Hogan Lovells will reverse the 10% salary cuts that began on June 1 for its U.S. associates, and will reinstate the deferred salary review process for its U.K. and Asia Pacific associates and business services teams.
The global firm said in a statement Friday that equity partners will continue to see reduced draws, compensation, and deferred bonus payments through the end of 2020, but the firm will review the reduced salaries of non-equity partners and senior counsel after the third quarter.
The cuts announced in Big Law firms come in large part as a result of the more difficult business climate resulting from the coronavirus pandemic. Many firms made moves in the spring and early summer to help keep cash flowing despite a troubled economy, but are now re-examining and adjusting those measures as fall approaches.
“Having looked carefully at our work over the summer, we have seen a solid performance and now is the time to start a step-by-step approach to reverse some of the prudent measures we implemented earlier this year around compensation,” said Hogan Lovells CEO Miguel Zaldivar in the statement. “This is a strong testament to the work which we have all been doing under very challenging conditions and we are looking towards a continued solid performance through to the end of the year.”
Specifically, the firm said that in the U.S., Mexico, and Brazil, compensation for counsel, associates, attorneys, specialists, and knowledge lawyers that had been reduced from June 1 by around 10% on an annual basis, will be reversed retroactive to that date.