Last week, we reported that DLA Piper cut associate salaries. But on Monday, we followed up that report with news that DLA had made salary cuts of up to 20% for associates who were not on pace to make their hours. Tipsters reported serious frustration with a 20% salary cut based on only a few months of accrued hours.
Well, last night there was a change in policy from DLA Piper. The firm is going to make a 10% cut across the board to all associates, regardless of hours:

We have had many conversations with partners and associates since making the adjustment, and it is clear that there are numerous anomalies in individual associate situations such that people who were typically strong performers would receive the additional compensation reduction. That is not the result we want to achieve, and we are therefore removing the additional adjustment based on year-to-date performance and maintaining a straight adjustment of 10% for all associates. We will continue to reward associates for exceptional performance in 2009 through our bonus program, taking into consideration both the associate’s performance and that of the firm.

It is an objectively good thing when a law firm responds to associate concerns. It seems that in this case, a wrong has been righted.
But, of course, not everyone is happy.
Additional complaints, after the jump.

Continue reading “DLA Piper Gives Back 10% of the Salary Cut”

On Friday, we reported that DLA Piper cut associate salaries by ten percent across the board. But we now know that ten percent was just the starting line for associate salary cuts.
Friday, the firm memo included this language:

Adjustments to all associate salaries at other class levels will be determined and communicated on a case-by-case basis based on class year and performance levels.

It appears that the case-by-case consultation resulted in salary cuts of up to 20% for associates that were not on pace to make their hours. Many tipsters brought this to our attention, as well as some interesting commenters:

Elie/David – what I hope is not overlooked in DLA’s move is that they made a calculated move to mislead abovethelaw and its readers by saying that starting salaries were being lowered to 145. That’s not true. A number of first year attorneys salaries were lowered to 128k. There are 3rd years making 136k. Their efforts to cover for there salary reductions should be given more exposure.

Other commenters made the point that the decision was all about hours:

You could get great performance reviews/make in excess of your budget for years/ be well regarded/ do pro bono work etc, but still the ONLY thing that was taken into account when cutting salaries was whether you were on pace for the first 4 months of this year. The published memo does not disclose this. You could be a pretty average associate and happen to have been staffed on a doc review for the first 4 months or hoarded your work and hey suddenly you are getting paid more than other associates.

Tipsters emailed us, texted us, even called us on the phone to give us details about the 20% cut. We get into the extra news after the jump.

Continue reading “DLA Piper Salary Cut Follow Up”

We have a new leader in the clubhouse in terms of Vault Top 50 firms cutting associate salaries. DLA Piper is going down the salary cut road. The internal memo just went out:

We are making an adjustment of our base associate compensation in our major markets to $145,000. In those markets where the starting compensation has been $145,000, we are adjusting it to $130,000. Adjustments to all associate salaries at other class levels will be determined and communicated on a case-by-case basis based on class year and performance levels. We will continue to reward associates for exceptional performance in 2009 through our bonus program, taking into consideration both the associate’s performance and that of the firm. We also will not increase paralegal and staff compensation for this year. The timing and implementation of all of these actions will take effect June 8th and be reflected in the June 19 paycheck.

Until today, Baker & McKenzie was the most prestigious firm (according to Vault) that slashed salaries.
But DLA Piper wants people to know that its partners have already taken a hit to their earnings:

Our partners, including the three of us, have already accepted significant reductions in our projected 2009 compensation, and compensation levels for Of Counsel and Senior Counsel have also been reduced. We are now taking the further steps of bringing US associate salaries and staff salary increases into alignment with market realities.

We reported DLA’s decision to decrease partner compensation, back in March. Does sharing the pain make associates at DLA feel better about their reduced paycheck than associates at other firms?
One tipster isn’t too broken up about it:

On the bright side, at least we’re not fired. All the older associates are holding their breath awaiting the “case by case” reviews.

Read the full memo after the jump.

Continue reading “Nationwide Salary Cut Watch: DLA Piper Joins the Party”