Nationwide Salary Cut Watch: Morris Manning Salary Cuts Based on Practice Group
Morris Manning has decided to cut salaries. Given the decisions of other prominent firms with large offices in Atlanta, this news alone is not that surprising. Morris Manning had been paying $145,000 in Atlanta.
But the pay cuts at Morris Manning are not based on hours or “performance.” Instead, the firm is cutting salaries based on practice groups. As we understand it, Morris Manning is giving a 15% salary cut to associates in the real estate, commercial lending, and general corporate practice groups. Everybody else will receive a 10% pay cut.
Tipsters report that initially, associates in real estate, lending, and corporate were looking at a 20% pay cut. But it looks like the firm reversed course on Friday after they decided to spread the pain around by taking the 10% bite out of the rest of the associates.
Update (6:50): Morris Manning spokespeople got back to us and clarified the situation. Apparently, associates in the the slowest practices already received a 20% pay cut earlier this year. When the firm decided to make a 10% across the board pay up, the firm changed the pay cut on the slow practice groups to 10% (making for the average of 15% percent that many of our sources reported). So now, all the associates in every group are looking at a 10% cut in base pay going forward.
Behind the veil of ignorance, this plan is probably more fair than making a deeper cut in practice groups that have been hardest hit by the recession. But — assuming that the three practice groups taking the larger pay cut are indeed slower than the rest — is it fair for busy associates in other practice areas to shoulder part of the burden?
The firm did not respond to our request for comment. But you can weigh in with your thoughts in our reader poll, after the jump.
Morris Manning is giving associates in some practice groups a bigger salary cut than others. But the disparity could have been even greater. Is that fair? Take our poll below.
Earlier: Prior ATL coverage of salary cuts
Nationwide Pay Raise Watch: Atlanta
(46) 
Comments
Comments hidden for your protection. Show them anyway!
firsttt to say this is great news for ip associates
Umm 1, have you seen that specialty IP shops are also firing associates??
First to say "WHO?"
If you say "Elie Mystal" three times in front of a mirror, he appears out of no where and eats your entire family.
Second to say who.
First to say Boobs
Obamanomics continues to make gains in the private sector.
Is it fair for the lit associate putting in 250 hours/month to get a 10% cut in pay because the finance department doesn't want a 20% cut?
"Obamanomics continues to make gains in the private sector."
Yes, we would be much better off with McCain and Palin in the White House.
Even for Atlanta, this is a no-name firm. That this 'Morris Manning' was able to pay first year associates $130,000 per year is itself proof that firm salaries were inflated.
DOJ SECURE
When the times were good and plenty and us corp guys worked until 1am on average, did everyone get fat bonuses or just the corp folks??
Also, regional atlanta firm? Really? Is there no law firm news in NY, NJ, PA, Mass, Delaware? Everything back to normal in these states???
The ship be sinking...
9-
Just the corporate folks because bonuses were, in large part, based on your annual billables.
Elie, I sure hope you feel like crap for the rant you gave us on how stupid the woman was for calling the cops on Gates. She sounds perfectly reasonable to me.
http://s.wsj.net/public/resources/documents/WSJ_audioPlayer08.html?audioFile=http://s.wsj.net/media/072709cambridge.mp3&trackName=072709cambridge.mp3
Now, whether the cops handled it right might be a more valid question.
"Everybody else we receive a 10% pay cut."
Nice proof-reading MysTTTal
is this a firm? who are these guys?
Morris manning is a shitshack with crappy offices and a powerless managing partner.
The person posing as Michael Ray Richardson is a TTTOOL.
TTTTTTTTTTTTTTT
In other news Dewey, Cheatum & Howe terminated their only associate
Entirely fair. When corporate folks were too busy to breathe in the past few years, bringing loads of dollars into firms, I could count on one hand the firms that had higher corporate associate (generally) lockstep salaries to reflect that economic reality. And (generally) lockstep also doesn't usually take into account those areas whose billing rates are a lot lower. I'm looking at you, L&E... So, if you have to share your upside, then they share your downside, too.
No PE? I wonder why. Could he be studying for the bar?
