Biglaw Firm Announces 'Significantly Strong' Financial Performance And Ends COVID-19 Austerity Measures
The firm successfully avoided layoffs by cutting salaries.
Despite the layoffs (largely impacting staff) that seem to be making the rounds in Biglaw, there is a lot of good news too. A lot of firms took a conservative financial approach to the pandemic, cutting expenses — including salaries — where possible. Now that they have a better sense of their 2020 economic outlook, a lot of firms are reversing course on those cuts.
The latest firm to undo their COVID-19 austerity measures is Holland & Hart.
Back in May, the equity partnership’s profit distribution was reduced. And salaried attorneys are also took a hit to their paycheck — to the tune of a 15 percent reduction. Employees making between $60,000 and $99,999 had their compensation reduced by 5 percent — those making under $60,000 were not impacted by the reductions. Plus the employer portion of the 401(k) matching program was suspended.
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But now the firm has announced that because of a stronger than anticipated financial performance, all employees will return to their full 2020 salaries, and the 401(k) program is being reinstated. The firm also announced that because of these measures, they were able to avoid layoffs during the pandemic.
Plus, there are bonuses afoot, as Holland & Hart announced, “The firm has reserved a significant bonus pool to reward at the end of the year those staff and lawyers who contribute to the firm at a high level.”
The firm made the following statement on the end of their austerity measures:
Since the outset of the COVID-19 pandemic, Holland & Hart’s business decisions have been driven by our core values—our commitment to our people and our dedication to deliver excellent service to our clients.
In response to the economic disruption and uncertainty caused by the pandemic, last May, Holland & Hart proactively implemented several fiscal adjustments to offset anticipated revenue declines. Although the firm had one of its strongest financial years in 2019, and an equally robust start in the first quarter of this year, these measures were taken to protect our people and the short- and long-term business interests of the firm. Compensation cutbacks, combined with significant expense-saving and expense deferral initiatives, allowed the firm to avoid any layoffs.
After a significantly strong financial performance the past few months, we are pleased to announce that effective this month, the firm will return all employees to their full 2020 salaries and 401(k) matching contributions will be reinstated. The firm’s third quarter profit distribution to equity partners was restored in full. Finally, the firm has reserved a significant bonus pool to reward at the end of the year those staff and lawyers who contribute to the firm at a high level.
We are grateful to the incredible dedication of our lawyers and staff who continue to demonstrate resilience and a willingness to adapt to change. More than ever, we value our relationships with our clients and appreciate the trust and confidence they have placed in our firm as we have all embraced ways to connect and work together in these challenging circumstances.
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If your firm or organization is slashing salaries or restoring previous cuts, 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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