JD Journal » salary reductions

Survey: Aussie Partners See Salary Cuts

Erik Even — Mon, 17 Aug 2009 17:24:27 +0000

A new survey of Australian law firm partners shows plummeting incomes and soaring stress levels.

Mahlab Recruitment reports that partner salaries are down by over 5% in Sydney, and 4% in Melbourne. Last year, partners in both cities saw an 11% increase.

The survey also says that firms have been quietly booting under-performing partners for the last year.

Almost 70% of private practice lawyers were not satisfied with their salary reviews.

Mahlab Recruitment, a legal and practice management recruitment consultancy, has offices in Sydney and Melbourne.

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.

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.

Morris Manning Slashes Salaries

Erik Even — Mon, 27 Jul 2009 17:03:00 +0000

Atlanta’s Morris Manning, which recently canceled its 2010 Summer Associate Program, is slashing salaries based on how much work a particular practice group is bringing in.

The real estate, commercial lending, and general corporate practice groups are taking 15% salary cuts. All other groups will see 10% cuts.

Morris, Manning & Martin, LLP, is 175-lawyer firm with offices in Atlanta, Alpharetta, Duluth and Savannah, Georgia; Raleigh-Durham, North Carolina; Washington DC; Beijing and Taipei.

UC Law School Profs Hit By Pay Cut

Erik Even — Mon, 27 Jul 2009 16:27:28 +0000

The University of California has announced a furloughs scheme beginning in September, affecting faculty at law schools, amongst others. The system is effectively slashing salaries by 4% to 10%.

The plan requires faculty and staff to take up to 26 unpaid furlough days during the 2009-10 school year. One hundred and eight thousand employees of the UC system will be affected.

At UCLA Law, 60 law faculty members and 100 law school staff members face furloughs, as do 35 faculty members and 75 staff members at UC Davis’ Law School. The UC Irvine School of Law, which opens this fall with its first incoming class, will see 17 faculty affected.

The UC Board of Regents is facing a 20% cut in money from the state’s general fund.

Halliwells Cutting Work Hours — Billing Requirments Stay the Same

Erik Even — Fri, 24 Jul 2009 16:36:42 +0000

Manchester, UK’s Halliwells, which in March launched a redundancy consultation targeting 30, is cutting attorneys’ working hours, but not adjusting its billable hours requirements.

The firm is putting three quarters of its fee earners on a four-day week, with a commensurate 15% pay cut.

But the firm is keeping billable hours targets unchanged, meaning attorneys must work 25% more hours each day to keep up.

Halliwells is a commercial law firm, and one of the UK’s top 50.

Addleshaw Goddard Offers Reduced Hours, Sabbaticals

Erik Even — Mon, 13 Jul 2009 16:55:33 +0000

Addleshaw Goddard, which laid off 19 partners in February and 85 staff in May, has approved new measures to save money on compensation.

Some attorneys will work a four-day week and earn 85% of their normal pay.

The firm is also offering sabbaticals, or extended time off at 30% salary. Salaries have been frozen until 2010.

Addleshaw Goddard has also announced is is keeping on only 75% of its incoming associates, or 33 new lawyers.

Addleshaw Goddard LLP is a UK law firm, with almost 750 lawyers and 1,350 staff, based in Leeds, London and Manchester. It was formed in 2003 by the merger of Addleshaw Booth & Co with Theodore Goddard.

Howard Rice Decimates Associate Salaries

Erik Even — Fri, 10 Jul 2009 17:11:42 +0000

San Francisco, California’s Howard Rice cut all associate salaries by 10% last month.

Incoming associate salaries were cut from $160,000 to $145,000. Fourth-years now make $170,000, and seventh-years make $225,000.

The firm says it is just bringing its salaries into line with competitors like Morrison & Foerster, DLA Piper and O’Melveny & Myers.

Howard Rice froze its billing rates 18 months ago.

Founded in 1954, Howard Rice Nemerovski Canady Falk & Rabkin employs almost 100 lawyers.

