I thought we were done with salary cuts. It’s almost September! Fashion week is on the horizon, but King & Spalding is coming out with an old style. I mean, it’s been multiple weeks since I used this picture.
Just before 5:00 p.m. yesterday, King & Spalding decided it was ready to cut associate salaries:
As you know, the past year has been a difficult one in all industries. The economic turmoil has led to a reduction in demand for legal services and increased pressure on firms to reduce costs. Although King & Spalding remains strong thanks to the quality of our people and our diverse portfolio of practices, clients, and offices, we are not immune to the broader economic environment. As a result, over the course of the past year, we, like other leading firms, have had to make a number of difficult but important changes to ensure our cost structure remains competitive and we are able to generate the opportunities that keep us all engaged.
Earlier this year, many firms “froze” salaries at 2008 levels or reduced them even lower. After closely monitoring those changes, we have decided to make commensurate adjustments to our salaries. Effective September 1, 2009, the annualized salary for U.S. partner-track associates will be equal to their 2008 salary. Partner-track associates in Atlanta and Charlotte will have an additional market-based reduction equal to $10,000 on an annualized basis. The salary for U.S. counsel, other lawyers, and consultants will be reduced by five percent. These salary changes will only apply going forward and will not be retroactive to the beginning of the year. Our plan is to announce 2010 salaries some time during the first quarter of next year, as some firms already do.
Ugh. Doesn’t K&S know that the cool thing isn’t just to cut salaries? All the popular kids are busy making fun of lockstep compensation. Oh wait, I guess K&S did get that message.
After the jump, another wedgie for lockstep.