JD Journal » cuts associate salaries

Mintz Levin Cuts Associate Salaries

Erik Even — Thu, 06 Aug 2009 16:29:49 +0000

Boston’s Mintz Levin, which just laid off an undisclosed number of attorneys and staff, has cut associate salaries.

The salary reductions are based on hours billed over the last 12 months — associates on track for 1,635 hours will see a 5% cut. Fewer hours mean a larger cut, up to 35%.

The cuts are firmwide.

Mintz Levin Cohn Ferris Glovsky & Popeo is a general practice law firm employing 500 attorneys worldwide. Headquartered in Boston, Mintz also has offices in New York City, Washington DC, Stamford, Los Angeles, Palo Alto, San Diego, and London.

Perkins Coie Cuts Associate Salaries — a Bit

Erik Even — Wed, 05 Aug 2009 23:09:41 +0000

Perkins Coie, which in April cut 12 attorneys and 26 staff, has announced minor salary cuts for associates.

The cuts will average a mere 3.8%, and go into effect September 1st. In certain markets, the salary cuts will be deferred until competitors cut their associate pay.

The firm intends to avoid having layoffs for the rest of 2009.

Perkins Coie is an international law firm based in Seattle, Washington. The firm is ranked number 86 on the list of the world’s largest law firms by 2006 revenue and has been listed on the Fortune Magazine “100 Best Places to Work in America” for the past seven years.

Troutman Sanders Cuts Associate Payroll 10% [Update 2]

Erik Even — Thu, 30 Jul 2009 20:01:22 +0000

Atlanta’s Troutman Sanders has announced to its associates a 10% cut in total associate payroll budgeted for August to December of this year.

The salary cuts for each associate will be performance-based. There are no further details available at this time.

If you know anything about the salary cuts at Troutman Sanders, please — send us a confidential tip!

Headquartered in Atlanta, Georgia, Troutman Sanders has offices in Chicago, Hong Kong, London, New York, Newark, Norfolk, Orange County, Raleigh, Richmond, San Diego, Shanghai, Tyson’s Corner, Virginia Beach and Washington, DC.

UPDATE

A JDJournal tipster tells us (edited for length and clarity):

The Troutman pay cuts are effectively retroactive to January 1, 2009 (e.g., they’re showing each associate his or her annual salary change, but taking the entire annual decrease out of the associate’s remaining 2009 pay checks).

Most cuts thus far have not been retroactive in this way, right? I’d think it to be a little late in the year for a retroactive reduction.

This is the first we have heard of retroactive salary reductions. And yes, it is a bit late in the year.

UPDATE 2

Troutman says the pay cuts are not retroactive, and apply only to compensation after August 1st. But it appears that a number of associates in the firm believed as our tipster did, that the cuts affected salary for the whole year.

Akerman Senterfitt Cuts All Associate Salaries 10%

Erik Even — Tue, 21 Jul 2009 16:55:07 +0000

Florida’s Akerman Senterfitt has announced a 10% cut in all associate salaries for all years, effective today.

The firm blames “market conditions.”

Akerman is also abandoning its current bonuses scheme, and will pay merit-based discretionary bonuses instead.

Akerman Senterfitt was founded in 1920, and has grown to become one of the largest law firms in the United States. In 2008, the National Law Journal ranked the firm as 92nd largest in the US by number of attorneys, and the second-largest Florida-based firm.

Weil Gotshal Slashes Salaries for London Associates

Erik Even — Tue, 07 Jul 2009 19:23:28 +0000

Weil Gotshal, which in May laid off 79 staff and in June announced the closure of its Austin, Texas office, is cutting the salaries of new associates at its London location.

Newly-qualified lawyers at One South Place will see their compensation cut 5.5%, to £85,000 ($137,500). Still, the new reduced salary is higher than the going rate for top London firms.

Also, the London branch is freezing salaries for all associates.

Weil, Gotshal & Manges is an international law firm headquartered in New York City. It is one of the largest and most highly regarded law firms in the world, with approximately 1,300 lawyers and gross annual revenue in excess of $1.7 billion.

Blank Rome Cuts Starting Associate Salaries

Erik Even — Thu, 02 Jul 2009 16:15:58 +0000

Blank Rome is cutting starting salaries for incoming associates.

The rundown is as follows:

New York City: $145,000, down from $160,000
Philadelphia & Princeton: $130,000, from $145,000
Wilmington & Washington DC: $135,000, from $150,000

Associates already with the firm will see their pay cut between 2% and 10%.

The new salaries go into effect in two weeks.

