Yet another Biglaw firm has walked back some of its COVID-19 austerity measures. Back in April, Pillsbury — a firm that came in 62nd place in the most recent Am Law 100 rankings, with $677,320,000 in gross revenue in 2019 — announced a series of pay cuts designed to avoid layoffs. First, the reduced partner monthly draws by a minimum of 25 percent. Then in May, the firm reduced associate and counsel compensation by 20 percent and cut all staff compensation by up to 15 percent for those who make more than $100,000 and by 10 percent for those making between $75,000 and $100,000 (with chief officers volunteering to take higher reductions, commensurate with those of partners).
Now, the firm is not only rolling back the cuts, but its repaying all employees who lost money during the height of the coronavirus crisis. From the American Lawyer:
Pillsbury said in a Thursday statement that its financial performance in the first and second quarters was strong. “Consequently, all reductions in compensation incurred in the first half of 2020 are being repaid in full and we are reducing all temporary salary reductions,” the firm said.
The adjusted salary cuts for Pillsbury associates and counsel are now 15%, down from 20%. For staff making more than $100,000, the pay cut is 10%, down from 15%, and for staff making between $75,000 and $100,000, the pay cut is 5%, down from 10%.
We believe that Pillsbury is the first firm to commit to repaying all of its employees in full for the money they lost due to the salary cuts. (Others have offered “bonus” payments as repayment, but not as an across the board policy.)
Congratulations to everyone at Pillsbury. This is great news for a great weekend.
If your firm or organization is slashing salaries, 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).
More Firms Are Partially Restoring Pay, but Full Salaries May Wait Until 2021 [American Lawyer]