RIVKIN RADLER — MEMO RE: COMPENSATION ADJUSTMENTS
To All Attorneys:
It is no secret to anyone that the economy is in financial turmoil and that our law firm, along with all law firms, will struggle in the coming months. The shut-down of the courts and the slow-down in the economy will significantly impact our revenue in the near future. The simple fact is that reduced revenue requires a reduction in expenses and our most significant expense is the compensation of our attorneys.
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In order to protect the long term health of the Firm for everyone, effective with the payroll period ending April 16, all attorney compensation will be reduced by 20%. Further, all payments pursuant to the fee participation program and the attorney recruitment program are suspended. These measures will last until such time as the Firm is back in its offices and operating at full capacity.
We intend to seek a loan under the recently enacted federal stimulus legislation, and if received, those funds will help lessen the burden imposed by our anticipated loss in revenues.
It is just unfathomable that it was just one month ago that we gathered to celebrate the Lennys and our wonderful accomplishments in 2019. The world has changed so quickly and fundamentally that it is impossible for me to formulate any words that will ease your anxiety. I can tell you that the last thing that any partner wants to do is to add to that anxiety by reducing your compensation. Nevertheless, the long term viability of the Firm, which so many have worked so hard to build, must be paramount.
We are also compelled to temporarily reduce the compensation of our staff by 20%.
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The partners value the hard work and commitment that each of you make to the success of the Firm. We appreciate your understanding as we act to protect our Firm.
Please stay safe and healthy.
Evan Krinick
Managing Partner
Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.