Another day, another biglaw company that decided to get rid of their COVID-19 austerity measures. This time around, a company that earlier admitted it may have overreacted to the coronavirus crisis is taking a step. Which one could it be?
It's Loeb & Loeb. As early as April, the company announced some pay cuts to avoid layoffs. The partners were hit hardest, with the draws reduced by 20 percent. Income partners, senior attorneys, attorneys, employees, and executives have their salaries reduced 15 percent, and paralegals and other employees have cut 10 percent. Effective September 1, the company has cut these cuts in compensation for income partners, senior lawyers, attorneys, employees, paralegals and employees in some cases by 60 percent, while the cuts for monthly capital partner raffles remained. That is changing now.
As reported by Bloomberg Law, the law firm will completely eliminate its pay cuts. Chairman Kenneth Florin announced via email that Loeb & Loeb "continues to exceed our original financial projections for the pandemic," with all pay cuts being removed and partner raffles restored retrospectively as of October 1.
Congratulations to everyone at the company on the exciting news.
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Staci Zaretsky is Senior Editor at Above the Law, where she has been working since 2011. She would love to hear from you. Please send her an email with tips, questions, comments or criticism. You can follow her on Twitter or connect with her on LinkedIn.