Related Posts
More Posts
Whats PDP-GrowthINV ?
My one and only
Chief
Chief
Conversation Starter
Pro
Additional Posts in Big Law
Enthusiast
Enthusiast
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
Would you prefer to receive a one-time payment of $1,200? I could find a few people who would gladly swap places with you.
Agreed. I am in a very privileged position.
Do you feel comfortable talking to your colleagues and see if everyone is being asked to do this? Especially if you are in a US firm and they’re not cutting for associates globally (I was in London for a bit and saw the differential treatment of associates)
It’s firm-dependant but generally London office associates aren’t given the same treatment as the US HQ associates (and often neither are associates in US offices outside of the US HQ). Can range from salary (not always matched in offices), perks (tickets, events), domestic basics (quality of food in the canteen, budget for ordering in), (quality of) training (particularly an issue in London satellite offices), visibility within the firm and ability to progress, etc.
so the choice is between reducing salaries by 15 percent and reducing payrolls by 15 percent and you want me to morally ratify your preference for the latter? sorry. some of us are concerned about being fired for no fault of our own. go find your absolution elsewhere.
Uhm not really the point here but I appreciate your input. I can accept the -15% and still get fired down the line with even less savings
And any long term repercussions. Am I being selfish in not wanting to accept the cut?
You work in BigLaw but can’t afford a 15% paycut?
There are various pay scales in London and I am on one of the lowest ones (nowhere near Cravath). If I take 15% cut it means I will barely be able to save each month
I don’t think you’re selfish in not wanting to accept the cut. Frankly I think it’s absurd that any cuts aren’t coming straight out of partner profits. Since when are associates these hybrid financial instruments - debt-like in that they don’t participate in the upside, equity-like, in that they take the risk of the downside (here, your 15% cut). Really it’s the partners being selfish.
However, given it’s a partner-owned business, there’s little you can do. I appreciate that maybe this will mean (for the time being) 15% less lay-offs, so overall for the ‘greater good’ of your colleagues.
Just make sure you look at the full picture - remember your headline salary will be the amount calculated for critical illness cover / life insurance cover / maybe pension contributions.
Realistically there’s little you can do; therefore play the situation to your advantage. Explain to one of the partners that this is putting you under financial stress, your concerns around the above (if any), etc but that you understand this is for the greater good. The only thing you can do in this situation is show you’re batting for the same team, and hope that it will be remembered later.
Not sure what department you are in but in the background, use your time to 1/ get in place an emergency fund, 2/ update your CV, and 3/ brush up on your market knowledge.
In all honesty, if I was you, I wouldn’t stop my matched pension. I assume your firm just want you to take the headline cut, and it’s an HR admin matter about changing your pension contribution, so you won’t get any thanks for that. If you have to reduce your pension to build up your emergency fund, and you can, contribute as much as you need to, to get the maximum match. Your future self will thank you. PS: I’m not 50 years old, I’m actually 30, but now’s the prime time, for compounding to do its work.
In addition, if you’re in finance (leveraged? real estate?), id suggest trying to get some exposure to restructurings in this environment. I assume your firm would have this department, so wouldn’t hurt to get a few of those on your CV.
You’re not selfish, but the right answer here is saying thank you for the pay cut, I love having a job, etc.
As a U.S. equity partner at an AmLaw100 firm, with global offices (including UK), UK associates should understand that: (1) I am not aware of any BigLaw firm where the equity partners have not already had significant further “holdbacks” and are bearing the brunt of this (and will continue to be impacted way more than any associate/staff; (2) unlike the UK, US associates do not have to “agree” to the pay cuts, so everyone on the US side got the reduction automatically; and (3) if you are part of an international firm, it would be extremely short sighted of you not to be a team player on this and could not possibly reflect well on your character or long term future with the firm if you refuse to agree. This is a pandemic. We’re all in this together.