Just 1 BigLaw firm makes the news for pay cuts in past week
Image from Shutterstock.com.
Days after announcing a voluntary leave program, Troutman Sanders revealed it is going a step further with pay cuts for lawyers and staff members.
Troutman Sanders was the only large law firm that made the news for expense reductions since the ABA Journal published a roundup of pay cuts, furloughs and layoffs last Thursday.
Troutman Sanders announced on Friday it will cut pay from 2% to 18.5% on an annualized basis, report Law360 and Law.com. The length of the pay cuts will be determined based on the global economy and firm performance.
Sources told Above the Law that, on an annualized basis, compensation will be cut by 18.5% for equity partners; by 14% for non-equity partners; and by 11.7% for associates.
The firm said it continues to prepare for a July 1 merger with Pepper Hamilton, which previously announced expenses reductions.
Pepper Hamilton is reducing distributions to equity partners, furloughing some support staff members who can’t work remotely, cutting pay for nonpartner lawyers by 12% on an annualized basis, and cutting pay between 3% and 9% on an annualized basis for staff making $60,000 or more.
Both law firms will defer the start date for new associates until January.
