Dorsey & Whitney, Salary Freeze

Nationwide Pay Freeze Watch: Dorsey & Whitney

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I hope that a jolly Turkish Saint brought Dorsey & Whitney associates something spectacular for Christmas. Because a pay raise was certainly not one of their stocking stuffers.

A memo went out to Dorsey& Whitney associates on December 23rd explaining the bad news:

Management and staff have just completed the 2009 forecasting and budgeting process. In order to protect our people and resources, and to prepare for what all anticipate will be a tough 2009, the Management Committee reluctantly decided to freeze all associate and staff salaries (except associate productivity bonuses) effective immediately. Although equity partners do not receive a salary, their compensation is impacted by the economy as well. As soon as the economy stabilizes and the prospects for the legal industry brightens, we will end the firm-wide salary freeze.

Unlike Latham & Watkins, Dorsey & Whitney is promising to end the pay freeze as soon as the economy stabilizes. That could happen in 2009.

Pay freeze > massive layoffs. Right?

Read the full memo after the jump.


DORSEY & WHITNEY — MEMO — DECISION ON SALARIES

Sponsored

Greetings. The current economic downturn is likely to be the largest and deepest any of us has ever experienced. Over the last six months, we have watched in dismay as excellent global law firms have laid off hundreds of lawyers and staff, or shutdown altogether. The world-wide recession has affected Dorsey too, but the support of our loyal clients and our collective hard work is keeping our Firm strong through these very unusual times.

Management and staff have just completed the 2009 forecasting and budgeting process. In order to protect our people and resources, and to prepare for what all anticipate will be a tough 2009, the Management Committee reluctantly decided to freeze all associate and staff salaries (except associate productivity bonuses) effective immediately. Although equity partners do not receive a salary, their compensation is impacted by the economy as well. As soon as the economy stabilizes and the prospects for the legal industry brightens, we will end the firm-wide salary freeze.

This is a very difficult decision, but we expect it will help us emerge from this challenging period stronger for our collective efforts. I am grateful for our solid client base, and for the sacrifice of each of you for the good of all. When the economic situation improves, we will all reap the financial benefits of our labors together.

Thank you for your understanding and continued support. I care about each of you and wish us all a happy holiday and a better new year.

Marianne D. Short

Sponsored

Managing Partner

Earlier: Nationwide Pay Freeze Watch: Venable

Latham & Watkins Salary Shenanigans Follow-Up

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