Salary Freeze

Nationwide Pay Freeze Watch: Mayer Brown You Heard It Here First

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A couple of weeks ago we reported that Mayer Brown’s failure to reflect a salary increase in associates’ initial January paycheck could be an indication of a coming salary freeze. A tipster told us:

Today was the first pay day in 2009 for Mayer Brown NY. In the past, our first pay check of the year automatically reflected salary increases. No such increase today. Smells like a pay freeze?!?

In response, some commenters made it very clear that the failure to increase salaries in January had nothing at all to do with a salary freeze:

The fact that THIS year you don’t have an increase yet WITHOUT any firmwide announcement (which has NEVER happened, btw) doesn’t mean anything. It is what happens normally at every other MB office every year (and also has happened in NYC in the past). Sure, it is possible (maybe even probable) that MB will announce a freeze, but keep your panties on; the fact that a raise isn’t in your paycheck doesn’t mean anything other than that there hasn’t been an announcement yet (which we already knew). Hence, this is not newsworthy.

A firm spokesperson even jumped in on the general theme:

Mayer Brown spokesman Bob Harris says the firm “has not yet announced its plans for lawyer compensation in 2009” and that it usually makes the decision in February.

A funny thing happened on the way to the normal, put the panties on, non-announcement of a decision usually made in February that is not at all newsworthy: about an hour ago, Mayer Brown announced a salary freeze.

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In this market, it might be time to rethink previous definitions of normalcy.

Read the full memo after the jump.


MAYER BROWN — MEMO — ASSOCIATE COMPENSATION

We are optimistic about the Firm’s position heading into 2009, but mindful of current economic realities. As most of you know, we have instituted various prudent and significant cost-cutting measures in recent months. As part of this effort, we have decided to keep base salaries for associates progressing to the next class year at 2008 levels for 2009. As the year progresses, we will evaluate whether to provide class increases. Eligible associates will be receiving bonuses for 2008; we will be announcing bonus decisions in February for those who have not received their bonuses already. We are very grateful for our associates’ valuable contributions to the work that we do for our clients, and we hope that this economic downturn and its impact on all of us proves to be brief.

Earlier: Biglaw to Associates: ‘Surprise! Your salary is frozen’?

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