Biglaw

Am Law 100 Firm Completely Eliminates Its COVID-19 Austerity Measures

This is great news for the firm.

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Despite the fact that the second wave of the coronavirus crisis seems to be afoot, one by one, Biglaw firms are continuing to roll back their COVID-19 austerity measures. Cash seems to have been easy to come by for the most successful law firms during the pandemic, so why not?

Today, we have good news from Fox Rothschild, a firm that brought in $555,000,000 in gross revenue in 2019, placing it at No. 69 on the latest Am Law 100 ranking. Back in April, the firm announced that salaries would be slashed across the board, from partners to staff members. Specifically, a tiered salary reduction of between 10 percent and 15 percent for all attorneys and staff making more than $100,000 would take effect in May, while partners would reduce their monthly draws between 10 percent and 20 percent. At the same time, the firm announced that no layoffs would take place (but we have a feeling that the “productivity and performance-related dismissals” that occurred were likely stealth layoffs). In September, half of the cuts made to partners’ monthly draws were restored and half of the reductions to attorney and staff salaries were also restored. Now, all of these cuts are finally coming to an end.

In an announcement made earlier this week, firmwide managing partner Mark Morris said that effective November 1, monthly equity partner draws will be fully restored prospectively, and effective November 5, compensation reductions for all attorneys and staff will be fully restored prospectively. Here is a statement we received from Morris regarding the firm’s most recent salary updates:

Like many other law firms throughout the country, Fox Rothschild has spent this year confronting and addressing the economic challenges presented by the COVID-19 pandemic. Over the past seven months, we have continually evaluated our situation to ensure we maintained financial flexibility and remained in the best position possible to serve our clients and provide the strategy and support they need to navigate these uncertain times.

Upon our most recent financial assessment, we are pleased to announce that we are able to rescind the austerity measures we implemented earlier this year.

We appreciate that many of our attorneys and staff have overcome significant obstacles during the past seven months and made sacrifices in many aspects of their lives, and they have done so while serving our clients and the firm with the highest degree of professionalism, poise and perseverance. While the uncertainty and economic impact of the pandemic will likely remain with us for the foreseeable future, I am confident that we will continue to forge ahead and provide our clients, and each other, with the services and support needed during these trying times.

Congratulations to everyone at Fox Rothschild on the positive salary news.

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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