COVID-19 Law Firm Austerity Comes To Texas
Gotta keep that cash a-flowin'.
Texas Governor Greg Abbott may be trying his damnedest to pretend COVID-19 won’t mess with Texas, but that doesn’t mean folks in the state aren’t feeling the pinch. And that goes for the legal profession as well. Midsize Texas firm Munck Wilson Mandala recently announced they are taking some coronavirus austerity measures.
In a press release on the cost-cutting moves, the firm said they were reducing compensation for partners, associates, exempt directors, and managers, and some partners have voluntarily deferred the entirety of their compensation for the next three months. While the firm added they have no plans to reduce attorney headcount, some staff were furloughed or had their hours reduced, but all employees will still get their benefits.
Managing partner William A. Munck said this about the cuts:
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“There is tremendous uncertainty in the economy right now, brought on by the ongoing pandemic,” said Munck. “We are taking precautionary measures to better position the firm and to ensure our workforce and clients have what they need.”
He also noted that the moves were designed to maintain cash flow:
“Our intent, like so many other businesses, is to maintain access to cash while evaluating the impact of this pandemic on our clients’ businesses and, as a result, MWM’s long-term finances,” said Munck. “The executive committee intends to revisit the compensation adjustments in three months subject to changing circumstances with the pandemic.”
And that means the firm’s intention is to treat the salary cuts as mere deferrals, “to be paid by the end of the year or when practical.”
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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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Kathryn 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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