Tracking COVID-19's effect on V100 associate pay/layoffs Forum

[objctnyrhnr]

List is gonna be 25 firms longer by Wednesday. That's a guarantee.

I’ll take the under.

So will I. At large firms that were doing somewhere between decently and well before this and are relatively diversified in terms of practice group, it feels like covertly playing with partnership disbursements should help to weather the storm for a couple months (while everybody crosses their fingers for a V shape to this whole thing). I think the bleeding will stop before you get to the firms that weren’t stretched too thin with the move to 190.

[leavingfirm]

List is gonna be 25 firms longer by Wednesday. That's a guarantee.

I’ll take the under.

So will I. At large firms that were doing somewhere between decently and well before this and are relatively diversified in terms of practice group, it feels like covertly playing with partnership disbursements should help to weather the storm for a couple months (while everybody crosses their fingers for a V shape to this whole thing). I think the bleeding will stop before you get to the firms that weren’t stretched too thin with the move to 190.

Partners aren't forgoing disbursements with no cut to associate pay.

[ghostoftraynor]

I don't think that is necessarily true. Distributions can be done without any public fanfare. Associate salary cuts are not good for PR.

[Anonymous User]

List is gonna be 25 firms longer by Wednesday. That's a guarantee.

I’ll take the under.

So will I. At large firms that were doing somewhere between decently and well before this and are relatively diversified in terms of practice group, it feels like covertly playing with partnership disbursements should help to weather the storm for a couple months (while everybody crosses their fingers for a V shape to this whole thing). I think the bleeding will stop before you get to the firms that weren’t stretched too thin with the move to 190.

Partners aren't forgoing disbursements with no cut to associate pay.

It’s already happened. My firm has delayed distributions. Of course, partners could get trued up at year end, or close to it, if it’s a V.

[Anonymous User]

List is gonna be 25 firms longer by Wednesday. That's a guarantee.

I’ll take the under.

So will I. At large firms that were doing somewhere between decently and well before this and are relatively diversified in terms of practice group, it feels like covertly playing with partnership disbursements should help to weather the storm for a couple months (while everybody crosses their fingers for a V shape to this whole thing). I think the bleeding will stop before you get to the firms that weren’t stretched too thin with the move to 190.

Partners aren't forgoing disbursements with no cut to associate pay.

My firm did exactly that during the last recession.

[objctnyrhnr]

List is gonna be 25 firms longer by Wednesday. That's a guarantee.

I’ll take the under.

So will I. At large firms that were doing somewhere between decently and well before this and are relatively diversified in terms of practice group, it feels like covertly playing with partnership disbursements should help to weather the storm for a couple months (while everybody crosses their fingers for a V shape to this whole thing). I think the bleeding will stop before you get to the firms that weren’t stretched too thin with the move to 190.

Partners aren't forgoing disbursements with no cut to associate pay.

I think the idea would be that the cut would come to associate bonuses at the end of the calendar year. After 2009, firms have reason to be a lot more careful with their treatment of associates for, if nothing else, PR reasons.

[LBJ's Hair]

List is gonna be 25 firms longer by Wednesday. That's a guarantee.

I’ll take the under.

So will I. At large firms that were doing somewhere between decently and well before this and are relatively diversified in terms of practice group, it feels like covertly playing with partnership disbursements should help to weather the storm for a couple months (while everybody crosses their fingers for a V shape to this whole thing). I think the bleeding will stop before you get to the firms that weren’t stretched too thin with the move to 190.

Partners aren't forgoing disbursements with no cut to associate pay.

They have + will. Associate pay cuts/firings kill morale, damage recruiting/retention, scare clients...you only do that as a last resort.

Partner distributions don't get published on Above the Law + partners can just pay themselves a bigger cut in like, December, if things are back to normal.

[objctnyrhnr]

List is gonna be 25 firms longer by Wednesday. That's a guarantee.

I’ll take the under.

So will I. At large firms that were doing somewhere between decently and well before this and are relatively diversified in terms of practice group, it feels like covertly playing with partnership disbursements should help to weather the storm for a couple months (while everybody crosses their fingers for a V shape to this whole thing). I think the bleeding will stop before you get to the firms that weren’t stretched too thin with the move to 190.

Partners aren't forgoing disbursements with no cut to associate pay.

They have + will. Associate pay cuts/firings kill morale, damage recruiting/retention, scare clients...you only do that as a last resort.

Partner distributions don't get published on Above the Law + partners can just pay themselves a bigger cut in like, December, if things are back to normal.

This. Happens sometimes that doing nice things for associates at the expense of partner profit can be a good business decision in the relatively longer term.

[wisdom]

Not sure that we can depend on these firms never changing their minds, but this provides us some interesting data points on firms that are trying to hold the line on any associate layoffs/salary cuts:

https://abovethelaw.com/2020/04/the-big ... s-for-now/

Unsurprisingly, these tend to be higher-ranked and more profitable firms.

[plmqazw]

• Alley & Overy (V47) - No raises for non-US associates
• Cadwalader (V52) - 25% pay cut for associates
• Norton Rose (V66) - Optional 20% pay cut for associates in Europe, Asia and the Middle East in exchange for reduced hours req.; 10% pay cut for associates in Canada
• Venable (V70) - 20% pay cut for associates (plus additional 10% of compensation above $400k)
• Arent Fox (V77) - 25% pay cut for associates
• Blank Rome (V92) - 15% pay cut for associates

Noting that Nixon Peabody (V68) furloughed ~25% of its support staff but not its attorneys.

