Reed Smith announces 20% pay cut for newly-qualified US associates

Reed Smith has unveiled a new pay scale that sees first-year associate salaries cut by 20%, reports The Legal Intelligencer. The moves comes two weeks after the firm announced it was revamping its associate model by doing away with year-based classes and moving to a competency-based compensation system. Global managing partner Greg Jordan (pictured) said the salary cuts, which will only affect first-years in the firm's 15 US offices, are market-dependent and reflect a demand by clients to drive down the cost of legal services. Billing rates for newly-qualified lawyers will also be cut 20%. Starting salaries and billing rates for first-year associates in Reed Smith's offices in Europe, the Middle East, and Asia will be determined next year.

Reed Smith announces 20% pay cut for newly-qualified US associates legalweek.com Wed, Nov 11, 2009