork, a handful of firms set the initial bar and then a competitor vaults over it, leading the rest of the market to trip over itself trying to catch up. What's the point of this madness? Well, for one thing, signaling that your firm is staying competitive for top young talent also sends the message that you're competitive for more senior talent. "I have seen an increase in partner candidates seeking to leave their firms because the firm is not retaining/attracting the best associates due to the salary wars," San Francisco-based legal recruiter Avis Caravello told Law.com's Dylan Jackson, Lizzy McLellan and Christine Simmons. "Moreover, a lateral partner or group acquisition can be jeopardized if the acquiring firm is not competitive in the associate market." On the other hand, keeping up with the Davis Polks of the world comes with its own (quite literal) costs in the form of partner profits. "This should be a wake-up call to partners everywhere: the cost of not enhancing the value proposition for associates can now be quantified as the multiyear decline in PPP resulting from this latest transfer of monies from partner profits to fixed associate comp," law firm strategist Hugh Simons said.

FLASH SALE - Shutterfly, the online retailer specializing in personalized photo products, has agreed to purchase Spoonflower, a market platform for custom fabric, wallpaper and home decor, for $225 million. The transaction, announced June 14, is expected to close by the third quarter of 2021. Shutterfly, which is based in Redwood City, California, is advised by a Paul, Weiss, Rifkind, Wharton & Garrison team led by Justin Rosenberg and Taurie M. Zeitzer. Counsel information for Durham, North Carolina-based Spoonflower was not immediately available. Stay up on the latest deals and litigation with the new Law.com Radar.  

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EDITOR'S PICKS

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WHILE YOU WERE SLEEPING

COST OF DOING BUSINESS -  Mid-tier U.K. law firms increased their average lawyer salaries faster than their larger rivals in the 2019-20 financial year, Law.com International's Meganne Tillay reports. While Linklaters, Freshfields Bruckhaus Deringer, Clifford Chance, Allen & Overy and Hogan Lovells continue to have the highest staff cost per fee-earner, most of the top five firms did not increase their spend in the 12 months to April 2020, according to a study by professional services firm Smith & Williamson. In contrast, mid-tier law firms such as Travers Smith, Bryan Cave Leighton Paisner, Stephenson Harwood and Addleshaw Goddard all increased their spend by 7% or more.

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WHAT YOU SAID

"Employment lawyers around the country would recommend that it's safe for an employer to mandate a vaccine, and not worry about legal repercussions."