Pillsbury Salary Cut Follow-Up
On Tuesday, we reported that Pillsbury cut associate salaries based on the utilization rate of its associates. Am Law Daily reported this nugget:
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
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FFFFFFFFFFFFFFFFFFFFFFFFFRRRRRRRRRRRRRRRRRRRRRRIIIIIIIIIIIIIIIIIIIIIIIIISSSSSSSSSSSSSSSSSSSSTTTTTTTTTTTTTTTTTTTTT
omg first
really first Pillsbury TTT
Given that I have $250,000 in debt and no job, I would much rather sell fake crysknives to pissed off Fremen rather than working for the Pillsbury Doughboy fresh off the Acela.
1800 hours is chicken crap. 2000 is the base for any halfway productive associate. If the work isn't there, then tough luck, and you should get laid off.
@ 2 pwned
5
I see you have a lot of sympathy for your oppressed brethren with $250,000 in debt and no job.
One warning -- karma's a bitch.
Don't let the door hit you on your ass, fat boy.
At least these saps have jobs. Try being a recent law grad trying to find work. Close to impossible.
8
Finding a job is possible. Just lower your sights to a contract attorney position. I hear F&R is hiring contract attorneys.
So what if it's $90 or $100K? You get some dough and bennies, so what are you complaining about?
Louis Ziccareli is still gainfully employed and is also a better dresser than any of you chumps or chimps.
i think i'm finally first this time!!!!!!
10
I'd take you a lot more seriously if Louis Z. didn't have the habit of wearing blue shirts with white collars and cuffs like a chintzy Gordon Gekko from the 1980s, massive amounts of gold jewelry, and a fake tan like Angelo Mozilo, to boot.
Talk about a tacky greaseball.
How about a meatball parmigiana sub, Louie?
Doesn't anybody think that tying compensation to arbitrary (and difficult to achieve) hours targets is a huge incentive to fraud?
first?
1755 is imminently reasonable for hours, especially with all the bullshit they are counting. If you aren't hitting that...
Bob Robbins (Doughboy) has gotta eat!
Isn't it a little ridiculous to chop you 5 or 10 percent when your on-pace colleage is quite obviously working on only one case which is going to settle next week? You can easily bill 1200 hours in 5 months and many of us have done it without looking for work in times past. And what about quality of work or does that actually matter? We all know shitty lawyers who hoard work and manufacture tasks so they can get the personal satisfaction of annual hours champ.
Help! I am a biglaw SA, and one of the junior associates here keeps calling everyone "fahnzee" (sp?). I would like to know what this is about (sounds like it could be workplace-inappropriate), but am embarassed to ask anyone what it means. Any help is welcome since I am clueless.
17 -- I know if no such people. As they say, it take one to know one ;)
Cravath is offering optional deferrals....coming across Bloomberg right now (terminal, not website)
18 jumped a shark.
21 - awesome.
18 - fonzie. http://en.wikipedia.org/wiki/Fonzie
BigLaw is going down, down hard. Major corps finally have learned to go to MidLaw for most of their work. Great quality, much lower hourly rates, a willingness to do fixed rate work, and fewer and fewer assholes from New York City to deal with.
Pounding your secretary in her ass while she gives you phone messages is billable.
I heard about this weeks ago while riding the Acela.
So what? Biglaw salaries were way overinflated anyway. Oh no, you pretentious "hotshots" can't buy a BMW and Mercedes Benz... Oh no, now you have to live within your means... Oh no, you can't go out to the club and get bottle service. How will you ever survive?
The ship be sinking...
Putting milk in your coffee is racist.
25, lol
I WILL POUND SOME ASS!!!!
Jesus Christ people. If you can't even bill 1750 in a year, you don't deserve a pay cut.
You deserve a fucking pink slip. Fuck you. ALL of you.
Yes, there is less work coming in to law firms these days. But guess what? The GOOD associates are being kept busy.
If you aren't busy, it is because you suck and should be fired. Now kindly fuck off and stop taking up space on my floor.
Supposedly there isn't a claw-back for the last 5 month salary if your taking a haircut now. Also, if at the end of the year you end up at a higher % of target than you're currently on pace for then you get the money back. All in all, with the way the economy/job market is, it sounds pretty logical and fair to me.
Fat clams
31,
That was quite a rant. Anything else you would like to get off your chest?
A cold wind is blowing through Pillsbury's increasingly empty halls.
Looks like 31 will be manfully doing the work of three or four associates in long empty halls while the partners all cackle in glee at billing him out at five times the normal rate.
How long before 31 cracks? I'd say less than a month.
any news on the cravath deferrals? it's spreading like wildfire on TLS.
I think 31 has some inadequacy issues to address.
