Mayer Brown sign (Courtesy photo)

Five months after closing 2019 with record-setting revenue, Mayer Brown on Wednesday announced plans to reduce salaries by 15% for nonequity lawyers and staff who make more than $200,000.

In a statement, the Chicago-based law firm disclosed that it had already reduced distributions for equity partners in March. Salaries for business services staff who earn less than $200,000 will see their pay reduced according to a graduated scale. The firm has also pushed back the start date for its U.S. associate class from fall 2020 to January 2021.

Mayer Brown had 1,356 associates and nonequity partners in 2019.

The firm last year saw gross revenue rise by 6.8% to just over $1.48 billion, while profits per equity partner grew 6.5% to over $1.8 million. In its statement, the firm said it is in a strong financial position, but cannot predict how the ongoing COVID-19 pandemic will affect both its clients and its own business.

"Accordingly, we have adopted a series of cost-saving and cash-management measures that will enable us to prepare for the remainder of 2020. In designing and adopting these measures, job preservation and providing seamless service to our clients are our top priorities," the firm said.

The firm noted that because the 15% salary cuts are being implemented for the rest of the year, they amount to "an annualized reduction of just under 10%."

These cuts come on top of a 20% reduction in monthly draws and a distribution suspension for the first half of 2020, which Mayer Brown's equity partners agreed to in March. In 2019, Mayer Brown had 276 equity partners in 27 offices spread across 14 countries.

Although Mayer Brown is pushing back the start of its fall associate class, the firm said it will pay those associates $5,000 a month for three months and will pay for their insurance premiums. The firm is also paying out its usual $10,000 stipend to its summer associates.

Additionally, Mayer Brown announced the start of a program that will allow both its lawyers and staff to request up to 12 weeks of sabbatical. The Mayer Brown employees who participate in this program will get 25% of their salary during their leave; employees who handle pro bono matters during their sabbatical will get 35% of their salary.

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