Study: Dublin Solicitors Suffering Wage Cuts, Layoffs

Erik Even — Fri, 03 Jul 2009 16:26:45 +0000

A survey by the Dublin Solicitors Bar Association reports that 40% of new and low-level solicitors in the city have taken pay cuts averaging 15%; and 40% of incoming new solicitors have been laid off or lost their job offer.

Furthermore, 40% (there’s that number again) are working without a contract; and 30% are considering changing careers.

The study questioned solicitors with less than five years experience.

Established in 1938, the Dublin Solicitors Bar Association is the largest bar association in Ireland.

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.

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.

Ruden McClosky Cuts Compensation

Erik Even — Tue, 30 Jun 2009 16:48:09 +0000

Florida’s Ruden McClosky, which laid off two lawyers and 18 staff in May, is cutting associate and non-equity partner compensation by 8%.

Equity partners are not likely to receive the holdbacks of 18% of their pay.

The firm is struggling, as it relies heavily on real estate transactional work, which has been negatively affected by the global economic meltdown. Ruden McClosky has been shedding attorneys since last year.

Fort Lauderdale, Florida’s Ruden McClosky is a law firm specializing in intellectual property law, litigation, banking & finance law, and general corporate law.

Venable Cuts Compensation for All Lawyers & Staff

Erik Even — Fri, 26 Jun 2009 16:50:10 +0000

Baltimore’s Venable is cutting salaries across the board, affecting all lawyers and staff, including partners.

Base compensation for our first year associates is being cut from $160,000, formerly the Biglaw standard, to $145,000. The base compensation for all other associates will be reduced by 8%, with a floor of $150,000 and $155,000 for second year and third year associates, respectively.

Base compensation for all of counsel will be reduced by 8%.

All non-equity partners will see a base compensation reduction of 8%, excepting those that are on track that meet the firm’s 1800-hour billable hour standard.

Senior staff will have a base compensation reduction of 8%. All other non-legal staff will be unaffected.

The profiles for equity partners were set at 5% below last year’s earnings at the beginning of the year. The final compensation decisions for equity partners will be based on 2009 individual and firm performance.

All compensation adjustments will be effective July 11, 2009.

In March, the firm laid off 64 people and deferred incoming associates.

Venable LLP is a law firm, formerly known as Venable, Baetjer & Howard LLP. It was founded in Baltimore in the post-Civil War period. Today the firm maintains six Northeastern US offices and specializes in patent litigation, labor and employment law and white collar investigations. Venable employs nearly 600 attorneys.

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.

Snell & Wilmer Decimates Associate Salaries

Erik Even — Fri, 19 Jun 2009 22:05:55 +0000

Phoenix, Arizona’s Snell & Wilmer, which in May laid off between 30 and 40 staff members, has now cut associate salaries by 10% across the board.

The pay cuts are effective July 15th. The firm promises to pay performance-based bonuses later this year.

Snell & Wilmer was founded in 1938 by Frank Snell Jr. and Mark Wilmer. The firm is the largest in the state of Arizona and the 99th largest in the US by number of lawyers, according to the National Law Journal’s 2007 statistics. The southwestern regional firm, which has about 1,000 employees, also has offices in seven other cities in Arizona, California, Nevada, Utah and Los Cabos, Mexico.

Schwabe, Williamson & Wyatt to Hold Layoffs, Cut Salaries

Erik Even — Tue, 16 Jun 2009 21:37:00 +0000

Blawgs are reporting that Portland, Oregon’s Schwabe, Williamson & Wyatt will cut associate salaries and hold layoffs of support staff.

The firm is expected to announce associate pay cuts of between 5% and 10%. First years already only make $110,000.

The number of staff to be cut is as yet unknown.

Schwabe, Williamson & Wyatt is a law firm with over 160 attorneys in seven cities. The firm currently has offices in Portland, Bend and Salem, Oregon; Seattle, Vancouver and Stevenson, Washington; and Washington, DC. It is the seventh largest law firm in the Pacific Northwest, and the second largest in Oregon.

