Biglaw

Am Law 100 Firm Cuts Salaries, Eliminates Discretionary Bonuses

The Biglaw firm emphasized the shared burden of weathering the COVID-19 financial storm.

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Just because it’s Friday doesn’t mean the Biglaw austerity measures have taken a break. After all, time is meaningless in a quarantine, so let’s just pile on with the COVID-19 cost-cutting measures, Friday (Zoom) happy hour be damned.

Anyway, the latest firm that’s looking to control their expenses as the coronavirus-inspired economic decline rages on is Mintz Levin. The firm — one that takes the 87th place in the latest Am Law 200 ranking — announced a series of reductions that all employees will face. Managing partner Robert Bodian said in the email (available in full on the next page) that the firm’s priority is to maintain the health of the firm and keep everyone employed, but “[e]veryone will make some sacrifices.” The specific cuts vary on the employee’s position:

Associates, Of Counsel, Special Counsel and Practice Group Associates:
10% base pay cut.
No discretionary bonus (which would have been paid in June).
On-Track Associate and Of Counsel hours bonus will be paid in full.
Health insurance premium co-shares will not change.
No layoffs or furloughs (beyond ordinary course) are currently anticipated.

Patent Agents and Technical Specialists:
5% base pay cut.
No discretionary bonus (which would have been paid in June).
Health insurance premium co-shares will not change.
No layoffs or furloughs (beyond ordinary course) are currently anticipated.

Professional Staff:
5% base pay cut, subject to not falling below a $75k floor.
Base pay freeze – i.e., no merit or other increases this spring.
Overall discretionary bonus pool will be reduced by 50%.
Health insurance premium co-shares will not change.
The 401(k) match will be made for March but thereafter suspended.
No layoffs or furloughs (beyond ordinary course) are currently anticipated.

The partners are also shouldering their share of the financial burden. In a separate email (available in full on the next page), Bodian shared that among the steps taken to reduce costs is increasing the equity partner holdback to 40 percent, and reducing partner draws by 5-10 percent.

Hopefully these measures mean no other cuts will be needed at Mintz Levin.

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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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).

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