Academic

Law Firm Pay Cuts: Large Shops Reduce Associate Salaries

By Dan Filler

We've kind of been expecting this story, and I suspect that it's only beginning, but we're now seeing that three big firms - Seyfarth Shaw, Squire Sanders, and Nixon Peabody - are reducing associate pay.  Nixon Peabody is reducing its New York starting salary from $160,000 to $145,000, and the reductions go up the ladder: third years are being cut to $155,000 in New York and $102,000 in Providence.  More complete information about Nixon is here at ATL.   Background on the cuts is here.  Meanwhile, Seyfarth is slashing wages 5 - 20 percent and Squire is cutting starting associate pay 10%.  According to the Recorder, a dozen other large and midsize firms - including Greenberg Traurig and Baker & McKenzie - have cut associate salaries.

I'll be watching to see if a market leader steps up to the plate and cuts pay.  It seems inevitable.

Full post as published by The Faculty Lounge on May 04, 2009 (boomark / email).