Posted Dec 16, 2009 01:11 am CST
Joining a number of other well-known law firms that have announced plans to eliminate so-called lockstep pay, Wilmer Cutler Pickering Hale & Dorr announced today that it will be moving to a merit-based system that rewards individual performance and relies more heavily on bonuses.
The planned elimination of the current associate pay system, which awards standardized salary increases to a group of associates based on their seniority, will take place within the next two to three years, according to Bloomberg.
“The traditional structure and method of doing business for law firms is changing and needs to change,” the firm’s co-managing partners, William Lee and William Perlstein, say in a memo today to associates.
Related earlier coverage:
ABAJournal.com: “Legal Sector Lost 5,800 Jobs Last Month, Labor Bureau Says”
ABAJournal.com: “Orrick Reveals New Associate Pay Structure”
ABAJournal.com: “Sonnenschein Sets New 3-Tier Pay Plan for Associates, Confirms Staff Layoffs”
ABAJournal.com: “Weil Gotshal Lays Off 79 Staff, Says Firm ‘Must Do More With Less’”
ABAJournal.com: “New Competency Programs Can’t Be Just a Cover for Pay Cuts”
ABAJournal.com: “How In-House Counsel ‘Value’ Challenge is Changing One Law Firm”