Reed Smith laid off 115 people two weeks ago. Individual salary memos started going out to the remaining Reed Smith associates last week (Reed Smith makes salary decisions known on a person-to-person basis). Not surprisingly, most people are not getting 2009 raises.
Because of the individualized nature of the salary information, we can’t say that nobody at Reed Smith will be receiving a raise. We can say that nobody we’ve talked to has received a full raise, expects a full raise, or is hoping for anything other than having a job when the calendar flips over. A couple of people we talked to will be getting a small salary bump, but nothing at the normal level for their class.
Did somebody say something about bonuses? Our Reed Smith sources don’t expect to get that either. There hasn’t been any official announcement, but the rumblings around the firm all point towards the “special bonus” of $0. Though, one tipster points out that there are enough bonus complications that the firm might be able to avoid the negative press associated with a $0 bonus:
RS doesn’t give end-of-year bonuses. All of our bonuses are dependent on hours or performance or are related to profit sharing. Everything is discretionary, except profit sharing, which is based on the firms performance, and well, we know where that is.