Am Law 50 Firm Slashes Associate Salaries Indefinitely
The firm is changing its response to COVID-19.
It wasn’t that long ago that we were reporting on Perkins Coie’s assurances to associates that salary cuts and layoffs were not in their future. Though the partnership were deferring ~19 percent of their compensation, the firm had no plans for further austerity measures.
But that was last month. A little over a month later (even though it feels like several years ago now), and the firm has changed its tune. Today, in an all-attorney call, the firm announced that pay cuts were coming, beginning in their June paychecks. Non-partner attorneys will see a 15 percent cut, staff making $200,000+ will also have a 15 percent cut, and staff making $125,000-$200,000 will have compensation cut by 10 percent. Below is an internal slide describing the cuts:
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Tipsters at the firm describe the cuts as indefinite and that, “Management says they don’t know if it will extend to 2021 or 2022. Won’t answer questions whether temporary or not.”
But, the good news at least, is that the firm is leaving the door open to a “special payment” to make whole top billers. And, as of now, there are no attorney layoffs.
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The firm also provided insiders a look at how the austerity measures were impacting the partnership:
We reached out to the firm for comment, but have yet to hear back.
If your firm or organization is slashing salaries, closing its doors, or reducing the ranks of its lawyers or staff, whether through open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive. You can email us or text us (646-820-8477).
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Kathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).
