One by one, Biglaw firms are slowly but surely reversing their austerity measures. Back in April, Stoel Rives — a firm that came in 132nd place in the most recent Am Law 200 rankings, with $236,541,000 in gross revenue in 2019 — announced across the board salary cuts and employee furloughs. Partner distributions were reduced by 20 percent; associates, staff attorneys, and of counsel attorneys had their salaries slashed by 20 percent; and staff saw hourly reductions with corresponding pay cuts (5 percent for those earning less than $75,000; 10 percent for those earning $75,000-$100,000; 15 percent for those earning $100,000-$150,000; and 20 percent for those earning over $150,000). On top of that, staff bonuses were deferred and hours-based associate bonuses were eliminated in favor of discretionary bonuses. Last but not least, 10 percent of the firm’s staff members were furloughed.
Now, thanks to the firm’s “better than anticipated” performance during the pandemic, come September 1, those cuts are being partially rolled back. Melissa Jones, the managing partner of Stoel Rives, released the details in a statement (available on the next page):
- The current compensation reduction for all associates, staff, and of counsel lawyers will change from 20% to 10%.
- Staff salaries and schedules will be modified as follows:
- Staff with a 20% reduction will change to 10%
- Staff with a 15% reduction will change to 7.5%
- Staff with a 10% reduction will change to 5%
- Staff with a 5% reduction will return to full salary and schedule
- Third quarter partner distributions will be reduced by 15% instead of the 20% reduction in Q2
Everyone at the firm must be pleased (and wondering if their salaries will be fully restored sometime in 2020). Hopefully bonuses will be reflect the firm’s better-than-expected financial performance as well.
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).
Earlier: Associates At This Biglaw Firm Are Taking A 20 Percent Pay Cut
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.