San Francisco City Lawyers Extend 2% Pay Cut

Erik Even — Mon, 15 Jun 2009 23:28:54 +0000

Lawyers for the City of San Francisco have voted to continue a 2% pay cut for another year.

The Municipal Attorney’s Association, the union representing the lawyers, approved the continued salary cut by a members vote of 167-73.

MAA lawyers salaries start at $98,500 a year, but can earn as much as $172,600. Those at the top of the pay scale are giving up $133.00 per paycheck.

The Municipal Attorney’s Association is the recognized collective bargaining unit for about 400 non-management attorneys employed by the City and County of San Francisco. The Association represents attorneys in the office of the District Attorney, the Public Defender, the City Attorney, the Sheriff Department, the Tax Collector, the Rent Board, the Public Guardian/Administrator, the Trial Courts, and the Department of Child Support Services.

Frost Brown Todd Cuts Incoming Associate Salaries

Erik Even — Fri, 12 Jun 2009 17:38:49 +0000

Incoming associates at Cincinnati’s Frost Brown Todd will get a lower salary, although specific numbers have not been released.

In addition, the new associates will spend their first 1,000 hours in an “apprenticeship program.” Clients will be billed at a lower rate for work done by “apprentices.”

I keep putting the word “apprentice” in quotes because an apprentice is a 16-year-old learning to swap out a transmission, not a professional with a college degree and a law degree.

Those who complete the apprenticeship program can earn a merit-based bonus, and the opportunity to get on the regular lock-step pay track after one year.

The firm’s most famous former associates are Jerry Springer and Kenneth Starr. So, way to contribute to America, guys.

Frost Brown Todd LLC is one of the largest law firms based in the Midwestern United States. It resulted from the 2000 merger of Frost & Jacobs LLP, a Cincinnati-based firm, with Brown Todd & Heyburn PLLC, a Louisville-based firm. It presently has 370 attorneys working in nine offices throughout Tennessee, Kentucky, Ohio, Indiana, and West Virginia.

Pillsbury Cuts Associate Pay [Update]

Erik Even — Fri, 12 Jun 2009 16:40:45 +0000

Pillsbury, which offered associates $60,000 to leave the firm, is imposing associate salary reductions based on hours.

Salaries are being cut between 10% 5% and 20%, depending on how many hours the associate has worked this year (January through May).

Those who worked the highest number of hours may not see a salary cut.

Pillsbury Winthrop Shaw Pittman LLP is an international law firm with offices located throughout the US and globally, including key financial centers New York, London, Tokyo and Shanghai.

UPDATE

Further details have emerged. Pillsbury’s hours target is 1,950. A 90% utilization rate will get you a 5% pay cut. A 75% rate gets the 20% cut. Some training and pro bono hours will be counted.

The firm is currently considering its compensation program for 2010; the implication is that the curretn cuts will be temporary.

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.

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.

McDermott Will & Emery Reduces Summer Associate Pay

Erik Even — Fri, 29 May 2009 16:55:06 +0000

McDermott Will & Emery has cut pay for its summer associates to $135,000, down from the Biglaw standard $160,000.

McDermott says the cuts were in response to client concerns. The firm’s first year associates still collect their full $160,000 salary. But the firm has announced that associate salaries will be frozen for 2009.

Summer associates were not informed of the salary cut until they arrived for work. The firm says it has always been its practice to inform summers of their compensation information when they start, rather than sooner.

McDermott Will & Emery LLP, founded in 1934, is a prestigious international law firm headquartered in Chicago, Illinois. It is one of the top 10 largest law firms in the United States and one of the 20 largest in the world.

Addleshaw Lays Off 85 Staff

Erik Even — Mon, 18 May 2009 19:42:27 +0000

Addleshaw Goddard, one of Britain’s largest firms, which announced in February it would cut 19 partners, has now announced the redundancies of 85 staff positions.

