Greenberg Traurig offers buyouts, Goodwin opts for staff bonuses as firms recalibrate staffing and pay
10/16/20 REUTERS LEGAL 22:23:01
Copyright (c) 2020 Thomson Reuters
Caroline Spiezio
 
David Thomas
REUTERS LEGAL
October 16, 2020
The logo of law firm Greenberg Traurig LLP is seen in their office in Washington, D.C., U.S., September 1, 2020. REUTERS/Andrew Kelly
(Reuters) - Greenberg Traurig confirmed Friday that it's offering some U.S. staff voluntary buyouts, while Goodwin Procter confirmed it is giving staff an extra $1,000 to reward their work during the COVID-19 crisis, marking the latest law firm changes to headcount or pay in recent weeks.
Greenberg Traurig in a statement said it has performed "solidly" this year despite the pandemic and has avoided "any across-the-board layoffs or compensation reductions for our lawyers or staff." But the remote working environment has made enhanced voluntary buyouts "sensible at this time" because of changed future needs, the firm said.
Goodwin Procter's chief innovation officer Maureen Naughton said in an internal memo reviewed by Reuters that the firm has had a "successful fiscal year 2020" in which staff "played a significant role." To recognize that, Goodwin "will make an additional $1,000 payment to all secretaries in good standing" included in a January paycheck, the memo said.
Legal industry blog Above the Law first reported the firms' moves.
Greenberg's buyout offer comes as several law firms have laid off staff since September, including Venable and Skadden, Arps, Slate, Meagher & Flom, often citing a reduced need as offices remain largely closed and as lawyers adjust to working without in-person help.
Although about a half-dozen large firms have offered special bonuses to associates in recent weeks, Goodwin may be the first to publicly reward staff with bonus pay. Like other firms that have opted out of fall associate bonuses, Goodwin has said it will save those bonus payouts for year-end.
Associate pay was stratified earlier this year as dozens of large law firms slashed compensation to shore up cash as the pandemic dried up deal and trail work.
Since then, several of those firms have eased or ended austerity measures, including most recently Dorsey & Whitney. The Minneapolis law firm on Friday confirmed it is rolling back 95% of its pay cuts for associates and that they can earn back the last 5% if they bill enough hours.
The firm is also completely ending its salary cuts for income partners, of counsel and staff, and is restarting equity partner distributions. Bonuses are still undetermined, the firm said.
Managing partner Bill Stoeri said in a statement the firm has seen "relatively strong demand," and that while there is "a long way to go in managing through these unprecedented times" it had pledged to restore pay when possible.
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