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Kilpatrick Stockton Cuts Associate Pay

admin — Fri, 05 Jun 2009 17:10:57 +0000

Kilpatrick Stockton will cut associate salaries by 10%, effective July 1st. So, Happy Independence Day!

Starting pay for associates will be cut from $145,000 to $130,000 in Atlanta and North Carolina, and from $160,000 to $145,000 in New York and Washington DC.

The pay cuts reverse salary increases made in the beginning of 2008. They affect all 200 US associates, except a few first years. And associates can offset the salary decrease by earning bonuses.

Kilpatrick Stockton employs more than 500 attorneys globally, in Atlanta and Augusta, Georgia; Charlotte, Raleigh and Winston-Salem, North Carolina; New York, New York; Washington, DC; Dubai, UAE; and Stockholm, Sweden.

Rumor: Ballard Spahr Cuts Associate Salaries

Erik Even — Mon, 01 Jun 2009 18:06:23 +0000

A rumor making the rounds in blawgs today is that last week, Philadelphia’s Ballard Spahr cut associate salaries.

The average cut is said to be 14%, but the individual cut for each associate was personalized. Cuts are effective June 16th.

The firm will not confirm or deny the rumor. Which usually means it’s true.

Apparently, a firmwide meeting has been scheduled for this week to discuss the pay cuts.

Ballard Spahr Andrews & Ingersoll employs more than 550 lawyers in twelve offices located throughout the mid-Atlantic corridor and the western US.

Husch Blackwell Cuts Salaries to 2007 Levels

Erik Even — Tue, 28 Apr 2009 21:49:01 +0000

According to online sources, St. Louis, Missouri-based Husch Blackwell has rolled back all starting salaries to 2007 levels.

That will constitute cuts of between 5% and 10%.

In March, the firm laid off 17 lawyers and 45 staff.

Husch Blackwell Sanders LLP is a litigation and business services law firm with 675 attorneys in offices in 13 cities. The firm is a combination of two of the region’s nationally recognized law firms, Husch & Eppenberger, LLC and Blackwell Sanders LLP, and most recently, Welsh & Katz, a well-respected Chicago intellectual property boutique.

Brownstein Hyatt Lays Off 15 Attorneys, 22 Staff

Erik Even — Fri, 10 Apr 2009 18:46:45 +0000

Denver’s 200-attorney Brownstein Hyatt has laid off 15 attorneys and 22 staff.

Partners consulted with associates to determine a balance of salary cuts and layoffs. By accepting salary reductions, the associates saved 8 jobs.

Income shareholders, counsel and policy advisers took a 10% pay reduction; associate salaries will be reduced by 8.5%; and senior management pay will be reduced by 5%.

Brownstein Hyatt Farber Schreck has offices in Albuquerque; Aspen, Denver and Glenwood Springs, Colorado; Lake Tahoe and Las Vegas, Nevada; Los Angeles, Costa Mesa, Sacramento, San Diego and Santa Barbara, California; Santa Fe; and Washington, DC.

Much Shelist to Cut Partner, Associate Pay

Erik Even — Mon, 23 Feb 2009 21:55:05 +0000

Chicago’s Much Shelist Denenberg Ament & Rubenstein, a business-law firm with about 80 attorneys, will impose a 10% pay cut for partners and associates until May 31, the end of the firm’s fiscal year.

“We always believe in taking care of our people,” Chairman David Brown said. “Besides, all of these attorneys have important relationships with our clients. To have a disruption with attorneys is not fair to clients.”

Brown said the firm let go one associate but it was not for economic reasons. Four staff members were laid off to help reduce expenses, he said.

Lawyers who are not as busy are being encouraged to meet with clients for a few hours a week without charging them. Brown describes the free service in military terms, saying “we are embedding ourselves at various clients.”

Brown estimates that up to 40% of the firm’s business has slowed down. The firm’s leadership decided to move quickly to balance expenses against lower revenue projections.

Founded in 1970, Much Shelist is a full-service, Chicago-based business law firm focused on the middle market.

Arent Fox Latest to Freeze Salaries

Erik Even — Sat, 17 Jan 2009 17:00:05 +0000

Washington DC law firm and lobbying group Arent Fox will freeze associate base compensation at the current 2008 rates for 2009.

The firm will also place a 150-hour cap on non-billable creditable hours, that can be increased only in limited circumstances.

Eligible associates who record more than 2050 billable hours, 2150 billable hours, 2250 billable hours, or more than 2350 billable hours will be eligible to receive productivity bonuses.

The National Law Journal ranked the firm as the 137th largest in the US based on number of attorneys. In 2008, the firm was ranked 84th on the Vault 100 survey of the most prestigious firms in the US.

Alston & Bird Freezes Salaries

Erik Even — Wed, 14 Jan 2009 18:25:49 +0000

Alston & Bird is the latest firm to freeze associate salaries at 2008 levels.

The Atlanta firm has informed associates that raises planned for 2009 have been cancelled.

Throughout 2008, firm management implemented a variety of measures to address the financial situation. As the Partners Committee has engaged in the budgeting process for 2009, it has become apparent that additional expense savings are mandated for sound financial stewardship of the firm.

