McKenna Cuts Starting Pay by $20K, Greenberg Confirms 10% Cut for Some
Updated: Two more law firms have announced they are cutting starting salaries for new associates.
McKenna Long & Aldridge announced today that it will cut beginning associate salaries by $20,000, according to The BLT: The Blog of Legal Times and the Wall Street Journal Law Blog.
Law firm chairman Jeffrey Haidet explained the move in a press release. “We are committed to providing our clients with top-quality legal counsel at a cost that is appropriate to the market and economic conditions,” he said.
Beginning pay for associates will drop to $140,000 in major metropolitan areas and to $125,000 in Altanta and Denver, McKenna spokeswoman Kimberly Bell tells the ABA Journal. McKenna had already moved away from a lockstep pay system and instead bases compensation on evaluations of core competencies.
The news comes a day after the blog Above the Law reported a salary cut for new associates at Greenberg Traurig. The law firm released a statement (PDF) to the ABA Journal confirming cuts of up to 10 percent, depending on the office and practice area.
It read: “We have made some changes in our summer and first-year associate base salary structures in certain offices and practices, while we have not made changes in others. Base salaries for our first-year associates have generally been kept at or within 10 percent of the prior levels.” The statement said performance-based bonuses will be awarded, as usual, near the end of the year.
“These changes reflect the firm’s long-term commitment to delivering value to our clients, especially at a time when many of our clients need to reduce their costs due to global economic conditions,” the Greenberg statement said.
Other law firms cutting associate salaries include Virginia-based McGuireWoods and Los Angeles firm Allen Matkins, both of which are cutting pay to about $145,000. Cleveland-based Thompson Hine is lowering salaries by $17,500, but those who bill 1,900 hours can recoup the lost cash. WolfBlock announced a 10 percent pay cut before its collapse.
Updated at 1 p.m. CT to include Greenberg Traurig’s statement and at 1:45 p.m. CT to include information from a McKenna spokeswoman.
