Biglaw

Billion-Dollar Biglaw Firm Kills Its COVID Salary Cuts

Plus, bonuses are still on the horizon for 'extraordinary' performance.

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K&L GATES — MEMO — COVID-19 SALARY ADJUSTMENTS

To: K&L Gates Colleagues

      We hope you and your families are safe, healthy and otherwise doing well.  We posted a video message on Compass earlier today announcing some good news regarding the Covid-19 salary initiative, and are writing to confirm the main points of that message.

      As you are aware, in response to the global pandemic and associated economic disruption, we put in place starting in May a number of initiatives, including across the board Covid-19 salary reductions.  We committed at that time to review those initiatives regularly, and to mitigate or discontinue the salary initiative as soon as we could reasonably and prudently do so.  We mitigated the salary initiative effective in September, as you know.

     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.

     These are difficult times as we all know, and many of our clients and, therefore our Firm, have felt the economic impact of the pandemic.  The associated uncertainties and risks have not disappeared, and real challenges remain to be navigated as the year goes on and into the future.  But thanks to your hard work, creativity, ingenuity and resilience, our Firm has performed well under all of the challenging circumstances. We believe that the combination of results so far this year and our best judgment regarding forward looking prospects, even with the significant uncertainties and risks that remain, allow us prudently to take this step.  As we transition back to individualized, merit-based compensation decisions on our ordinary schedules, we certainly will not forget the contributions of those who have made extraordinary contributions over the course of 2020.

     Questions regarding compensation adjustments can be directed to Amy Horn or a member of the HR Business Partner team.

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    Our Firm is in good position, and poised for continued success going forward.  Thank you again for your extraordinary dedication and loyalty, and for all you are doing.  Above all, please keep yourselves and those close to you safe and healthy.

     Jim and Mike

James R. Segerdahl

Global Managing Partner
K&L Gates LLP

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Staci ZaretskyStaci 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.

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