One Of World's Best Law Firms Pays Back Half Of COVID Comp Cuts, Keeps Full Cuts Going Forward

This is likely the first Biglaw firm to do such a thing.

Another day, another Biglaw firm taking steps to walk back some of the austerity measures it put into place thanks to the havoc wreaked by the novel coronavirus upon the world’s financial markets. This time, the firm in question is introducing an interesting little twist into the equation.

Back in May, the U.S. branch of Eversheds Sutherland — an international firm that was declared the 10th best legal practice in the world in Law360’s most recent Global 20 rankings — slashed salaries across the firm and furloughed employees. Both lawyers and staff faced a 10 percent pay cut on average (including bonuses), and about 40 staff were furloughed.

Now, instead of doing what most firms are doing and reducing or ending its pay cuts completely, Eversheds is partially paying its employees back and keeping the 10 percent salary cuts in place going forward.

Per an email from Eversheds Sutherland’s U.S. CEO Mark Wasserman, the firm will be retroactively paying back half of the salary cuts lawyers and staff sustained from May through August. Employees at the firm may be able to see more of their expected pay returned at the end of 2020. “With all of the uncertainty remaining for the pandemic and the economy, we will keep our compensation reductions in place going forward and reassess further restorations at the end of the year,” Wasserman said.

Here’s hoping that lawyers and staff at the firm get their salaries restored — sooner, rather than later, and in full.

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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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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