The extent of the cuts isn’t clear; the 716-lawyer firm said reports on Above the Law that the cuts ranged between 10 and 20 percent aren’t “entirely accurate,” which isn’t exactly an outright denial.
Today, we have more news about the salary cuts going on at Pillsbury. It now appears that the cuts range between 5% and 20%.
So, that’s marginally better, if you are close to making your hours.
What are those hours cutoffs? We have more details after the jump.
Tipsters report that Pillsbury’s hours target is 1,950. We previously reported that a 90% utilization rate saved you from the pay cut. That means associates on track to hit 1,755 hours for the year (just over 730 hours from January through May), you’re all good.
A little under that, and you’re taking a 5% cut.
Associates at Pillsbury who are more than 25% off of their target are taking the maximum 20% paycut. A tipster explains:
If we were billing less than 75% of target hrs, or under 1462 annualized, we got the max 20% paycut.
But there are non-client billable hours that can count to your target:
One positive is that the program didn’t limit target hours to only client billable (which is consistent with our existing policy). Target hours includes certain non-client billable hours (up to 75 hours of training for first years, up to 100 pro bono hrs (or more with advance approval) and internal legal work on behalf of the firm).
Did you bill less than 610 hours by the end of May, including some pro-bono time? If so, Pillsbury would like to slash your pay.
But, Pillsbury claims that these cuts are just temporary. Our source tells us:
One difference with other AmLaw firm salary cuts is that this is not a “permanent” reduction. Memo makes clear that the program is for the rest of 2009 only and that the firm is evaluating its 2010 program now.
Pillsbury to $160K in 2010! Does anybody believe that? If so, I’ve got a good deal on a bridge I’d like to talk to you about.
End of Lockstep at Pillsbury? [Am Law Daily]
Pillsbury Cuts Pay of Least Busy Associates by Up to 20% [ABA Journal]
Earlier: Salary Cut Watch: Pillsbury Cuts Salaries Based on Utilization Rates