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The economic upheaval that’s been caused by the novel coronavirus continues to leave its mark on Biglaw. We reported earlier on the high likelihood that more and more Biglaw partners would be forced to cut their draws and distributions in the coming months. Specifically, law firm management consultant Patrick McKenna said he’d be surprised if at least 80 percent of the top 200 firms in the country hadn’t made such a move by the middle of April, noting that “a typical reduction is in the range of 30 percent.”
Today, we have news on yet another law firm where partners are feeling the pinch.
Winston & Strawn, a firm ranked within the Top 50 in both the Am Law 100 and Vault 100, recently made a move on its partner pay. Numerous sources tell us that the firm held a town hall meeting yesterday afternoon where it was announced that partners would be taking a 50 percent reduction in their distributions for the next three months. At last check, profit per partner at the firm was $2,162,000. At the moment, no changes have been made to associate or senior staff compensation, but one observer said “the message was very clear that compensation is a large cost and so they are continuing to evaluate the issue.”
We reached out to Winston & Strawn for a statement on the changes to its partners’ compensation in light of the coronavirus but the firm declined to comment.
Let’s hope that the partner’s proactive measures can save associates and staff members from coming up short when it comes to their own salaries.
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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Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.