To that end, associates will be paid the same base compensation in 2009 as they were paid in 2008.

Bonuses for 2009 are not affected, and the firm promised to revisit the salary situation later in the year.

Last year the firm offered early retirement packages to all staff that had been at the firm for more than 10 years and were over age 55.

Alston & Bird consistently ranks on Fortune’s list of the 100 best companies for which to work, placing #31 in 2008.

Reduced Hours for Associates Instead of Layoffs?

Erik Even — Mon, 12 Jan 2009 18:28:17 +0000

The Project for Attorney Retention (PAR), an initiative of the Center for WorkLife Law at University of California Hastings College of the Law in San Francisco, is suggesting to struggling law firms that they cut associate hours rather than laying off lawyers completely.

“I think if firms aren’t thinking about such a program, they really should,” consultant Charles Santangelo told the NLJ. “A number of firms are already talking about it, and it’s happening for some paralegals. It may or may not work, but they should consider it.”

The PAR has long advocated for reduced hours as a way for law firms to retain attorneys, particularly women and minorities.

Associates working reduced hours would see corresponding reductions in their compensation, which would help firms cut their costs without firing associates.

It remains to be seen if the reduced-hours schedule idea will catch on with law firms.

The PAR does not have any statistics on the number of firms using reduced hours as a response to the economy, because the trend is fairly new. But a growing number of firms have contacted the PAR since this summer to ask about reduced hours and how such a program could be implemented.

Michael Nannes of Dickstein Shapiro said he doesn’t foresee a wave of law firms looking to reduced hours solely as a cost-savings move. The reality, he says, is that having associates work fewer hours doesn’t provide the same level of savings as layoffs.

It costs a law firm less to have three associates working 2,000 than to have four associates working 1,500 hours because the law firm must pay for office space and benefits for that fourth, reduced-hours associate. That added cost is eliminated in the layoff scenario.

On the other hand, Nannes said, clients value continuity among attorneys, and reducing associate hours would help protect the continuity that is disrupted by the layoff process.

Via NLJ.

Sheppard Mullin “Freezes” 2009 Salaries

Erik Even — Mon, 05 Jan 2009 21:28:52 +0000

If you’re an associate of AmLaw 100 firm Sheppard, Mullin, Richter & Hampton LLP, and you haven’t checked your email because you were busy figuring out whether to spend your big 2009 salary increase on a solid gold car bra for your BMW M6 Convertible or on that Lladro figurine that will complete your collection, you’d better read this:

Each of you is aware of what is going on in the world economy in general, and in the legal market in particular. The Executive Committee and our Firm’s senior managerial and financial officers, Bob Zuber and Kevin Combs, have been working hard over the past several months to ensure Sheppard Mullin’s continued financial strength through the current economic downturn. We feel it is critical to rigorously control expenses during these times. As part of our management of expenses, we have decided to “freeze” Associate compensation for 2009. This means your base compensation will be the same as in 2008. Special Counsel and Senior Attorney compensation will also be frozen, with minor exceptions.

We trust you understand this decision is a reflection of the market and not how we value any of you. We are very proud of our attorneys and the superior service, quality and value you provide to our clients.

Bob Zuber and I will be making our annual State of the Firm presentations in each office at the end of January and beginning of February. As usual, we will have an open forum to address any questions you have. Should you have any questions in the meantime, please direct them to Robert Beall, Bob Neufeld, Bob Zuber or me.

Thank you for your hard work and many contributions in 2008 and best wishes to all of you for 2009.

-Guy [N. Halgren] and The Executive Committee

I’m not sure why “Guy” felt the “need” to place the “word” “freeze” in “quotes.” But I’m sure associates will “love” his “friendly” and “avuncular” “style” as they sell off their home gym equipment to “pay” “off” their student loans.

DLA Piper Freezes Associate Salaries

Erik Even — Mon, 05 Jan 2009 00:10:53 +0000

DLA Piper associates were greeted with this email on Friday:

2008 has indisputably been one of the most challenging economic periods in recent history. DLA Piper, because of its global platform and practice diversification, is well-positioned competitively and financially to weather this downturn, but neither we nor our clients are immune from its impacts. This difficult business environment is certain to continue in 2009, and as a matter of prudent management, the firm will not increase associate salaries for 2009 in the U.S. Associates moving to the next class year will continue to receive the same base compensation as they received in 2008. Consistent with our past practice, decisions for regions outside the US will be made on a market by market basis.

We have exceptional associates and we value you greatly. We will continue to reward outstanding performance through our bonus program. Bonuses for 2008 will be determined and paid in late January or early February. The 2009 Bonus Program will be the subject of our usual Executive Committee review and discussion process, and its specifics will be announced at some point in the first quarter.

We are grateful for the market opportunities DLA Piper has, and for the loyalty of our clients. Our primary purpose in 2009 should be remaining close to them and understanding their business and legal needs in order to provide them with exceptional service.

According to Above the Law, this isn’t helping with DLA Piper’s reputation for being notoriously cheap:

Well, it’s only been an hour, but I think it’s a terrible move. DLAP already has a reputation as a scrimper among the top-50 – this will not help.