Lawyer Pay

Pillsbury Cuts Pay of Least Busy Associates by Up to 20%

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Pillsbury Winthrop Shaw Pittman is cutting pay for its least productive associates by up to 20 percent.

Some associates won’t see a reduction in pay, while others will see cuts of 5 percent to 20 percent, with the severity depending on productivity, the Daily Journal (sub. req.) reports. Most of those hit with pay cuts will see a salary loss of 5 percent to 10 percent, an unidentified law firm spokeswoman told the publication. First year associates at the firm currently make $160,000 a year.

Firm spokeswoman Sandi Sonnenfeld was less specific about the rollback in comments made to the Recorder. Above the Law was the first to report the salary cuts based on tipster reports. The Recorder sees the cuts as a sign that large law firms are questioning their lockstep compensation plans.

Productivity is measured by billable hours, pro bono work and training hours, the Daily Journal says.

The cuts will continue through 2009, but associates will get a chance to make up the loss. Jeffrey Grill, a partner and chair of Pillsbury’s attorney development committee, said in a statement that the new policy “gives these attorneys the opportunity to increase their salaries if productivity improves as the year progresses.”

“We believe that this flexible approach is appropriate for our firm, especially for those attorneys in our busier practice areas,” Grill said.

The move comes three months after the firm laid off about 100 staffers and 55 lawyers, and one month after it offered incoming associates $60,000 to go away and find work elsewhere.

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