The new $50,000 benefit for junior lawyers

An accounting waiting time to start: PwC China has told clients it expects Chinese authorities to punish it Ban on trade for six months which will take effect from September, as part of the punishment for its audit of bankrupt property developer Evergrande.

In today’s newsletter:

• Junior lawyers’ bonuses hit new highs

• Walmart sells stake in Chinese e-commerce giant

• US court blocks competition ban

$50,000 referral bonuses for junior attorneys

Do you want to buy a new one? TeslaOr rent a boat on the Amalfi Coast?

If you are a junior attorney at one of America’s top law firms, all you have to do is refer an associate to the group. The prize: $50,000.

With the war for talent between law firms reaching New HeightsThe groups are offering their young lawyers up to $50,000 to recommend other young lawyers they know for jobs, report the FT’s Suzi Ring and DD’s James Fontanella-Khan.

Part of the bonus frenzy can be attributed to the return of trading after high interest rates cooled the market.Mars Reached an agreement Last week to buy Kellanova for 36 billion dollars.)

Kirkland and Ellis increased its existing referral bonus from $25,000 to $50,000 last October and recently renewed the program until January 2025.

A&O Shearman It followed suit, introducing the same bonus for US partner referrals in May (when the UK’s “magic circle” signing Allen and Overy and New York Shearman and Sterling officially merged). Buenwin and Pablo Weiss We also offer the same considerable sum.

As a concept, referral bonuses are not new, but in past years, $50,000 was considered an exception, he said. Katherine LoanzonCEO of Legal Headhunter Kinney Recruitment In New York, they are now practically the norm.

The size of these payouts has increased since 2021 and is just one sign of the larger war for talent engulfing law firms, with junior salaries, joining bonuses and retention bonuses on the rise.

In London, UK ‘magic circle’ companies are trying to defend their territory Increase wages for newly qualified lawyers, up to £150,000, as US rivals enter the market.

But when it comes to referral bonuses, the UK still lags behind its counterparts across the pond.

One magic circle company in the U.K. pays its associates £15,000 for successful referral placement, while lower-tier companies can pay closer to £5,000, according to people familiar with each firm’s offerings.

With bonuses of that rank, instead of a Tesla or a rented boat, maybe you could get a nice vacation.

Walmart changes its strategy in China

Walmart is saying goodbye to JD.com.

The world’s largest retailer has sold its entire stake in the Chinese e-commerce giant to focus on growing its own brands in the country.

In a presentation before the US Securities and Exchange CommissionWalmart revealed that it had discharged its nearly 10 percent stake in JD.com, worth $3.6 billion. JD.com kept $390 million from the share sale, but still saw its share price plummet.

News that another major foreign investor was pulling money out of Chinese technology stocks sent the value of the shares down 2 percent. Hang Seng Technology Index.

Walmart’s journey with JD.com began in 2016 when it rebranded its Chinese e-commerce site, Yihaodianfor an initial stake in the group. He paid more than $1 billion to double his stake later that year.

While Walmart bought in to learn about Chinese retail from locals, it is now doing just fine on its own.

Chinese buyers flock to their Sam’s Club Member stores offer safe, high-quality products at great prices, and the club’s pink-uniformed delivery drivers are a frequent sight on the streets of Beijing.

On the other hand, JD.com is struggling to differentiate itself from the growing number of e-commerce platforms in China. That has left the founder Richard Liu planning an expansion abroad from a mansion in central London.

US court blocks competition ban

He US Federal Trade Commission caused a stir in April when it announced a ban on non-compete agreements, the rigid contracts that restrict employees from leaving for rival companies.

But on Tuesday, the ban suffered a blow, as the U.S. District Judge Ada Brown in it Northern District of Texas blocking the ruleHe said the regulator lacked the authority to stop the deals.

The rule “is arbitrary and capricious because it is unreasonably broad and without reasonable explanation,” Brown said in the decision.

But the FTC, headed by Lina KhanHe’s not likely to give up just yet.

“We are seriously considering a possible appeal and [Tuesday’s] “The decision does not preclude the FTC from addressing non-compete clauses through enforcement actions on a case-by-case basis,” the FTC spokesperson said. Victoria Graham said in a statement.

The rule was due to take effect in September and would have invalidated contract clauses that prevent employees from working for one of their employers’ competitors or starting a competing business for a certain period of time in particular regions.

Non-compete agreements have long been a hallmark of Wall Street: big banks, brokerages, asset managers and hedge funds use them.

Sometimes these companies even require non-compete contracts and confidentiality agreements, further tightening restrictions on workers.

The rule was expected to undermine long-standing elements on Wall Street, such as the ability of groups to impose paid “gardening leave” or to withhold deferred bonuses when an employee leaves for a competitor.

As the ban remains in limbo, Wall Street’s biggest firms are no doubt drawing up contingency plans for either outcome.

Job changes

• Walt Disney has appointed James Gorman as chairman of its succession planning committee. The former Morgan Stanley The CEO joined the board earlier this year and oversaw the bank’s recent succession planning.

• Western Asset ManagementLong-time Co-Chief Investment Officer Ken Leech has taken a leave of absence amid a government investigation. Michael Buchananwho previously served as co-chief investment officer alongside Leech, will assume the role effective immediately.

• Pablo Weiss has hired Asda co-owner Capital TDRThe best lawyer in David Holdsworth As the law firm continues expand In London.

Smart readings

Coal moment For years, coal producers in the U.S. have been plagued by bankruptcies and environmental, social and governance (ESG) concerns. Now, they are a huge cash generator for shareholders, writes Lex.

The Schwab revival Charles Schwab makes much of its money from banking. Now it’s trying to… Review the business — and investors are skeptical, The Wall Street Journal reports.

Flying cars The idea of ​​flying cars has long been a figment of dreams or science fiction, but Boeing and startups like Ehang and Joby are betting on the Multi-million dollar possibilityBloomberg reveals.

News summary

BlackRock’s support for ESG measures falls to a new low (FOOT)

Five bodies found on Mike Lynch’s superyacht (FOOT)

Oaktree is close to reaching an agreement to buy a majority stake in two B Riley units (Bloomberg)

Target praises ‘remarkable’ consumer resilience as sales turn positive (FOOT)

UK needs EU-style private funding for transport projects, study finds (FOOT)

CrowdStrike slams rivals for ‘shady’ attacks following global IT outage (FOOT)

Ford cancels electric SUV, warns of $1.9 billion loss in value (FOOT)