Patton Boggs is making up for losing DC litigator DeMaurice Smith to the NFL Players Association by landing a big lateral.
Thomas Russo is joining the firm after 15 years at Lehman Brothers, most recently as vice chairman and chief legal officer. There are any number of reasons for Russo’s not choosing to go back to his original firm, Cadwalader. Take your pick: sinking revenues and profits, bankruptcy rainmakers leaving, infighting in management, and lots of layoffs.
After the jump – the comp.
Patton Boggs is in the middle of overhauling its compensation model.
Patton Boggs has been posting strong returns in recent years. The firm reports firmwide revenue of about $348.7 million for 2008, a 12.45 percent increase over 2007. Profits per partner were $783,000. Under the firm’s current partner compensation model, the highest-paid partner at Patton Boggs made 16 times more than the least. [Managing partner Stuart] Pape says he does not know whether the new model will shrink that disparity, but says doing so is not the goal.
Russo is probably looking at a massive pay cut, though. He consistently ranked at the top of the GC comp lists. In 2007 he took home $10.4 million, good for the #3 ranking ($5 million cash, the rest in exercised options and other comp). In 2006 he ranked #2. 2008 was certainly not good, but Lehman won’t be filing a proxy this year, so we may never know just how bad. Unlike most GCs who make the “reverse commute,” it’s not like he’s got a massive book to bring with him from his former employer. His rolodex is pretty well stacked, though.
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