Schnader Cuts Partner Pay By 5%, Chops $10K Off Associate Salaries
Adding to a growing law firm economy trend intended to add value to corporate clients’ legal spending, Schnader Harrison Segal & Lewis is implementing an across-the-board pay cut for associates and partners.
Schnader is chopping $10,000 off of all associate salaries, and partners have also decided to cut their own pay by 5 percent, reports the Philadelphia Inquirer.
High-earning staff members are targeted in the cost-cutting program, too: Those making more than $60,000 annually will have their salaries reduced by 3 to 5 percent, the newspaper recounts. Associates at the 200-attorney Philadelphia-based law firm earn from $125,000 to $156,000 a year.
The firm is on budget for the year but following the lead of competitors in cutting attorney pay, says chairman Ralph Wellington. “It is because the industry has been adjusting associate compensation and making it more performance-based, which is sensible.”
Additional coverage:
ABAJournal.com: “Partner Pressures Ramped Up in Downturn, Firm Chairman Says”
ABAJournal.com: “Schnader Harrison Laid Off Partners, Associates, Staff Last Month”
Philadelphia Business Journal: “Law firm pay cuts spread to Schnader”
