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The coronavirus crisis has thrown the legal profession into upheaval, but for some firms, the time has come to readjust and reassess the austerity measures that were put into place to prepare for the coming storm. Earlier this week, we reported on two firms — Ogletree and Baker Botts — that were prepared to offer bonuses to associates for their outstanding performance during these hard times (and Baker Botts even did a partial about face on its salary cuts).
We now have news that yet another Biglaw firm is reversing course on its salary cuts, and everyone at the firm is sure to be thrilled.
Earlier this week, Cadwalader announced that the firm would be returing to its original pay scale. If you recall, the firm was one of the first to make major salary cuts, slashing associate compensation by 25 percent and staff compensation by 10 percent. On top of those cuts, partners and senior counsel made the most “significant financial sacrifice” of all, forgoing distributions entirely. Starting tomorrow, everyone at the firm will see their prior salaries restored.
In a firmwide letter, managing partner Patrick Quinn said that although some practices were faltering, others have been “even busier than we projected before we knew about the virus.” Here’s some additional detail from Law360:
“We will continue to monitor the impact of the crisis, and make decisions in the weeks and months to come that are in the best interests of our firm, our people and our clients,” Quinn said in the letter. “As we said back in March, we will get through this together, caring about each other and taking care of each other.” …
When asked Wednesday morning if any layoffs have occurred, Quinn said they have not. The firm did offer voluntary retirement packages to legal secretaries though, he noted.
“Our goal continues to be to preserve jobs and preserve our ability to take advantage of the recovery,” he said.
Voluntary buyouts are certainly better than layoffs. Things are looking up for Cadwalader thanks to the proactive measures the firm took at the pandemic’s start.
Let’s hope more firms are able to roll back COVID-19 austerity measures — and soon.
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).
Cadwalader, Baker Botts Walk Back Coronavirus Pay Cuts [Law360]
Earlier: Am Law 100 Firm Cuts Partner Pay Entirely, Reduces Associate Salaries By 25 Percent
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.