We've kind of been expecting this story, and I suspect that it's only beginning, but we're now seeing that three big firms – Seyfarth Shaw, Squire Sanders, and Nixon Peabody – are reducing associate pay. Nixon Peabody is reducing its New York starting salary from $160,000 to $145,000, and the reductions go up the ladder: third years are being cut to $155,000 in New York and $102,000 in Providence. More complete information about Nixon is here at ATL. Background on the cuts is here. Meanwhile, Seyfarth is slashing wages 5 – 20 percent and Squire is cutting starting associate pay 10%. According to the Recorder, a dozen other large and midsize firms – including Greenberg Traurig and Baker & McKenzie – have cut associate salaries.
I'll be watching to see if a market leader steps up to the plate and cuts pay. It seems inevitable.