The trend of Biglaw firms pulling back from the height of their COVID-19 economic concerns continues. More and more, we’re seeing firms that decided to cut salaries when faced with the economic uncertainty of the pandemic change course, and re-institute at lease some of the cuts.
Back in April, Loeb & Loeb announced some salary cuts, as a way to avoid layoffs. Partners took the hardest hit, with draws slashed by 20 percent. Income partners, senior counsel, of counsel, associates, and senior staff had their salary cut by 15 percent and paralegals and other staff saw 10 percent cuts. But that’s changing.
Yesterday, firm chair Kenneth Florin announced via memo that “the impact of this pandemic on our business has not been as damaging as we had feared.” But that the firm is “very much aware that this pandemic is far from over and its overall impact not yet clear.” So, as a result, as reported by Bloomberg Law, Loeb & Loeb will see a partial reversal of their salary cuts.
Effective September 1st, the cuts will be reduced by 60 percent for income partners, senior counsel, of counsel, associates, paralegals and staff. The reductions to the monthly capital partner draws will remain in place. Florin also said the firm plans to award their annual year-end bonuses.
Let’s hope it’s only a matter of time before full salaries are restored.
If your firm or organization is slashing salaries or restoring previous cuts, 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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Kathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).