Law Practice Management
Dewey Cuts 66 Partners’ Pay—By As Much as 80 Percent
Posted Mar 13, 2009 6:24 PM CST
By Martha Neil
In a move that may not elicit much pity from lower-paid lawyers, Dewey & LeBoeuf has chopped the pay of 66 partners over the past 15 months, axing it by as much as 80 percent.
But that still means the highest-paid among the lower-performing partner group are earning some $25,000 monthly—which is the standard draw for Dewey partners, reports the Am Law Daily.
"Lower-tier partners have faced more drastic reductions, with monthly draws of as little as $10,000, or an annual total of $120,000—$40,000 less than the starting salary for a 2008 incoming first-year," the post notes.
The Draconian pay cuts were meant to encourage lower-performing partners to leave the firm, but Dewey hasn't enforced any deadline for doing so, according to chairman Steven Davis. The firm has about 350 partners, so the pay cuts affect nearly one in five.
Above and beyond these partner pay cuts, some Dewey partners have received only 60 percent of what they were told to expect a year ago last March, three current and three former partners tell the law blog. It doesn't identify these six by name.
Davis told the Am Law Daily most partners have received what they expected. However, he says the firm, while rewarding superior performance, makes no compensation guarantees.
- How B of A’s GC Got Fired: Leave Now, and Leave Your BlackBerry Behind
- Schools Ranked by 'Super Lawyers' Produced
- Law Firm Price Wars Break Out as Some Try ‘Loss Leader’ Bids for Work
- Five Questions for Law Firms Abandoning Lockstep Compensation
- Judge Jails 2 Attorneys for Contempt in 4 Days
- Reed Smith Will Ask Nonequity Partners to Pony Up Possibly 15% of Pay
- Court Deputy Ordered to Apologize or Face Jail After Taking Lawyer's Paperwork
- Skadden Jumps on the Bonus Bandwagon
- ABA Executive Director Resigns
- Nasty Attitude to Co-Worker, Naughty Word in E-Mail Cost 2 Their Jobs
Should Supreme Court Justices Be Able to Review News Accounts Before Publication?
Comments
Legal Eagle
Mar 14, 2009 9:38 AM CST
Being a solo has it benefits. I can’t imagine being a partner in a law firm and allowing myself to be treated in this fashion. But I guess that is the point; if you don’t like it, then leave. I am a solo and I gross $10-15k a month with a virtual law office easily.
Flag this comment
NoLawyerHere
Mar 14, 2009 12:10 PM CST
Would be nice to read about what type of lawyers tend to get axed. IP law, and non players?
Flag this comment
B. McLeod
Mar 14, 2009 4:13 PM CST
Actually, a “Draconian” pay cut would be a case in which the firm killed partners to avoid paying them. (Draco’s code of laws specified death as the penalty for every offense).
Flag this comment
Debra Veoli
Mar 15, 2009 2:36 PM CST
Does this mean I can make more as an associate then a partner? If so, why would I work to try and be a partner?
This makes no sense to me.
Flag this comment
B. McLeod
Mar 15, 2009 9:41 PM CST
It is law firm economics, so it doesn’t always make sense. But the answer is that the firm won’t let you stay an “associate” forever if the junior partners are making less than senior “associates.” Instead, they bring you the “offer” whereby you have to accept partnership on the terms offered by the firm, or leave. Usually, “associates” get this as a pig in a poke, as up to that point, they have not been permitted to know much about the firm’s finances, bank lines, strategic plans (if any) or debts, or the relative rights and obligations of partners under the firm’s organic documents. They don’t know enough to ask the questions laterals woud ask, so it is largely a “leap of faith.” (Of course, during all their years as “associates” that was equally true).
Flag this comment
Add a Comment
We welcome your comments, but please adhere to our comment policy.
Commenting has expired on this post.