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Law grads turn to corporate crime fighting
NEW YORK (Reuters) -- After two Washington Post reporters broke the Watergate story 30 years ago, journalism became the hot career for young people looking for excitement and public service. Today, the Enron and Worldcom stories have transformed corporate crime fighting into a top choice for law students who, only two years ago, might have looked down their noses at a career in government. The recent spate of accounting scandals, combined with a slump in recruitment on Wall Street, has job seekers lining up outside the doors of regulatory agencies gearing up for the new era of stepped-up corporate oversight. At the height of the technology stocks boom, jobs at agencies such as the Securities and Exchange Commission were spurned by graduates from the best law schools who had dollar signs in their eyes and crippling student loans on their minds. The major law firms were doubling what the regulators were offering, and demand for attorneys to work on deals and share offerings was surging. Now, they cannot afford to be so choosy and the idea of being a lawyer fighting the bad guys of the business world suddenly sounds as sexy as joining an Internet start-up did several years ago. "Being in the news all the time, plus a bit of downturn in law school hiring, is helping us," said Teri Ellison, the SEC's Washington D.C. branch chief in charge of recruitment. "Also, people understand that coming to work here you work for the right cause." The SEC said the number of applicants for entry-level attorney jobs starting in mid-2003 rose by almost 50 percent this year. More than 800 graduating students are competing for 20 to 25 SEC posts, meaning that 40 people are vying for each job this year, compared with about 10 people three years ago. Surging demand for work contributed to the "perfect storm" that led to the resignations of SEC Chairman Harvey Pitt and chief accountant William Webster. Ellison said many students want to work for the SEC because they will be given responsibilities more quickly and have the opportunity to work with a caliber of attorneys second to none in the securities industry. Lower salariesBut salaries are still relatively low. While the SEC has increased the annual salary for entry-level lawyers to a range of $64,000 to $83,000 in New York, it is still only about half of what big law firms pay their first-year associates, often with a bonus of $125,000 or more. The Department of Justice also said there has been greater interest in government jobs since the September 11 attacks, as more people consider the patriotic appeal of such work. "It was already a selective and competitive process; now it's getting even more competitive," said Justice Department spokesman Mark Corallo. Every year, the Justice Department selects only about 100 new people from thousands of applications. In the long run, a government job can also be a smart financial move for a young lawyer. Because Wall Street firms often snap up those with experience at the SEC or Justice Department, especially given the current demand for attorneys with securities law experience. For example, many securities firms have hired former SEC and government officials for top jobs in their legal and compliance departments. "Government experience benefits defense lawyers greatly," said Geoffrey Garinther, a former assistant U.S. attorney who now heads the corporate governance and investigation unit at Venable LLP. "Clients need counsel who understand the government's perspective, and that's particularly true when dealing with the SEC." Venable's corporate governance group recently scooped up two other former SEC attorneys, Fred Spindel and Nancy Grunberg, a former assistant director in the SEC's enforcement division. "The amount of workload and experience you get at the Justice Department is hard to get anywhere else," Corallo. Recruiting more seasoned staffBut it's harder to break into the government nowadays as regulators can ill afford the time to train new lawyers given their heavy caseload. The SEC is recruiting fewer than 25 law graduates for 2003, compared with more than 50 in 2000, but has plans to hire more seasoned attorneys. Law firms, while looking to hire the best defense lawyers, are also less enthusiastic about taking on inexperienced lawyers. Venable has set up a 40-member all-partner new corporate governance unit, but recruited only 12 students for the 2003 summer associate program, where classes at the 425-attorney firm are typically larger. Top law schools say that in a regular year only 5 percent of the students work in public service sectors, with the majority of students joining private firms. For many who don't have the luxury of being selective in this tough market, working for the government is more about survival. "Students' attitude three years ago was 'Gee, you're not paying very much, and I'm not very much interested.' Today it's 'Gee, that sounds pretty interesting because the job market is not very good,"' said Stuart TenHoor, partner of legal recruiting firm TenHoor & Helffrich. Copyright 2002 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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