Salary Cuts

Nationwide Salary Cut Watch: Bryan Cave(s) to the Salary Cut Phenomenon

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At least the salary cutting craze is staying localized in the lower echelons of the Vault 100. But that probably doesn’t mean very much to associates at Bryan Cave. Today, the firm announced that it was cutting salaries. The cuts were announced via firm wide email from firm chairman, Don Lents:

Annual compensation levels for existing associates will be reduced by 10% across the board (but where applicable to not less than the newly established entry-level compensation). Annual compensation levels for certain other lawyers (e.g., certain staff lawyers) will also be reduced. Information regarding your new annual salary will be available under the Comp Adjustments tab in the “My HR Information” section of eCave by 12:00 noon EDT today. The reductions will become effective in all of our U.S. offices other than those located in the State of Missouri on July 1, 2009. Due to legal notification requirements in Missouri, the reductions will become effective in our Missouri offices on July 13, 2009. In the U.K., a one month consultation period will commence immediately with a view to implementing the proposed 10% reduction to compensation with effect from July 13, 2009.

Bryan Cave is ranked #77 in your Vault Guide. But at #76, Chadbourne & Parke has already cut salaries. At #78, Thacher Proffitt & Wood no longer exists. So at some level Bryan Cave is keeping up with the competition.
The new base salaries for all offices after the jump.


Bryan Cave is truly a national firm. Here is the new base salary for all Bryan Cave offices:

* Chicago, Irvine, New York, San Francisco, Santa Monica, and Washington, DC – $145,000;
* Charlotte and Dallas – $140,000;
* Atlanta – $130,000;
* Phoenix – $115,000;
* St. Louis – $110,000;
* Kansas City – $100,000.

Here’s a safety tip, do not go to a highly ranked, expensive, private law school and end up in Bryan Cave Kansas City. Your creditors are not going to be happy with that choice.
This decision also marks Bryan Cave’s move into the “kill lockstep” end of the pool:

Seniority and productivity will continue to play a significant role in determining future salary and bonus amounts. However, our compensation and bonus programs, as well as the setting of hourly rates, will place a greater emphasis on individual assessments of the progress of our associates.
Thus, it is our expectation that as we review compensation for associates in all offices as of January 1, 2010, the compensation process will involve greater consideration of subjective factors. Beginning in January 2010 all associates will be reviewed and compensation decisions will be made on a calendar year basis. We similarly plan to adjust billing rates to better reflect the value of an associate’s time, rather than simply the seniority of the associate performing the work.

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Subjective factors. Yay! I mean, come on, who doesn’t want their base salary to be determined by subjective factors on a year-to-year basis? Lawyers love uncertainty.
The firm laid off 58 attorneys in February, and the firm froze salaries way back in November, long before it was cool and everybody started doing it. As one tipster put it:

Not sure if there is anything final to this. How long before B-C learns that if it wants to stop sucking it has to cut deadweight partners.

But the firm suggests that it is sharing the pain:

We budgeted lower distributable income for partners in 2009 and implemented compensation reductions from our Counsel. Although we had hoped that the mid year point would be reached without having to make a similar request of you, it is now prudent for us to do so.

Will this be the last “request” the firm makes of its associates?
Read the full memo below.
BRYAN CAVE — MEMO — SALARY CUTS
“We are reminded daily that we are in what is unquestionably the most challenging business environment of our professional lifetimes. The pressure faced by our profession reflects the fact that clients continue to experience financial challenges and consequently, they are revisiting how they conduct business and evaluating their relationships with outside counsel. We are fortunate that our client base is both strong and diverse, and we have not encountered significant client failures. The fact remains, however, that our clients continue to look for ways to reduce their costs, and they expect us to do the same.
As you know, we have taken a number of steps to reduce our expenses and adapt to the changed market conditions. We budgeted lower distributable income for partners in 2009 and implemented compensation reductions from our Counsel. Although we had hoped that the mid year point would be reached without having to make a similar request of you, it is now prudent for us to do so.
Accordingly, we have concluded that it is necessary and appropriate to address associate compensation to align it with realities of the marketplace. After considerable thought and discussion, we propose to reduce compensation levels for our U.S. and London associates and other similarly situated attorneys in those offices.
At this time, we are setting annual entry-level compensation for new lawyers in our U.S. offices as follows:
Chicago, Irvine, New York, San Francisco, Santa Monica, and Washington, DC – $145,000;
Charlotte and Dallas – $140,000;
Atlanta – $130,000;
Phoenix – $115,000;
St. Louis – $110,000; and
Kansas City – $100,000.
Annual compensation levels for existing associates will be reduced by 10% across the board (but where applicable to not less than the newly established entry-level compensation). Annual compensation levels for certain other lawyers (e.g., certain staff lawyers) will also be reduced. Information regarding your new annual salary will be available under the Comp Adjustments tab in the My HR Information section of eCave by 12:00 noon EDT today. The reductions will become effective in all of our U.S. offices other than those located in the State of Missouri on July 1, 2009. Due to legal notification requirements in Missouri, the reductions will become effective in our Missouri offices on July 13, 2009. In the U.K., a one month consultation period will commence immediately with a view to implementing the proposed 10% reduction to compensation with effect from July 13, 2009.
The changes in the performance bonus programs announced at the end of 2008 will remain in place. Those changes included consideration of extraordinary contributions other than those based solely on meeting productivity thresholds in awarding bonuses.
Our existing compensation process already provides the firm with the flexibility to distinguish among associates at similar experience levels. Going forward we expect to make greater use of the ability to reward associates and set compensation based upon their overall performance and development of skills and experience. Seniority and productivity will continue to play a significant role in determining future salary and bonus amounts. However, our compensation and bonus programs, as well as the setting of hourly rates, will place a greater emphasis on individual assessments of the progress of our associates.
Thus, it is our expectation that as we review compensation for associates in all offices as of January 1, 2010, the compensation process will involve greater consideration of subjective factors. Beginning in January 2010 all associates will be reviewed and compensation decisions will be made on a calendar year basis. We similarly plan to adjust billing rates to better reflect the value of an associate’s time, rather than simply the seniority of the associate performing the work.
We have long recognized the value and need for training for associates, particularly in their first year of practice at Bryan Cave. We will continue to offer extensive development opportunities to all lawyers and, in particular, to our first year associates. In addition, our longstanding recognition of the importance of associate training is reflected by our existing policy that minimum hours expectations do not apply to associates in their first year of practice at Bryan Cave. That policy will continue.
You will be notified shortly of meetings to be held in your office during which your Office Managing Partner will discuss this information and provide you with an opportunity to ask questions. Additionally, you should not hesitate to contact your Client Service Group Leader, members of the Management or Executive Committees, or the Chief Legal Recruiting & Development Officer if you have questions.
Your continued hard work and dedication to our clients is what truly distinguishes us from other firms. We are fortunate to have strong client relationships and exceptional talent within the firm to help us provide excellent legal services. We greatly appreciate your dedication to the firm and to our clients as we work our way through this most difficult economic environment.”
Earlier: Salary Cut Watch: Chadbourne & Parke Takes a Stab at Salaries
Bryan Cave Delays Associate Pay Raise By Three Months
Nationwide Layoff Watch: Bryan Cave’s Official Statement

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