As more and more Biglaw firms announce their COVID-19 austerity measures, it’s tempting to lump all cost-cutting together but there are important distinctions to be had. There is a big difference in asking a secretary to take a 10 percent pay cut as your first move, versus furloughing wide swaths of staff, versus slashing partner compensation. The latest firm to announce cuts is making sure the top of the firm is being cut from first.
Husch Blackwell, a firm knocking on the Am Law 100’s door (they come in at the 101st spot), is also making cost-cutting measures to keep cash a-flowin’ during these rough economic times. But unlike other firms that have taken an across the board approach to the cuts, at least for now, those at the top of the law firm food chain are the ones impacted. Equity partner draws were cut by 15 percent and all managing directors and c-level executives had their salaries cut by 10 percent.
A firm spokesperson confirmed the cuts and said, “Like all companies, we continue to monitor the pandemic’s impact on our business and that of our clients.”
At least the firm seems to be making the cuts from the top first. You can read the full firmwide email announcing the cuts on the next page.
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Kathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).
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