Big Law Firms Adopt Drastic Pay Cuts Due to Pandemic
Monday, April 13, 2020
More pay cuts pile on as law firms struggle to stay afloat.
Many major U.S. law firms are adopting measures to protect their finances in the hopes of mitigating the economic impacts of the coronavirus according to Law.com:
Allen & Overy has called for partners to contribute capital as it takes measures to protect itself financially. The firm is also reducing its partner profit distributions and has frozen its associate and support staff pay. Bonuses will be split into two payments, with half being paid in July and the remainder paid in October.
Arent Fox in Washington D.C. has instituted 25% pay cuts for associates and staff and a 60% reduction in equity partner distributions.
Baker Botts is deferring its 2020 summer program by at least a month.
Baker & McKenzie is reducing salaries for non-partner attorneys, timekeepers, and business professionals by 15%.
Blank Rome instituted a temporary 15% compensation reduction throughout the entire law firm to be shared equally by staff.
Day Pitney cut pay by 15% for all attorneys and some staff.
Ford Harrison notified law students that it would cancel its summer associate program because of the “uncertainty and challenges” of the COVID-19 pandemic.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo is decreasing staff and professional salaries by 5% and will be reducing associate salaries by 10%.
Nixon Peabody has furloughed 25% of its staff until further notice. 10% of non-partner attorneys and senior associates would be let go, with half as layoffs and the other as furloughs.
Sullivan & Worcester has furloughed some employees for 90 days and has instituted temporary pay cuts for staff.
Taft Stettinius & Hollister reduced partner draws by 25%.
Vinson & Elkins announced it will delay the start of its 2020 summer associate program until June 15 at the earliest, because several offices are now under mandatory stay-at-home orders that will remain in effect through April and into May.
Womble Bond Dickinson has temporarily cut pay across the firm’s U.S. offices and is furloughing or laying off some employees to weather the economic shutdown from the coronavirus pandemic.
The information was gathered from Law.com as of April 13th, 2020. This list will not be updated.
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