Some law firms that took paycheck protection loans banked the money, consultant says
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More than 600 law firms received forgivable loans of more than $2 million under the government’s Paycheck Protection Program.
But the loans didn’t completely protect staff for at least 10 law firms, according to an analysis by Thomson Reuters Legal. And some law firms ended up banking the money, rather than using it for payroll, according to a consultant who spoke with the publication.
The 10 law firms received a combined $68.5 million in forgivable loans, yet they went on to cut jobs, salaries or both, according to the analysis. Many law firms that cut pay during the COVID-19 pandemic, however, have since reversed the cuts.
More law firms are announcing bonuses, and some are giving above-market money to top performers
Law firms are continuing to roll out their bonus announcements with some differentiation emerging.
Baker McKenzie kicked off BigLaw bonus season in November, when it announced plans to pay bonuses to its U.S. associates ranging from $15,000 to $100,000, based on class year. That is the same bonus scale as last year.
Some law firms quickly announced the same scale, including Cravath, Swaine & Moore, which is known for setting the market rate for associate bonuses. Cravath also adopted a special bonus ranging from $7,500 to $40,000, a scale already set by other law firms.
How much do partners make? The average at larger firms tops $1M, survey finds
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Partners in the nation’s top 200 law firms earned an average of $1.054 million in 2019, an increase of 10% from 2018, according to a survey released Tuesday.
Average compensation for equity partners was $1.39 million compared to $432,000 for nonequity partners, according to the survey by legal search firm Major, Lindsey & Africa.
The survey, available here, used an online questionnaire hosted by legal market data company Acritas. A press release summarizes the findings.
Although female partners earned less than male partners and minority partners earned less than white partners, the pay gap is narrowing, the survey found.
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