Ballard Spahr and Kelley Drye are cutting compensation to conserve cash amid the coronavirus pandemic, the law firms said on Tuesday, the latest in a long list of firms to do so.
Ballard Spahr will reduce salaries by 15% for all employees earning more than $250,000, and by 10% for those earning between $249,999 and $75,000, the firm said on Tuesday. Those earning less than $75,000 will not take a reduction in pay, it said. Partner draws are being reduced by 20% to 25%, according to the firm.
”We made the hard decision to enact painful but necessary cost-cutting measures now in the hopes that it will put the firm on better footing when things improve,” said Ballard Spahr chair Mark Stewart, in the statement. He said the firm hopes to avoid layoffs.
Ballard Spahr was founded in Philadelphia and it has more than 650 lawyers, according to its website.
New York-based Kelley Drye is reducing draws for equity partner by up to 20% and cutting salaries by 10% for all employees making over $100,000, the firm’s chair James Carr said in an interview on Tuesday.
Carr said the firm wanted to avoid furloughs or cutting salaries for lower-paid staff.
”We’re trying to do this in a way that provides minimal impact to our people, but yet allows us to save expenses so that we can get through the pandemic, and whatever the post-pandemic economy will look like,” Carr said.
Kelley Drye has more than 300 lawyers, according to its website.
More than 40 other firms have previously announced pay cuts, furloughs, or other financial adjustments due to the coronavirus, including Baker McKenzie, Orrick, Herrington & Sutcliffe and Goodwin Procter.