Nationwide Pay Freeze Watch: Sheppard Mullin Joins California Craze

Another day, another firm, another salary freeze. The latest is from Sheppard Mullin:

We feel it is critical to rigorously control expenses during these times. As part of our management of expenses, we have decided to “freeze” Associate compensation for 2009. This means your base compensation will be the same as in 2008. Special Counsel and Senior Attorney compensation will also be frozen, with minor exceptions.

First Latham, then Orrick, and now Sheppard. So far, Gibson Dunn looks like the place to be on the west coast.

A tipster reports a calm over at Sheppard that is very Zen:

Yes. Sheppard is freezing salaries. I’m not thrilled about it, but it is consistent with Sheppard’s conservative style. We had an hour and a half Associate Issues conference call to discuss it … Sheppard will re-evaluate the policy every quarter and Management suggested that Associates who make their hours (1950 or so) will probably also get an end of the year bonus to make up for any lost salary.

I’m sure associates would prefer to get that “suggestion” in writing, but so long as all remains quiet on the layoff front nobody is complaining.

Read the full memo after the jump.

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SHEPPARD MULLIN SALARY FREEZE MEMORANDUM

To All Associates, Special Counsel and Senior Attorneys,

Each of you is aware of what is going on in the world economy in general, and in the legal market in particular. The Executive Committee and our Firm’s senior managerial and financial officers, Bob Zuber and Kevin Combs, have been working hard over the past several months to ensure Sheppard Mullin’s continued financial strength through the current economic downturn. We feel it is critical to rigorously control expenses during these times. As part of our management of expenses, we have decided to “freeze” Associate compensation for 2009. This means your base compensation will be the same as in 2008. Special Counsel and Senior Attorney compensation will also be frozen, with minor exceptions.

We trust you understand this decision is a reflection of the market and not how we value any of you. We are very proud of our attorneys and the superior service, quality and value you provide to our clients.

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Bob Zuber and I will be making our annual State of the Firm presentations in each office at the end of January and beginning of February. As usual, we will have an open forum to address any questions you have. Should you have any questions in the meantime, please direct them to Robert Beall, Bob Neufeld, Bob Zuber or me.

Thank you for your hard work and many contributions in 2008 and best wishes to all of you for 2009.

-Guy and The Executive Committee

Earlier: Prior ATL coverage of salary freezes