Biglaw

World's Largest Law Firm Dials Back Salary Cuts, Rolls Out Buyout Program

The firm is trying to trim its headcount as it enters the new year.

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No matter how big or successful a law firm is, the pandemic took no prisoners when it came to the economic upheaval it caused. Even the world’s largest law firm — the Biglaw behemoth known as Dentons — fell prey to COVID-19’s casualties.

Back in May, the megafirm made compensation cuts across the board, including a reduction in draws of at least 20 percent for partners (and in some cases, a reduction much higher than 20 percent for the firm’s most highly compensated partners) and progressive salary cuts for lawyers and staff, starting at 0 percent and reaching 20 percent for those who earn more than $190,000. At the time the original cuts were made, Dentons announced that a “bonus mechanism process” would be rolled out to ensure that high performers during the pandemic would be able to recover some — or all — of their salary cuts.

In a memo sent out earlier this week, after four months of living through its austerity measures, the firm announced that it would be reducing those compensation cuts by half for everyone, ranging from staff to partners. Dentons is keeping its bonus plan in play, and all payouts will depend on the firm’s overall financial performance in 2020.

At the same time Dentons announced it was dialing back its salary cuts, the firm also announced a voluntary retirement program for business services staff and paralegals. As noted earlier here at Above the Law, many Biglaw firms are looking to cut headcount, and buyouts are the kinder, gentler way of doing so (opposed to layoffs).

We wish all of the legal professionals at Dentons who accept and are approved for the buyout the best of luck should they seek new jobs in the legal industry. Congratulations to everyone else on the restoration of the bulk of their salaries.

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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