Colleagues:

I would like to thank you for the agility and resilience that you have displayed over the past few months. This challenging time has brought out the best at every level of our Baker Botts team.

Despite the unprecedented environment we have been operating in during the pandemic, through the hard work of many and as a result of the measures we have implemented across the Firm, we have exceeded our post-COVID financial performance forecast to date. As a result, the compensation reductions for non-partner timekeepers and staff that we announced in April will be rolled back by 50%. This means that salaries that were reduced by 5% will be reduced by 2.5%, salaries that were reduced by 20% will be reduced by 10%, and so on.

These rollbacks will be effective as of September 1. While we will continue to monitor our financial performance during this time of uncertainty, we expect that these rollbacks will continue in this form through the remainder of the year, absent a material deterioration or improvement in general economic conditions or the businesses of our clients.

Interim Bonuses for Timekeepers

In the face of these unprecedented challenges, we remain committed to attracting, developing and retaining the highest quality talent and demonstrating our appreciation for your contributions.

As I mentioned in my April announcement, we will be awarding interim bonuses to non-partner timekeepers who have made exceptional contributions over the past months. Bonus eligibility will be determined based on a number of factors, including utilization and exemplary client service, for the May 1 – July 31 period, as recorded in adherence with the Firm’s time entry policy and deadlines.

The Firm will notify those receiving interim bonuses in mid-August.

To be eligible for this interim bonus, timekeepers must be in good standing and actively employed at the Firm on the date of payment.

We expect that more than 200 timekeepers will receive an August interim bonus, and we will continue to evaluate and potentially award additional interim bonuses in the coming months to exceptional contributors.

We will look to award bonuses later in the year to supporting staff who have demonstrated extraordinary dedication and provided exceptional support across the Firm, to enable us to operate so effectively in this remote environment.

Technology Stipend

We also recognize the challenges that working from home for a prolonged period has caused for many of you, as has the indefinite nature of this arrangement. To alleviate this burden and enable you to enhance your working from home set-ups and continue providing excellent client service, all non-partner timekeepers and staff who utilize our technology systems to perform their jobs will receive a $1,000 technology stipend.

The stipend will be payable on August 15 and the interim bonuses will be payable on August 30.

We are in this together and will continue to work collaboratively for our clients, while protecting the long-term health of the Firm, rewarding our tremendous talent, and continuing our prudent financial management.  

On behalf of the Executive Committee and the partners, I want to thank you for your efforts and hard work. I am grateful for all you do to make Baker Botts an extraordinary law firm, and I look forward to communicating with you again soon.

Until then, please continue to take care of yourselves and your families.

John