Fox Rothschild is the latest law firm to roll back some of the financial precautions it put in place in the early spring due to coronavirus, announcing it will restore half the reductions in monthly partner draws and half of attorney and staff salary reductions.
Like nearly 50% of firms in the AmLaw100, Fox Rothschild implemented austerity measures to mitigate the economic impact of the pandemic. Monthly partner equity draws were reduced between 10 and 20%, while attorneys and staff making more than $100,000 per year saw pay cuts between 10 and 15%.
The firm said the 50% reduction in those cuts will go into effect Sept. 1.
“While we will monitor and evaluate the situation to ensure continued financial flexibility in the months ahead, we are encouraged that in only four months, we are able to reverse course on some of these measures,” firmwide managing partner Mark L. Morris said in a statement. “Our goal remains to be in the best position to serve our clients and provide the support they need to navigate these uncertain and challenging times.”
Several other firms, including Sheppard, Mullin, Richter & Hampton and Cadwalader Wickersham & Taft have also begun rolling back their pay cuts as it seems for the time being, the largest firms in Big Law have been spared the worst of the economic downturn caused by the pandemic.
Cadwalader eliminated its pay cuts, which affected associates, special counsel, counsel, senior attorneys, staff attorneys and staff, on Aug. 1. Sheppard Mullin will reduce its pay cuts for staff and attorneys by half at the end of the month.