Top 20 Biglaw Firm Reverses Pay Cuts, But Not Everyone Is Happy
Biglaw associates are starting to expect retroactive salary payments, but that's not in every firm's plans.
The trend of Biglaw firms ending their COVID-19 austerity measures continues. The latest firm to end their salary cuts is none other than Mayer Brown — a firm that came in 17th place in the latest Am Law 100 rankings, with $1,484,000 in gross revenue in 2019.
Back in May, the firm announced a series of graduated salary cuts. Effective May 18, salaries for all non-equity lawyers and staff (who make more than $200,000) were cut by 15 percent, and all other staff had salaries reduced on a graduated scale, with no reduction for those making less than $30,000. Even though at the time it was anticipated the cuts would last through the end of the year, last week they changed course. Starting September 21, salaries at Mayer Brown will be reverted to their pre-pandemic levels.
Moreover, the firm announced that in addition to their usual bonus structure (which remains unchanged by COVID), there will be discretionary bonuses for high-performing associates. Check out the firm’s full announcement at the end of the story.
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However, not everyone was happy with the announcement. Several Above the Law tipsters (which admittedly only represent a small segment of Mayer Brown attorneys) expressed disappointment that there were not retroactive salary payments and that the reversal of the cuts were not immediate.
The reactions from sources at the firm:
Associates I’ve talked to (and myself) are pretty pissed. One of the first to cut pay, one of the steepest cuts (15%), and one of the last to reverse it. And it doesn’t even take effect until Sept 21.
Firm is perpetually nickel and diming associates. Even in announcing this policy they’ve botched it by not making it effective immediately. Not to mention peers like Hogan are promptly paying up the difference retroactively.
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So, Mayer Brown attorneys, how do you feel about how the firm handled the salary reversal? Feel free to sound off by email, by text message (646-820-8477), or by tweet (@ATLblog). A fun or insightful response — we’ll keep you anonymous — could find its way into an update to this story.
The firm’s announcement:
[pdfjs-viewer url=”https://abovethelaw.com/wp-content/uploads/2020/09/mayer-brown.pdf”]
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).
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.
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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).
