JD Journal » voluntary salary reductions

Los Angeles County Judges Take Voluntary Pay Cut

Erik Even — Tue, 18 Aug 2009 16:16:01 +0000

Taking a cue from their brethren and sistren in Delaware, Los Angeles County judges have volunteered to give up one day’s pay per month, as other court employees deal with involuntary salary cuts.

The judges are each giving up around $688 each month, saving the County $3 million a year. Under the state constitution, judicial officers’ salaries cannot be reduced during their term.

All but seven of the court’s 430 judges are participating.

Los Angeles County courthouses will close this Wednesday, part of a cost-cutting plan.

Delaware Judges Take Voluntary Pay Cut

Erik Even — Mon, 17 Aug 2009 19:10:01 +0000

All Delaware state judges have taken a voluntary 2.5% pay cut, that started in July.

The state Constitution bans cuts in judicial pay, but Delaware Supreme Court Chief Justice Myron T. Steele says every single judge volunteered for the pay cut, which is similar to that taken involuntarily by other state employees.

It is the first time the state has asked judges to take a pay decrease.

Dundas & Wilson Profits Down 12%

Erik Even — Wed, 22 Jul 2009 17:20:59 +0000

Dundas & Wilson, which cut 50 jobs in March, has reported a drop in annual profits of £9 million ($14.8 million).

The firm saw profits of £66 million ($108.5 million) in fiscal 2009, down from £74.8 million ($123 million) in 2008.

The firm is asking staff to agree to a temporary 10% salary reduction from September ’09 to April ’10, to avoid redundancies. Staff would get 18 additional holiday days.

Senior management has already taken a 10% cut.

Edinburgh’s Dundas & Wilson, Scotland’s largest law firm, is the 39th largest law firm in the UK. It employs 550 people in addition to 82 partners, across offices in Edinburgh, Glasgow and London.

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.

Update: DLA Piper Lays Off 24 Lawyers, 100 Staff

Erik Even — Wed, 13 May 2009 23:07:46 +0000

In February we reported that DLA Piper had launched a second layoff consultation, with up to 140 jobs under threat.

Today the firm completed the consultation, laying off 24 lawyers and 100 support staff across its UK offices.

Some staff chose reduced working hours or lower pay to save jobs.

In February, DLA Piper cut 80 associates and 100 staffers across all of its offices. In March, the firm laid off 20 lawyers and 34 staff across its Asian offices.

DLA Piper deferred start dates for incoming associates to January, 2010. All deferred associates will get a $10,000 stipend in addition to a bar stipend.

In April DLA Piper laid off eight associates in Dubai, and put other Dubai lawyers on sabbatical.

Dechert CEO Gives Himself $1 Million Pay Cut [Update]

Erik Even — Wed, 13 May 2009 16:10:03 +0000

Dechert LLP chairman and CEO Barton Winokur announced that he has taken a $1 million pay cut.

Winokur revealed the self-imposed pay cut, in fact a reduction in his draw from firm profits, at a meeting of law firm execs in late April.

Other Dechert executives have taken similar pay cuts, according to Winokur.

Winokur made around $8 million in 2008. Dechert’s profits-per-partner average $2 million.

The firm laid off 63 lawyers and 62 staff in March, and in April deferred start dates for two-thirds of its incoming associates.

Founded in 1975, Dechert LLP is an international law firm of more than 1,000 lawyers with top-ranked practices in corporate and securities, complex litigation, finance and real estate, and financial services and asset management.

UPDATE

A firm spokesperson confirms that Dechert’s 36 highest-paid partners have agreed to take a undisclosed percentage cut in their annual draw. If the firm does well, the partners may be able to make up the difference in bonuses.

The firm denies that Winokur’s reduction is $1 million.

Norton Rose to Implement Hour Reductions

Erik Even — Sat, 09 May 2009 18:09:48 +0000

Most offices of London’s Norton Rose have approved a flexible hours scheme first announced in March.

The firm hopes to avoid redundancies by reducing hours. The scheme has been approved by 19 of the firm’s 21 international offices.

Norton Rose is still working to make the plan comply with the law in France and Germany.

London lawyers and staff were informed this week they will be the first affected.

The plan, under which Norton Rose employees, including partners, would choose between a four-day week, a paid sabbatical of four to 12 weeks, or both, is entirely voluntary.

The Norton Rose Group is a leading international law firm. It offers business law services from 21 offices across Europe, the Middle East and Asia. With around 1000 lawyers, its practice specializes in five key areas: corporate finance, financial institutions, energy and infrastructure, transport and technology.

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.