Obama has focused on everything else besides job creation. He even has time to talk about a local police officer responding to a call of a possible burglary in Cambridge! My question for Obama, while he attempts to socialize America and redistribute people's hard-earned money, is, "Where are the jobs?" Until America stops hemorrhaging jobs on a monthly basis, please SHUT UP!
"But -- assuming that the three practice groups taking the larger pay cut are indeed slower than the rest -- is it fair for busy associates in other practice areas to shoulder part of the burden?"
I'm sick of hearing this argument. Yes, it is fair. The salaries were bid up not because of litigation etc. but because of the high volume of transactional work and demand for transactional lawyers. If folks in other departments did not complain when they got a bump up in pay, why the hell are they whining now?
(d) reduce the hours expectations and salaries of those who don't have enough work - regardless of practice group.
Wait, so the corporate practice brings the firm record earnings during good times and gets paid the same as everyone else, but when things slow down for them in the bad times they get their pay cut? Seems fair.
Wow, yet another firm no one's ever heard of outside of this site. How bout some more Troutman Sanders posts?
by the way, the person who posted comment 20 is black
A black female attorney from Boston just shit all over me. If I report her to the authorities, am I racist?
20,
We wont need jobs because see, the fairy will come around and distribute magic pixie dust that makes resources unconstrained. Everything will be provided for, healthcare, food, transportation, they'll even get to tell you how and what to think.
Look how well it worked out in Cali.
Yeah, I hear that litigation and ip groups were being propped up by transactional groups in the past.
This would never happen at Paul Hastings. They would just fire you for performance reasons.
This would never happen at Latham. I hear they treat their associates well, especially in nyc.
I'm black, and Obama sucks.
18, so what? In boom times, EVERYONE was billing enough hours to justify the base salary. People in corporate who were slaving away beyond the norm had that reflected in their bonus. Even at firms that don't use merit-based bonuses [explicitly considering quality of work], billable hours are the main driving force.
That's not to say that busy people in other departments should necessarily receive a good bonus when the firm is struggling. That doesn't make sense. But someone billing plenty of hours in this economy shouldn't have their pay cut. at least Alternatively, they can cut like they did, and busy people can still earn back the difference in bonus. Maybe that's what will happen. That's fair.
30,
Isn't Latham the best! They bring in a huge summer class and tell you that they've got plenty of work. Then, several months into your first year, you're laid off!
One firm, firm! Latham NYC SUCKS!
30,
Isn't Latham the best! They bring in a huge summer class and tell you that they've got plenty of work. Then, several months into your first year, you're laid off!
One firm, firm! Latham NYC SUCKS!
Latham was awesome once the dead weight was cut. It sucked having to pull that. Good thing they turned the savings from cutting associates into bonuses for the people who were truly deserving.
-30.
this is terrible news. if being a Super Bowl-winning quarterback doesn't protect you from salary cuts, what will? this would never happen to Tom Brady.
Comments 20 and 31 are offensive and I have instructed my comments czar to moderate. On the other hand, I did lie, and jobs did die.
I'm Barack Obama?
I've narrowed it down to Morris Manning, Wachtell and Cravath. Would it be strange if I went with go ol' MorrMan? I mean they get more play on ATL than the other two, right.
For a firm that cancelled its summer program and RESCINDED its 3L offers, I see things circling the drain...
You guys are wrong about MMM. It is actually a top drawer firm with one of the highest PPP in Atlanta. It also is one of th emost human places to work in BigLaw.
6 - At least they are not as bad as Atlanta's WorsTTT Law Firm® McKenna Long & Aldridge, the firm that started the race to the bottom in the Atlanta market.
http://abovethelaw.com/2009/04/salary_cut_watch_are_the_barba.php
The one good thing about MMM is that they used to give monthly bonuses if you hit your hours each month. Not too shabby!
Looks like Sutherland will be facing an uptick in lateral applications from Morris Manning.
oh no, not the Sutherland ranters again.
ATTTlanTTTa? Where is T. Sherman when you need him?
Wasn't Louise Wells on Gilligan's Island?
The only thing worse than the post was number 4's comment. Congratulations.