[Monochromatic Oeuvre]

Orrick is cutting salary too.

[KM2016]

Orrick is cutting salary too.

Ouch. Any idea how much?

Not too surprising though given that as of 2018 they were 92nd in profit margin out of the Am Law 100.

[Anonymous User]

Nixon Peabody fired 5% of its attorneys and furloughed another 5% of its attorneys.

[Monochromatic Oeuvre]

Orrick is cutting salary too.

Ouch. Any idea how much?

Not too surprising though given that as of 2018 they were 92nd in profit margin out of the Am Law 100.

10% with a potential make-whole bonus at an annualized pace of 2000. Doubt most people hit that, but could've been worse.

[Anonymous User]

Bryan Cave is cutting salary by 15% (attorneys and staff).

[plmqazw]

• Orrick (V34) - 15% pay cut for senior associates; 10% pay cut for junior and mid-level associates; 5% pay cut for career associates
• Alley & Overy (V47) - No raises for non-US associates
• Cadwalader (V52) - 25% pay cut for associates
• Norton Rose (V66) - Optional 20% pay cut for associates in Europe, Asia and the Middle East in exchange for reduced hours req.; 10% pay cut for associates in Canada
• Nixon Peabody (V68) - 5% of associates laid off (w/3 mo. health insurance) and 5% of associates furloughed
• Venable (V70) - 20% pay cut for associates (plus additional 10% of compensation above $400k)
• Arent Fox (V77) - 25% pay cut for associates
• Bryan Cave (V82) - 15% pay cut for associates OR a sabbatical while being paid 30% of normal salary OR going onto a part-time schedule with a corresponding reduction in salary
• Blank Rome (V92) - 15% pay cut for associates

[abcdoremi]

• Orrick (V34) - 15% pay cut for senior associates; 10% pay cut for junior and mid-level associates; 5% pay cut for career associates
• Alley & Overy (V47) - No raises for non-US associates
• Cadwalader (V52) - 25% pay cut for associates
• Norton Rose (V66) - Optional 20% pay cut for associates in Europe, Asia and the Middle East in exchange for reduced hours req.; 10% pay cut for associates in Canada
• Nixon Peabody (V68) - 5% of associates laid off (w/3 mo. health insurance) and 5% of associates furloughed
• Venable (V70) - 20% pay cut for associates (plus additional 10% of compensation above $400k)
• Arent Fox (V77) - 25% pay cut for associates
• Bryan Cave (V82) - 15% pay cut for associates OR a sabbatical while being paid 30% of normal salary OR going onto a part-time schedule with a corresponding reduction in salary
• Blank Rome (V92) - 15% pay cut for associates

I think the list should include the time period the cuts are for--if cuts are for a few months vs. if the cuts are for the rest of the year.

[plmqazw]

• Orrick (V34) - 15% pay cut for senior associates; 10% pay cut for junior and mid-level associates; 5% pay cut for career associates
• Alley & Overy (V47) - No raises for non-US associates
• Cadwalader (V52) - 25% pay cut for associates
• Norton Rose (V66) - Optional 20% pay cut for associates in Europe, Asia and the Middle East in exchange for reduced hours req.; 10% pay cut for associates in Canada
• Nixon Peabody (V68) - 5% of associates laid off (w/3 mo. health insurance) and 5% of associates furloughed
• Venable (V70) - 20% pay cut for associates (plus additional 10% of compensation above $400k)
• Arent Fox (V77) - 25% pay cut for associates
• Bryan Cave (V82) - 15% pay cut for associates OR a sabbatical while being paid 30% of normal salary OR going onto a part-time schedule with a corresponding reduction in salary
• Blank Rome (V92) - 15% pay cut for associates

I think the list should include the time period the cuts are for--if cuts are for a few months vs. if the cuts are for the rest of the year.

I'm too lazy to go back and check but I think most of the firms said that the cuts would be in effect for the duration of the pandemic (whatever that means), and a few said there was a potential to be made whole if business picks up later.

[2020Graduate]

OP, maybe update the first post only? Not make new posts with information not in the first.

[QContinuum]

OP, maybe update the first post only? Not make new posts with information not in the first.

Unfortunately, OP doesn't have the ability to update the first post. I'm the one making those edits. I make those edits for the community's convenience, by copying the OP's new posts.

[Jchance]

I can see this stratification affects next year's vault ranking...

[2020Graduate]

OP, maybe update the first post only? Not make new posts with information not in the first.

Unfortunately, OP doesn't have the ability to update the first post. I'm the one making those edits. I make those edits for the community's convenience, by copying the OP's new posts.

Thanks for explaining, and your service with this!

[objctnyrhnr]

I can see this stratification affects next year's vault ranking...

Seconded. ITE, we learn which firms actually could afford the 190k jump and which ones just kind of faked their way through it for a while.

[boxie]

I can see this stratification affects next year's vault ranking...

I think the 2021 Vault survey closed a few weeks ago before firms starting making these moves.

[KM2016]

I can see this stratification affects next year's vault ranking...

I think the 2021 Vault survey closed a few weeks ago before firms starting making these moves.

It closed Monday. Can I get a do-over?