Biglaw

Reed Smith Partners Taking Another COVID-19 Financial Hit

Austerity measures continue at this Biglaw firm.

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Reed Smith was early to the COVID-19 austerity measures party. Back in March (damn, that seems like 12 years ago), the firm announced that they were slowing partner cash distributions, emphasizing that business is good, but made the move as a “precaution” and “bracing for the short-term and potential long-term economic impacts of COVID-19.”

Well, it’s nearly a month later and the firm is making even more changes to partner compensation. After previously announcing that staff discretionary bonuses would be postponed due to the coronavirus — a firm spokesperson said about that measure, “We can confirm that we are deferring decisions on discretionary bonus payments for our professional staff globally. Putting these compensation changes into effect is prudent as we continue to plan for the months ahead and the pandemic’s impact on our business” — partner bonuses are, at least in part, being deferred.

The firm’s equity partners’ bonuses will be split into two payments, with the first half coming on the scheduled payment date, and the balance will come three months later. The good news is that income partners, counsel, and associates will still see their full bonuses as scheduled.

A Reed Smith spokesperson said about the latest austerity measure:

“Fixed share partner, counsel and associate bonuses will be paid in full and on their regularly scheduled pay dates. Equity partners have agreed to receive half of their bonus amounts on the regularly scheduled payment date and the remaining half three months later.”

If your firm or organization is slashing salaries, closing its doors, or reducing the ranks of its lawyers or staff, whether through open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive. You can email us or text us (646-820-8477).

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headshotKathryn 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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