Here’s the memo re: today’s post on K&L Gates. No further materials or communications have since occurred, save a videoconference from firm Chairman [Peter] Kalis, where in response to an associate questions as to why this benefit was cut, he essentially said that it was to make partners’ compensation packages more competitive due to required combined firm IRS changes.
I like how it says firm compensation remains competitive. Check out what the firm pays in the Bay Area and Los Angeles. How is that competitive?
In case you’re wondering, K&L Gates is not at the market rate of $160,000 in San Francisco and L.A. They instead pay associate starting salaries of $145,000 in those cities. See here and here.
The 401(k) memo appears after the jump.
Earlier: Biglaw Reversed Perk Watch: K&L Gates Cuts off 401(k) Contributions?
Biglaw Perk Watch: Retirement Benefits and Financial Planning
K&L GATES — MEMORANDUM RE: ASSOCIATE/COUNSEL 401(K) CONTRIBUTIONS
From: Fried, Susan V.
Sent: Thursday, October 04, 2007 1:50 PM
Subject: Associate/Counsel 401(k) Contributions
While detailed communications regarding the firm’s 401(k) plan are forthcoming, I wanted to inform you of one particular change that affects all associates and counsel. Effective 1/1/08, while your own contributions can continue, the firm will discontinue matching and qualified nonelective employer contributions (QNEC) to your 401(k) plan. While this represents a change to our past practices, our associate/counsel compensation and benefit offerings remain competitive.
This change will be described in more detail when additional materials are circulated about your new investment options under the Firm’s 401(k) plan. In the meantime, please feel free to write or call me if you have any questions.
Susan V. Fried
Chief Officer of Human Relations