Associate Pay Cuts Won’t Rebound with Economy
Posted Dec 11, 2009 5:00 AM CST
By Molly McDonough
Cuts in associate pay are being blamed on the recession. But even when the market rebounds, consultants and law firm partners aren't expecting associate pay to rebound with it.
The publication notes that since February, some 19 Am Law 200 firms have reduced entry-level pay, trimming between $15,000 and $30,000 from first-year salaries.
And more changes are ahead at an accelerated pace.
"We don't view this as a temporary adjustment. This is a fundamental reset," said Eugene Tillman, head of Reed Smith's legal personnel. Last month, Reed Smith cut first-year salaries, billable hour expectations and adjusted training programs.
This week, Am Law Daily reported that DLA Piper joined the growing number of firms that have pledged to abandon the lockstep pay/advancement model.
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