It’s 'absurd and flat-out wrong' to suggest late pay raises were from cash-flow issues, Boies Schiller says
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Boies Schiller Flexner is flatly denying a suggestion that cash-flow problems could be the reason why some associate pay raises were delayed.
The law firm said in a statement that only about 10 associates were affected, and the delay was caused by longer-than-expected processing of a new market-rate pay structure through the law firm’s financial system.
“The suggestion of delay caused by cash-flow issues is both absurd and flat-out wrong,” statement said. “Unlike so many other firms, our firm is one of very few that has not made salary or work force reductions due to the ongoing COVID pandemic.”
Boies Schiller changed its compensation system in May to allow associates to be paid under a market-rate system based on seniority or under the firm’s traditional structure, which is based on client and matter origination and billed hours, Law360 reports.
About 10 associates who switched to the market-based system had the pay-out date switched from Oct. 30 to Nov. 6, the law firm said in its statement to the ABA Journal, Law360 and Above the Law.
The effective date of the adjusted salaries was Oct. 1, and the adjusted salaries will be paid retroactively Nov. 6, the law firm said.
Law.com had noted the delayed associate payments. The Oct. 30 story story quoted an unnamed former partner who said the market-rate salaries were supposed to have begun in June, then in October, then Oct. 15, then at the end of October.
Two unnamed sources told Law.com that rumors of cash-flow problems were swirling at the law firm after the new salaries weren’t paid on time.