Let’s spin the Biglaw wheel and see which firm is enacting COVID-19 austerity measures. The latest firm making the tough cuts is Foley Hoag. The firm made $208,144,000 in 2018 gross revenue, making it 142 on the Am Law 200.
Over email (available on the next page), firm leaders laid out the specific cuts to all of the stakeholders. Their plan involves a 15 percent pay cut for associates and business professionals making $190,000+, a 7.5 percent cut for staff making $150,000-190,000, and a 20-30 percent cut for non-equity partners. According to the email, equity partners have already taken compensation cuts of an undisclosed amount and will continue to do so.
Foley Hoag Co-Managing Partners, Jeffrey D. Collins and Kenneth S. Leonetti, had this statement about the cuts:
The COVID-19 pandemic is unprecedented and has caused far-reaching repercussions across the business community. As the economy slows, our goal is to ensure Foley Hoag is well-positioned to weather a downturn. Therefore, the firm is making temporary adjustments by reducing salaries for all attorneys and certain business services personnel.
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).