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

[wisdom]

Also Mintz Levin, 10%: https://abovethelaw.com/2020/04/mintz-levin-cuts/

[Sackboy]

• Baker McKenzie (V32) - Unspecified pay cut for associates
• Orrick (V34) - 15% pay cut for senior associates; 10% pay cut for junior and mid-level associates; 5% pay cut for career associates
• Linklaters (V46) - Deferring 50% of its next bonus round payout and pushing back salary reviews by six months
• Alley & Overy (V47) - No raises for non-US associates
• Cadwalader (V52) - 25% pay cut for associates
• Dentons (V55) - 50% of 2019 bonuses will be paid on time and the other 50% will be paid in the second half of 2020
• 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
• Mintz Levin (V96) - 10% pay cut for associates, no discretionary bonus (hours bonus remains untouched)

[LBJ's Hair]

• Baker McKenzie (V32) - Unspecified pay cut for associates

Shittiest possible way of handling it. Fuck that.

[filibuster]

https://www.law.com/americanlawyer/2020 ... e-decline/

Kilpatrick Townsed

[Anonymous User]

Has anyone heard anything about Foley & Lardner (v71)?

[Anonymous User]

DLA Piper NOT cutting pay.

[QContinuum]

Updated to include the latest news from Baker McKenzie and Kilpatrick.

[objctnyrhnr]

DLA Piper NOT cutting pay.

I think dla and Latham being two of the small number of firms to affirmatively commit to no cuts is evidence that at least something was learned in 2009.

[QContinuum]

DLA Piper NOT cutting pay.

I think dla and Latham being two of the small number of firms to affirmatively commit to no cuts is evidence that at least something was learned in 2009.

But, neither DLA nor Latham cut associate pay in 2009... the "Lathamings" didn't refer to pay cuts...

Look at Nixon Peabody, which laid off or furloughed 10% of its associates. Pretty sure their associates would've voted overwhelmingly for a 10% across-the-board pay cut in lieu of 10% layoffs & furloughs. If the pay cuts indeed allow many more firms to avoid layoffs that they would otherwise have conducted, I think the pay cuts will have been a good approach.

[objctnyrhnr]

DLA Piper NOT cutting pay.

I think dla and Latham being two of the small number of firms to affirmatively commit to no cuts is evidence that at least something was learned in 2009.

But, neither DLA nor Latham cut associate pay in 2009... the "Lathamings" didn't refer to pay cuts...

I take your point but...

Doesn’t it kind of seem like 2009’s layoffs are today’s pay cuts?

For the firms taking the biggest hit, isn’t it kind of like:
2009 = lay-off 20% of associates
2020 = cut 20% of your associates’ pay?

Thats what it feels like to me anyway, generally speaking g (though I also recognize that a few firms are furloughing or laying off in addition to or in lieu of pay cuts).

And to be clear, I meant learned from a firm management-planning perspective (as opposed to from a PR perspective).

[QContinuum]

I take your point but...

Doesn’t it kind of seem like 2009’s layoffs are today’s pay cuts?

For the firms taking the biggest hit, isn’t it kind of like:
2009 = lay-off 20% of associates
2020 = cut 20% of your associates’ pay?

I agree. My fear is that "no pay cut" firms will end up laying people off. Maybe I'm overly cynical but I'm not particularly reassured by the no-pay-cut reassurances.

[abogado2018]

DLA Piper NOT cutting pay.

I think dla and Latham being two of the small number of firms to affirmatively commit to no cuts is evidence that at least something was learned in 2009.

But, neither DLA nor Latham cut associate pay in 2009... the "Lathamings" didn't refer to pay cuts...

I take your point but...

Doesn’t it kind of seem like 2009’s layoffs are today’s pay cuts?

For the firms taking the biggest hit, isn’t it kind of like:
2009 = lay-off 20% of associates
2020 = cut 20% of your associates’ pay?

Thats what it feels like to me anyway, generally speaking g (though I also recognize that a few firms are furloughing or laying off in addition to or in lieu of pay cuts).

And to be clear, I meant learned from a firm management-planning perspective (as opposed to from a PR perspective).

Does anyone know if the firms that laid off associates in 2009 preceded those layoffs with pay cuts? Or was it just straight to Lathaming?

[objctnyrhnr]

Here’s what I’d be interested in learning about, though it’s possible we don’t yet have enough data points.

Take two generally comparable firms in the vault rankings—one of which assured no layoffs/cuts and the other of which has laid off/made salary cuts. Look at revenue per lawyer in 2019 and see if the no-cut firm did way better or if they’re comparable.

With enough data points, this could answer the question of whether the no cuts result from great long term management and recession planning, or just a great 2019.

[QContinuum]

Does anyone know if the firms that laid off associates in 2009 preceded those layoffs with pay cuts? Or was it just straight to Lathaming?

Straight to layoffs. Pay cuts are a 2020 innovation!

[Pompeii]

Does anyone know if the firms that laid off associates in 2009 preceded those layoffs with pay cuts? Or was it just straight to Lathaming?

Straight to layoffs. Pay cuts are a 2020 innovation!

I think at least DLA Piper did both. I'm sure there were others:
https://abovethelaw.com/2009/05/dla-pip ... follow-up/

[Anonymous User]

Heard Orrick laid off some career associates. Can someone from Orrick confirm?

