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Nixon Peabody Cuts First-Year Salaries to $145,000
The American Lawyer
April 30, 2009
Nixon Peabody has cut first-year associate salaries in its major offices from $160,000 to $145,000 and announced plans to cut associate salaries across the board, a firm spokeswoman confirmed Wednesday.
Reports of the cuts first appeared on the blog Above the Law. Quoting a firm memo, the post noted that some associates have seen their salaries reduced by 15 to 20 percent based on performance.
Managing partner Richard Langan, unavailable for comment Wednesday, released a statement explaining the firm's new "innovative approach" to associate compensation. In addition to cuts in its major offices, first-year associates in offices outside "major financial centers" will see a reduction in salary, Langan said. And the base pay of current associates will be adjusted, "based on individual performance and contribution to our firm," as ATL had earlier noted.
Several firms, including Chadbourne and Parke, Greenberg Traurig, McKenna Long & Aldrigdge and Robinson & Cole, have reduced first-year salaries by similar amounts, but Nixon's plans include cuts to all associates who don't meet certain performance standards.
On the bright side (if there is one), associates will be eligible for a bonus contingent on the firm's financial performance and "extraordinary contributions" to the firm.
This article first appeared on The Am Law Daily blog on AmericanLawyer.com.
