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Just because it is Friday afternoon and the week is almost over, doesn’t mean that Biglaw cost-cutting measures have taken a break. Austerity, particularly in the time of COVID-19, waits for no one.
Akerman LLP, ranked 88th in the nation on the 2020 Am Law 100 ranking, is not immune to the COVID-19 austerity measures. The Chair and CEO of the firm, Scott A. Meyers, delivered a video message to employees last night, and tipsters say the message was focused on salary cuts.
So what are the salary cuts? According to multiple tipsters, they’re tiered by position with equity partners seeing a 35 percent cut to their draws; nonequity partners, of counsel, and consultants making over $150,000 will have a 25 percent salary cut; consultants making less than $150,000 are getting a 15 percent pay cut; associates are also seeing a 15 percent pay cut, as are staff making $150,000+; and staff making less than $150,000 are seeing a 10 percent cut.
Though salary cuts are becoming increasingly common in Biglaw, that doesn’t mean folks aren’t pissed about it. Especially when it’s a top 100 firm known for paying associate below top of the market:
Scott A. Meyers, Chairman and CEO at Akerman LLP just send a video message to all Employees from announcing salary cuts. Employees are devastated; Akerman salaries were already less than what firms of that level are paying.
Additionally, multiple sources note that Meyers’s message about the austerity measures included a reference to “adjustments to right size our workforce,” which tipsters rightly characterize as “layoffs in other words.” But exactly who or how many or even which positions were impacted by the layoffs was left unsaid.
We reached out to the firm for comment, but have yet to hear back.
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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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).