Billion-Dollar Biglaw Firm Kills Its COVID Salary Cuts
Plus, bonuses are still on the horizon for 'extraordinary' performance.
Just because some Biglaw firms are handing out COVID-19 bonus money hand over fist, we mustn’t forget there are still some firms that are dealing with COVID-19 austerity measures, from slashed salary to furloughs to layoffs. Today, those cuts end at one of America’s most profitable firms.
The latest firm to completely roll back its salary reductions is K&L Gates, another member of the billion-dollar club that placed 39th in the Am Law 100, with $1,026,626,000 in 2019 gross revenue.
Back in April, the firm reduced salaries across the board, with equity partners seeing a 20 percent reduction in scheduled advances, and firm leaders taking even larger reductions. Income partners, associates, and allied professionals and staff were subject to a 15 percent reduction in their salary provided their income didn’t fall below a $75,000 floor. In late August, the firm walked back those reductions, with equity partners due to see a 15 percent cut to their advances at the end of September, while all other employees would sustain a 10 percent pay cut starting at the beginning of September (with the income floor shifting to $100,000 for no pay cuts).
![Calling All Biglaw Pros! Your Dream Job Awaits—Take Our Survey](https://abovethelaw.com/wp-content/uploads/2024/08/New_Beginning_-_Man_Looking_to_the_Future-1-300x221.jpg)
Calling All Biglaw Pros! Your Dream Job Awaits—Take Our Survey
Now, thanks to further review of its austerity measures, K&L Gates will be doing away with its salary cuts entirely. Here’s a relevant excerpt from a memo (available in full on the next page) sent by Jim Segerdahl, the firm’s global managing partner:
We are pleased to confirm on behalf of the Management Committee that it is now time to discontinue the Covid-19 salary reduction initiative entirely on a going forward basis, and that we are doing so for all affected allied professionals, associates and income partners effective October 16th (there may be some timing variations in certain markets). Thus, salaries that were reduced as a result of the special Covid-19 initiative will return to pre-reduction levels on a going forward basis at that point in time. The special Covid-19 related reductions in the provisional advances made to equity partners will cease on a going forward basis with the advances scheduled for the end of October.
In this memo, Segerdahl once again reminded everyone that K&L Gates is holding open the door for bonuses for those who have made “extraordinary contributions” during the pandemic. (Alas, the firm made no mention of fall appreciation bonuses.)
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).
Sponsored
![Biglaw Professionals: We Want To Know About Your Dream Job](https://abovethelaw.com/wp-content/uploads/2024/08/StockSnap_F13A7GWM7O-300x200.jpg)
Biglaw Professionals: We Want To Know About Your Dream Job
![Attention Buyer: Not All Legal AI Models Are Created Equal](https://abovethelaw.com/wp-content/uploads/2024/07/Gen-AI-Models-300x169.jpeg)
Attention Buyer: Not All Legal AI Models Are Created Equal
![Calling All Biglaw Pros! Your Dream Job Awaits—Take Our Survey](https://abovethelaw.com/wp-content/uploads/2024/08/New_Beginning_-_Man_Looking_to_the_Future-1-300x221.jpg)
Calling All Biglaw Pros! Your Dream Job Awaits—Take Our Survey
![How To Maximize Productivity With Westlaw Precision With CoCounsel](https://abovethelaw.com/wp-content/uploads/2024/07/AdobeStock_68866527-300x144.jpeg)
How To Maximize Productivity With Westlaw Precision With CoCounsel
If you’d like to sign up for ATL’s Layoff Alerts, please scroll down and enter your email address in the box below this post. If you previously signed up for the layoff alerts, you don’t need to do anything. You’ll receive an email notification within minutes of each layoff, salary cut, or furlough announcement that we publish.
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.
Sponsored
![How To Maximize Productivity With Westlaw Precision With CoCounsel](https://abovethelaw.com/wp-content/uploads/2024/07/AdobeStock_68866527-300x144.jpeg)
How To Maximize Productivity With Westlaw Precision With CoCounsel
![Raising The Bar in Bar Prep](https://abovethelaw.com/wp-content/uploads/2024/06/Themis_logo_march_2024-small-300x200.png)