The layoffs target the firm’s Manchester office, and affect the business services division, including business development, human resources, information technology, finance, and secretarial.

No lawyers are being let go at this time, but the firm is instituting a salary freeze, and cutting pay for trainees. Addleshaw is also considering cutting hours.

According to The Lawyer, a UK legal newspaper, Addleshaw Goddard was ranked 15th largest law firm in the UK by turnover in 2006.

DLA Piper Slashes Salaries

Erik Even — Fri, 15 May 2009 19:35:40 +0000

DLA Piper, which this week laid off 24 lawyers and 100 support staff across its UK offices, today announced salary reductions.

From the memo:

Our partners… have already accepted significant reductions in our projected 2009 compensation, and compensation levels for Of Counsel and Senior Counsel have also been reduced. We are now taking the further steps of bringing US associate salaries and staff salary increases into alignment with market realities.

We are making an adjustment of our base associate compensation in our major markets to $145,000. In those markets where the starting compensation has been $145,000, we are adjusting it to $130,000. Adjustments to all associate salaries at other class levels will be determined and communicated on a case-by-case basis based on class year and performance levels. We will continue to reward associates for exceptional performance in 2009 through our bonus program, taking into consideration both the associate’s performance and that of the firm. We also will not increase paralegal and staff compensation for this year. The timing and implementation of all of these actions will take effect June 8th and be reflected in the June 19 paycheck.

The firm intends to “examine and develop advancement and compensation alternatives,” whatever that means.

DLA Piper is one of the largest law firms in the world, and is the only firm with more than 3,700 lawyers in North America and Europe. DLA Piper is a legal services organization whose members and affiliates are separate and distinct legal entities. Together, the organization operates in 28 countries and 66 offices throughout the world.

Gardere Wynne Sewell Slashes New Associate Salaries

Erik Even — Wed, 06 May 2009 22:47:09 +0000

Gardere Wynne Sewell, which laid off an undisclosed number of attorneys and staff in March, has cut salaries for incoming new associates from $160,000 to $145,000.

Second years will have their salaries cut to $150,000.

The firm says its clients have complained that new associates were overpaid.

Based in Dallas, Texas, Gardere Wynne Sewell LLP employs nearly 300 attorneys with offices in Austin, Houston, Washington DC, and Mexico City.

McCann Fitzgerald Pays 25 to Leave, Cuts Wages

Erik Even — Sun, 03 May 2009 18:04:24 +0000

McCann Fitzgerald is eliminating 25 employees through a voluntary redundancy program.

The firm will also cut wages for all staff earning more than €37,500 ($49,800) a year.

Professional staff will see salaries cut 10%, with a cut of 5% for administrative and secretarial staff.

McCann Fitzgerald is based in Dublin, with 450 employees across offices in Belfast, London and Brussels.

Seyfarth Shaw Lays Off 50, Cuts Pay

Erik Even — Fri, 01 May 2009 22:30:55 +0000

Seyfarth Shaw has laid off 50 people today, out of its total workforce of 1,600 in the US.

No details were given on what functions were cut. The firm was rumored to have cut jobs in February.

Seyfarth is also informing selected associates and income partner team members that their salaries will be reduced by up to 20%.

Chicago’s Seyfarth Shaw LLP is a full-service law firm founded in 1945. It has ten offices.

Update: Squire Sanders Lays Off 32 Lawyers

Erik Even — Thu, 30 Apr 2009 16:42:31 +0000

Earlier this week we reported the rumor that Squire Sanders fired 30 attorneys last Friday.

It has now been confirmed that the firm cut 32 lawyers in total, including seven at its largest office in Cleveland, Ohio. Most of those cut had been with the firm less than three years.

The pay cuts we reported have also been verified. The firm is slashing first-year salaries from $130,000 to $117,000.

Founded in 1890, Squire, Sanders & Dempsey LLP has 32 offices in 15 countries across the globe.

