Reed Smith Trims Associate Pay by 15%, Expanding Coronavirus Response
Partner distributions at the firm have already been deferred, and base pay for counsel has also been cut by 10%
April 16, 2020 at 01:14 PM
2 minute read
(Photo: Diego M. Radzinschi/ALM)
Reed Smith on Thursday announced a temporary 15% cut to associate pay, a day after reporting that it would delay its first-year start date to January 2021 and shorten its summer associates' program to five weeks.
The firm has already made the decision to defer partner distributions across the firm, and a spokesperson acknowledged Thursday that it has also reduced base pay for counsel by 10%, while deferring decisions on merit increases and discretionary bonus payments for professional staff.
"As a result of the effects of the ongoing COVID-19 crisis, we have made a series of compensation adjustments in recent weeks that affect our lawyers and professional staff," the firm spokesperson said in an email.
The cut to associate compensation, which extends globally across the firm, is scheduled to last for four months and will start in May. These lawyers have already been awarded annual raises, and their previously announced bonuses will be paid as scheduled later this month, the firm said.
On Wednesday, Reed Smith global head of legal personnel Casey Ryan announced the postponement of first-year start dates and the reduction in the length of the firm's summer program.
The first-years will receive a stipend for the fall of 2020, will be paid bar exam and study costs as planned, and will receive health insurance beginning in September 2020. Summer associates, who will work remotely if necessary, will participate in an "intensive Reed Smith University training program" to prepare for work assignments and interactions in the legal profession, Ryan said in a statement. They will also have opportunities to partner and work with lawyers and staff.
Read More
Reed Smith Defers Bonuses As Withers, Weightmans Furlough Staff
Pay Cuts, Layoffs, and More: How Law Firms Are Managing the Pandemic
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