There is late breaking news from Skadden tonight. Apparently the firm has decided to freeze salaries on its counsels. Here is the memo Skadden counsel received:
Given the current economic conditions and the level of activity within the firm, we have decided that we will not be increasing salaries for counsel in 2009. As always, payment of discretionary bonuses will be contingent upon levels of activity in the Firm’s practice areas, the economic environment as it affects our Firm and individual performance.
We are grateful for your continued commitment to the Firm.
That timing could have been better. But we understand that counsel pay has historically been decided on May 1st, so the firm needed to make a decision.
Skadden has not frozen salaries on associates, and the firm paid top-of-the-market bonuses to its personnel.
The firm has avoided laying associates off during this recession, but Skadden’s Sidebar Program allowed approximately 125 attorneys to take a year-long deferral from the firm.