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Troutman Sanders Cuts Associate Payroll 10% [Update 2]

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.

Erik Even: