4 More Firms Implement Cuts In Face Of Pandemic

By Michele Gorman
Law360 is providing free access to its coronavirus coverage to make sure all members of the legal community have accurate information in this time of uncertainty and change. Use the form below to sign up for any of our weekly newsletters. Signing up for any of our section newsletters will opt you in to the weekly Coronavirus briefing.

Sign up for our Legal Industry newsletter

You must correct or enter the following before you can sign up:

Select more newsletters to receive for free [+] Show less [-]

Thank You!



Law360 (May 11, 2020, 6:04 PM EDT ) Quinn Emanuel Urquhart & Sullivan LLP, Thompson Hine LLP, Freshfields Bruckhaus Deringer LLP and Eversheds Sutherland on Monday confirmed they are among the growing ranks of law firms taking cost-cutting measures and other financial adjustments during the COVID-19 pandemic.

The Los Angeles-based Quinn Emanuel has paused April partner distributions until July and has modified the size of its partner draws for April, May and June, with a plan to revisit these in two months, said firm founder John Quinn, adding that the reduction in compensation was primarily to the most senior, highest-paid partners.

"This is not because our practice hasn't been doing well — it has been doing very well — but because of general uncertainty about the future," Quinn said, adding that the global firm has not laid off any employees and doesn't have plans to do so.

Also Monday, the London-headquartered Freshfields confirmed that across the firm it has taken precautionary steps such as suspending fourth-quarter partner distributions and implementing a pay freeze. It has also decided to delay bonus decisions until later in the year.

"We are focused on supporting our people and continuing to serve our clients as we all adapt to the social and economic uncertainties," a Freshfields spokesperson said. "We are managing our business responsibly and will continue to invest in our business for the long term."

The multinational firm also is considering flexible working options for its employees who are trying to balance work responsibilities with caring for children or elderly parents, among other challenges.

At Thompson Hine, the Cleveland-based national firm has "aggressively decreased" noncompensation expenses and is reducing quarterly partner draws by 15%, said Sheila Turner, associate director of public relations.

Additionally, the firm is reducing staff compensation by 1.7% on an annual basis, Turner said, adding that Thompson Hine hopes it can avoid more reductions.

Meanwhile, Eversheds Sutherland on Monday confirmed measures happening outside of the United States, where last week its announcements included reducing pay for staff and attorneys making more than $50,000 by up to 10% and furloughing 40 staff members.

The measures the firm is taking in its offices outside of the U.S. include "significant reductions" in discretionary spending and the deferral of the review of remuneration and bonus payments until the end of October, according to Judith Green, communications and brand director at Eversheds Sutherland International.

Additionally, equity partner remuneration has been reduced by an average of 25%.

On June 1, the firm will start a six-month program that allows Eversheds Sutherland to reduce the working pattern of certain teams that "become less busy than is typical" to 80% of their usual pattern, with an associated reduction in pay for any period "on flex" to 80%. Benefits will not be affected.

Teams will be moved on and off the so-called Flexing the Working Week Scheme throughout the six months.

The scheme doesn't apply to those whose base salary is under a certain threshold. The firm declined to comment on the specifics of the threshold.

Elsewhere in the legal industry, other firms, including Holland & Knight LLP and Pepper Hamilton LLP, confirmed Friday they are proceeding with salary cuts in response to the economic upheaval caused by the COVID-19 pandemic.

Pepper Hamilton also said it plans to continue its planned merger with Troutman Sanders LLP.

--Additional reporting by Emma Cueto. Editing by Orlando Lorenzo.

For a reprint of this article, please contact reprints@law360.com.

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!