[objctnyrhnr]

Does anyone know if the firms that laid off associates in 2009 preceded those layoffs with pay cuts? Or was it just straight to Lathaming?

Straight to layoffs. Pay cuts are a 2020 innovation!

I think at least DLA Piper did both. I'm sure there were others:
https://abovethelaw.com/2009/05/dla-pip ... follow-up/

One of the most brutal atl articles I’ve ever read

[TheLorax]

I take your point but...

Doesn’t it kind of seem like 2009’s layoffs are today’s pay cuts?

For the firms taking the biggest hit, isn’t it kind of like:
2009 = lay-off 20% of associates
2020 = cut 20% of your associates’ pay?

I agree. My fear is that "no pay cut" firms will end up laying people off. Maybe I'm overly cynical but I'm not particularly reassured by the no-pay-cut reassurances.

I agree. I don't want to get people going, but i feel like at least some firms will do stealth layoffs during performance review season. The whole "oh well you know you're not billing enough hours so we're letting you go" thing. Blaming associates for the firm's failures, etc.

[Anonymous User]

I agree. I don't want to get people going, but i feel like at least some firms will do stealth layoffs during performance review season. The whole "oh well you know you're not billing enough hours so we're letting you go" thing. Blaming associates for the firm's failures, etc.

This is already happening at one of the firms there was a recent thread about. The firm has been telling employees that it is doing well and is busy, while stealthing associates behind the scenes.

[objctnyrhnr]

I take your point but...

Doesn’t it kind of seem like 2009’s layoffs are today’s pay cuts?

For the firms taking the biggest hit, isn’t it kind of like:
2009 = lay-off 20% of associates
2020 = cut 20% of your associates’ pay?

I agree. My fear is that "no pay cut" firms will end up laying people off. Maybe I'm overly cynical but I'm not particularly reassured by the no-pay-cut reassurances.

I agree. I don't want to get people going, but i feel like at least some firms will do stealth layoffs during performance review season. The whole "oh well you know you're not billing enough hours so we're letting you go" thing. Blaming associates for the firm's failures, etc.

I happen to know that at least a couple of the no-cut firms were pretty routinely stealthing low-performing 2-4 year associates for at least the last few years, with relatively generous severance packages (including a ridiculous amount of website time on tail end if needed), in spite of posting significant growth during the boom times. Of course these were kept on the extreme DL...and the firm’s generous packages didn’t hurt their ability to do that.

As I understand it, “low performing“ here stems from detailed evals with specific feedback, as opposed to hours numbers (though I’m sure that hours were factored in at the margins at least).

Chances are that this practice will continue through this downturn and beyond, but I don’t necessarily think there’s a direct “in lieu of cuts”-type connection. Perhaps this is what “recession planning” meant to these firms...and lo and behold it appears to have worked.

On the other hand, perhaps the firms adopted the view that they simply did not want to invest in low-performing associates even if they could afford to do so. And maybe the lack of a need to cut is just a fortunate result of that practice.

[nixy]

I’m sure there are some lower-performing associates who’ve been let go in lean times and are likely to get let go now. I don’t think that actually says very much about what firms are going to do in the future as the economy tanks, nor do I think not being “low performing” is going to protect people moving forward.

[soitgoes23]

I agree. I don't want to get people going, but i feel like at least some firms will do stealth layoffs during performance review season. The whole "oh well you know you're not billing enough hours so we're letting you go" thing. Blaming associates for the firm's failures, etc.

This is already happening at one of the firms there was a recent thread about. The firm has been telling employees that it is doing well and is busy, while stealthing associates behind the scenes.

Can you say which firm?

[stoopkid13]

Law360 has a statement from Baker McKenzie specifying 15% pay cut for U.S. attorneys and 10% pay cut for Canada attorneys.

[plmqazw]

Summary Stats:

• 14 of the V100 have announced compensation freezes/cuts or layoffs.
• Of these 14, 4 are in the V50. The remaining 10 are in the V51-V100 range.
• The largest pay cut to have been announced is 25%, by Cadwalader (V52) and Arent Fox (V77).
• The highest Vault-ranked firm to have announced compensation freezes/cuts or layoffs is Baker McKenzie (V32).

List of Firms:

• Baker McKenzie (V32) - 15% pay cut for US associates; 10% pay cut for Canadian associates
• Orrick (V34) - 15% pay cut for senior associates; 10% pay cut for junior and mid-level associates; 5% pay cut for career associates
• Linklaters (V46) - Deferring 50% of its next bonus round payout and pushing back salary reviews by six months
• Allen & Overy (V47) - No raises for non-US associates
• Cadwalader (V52) - 25% pay cut for associates
• Dentons (V55) - 50% of 2019 bonuses will be paid on time and the other 50% will be paid in the second half of 2020
• 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
• Kilpatrick (V93) - 5% pay cut for associates
• Mintz Levin (V96) - 10% pay cut for associates, no discretionary bonus (hours bonus remains untouched); 5% pay cut for patent agents

[BKing]

Ballard Spahr (v94): https://abovethelaw.com/2020/04/am-law- ... -partners/

Cut salaries by 10 to 15 percent for all employees, except for those who make less than $75,000 annually