Blank Rome LLP is the 84th largest law firm in the US according to the AmLaw 100. It employs about 500 at its eight offices in the US and Kong Kong.

Alston & Bird Reduces Associate Pay By $5K

Erik Even — Wed, 01 Jul 2009 18:57:28 +0000

Today Atlanta’s Alston & Bird informed its associates that the firm is reducing all associate salaries by $5,000.

At this time, the firm expects to reverse the salary cut at the end of the year.

In April, Alston & Bird laid off 14 lawyers and 38 staff, but offered the lawyers affected what amounts to a public interest fellowship, and the possibly of being rehired at a future date.

Alston & Bird LLP is the second largest law firm in Atlanta, Georgia and the 43rd largest in the United States. Founded in 1893, the firm has offices in Charlotte and Raleigh, North Carolina; New York City; Washington, DC; Dallas; Los Angeles, the Silicon Valley and Ventura County.

Schnader Slashes Associate Pay; Partners Agree to Pay Cut

Erik Even — Tue, 30 Jun 2009 16:59:35 +0000

Schnader, which held layoffs in April, has cut associate salaries by $10,000; and partners have agreed to a 5% reduction in compensation.

Staff who make more than $60,000 a year are taking up to 5% in pay cuts.

The firm blames the economic meltdown.

Schnader Harrison Segal & Lewis LLP was founded in Philadelphia in 1935 by former Pennsylvania Attorney General William A. Schnader. Today, the firm has more than 200 attorneys in seven offices nationwide.

Buchanan Ingersoll Slashes Associate Salaries

Erik Even — Thu, 25 Jun 2009 19:35:10 +0000

Buchanan Ingersoll & Rooney, which in April deferred start dates for first-year associates to February 2010, will cut all associate salaries between 5% and 10%.

It is unclear if the salary cuts, which affect all class years, will be based on a billable hours requirement.

The firm says some associates will get higher or lower cuts based on “individual circumstances,” but did not elaborate on what this means.

Buchanan, Ingersoll & Rooney PC is a large US law firm and lobbying group based in Pittsburgh, Pennsylvania. The firm has over 500 lawyers in sixteen offices nationwide, and was ranked 82nd on the National Law Journal’s 2008 list of the 250 largest law firms in the United States.

Bryan Cave Cuts Salaries

Erik Even — Thu, 11 Jun 2009 17:52:54 +0000

Bryan Cave has announced it is cutting associate salaries 10% across the board.

No one’s salary will be reduced below the newly-established entry-level rates: $145,000 in Chicago, Irvine, New York, San Francisco, Santa Monica, and Washington, DC; $130,000 in Atlanta; $115,000 in Phoenix; $110,000 in St. Louis; and $100,000 in Kansas City.

Some staff lawyers will also see salary cuts. The reductions go into effect July 1st (July 13th in Missouri and the UK).

The firm has announced a move from traditional lock-step compensation to a merit-based system. The next associate reviews will be held in January 2010.

In February, Bryan Cave laid off 58 attorneys and 76 staff, and froze salaries.

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.

Sonnenschein to Slash Associate Pay [Update]

Erik Even — Tue, 26 May 2009 16:40:43 +0000

Sonnenschein Nath & Rosenthal plans to cut associate salaries, beginning June 1st.

First year salaries, previously a Biglaw standard $160,000, will be reduced to $145,000.

Sonnenschein seeks to make associate salaries performance-based, and will create an associate-partner committee to work out the details. This year, the firm will have a merit-based bonus program; bonuses will be paid in January 2010.

Sonnenschein Nath & Rosenthal LLP is an international law firm with 700 lawyers and other professionals in the United States and Europe. Founded in Chicago in 1906, it has 14 offices in the US and Europe.

UPDATE

Online sources have obtained further details about the salary reductions for Sonnenschein associates — the longer a lawyer has been with the firm, the more their pay will be cut.

If an associate started in 2004 or earlier, the pay cut is 15%. Those who started in 2005/6 take a 14% cut. And the 2008 class is taking a 10% cut.

Reed Smith Cuts Associate Salaries by 10%

Erik Even — Wed, 20 May 2009 17:53:55 +0000

Reed Smith is decimating associate salaries, cutting pay 10% across the organization.

From the memo:

…Reed Smith has adopted many changes to our business in response to global economic conditions… Among other things, this has meant lower compensation levels for partners. Today, we are announcing another change which we believe is appropriate to further sound business operations. Effective July 1, 2009, we will reduce associate salaries in the U.S. by 10% across the board. We will set the salaries for our incoming class of U.S. associates at a later date, but the new salaries will be at least 10% lower than current first year levels.

