Biglaw

Associate Salaries Cut By Up To 50 Percent At This Biglaw Firm

These are the largest associate pay cuts we've heard about during the COVID-19 crisis.

By  
on

It’s hard out there. Beyond the health disaster that has taken hold of the nation, there is the very real economic upheaval. The financial ramifications have hit one Am Law 200 firm, in the words of a tipster, “especially hard.” At Schiff Hardin, which made $192,848,000 in 2018 gross revenue, ranking 150th on the Am Law 200, salary cuts are the order of the day, which for some attorneys will be 50 percent decreases.

While the majority of attorneys will see a 15 percent compensation cut, certain practice areas are taking an astonishing 50 percent hit. That is the largest cut to associate salaries Above the Law is tracking. The firm estimates it is 6 percent of Schiff Hardin attorneys who are taking this huge pay cut. Staff making $100,000+ will also be subject to up to a 15 percent cut, and they’ve laid off some staff members.

A spokesperson from Schiff Hardin provided the below statement, which details all of the cost-cutting measures the firm is taking:

Schiff Hardin is taking prudent steps to help the firm withstand the economic uncertainty created by the coronavirus pandemic. We are implementing various measures, including temporarily reducing compensation by 15% for most of our attorneys. About 6% of our attorneys will have their compensation reduced by up to 50% based on anticipated demand. We are reducing the salaries by up to 15% for staff who make more than $100,000, and a small number of staff will be laid off. We have canceled our summer program, but have extended offers to all five of our summer associates upon their graduation, and we have deferred the start of our incoming first year class until at least January 2021. These are challenging times for our attorneys and staff and we are asking everyone in the firm to make sacrifices and share the burden. We believe this is the right approach for our firm and will allow us to continue to provide quality service to our clients and ensure the strength of the law firm going forward as we weather this health and economic crisis.

Best of luck to those at the firm shouldering the worst of the austerity measures.

If your firm or organization is slashing salaries, closing its doors, or reducing the ranks of its lawyers or staff, whether through open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive. You can email us or text us (646-820-8477).

If you’d like to sign up for ATL’s Layoff Alerts, please scroll down and enter your email address in the box below this post. If you previously signed up for the layoff alerts, you don’t need to do anything. You’ll receive an email notification within minutes of each layoff, salary cut, or furlough announcement that we publish.

Sponsored

headshotKathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

Sponsored

Scissors Cut Money

Enter your email address to sign up for ATL's Layoff Alerts.

Topics

, , , , ,