Morgan Lewis Bucks Trend and Raises Salaries as More Cut Pay
As the COVID-19 pandemic rages, most law firms have taken steps to cut salaries and other costs.
April 17, 2020 at 07:33 AM
2 minute read
Morgan Lewis & Bockius has boosted its global professional services staff salaries amid the COVID-19 pandemic, as other firms adopt cost-cutting measures to safeguard against the economic fallout of the crisis.
The U.S. firm has raised pay for its global business services staff by 2%, according to a person with knowledge of the situation. The decision was first reported by Roll On Friday.
Meanwhile Irwin Mitchell has announced that its executive board is to take a 10% pay cut for the duration of the lockdown, which on Thursday the U.K. government extended by a further three weeks.
The firm's chief executive, Andrew Tucker, said: "We want any measures we introduce to be fair to all colleagues across our group and we are reviewing daily how our teams are working and whether there is a need for further activity."
In the Netherlands, Loyens & Loeff managing partner Bram Linnartz said it has cut its partner monthly drawings and is currently evaluating how it will distribute profits to partners. The firm has also put a number of projects on hold to further limit spend, and has asked its employees to plan any longer vacations during the summer.
He said in a statement: "We expect that our firm will also have to deal with the economic impact of the COVID-19 coronavirus. As our guiding principle is that our people are at the heart of our firm, we will do everything in our power to protect our people from unfavourable consequences from this crisis. Luckily, our firm is in good shape financially."
In the past few weeks, many of the world's top firms have cut or deferred partner and associate pay and initiated furlough schemes.
On Thursday, Clifford Chance raised its staff allowances to cover remote working expenses from £200 to £400, while Reed Smith deferred non-lawyer bonuses and cut associate salaries, just weeks after it decided to reduce partner distributions.
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