In Europe and the Middle East, the firm is freezing current associate salaries; and it will set the starting salary for newly qualified UK associates approximately 10% lower than the current level. Asian operations are not affected.

Founded in 1877, Reed Smith LLP employs 1500 attorneys in 23 cities worldwide. The firm counsels 28 of the top 30 US banks, and 10 of the world’s 12 largest pharmaceutical companies. In addition to the United States, Reed Smith has offices in the United Kingdom, continental Europe, Asia and the Middle East.

McKenna Long Cuts Incoming Associate Salaries

Erik Even — Tue, 14 Apr 2009 17:10:30 +0000

McKenna Long & Aldridge is cutting starting salaries for entering first-year associates by $20,000.

In 2007, McKenna moved to a merit-based promotion system. An associate’s compensation & billing rates are based on competencies, rather than on the year of their graduating class.

The firm has not deferred its incoming classes; nor has it announced any layoffs since the global economic meltdown began.

Atlanta-based McKenna, Long & Aldridge LLP was ranked the 100th largest law firm in the country by the National Law Journal in 2007. The firm also ranked 141st in profit per attorney on the 2007 AmLaw 200 survey.

Clifford Chance Freezes and Cuts Pay

Erik Even — Tue, 31 Mar 2009 19:28:03 +0000

Clifford Chance, which just announced layoffs of 24 New York associates, has announced an associate pay freeze, with the firm keeping fee earner and business services salaries at 2008 levels.

The firm has implemented the pay freeze globally.

Associates with one year post-qualification experience will continue to earn £68,700 ($98,500), while second-year PQE and third-year PQE associates will earn £82,000 ($117,600) and £89,500 ($128,400).

Clifford Chance’s March qualifiers will continue to receive the 2008 newly-qualified salary of £66,600 ($95,500), but September’s intake will be paid £59,000 pounds ($84,600), an 11% cut.

Clifford Chance LLP is the largest law firm in the world, both by number of lawyers and revenue, and a component of the UK’s “Magic Circle” of leading law firms. It is a prestigious international practice with its principal office in London.

Update: Katten Lays Off 69

Erik Even — Thu, 19 Mar 2009 21:14:11 +0000

Katten Muchin Rosenman has confirmed it is laying off 69 people today, and cutting the salaries of “underutilized” associates.

The firm is also scaling back its summer associate program, and deferring start dates for incoming first years.

From the press release:

…like many law firms, we have had to make some very difficult staffing decisions, including today’s layoff of a relatively small number of our attorneys and staff. These reductions included 12 associates, seven non-equity partners, four other attorneys, six paralegals and 40 staff members.

This layoff was relatively small due to a new Katten program that will creatively reduce costs while preserving dozens of jobs. Under the program, underutilized associates will be placed on a lower compensation scale. This scale reduces an associate’s base salary by 20 percent if he or she did not bill within 200 hours of their billable target in 2008, but offers the chance for them to earn back their total base at the end of this year if they meet their hours going forward…

In conjunction with our new compensation program, we are implementing a number of additional measures designed to cut costs, including reducing the length of our summer associate program from 10 weeks to eight weeks and reducing summer associate salaries by 20 percent. We are also delaying the start date for incoming first-year associates until February 1, 2010, the beginning of our fiscal year. These associates will be compensated with an additional stipend.

Katten Muchin Rosenman LLP has offices in Chicago; New York; Los Angeles; Washington, DC; Charlotte, North Carolina; Palo Alto, California; and Irving, Texas; with an affiliated entity, Katten Muchin Rosenman Cornish LLP, in London, England. The firm has over 650 attorneys practicing in more than 40 areas.

McGuireWoods Cuts First-Years’ Salaries by 10%

Erik Even — Fri, 06 Mar 2009 17:45:26 +0000

McGuireWoods chairman Richard Cullen left a voicemail to his attorneys yesterday evening, announcing that first year salaries will be cut 10%, from $160,000 to $144,000.

Salaries for all other associates at the firm have been frozen at 2008 levels.

Cullen also announced that the firm is cutting its 2009 summer program to eight weeks. He does not anticipate any layoffs.

It is not known if he made any other important announcements by instant message, Twitter or passing notes in class.

McGuireWoods is based in Richmond, Virginia. Founded in 1834 in Charlottesville, the firm now has more than 900 attorneys and advisers in 17 offices in the United States, Europe and Asia.