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Holland & Knight Cuts Compensation

Erik Even — Wed, 29 Jul 2009 16:12:32 +0000

Florida’s Holland & Knight is cutting salaries for associates and senior counsel. The firm says the cuts average 7% across all those effected; 10% for associates.

This salary reductions are effective immediately.

Holland & Knight is reviewing its associate compensation scheme, and intends to implement changes next year.

Holland & Knight cut 70 lawyers and 173 support staff positions in February.

Holland & Knight is a law firm with more than 1,150 lawyers in 23 US offices. Foreign offices include Beijing, China, and Mexico City, Mexico, with representative offices in Caracas, Venezuela, and Tel Aviv, Israel.

Akin Gump to Lawyers: Bonuses If You’re Good, Penalties If You’re Naughty

Erik Even — Sat, 04 Apr 2009 17:32:15 +0000

Dallas’ Akin Gump is altering its salary plan to reward lawyers who are on track to bill 2,000 hours by the end of the year.

Those lawyers receive a supplemental payment. Those who do not will not be penalized.

The firm made the announcement via e-mail Friday evening.

In early March, the firm laid off 47 associates and 57 paralegals & staff.

Akin Gump Strauss Hauer & Feld LLP was founded in Dallas in 1945 by Robert Strauss and Richard Gump. The firm now numbers more than 900 attorneys and advisors in the United States, Europe, Asia and the Middle East.

Update: Hogan & Hartson Reduces Pay for Certain First-Year Associates

Erik Even — Fri, 03 Apr 2009 16:59:57 +0000

Yesterday Hogan & Hartson laid off 93 US support staff.

Today we learn more about changes in compensation for associates who joined the firm in Fall 2008.

Hogan offers two compensation tracks for its associates; those who bill 1,950 hours per year plan earn at least $160,000, while those on the 1,800-hours plan earn at least $145,000.

Starting yesterday, the firm moved associates who aren’t on track to bill at least 1,850 hours to the reduced salary track.

Associates can move back up to the higher salary level by billing 1,950 hours by the end of this year. They can count up to 100 pro bono hours toward their billable hour totals. If they log more than 1,850 hours but less than 1,950, they will be compensated proportionally.

The firm says it hopes the changes will not be carried over into 2010.

Founded in 1904, Hogan & Hartson is the oldest major law firm headquartered in Washington, DC. It is a global firm with more than 1,100 lawyers in 27 offices worldwide, including offices in North America, Latin America, Europe, the Middle East, and Asia.

Patton Boggs Adopts New Compensation System

Erik Even — Mon, 23 Feb 2009 16:59:26 +0000

Washington, DC-based Patton Boggs is adopting a new compensation plan for partners, retooling a long-held “eat-what-you-kill” system to reward partner cooperation and business development.

Under the new structure, which will begin next year, partners will have a percentage of their pay set by an 11-member compensation committee. The committee will examine how well partners refer business to each other, and will also weigh involvement in associate mentoring and training, and whether partners soon to retire are transferring clients to the next generation of lawyers at the firm.

It is not a complete change. Nearly 85% of partners’ compensation will still be based on billables. But it does mark a major change for the firm, which says it wants to encourage partners across practices to cross-sell services to clients.

The changes will apply to the firm’s 119 equity partners; they will not affect the vast majority of the firm’s 111 non-equity partners. The firm has a total of 518 lawyers.

The firm has been working on a review of both the compensation system and firm objectives for roughly two years, and the internal process concluded with a partner vote in December to adopt the new system. More than 90 percent of equity partners voted for the change.

Patton Boggs is a full service law firm with more than 600 lawyers and professionals in nine locations in the United States and the Middle East.