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L'Affair Layoffs

Like I said, I have some thoughts running through my head on this topic that I'll be exploring in greater detail. One that's troubling me is the "Cravathization" of firms. I think I may have read a while back somewhere (possibly on Adam Smith, Esq.?) about how a lot of firms mimicked the Cravath model of promising the top talent at top rates. This resulted in all sorts of absurdities, such as a bunch of firms all raising salaries because one of them did. Under the Cravath model, there is no room to be seen as "below market." Now that there is no market to speak of, those decisions are coming back to haunt the very same firms. I have Orrick in my crosshair. They led the Westcoast rise to 160 and now lead the worldwide fall of the 300. Why? How was a market downturn not foreseeable in 2007?

Consider this an open thread on this broad topic.

Edit: Folding McWho's open thread on this into this post.

Full post as published by Nuts & Boalts on March 16, 2009 (boomark / email).