Finnegan offices in Washington, D.C. Photo: Diego M. Radzinschi/ALM

Finnegan, Henderson, Farabow, Garrett & Dunner announced pay cuts Thursday for lawyers and staff that will take effect June 1.

The salary reductions at the intellectual property firm are a preemptive move because "the duration and ultimate impact of this pandemic remain uncertain," said managing partner Anand Sharma and chair Mark Sweet in a statement.

"Incoming work remains steady, we are financially sound, but given everything we are seeing across the economy, we feel these changes will protect the long-term success of our team members and protect those most vulnerable to the risks we now face," they said.

"Share partners will shoulder much of the resulting financial effects" in lower distributions, the statement said.

All other lawyers and staff earning $75,000 or more will have pay reduced by 10% to 20%. 

Specifically, Finnegan is making 20% salary cuts for those earning $150,000 or more, 15% salary cuts for those earning between $100,000 and $150,000, and 10% salary cuts for those earning $75,000 to $100,000. 

Those earning under $75,000 will not see reductions in pay, according to the firm's statement.

"None of the recent changes due to COVID-19 are decisions the firm has taken lightly. We are bringing everyone together for these conversations," Sharma said in the statement. "Our hope is that any impact from COVID-19 will be minimal, and, if so, we commit to offsetting these reductions."

"We are proud of the work the Finnegan team is doing to serve our clients and appreciate their patience, compassion, teamwork and continued resilience during this difficult time," Sharma and Sweet said in the statement. 

Finnegan, which is based in Washington, D.C., has almost 300 lawyers. Last year, the Am Law 200 firm generated $300.6 million in revenue, with profits per equity partner of $1.21 million and revenue per lawyer of $1.077 million.