I hope that a jolly Turkish Saint brought Dorsey & Whitney associates something spectacular for Christmas. Because a pay raise was certainly not one of their stocking stuffers.
A memo went out to Dorsey& Whitney associates on December 23rd explaining the bad news:
Management and staff have just completed the 2009 forecasting and budgeting process. In order to protect our people and resources, and to prepare for what all anticipate will be a tough 2009, the Management Committee reluctantly decided to freeze all associate and staff salaries (except associate productivity bonuses) effective immediately. Although equity partners do not receive a salary, their compensation is impacted by the economy as well. As soon as the economy stabilizes and the prospects for the legal industry brightens, we will end the firm-wide salary freeze.
Unlike Latham & Watkins, Dorsey & Whitney is promising to end the pay freeze as soon as the economy stabilizes. That could happen in 2009.
Pay freeze > massive layoffs. Right?
Read the full memo after the jump.