Take a Viagra and a chill pill.
It is difficult to sum up what makes Latham so unique in writing, but hopefully as you navigate through our web site and read about our participatory management style that associates and partners enjoy, our diverse, collegial and supportive work environment, and the programs and governing structure that have been in place from the firm's inception, it will become clear to you that Latham & Watkins stands apart from other large law firms. You may also find that we differentiate ourselves from the competition in ways that are most important to you as a prospective candidate.
We look forward to hearing from you.
Dennis D. Lamont
Wait... there are people working full time who didn't bill 610 by the end of May? And they aren't getting canned?
Anybody else fantasize about pounding Sotomayor in her hot chalupa?
Elie, e-mail me re: your potential bridge deal, the Firm may have some interest if it is as lucrative as you portray.
-Acela Bob
It is awesome that #1 spilled over the margins. How was that possible?
Just me, or does this policy sound mostly reasonable and fair? I mean, not ideal, but not crazy either.
5 and 31,
Thanks for the help convincing the best and brightest law students that they really shouldn't even consider going to BigLaw in the first place.
Please let all of your top tier associates that, even though partners like you lack the prestige and expertise to land sufficient clients to keep them busy, Uncle Sam is hiring.
Federal government attorney - Make 80-90% of BigLaw pay but only work 67% as many hours.
Dissatisfied associates and talented law students should make their decisions accordingly.
www.usajobs.gov
I never really knew what a bunch of sniveling whiners most lawyers are.
Grow up and earn your keep or find a different way to earn a living. Emphasis on earn.
freakin' teat-babies!
45 --> another incompetent partner doing everything they can to deflect attention from the fact that it is the PARTNERS' responsibility to bring in clients.
Associates can't do work that you aren't bringing. Don't blame a 2nd year just because you lack the prestige and expertise to land clients.
I never really knew what a bunch of sniveling whiners most lawyers are.
Grow up and earn your keep or find a different way to earn a living. Emphasis on earn.
freakin' teat-babies!
I just thought they really liked cutoffs
Funke, you killed the thread.
20% or 5% thats a lot of money for ordinary people like us.
Re: Doesn't anybody think that tying compensation to arbitrary (and difficult to achieve) hours targets is a huge incentive to fraud?
Face it. Nearly every hour over about 1600 for a year is full of bullshit. Whatever the target over 1600 is, your firm is saying "help us defraud our rate insensitive clients out of $250k, and we'll kick back $50k." When you engage in that bullshit, you are a fraud, and you deserve to be reamed with a poker.
Go ahead, convince me that your client's deserve to be billed 5 grand for you to sit third chair on a depo. Or sit 10 hours in an airport at $400/hr. because YOU missed the plane while drinking Scotch.
Have you no shame?
I'll bill 1600 hours and fuck my wife three times during the week with a straight face. You bill padders can suck it.
31--
The good associates, huh? Is that how it works? How about those associates who (i) kiss enough ass, (ii) have daddy throwing the firm work, and (iii) those senior associates, counsel and zombie partners who hoard work are the ones getting the work. You're fooling yourself if you think that your work is better than that of your colleagues.
The fact that a firm has to cut pay for most of its associates tells you all you need to know. What this firm and similarly cash-strapped firms are going to try to do to take everybody's eyes off of the ball is to have their trolls and suckasses, like yourself, come onto this board and make it sound like it's either (i) performance driven or (ii) the firm's partners are greedy and simply using this opportunity to make more $.
As to the latter justification, it's like copping to the lesser offense by your average, ordinary criminal. What the partners at this firm don't want you to focus on is that only firms in dire straits cut pay. In economics, wages are generally characterized by the concept of the one-way ratchet. The fact that this firm is cutting salaries means that the brown water has risen to waist level and is projected to be neck high by the end of the year.
I also enjoyed reading your admission that the firm is getting less work these days, but, in your view, the work is going to the performers. You're out of your mind, and when your name ends up on the stealth layoff list I hope the irony is not lost on you.
Now, go the slob the knob of whatever partner happens to be giving you your document review and leave this conversation to those who will approach it in an intellectually honest manner.
Oh, and one more thing:
Fuck off!
12:
"I'd take you a lot more seriously if Louis Z. didn't have the habit of wearing blue shirts with white collars and cuffs like a chintzy Gordon Gekko from the 1980s, massive amounts of gold jewelry, and a fake tan like Angelo Mozilo, to boot.
Talk about a tacky greaseball.
How about a meatball parmigiana sub, Louie? "
Interesting comment, which I'm sure is entirely unrelated to the fact that his name ends in a vowel. You're far too intelligent for that, right? After all, you're a well-educated attorney.