Another day, another Biglaw firm announcing salary cuts.
The latest firm to make the move to COVID-19 austerity measures is Finnegan Hendersen. The firm, which made $309,940,000 in 2018 gross revenue making it 108th on the 2019 Am Law 200 ranking, has now gotten on board with the salary cuts that so many other firms have also done. Today the firm announced via email (available in full on the next page) the scheme, which sees all employees making $150,000+ taking a 20 percent cut, those making $100,000 to $150,000 will have a 15 percent cut, between $75,000 and $100,000 see a 10 percent cut, and those making under $75,000 go unscathed.
The firm provided the following comment about the cuts:
Finnegan’s managing partner, Anand Sharma, and chair, Mark Sweet, announced this week there will be pay reductions effective June 1. They acknowledged that the challenges COVID-19 presents are not unique to law firms in general or Finnegan in particular.
“None of the recent changes due to COVID-19 are decisions the firm has taken lightly. We are bringing everyone together for these conversations,” Sharma acknowledged.
“We are incredibly proud of how the Finnegan team continues to work together to meet the challenges presented by the pandemic and are asking many members of the firm to assist in a temporary financial sacrifice,” Sweet said.
While share partners will shoulder much of the resulting financial effects, because the duration and ultimate impact of this pandemic remain uncertain, the firm will temporarily reduce future pay for all members except personnel who earn less than $75,000 annually, effective June 1. Those earning $150,000 or more will see a 20% reduction, those earning between $100,000 and $150,000 will see a 15% reduction, and those earning between $75,000 and less than $100,000 will see a 10% reduction. Sharma said, “Our hope is that any impact from COVID-19 will be minimal and, if so, we commit to offsetting these reductions.”
“We are proud of the work the Finnegan team is doing to serve our clients and appreciate their patience, compassion, teamwork, and continued resilience during this difficult time,” Sharma and Sweet said in the statement. “Incoming work remains steady, we are financially sound, but given everything we are seeing across the economy, we feel these changes will protect the long-term success of our team members and protect those most vulnerable to the risks we now face.”
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