Linklaters Cuts Pay for Incoming Associates

Erik Even — Thu, 30 Apr 2009 16:27:36 +0000

Linklaters is cutting pay for starting lawyers, and shrinking salary increases. The firm will pay new lawyers £61,500 ($91,300), down from £66,600 pounds in 2008.

Associates will get salary increases of two to four percent based on seniority, down from six to 10%.

Linklaters is freezing pay for non-lawyer staffers.

Lawyers and staff may qualify for merit-based bonuses, and will get £1,500 profit-related awards.

Linklaters has 26 offices in 19 countries, and is one of the five members of the “Magic Circle” of prominent UK law firms.

Nixon Peabody Slashes Salaries

Erik Even — Mon, 27 Apr 2009 20:52:33 +0000

Nixon Peabody, which laid off 20 attorneys and 36 staff in February, is now cutting salaries.

All associates, including incoming and summer associates, will see a reduction to $145,000 in Boston, Washington DC, New York, Chicago and California; less in other locations. There will also be additional performance-based cuts.

Meanwhile, associates can look forward to merit-based bonuses, based on such criteria as hours worked, new business brought in, community leadership, and “extraordinary contributions to the welfare and advance[ment] of the firm.”

In other words, management will pay whatever they want to pay, with criteria that squishy.

Nixon Peabody LLP is one of the largest multi-practice law firms in the US, with offices in 17 cities in the United States and one in London, and more than 700 attorneys in 25 major practice areas.

Squire Sanders Fires 30 Lawyers, Decimates Salaries

Erik Even — Mon, 27 Apr 2009 17:20:14 +0000

Squire Sanders has announced it is cutting associate salaries by 10% in May.

Online rumors say the law firm fired 30 attorneys last Friday. Squire Sanders let go 30 people last November, plus a handful in January.

Tipsters say the announcements were made by voice mail.

The firm recently pushed back incoming associate start dates to January, 2010, and has informed last year’s 1Ls they are not being invited back this summer.

Founded in 1890, Squire, Sanders & Dempsey LLP has 32 offices in 15 countries across the globe.

Shefsky & Froehlich Cuts Pay

Erik Even — Sat, 25 Apr 2009 19:31:59 +0000

Chicago’s Shefsky & Froehlich is slashing pay across the board, with partners taking pay cuts of up to 30%. The firm hopes that by spreading the pain, it can avoid further layoffs.

In February, the firm let go five lawyers, including a partner, and 11 staff. The firm currently employs 74 lawyers.

Associate attorneys have taken a 10% pay cut, and non-lawyer staff 5%.

Shefsky & Froelich Ltd. is a full-service law firm founded in 1970.

Crowell & Moring Reducing Salaries for Some Lawyers

Erik Even — Fri, 24 Apr 2009 16:48:09 +0000

Crowell & Moring has told as many as 20 lawyers across the firm that their salaries will be reduced in light of reduced hours. First year associates were not affected.

Crowell requires at least 1,900 billable hours from all of its lawyers. If a lawyer gets as low as 1,600 hours, the firm intervenes to determine the source of the problem and to fix it. The firm says salary cuts are a last resort.

There is no tiered compensation.

Crowell has not yet held any layoffs in the global recession, and would like to avoid doing so.

Crowell & Moring LLP is an international law firm with more than 450 lawyers. Based in Washington, DC, the firm also has offices in New York, London, Brussels, Los Angeles, and Orange County, California.

Florida County Lawyers Protest Salary Cuts

Erik Even — Fri, 24 Apr 2009 16:21:17 +0000

Dozens of Broward County, Florida public lawyers and staffers protested in front of a Fort Lauderdale courthouse this week, over proposed salary cuts for state employees.

The protesters included a variety of justice personnel, from public defenders to court interpreters. They believe they are already overworked and underpaid, and that further cuts are unfair.

The state House of Representatives wants to cut up to 5% of pay, while a Senate bill calls for a 1% cut for persons making over $100,000 a year.

Protesters also circulated a petition to be sent to state legislators.