More Big Law pay moves as Orrick reverses cuts, Weil rewards earners
9/25/20 REUTERS LEGAL 19:54:03
Copyright (c) 2020 Thomson Reuters
David Thomas
REUTERS LEGAL
September 25, 2020
Signage is seen outside of the law firm Orrick, Herrington & Sutcliffe, LLP in Washington, D.C., U.S., August 30, 2020. REUTERS/Andrew Kelly
(Reuters) - Good news continues to trickle in for associates who've hitched themselves to the right law firms or practices, as more firms either end pandemic pay cuts or pile special bonuses on top of lawyers' regular earnings.
In the case of Orrick, Herrington & Sutcliffe, starting Oct. 1 the firm is completely scrapping pay cuts it enacted earlier for associates, of counsel and staff.
Although the firm hasn't joined others offering special fall bonuses, Orrick said its year-end bonuses this year will match its 2019 scale, and it confirmed staffers whose hours were reduced by office closures will be moved back to full time. The firm will make similar adjustments in Europe and Asia.
"We put a variety of cost management measures in place in March, at a time of uncertainty regarding how 2020 would unfold, in order to give us flexibility," chairman Mitch Zuklie said in a statement Thursday. "It's time to reverse some of that, express our gratitude to our associates and staff and recognize their relentless hard work."
An Orrick spokesman indicated that partners at the firm could still see cuts in their compensation, however.
"Our partner compensation is determined at year-end based on our results. As we announced, we are committed to the principle that our partners will take a deeper cut than we ask of our team," the spokesman said.
Several other Big Law firms have partially or fully restored pay following cuts enacted closer to the onset of the pandemic. On Thursday, K&L Gates announced it was reversing broad cuts it made to its employee compensation.
Others firms this month have pledged to give special bonuses to recognize work performed during the pandemic. This week, Weil, Gotshal & Manges said it would offer associates a one-time bonus this fall worth between $10,000 and $50,000, depending on how many hours they bill this year.
Weil associates who bill under 1,800 hours will get $10,000; billing 1,800 to 1,999 hours will merit $20,000; 2,000 to 2,299 hours brings a $30,000 bonus; 2,300-2,599 hours translates to $40,000; and associates who bill more than 2,600 hours will get $50,000.
The firm did not immediately respond to questions about the bonuses, including how many associates are poised to earn a $50,000 bonus.
"We are pleased that we have been able to not only meet but to exceed the overall amounts set by the marketplace in rewarding all our associates and newly promoted counsel," wrote Barry Wolf, Weil's executive partner and the chair of its management committee, in an internal memo first published by legal industry blog Above the Law and confirmed by Reuters.
These bonuses will be on top of normal year-end bonuses that associates receive, Wolf added.
The payouts will position busy Weil associates to take in even more in bonuses than their counterparts at other firms that are offering a pandemic boost.
Cooley last week confirmed it is giving associates up to $7,500 extra, while other firms, including Debevoise & Plimpton, Freshfields Bruckhaus Deringer, Irell & Manella and Simpson Thacher & Bartlett, have pledged to match a scale set by Davis Polk & Wardwell and give associates up to $40,000. Top performers at Milbank learned last week that they will also match the scale and potentially earn even more.
Additional reporting by Caroline Spiezio.
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