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The hits keep coming for Biglaw firms thanks to the coronavirus pandemic, and this time, an Am Law 200 firm has found itself battered and bruised.
Ed. note: This article has been updated.
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Sources tell us that Ballard Spahr, currently ranked at #91 in the Am Law 100, recently announced firmwide salary adjustments in light of the COVID-19 outbreak. We’ve been told the firm is cutting salaries by 10 to 15 percent for all employees, except for those who make less than $75,000 annually. Specifically, non-partner employees who make between $75,000 and $250,000 will see a 10 percent pay cut, while non-partner employees who make more than $250,000 will see a 15 percent pay cut. Partners are also bearing some of the brunt here, reducing their draws by 25 percent. In perhaps the worst news of all, we’re told that the firm will not be issuing its annual raises for staff in July.
Ballard Spahr Chair Mark Stewart issued this statement on the firm’s behalf:
We made the hard decision to enact painful but necessary cost-cutting measures now in the hopes that it will put the firm on better footing when things improve. The burden will be shared by partners, other lawyers, and staff who earn more than $75,000 a year. We hope to avoid layoffs and to remain as busy as we have been, guiding our clients through this turmoil and back to normalcy as soon as possible.
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).
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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.