JD Journal » salary reduction

Drinker Biddle Will Not Defer Associates, But Will Cut Salaries

Erik Even — Mon, 11 May 2009 20:44:02 +0000

Drinker Biddle will allow its 36 incoming associates to start on time in September; but their salaries will be reduced, and they will enter a training program rather than jumping right in.

From a memo so long, we wondered if he catches the whale at the end:

Many of our lawyers have asked us whether we intend to modify our hiring program. In particular, given client questions about the value of very junior lawyers, it has been suggested that we should rely more on lateral hiring of more senior lawyers who have already received their initial training elsewhere. …we believe the answer is not to cut off the source of talent and future leaders of our firm by abandoning our traditional practice of hiring lawyers out of law schools. Nevertheless, we are now reviewing how we run our summer programs and train recent law school graduates to be Drinker Biddle lawyers. …we may very well hire fewer people and commit to train them better.

We have also decided to welcome and train our incoming lawyers rather than defer their arrival for months or a full year…

Accordingly, we are advising all of our incoming lawyers to join us in late September of this year and to expect to spend the first several months of their practice receiving intensive training – a training program far more rigorous and focused than any we have previously provided. Although much of this training will be focused on traditional legal skills relevant to particular areas of practice, we also expect to spend substantial time educating our new lawyers about our clients’ businesses and Drinker Biddle’s approach to adding value in countless practical ways…

During this initial period.. we will pay our incoming lawyers at an annual salary rate of $105,000. Any client work they perform will be billed at a significant rate reduction to ensure that, if new lawyers perform work for clients, the value is clear. In the spring of 2010 – once our new lawyers have been with us for at least six months – we expect to bring their compensation in line with then prevalent market rates for first-year lawyers.

The firm also announced a new flex time policy.

Some time in 2010, the firm plans to announce a new structure for associate compensation and bonuses.

Drinker Biddle & Reath LLP was founded in Philadelphia in 1849. The firm has more than 650 attorneys in 12 offices in the US. Its largest offices are in Philadelphia; Chicago; Florham Park, New Jersey; and Washington, DC.

Ashurst Freezing All Non-Partner Salaries

Erik Even — Sat, 14 Mar 2009 17:57:53 +0000

Ashurst has slashed pay for its incoming class, and is freezing salaries for all non-partner lawyers and support staff.

Trainee solicitors who qualified with Ashurst this month will receive salaries of £60,000 ($83,800), as opposed to the £65,000 ($90,800) last year’s intake received. All other lawyers and support staff will see their pay bands held at 2008 levels, despite progressing a year in qualification terms.

Earlier this month, the firm cut staff hours.

Ashurst has over 800 lawyers, including over 199 partners, in twelve countries. Founded in 1822, the firm was known as Ashurst Morris Crisp until it rebranded in late 2003.

Update: Thompson Hine Cuts Positions, Pay

Erik Even — Mon, 23 Feb 2009 16:44:32 +0000

Cleveland’s Thompson Hine will impose an across-the-board $17,500 base salary reduction on associates and other non-partner lawyers.

Those lawyers will be able to earn back some or all of that sum as a bonus, if they bill at least 1,750 hours this year.

The firm also announced layoffs last week, eliminating the jobs of 12 associates, five paralegals and 29 secretaries. Furthermore, it has pushed back the starting date for its incoming first-year class to January 2010.

Roughly 210 lawyers will be affected by the salary change. Associate salaries vary among Thompson Hine’s eight offices: first-years in the New York office earn $145,000; those in Cleveland bring in $125,000; and Cincinnati first-years make $115,000. The reduction represents a 12% decline for first-years in New York, and a 15% decline in Cincinnati.