Cutting Associate Salaries: The Next Wave to Sweep BigLaw?

[WSJ Law Blog]

Just last week, we threw some mild criticism toward BigLaw managing partners for standing idly (and nervously?) by, waiting for someone else to cut associate salaries before they did.

What a difference a week makes. Yesterday, Above the Law reported that Greenberg Traurig will cut associate salaries in the neighborhood of 10 percent, joining the ranks of McGuire Woods and Allen Matkins.

Now comes McKenna Long & Aldridge, which Tuesday announced it would cut the starting salaries of its attorneys by $20,000. “We are committed to providing our clients with top-quality legal counsel at a cost that is appropriate to the market and economic conditions,” said MLA chairman Jeff Haidet in a press release (link not available).

The firm isn’t one that’s clung to a by-the-book approach to associate salaries. It moved to a merit-based promotion system for associates two years ago, using an evaluation process based on “defined core competencies.” Compensation and bopopop illing rates are based on these evaluations rather than years out of law school, which is the measure for most law firms.

We wonder, LB Readers, if we’re reaching a tipping point here with salary-cutting. To extend the metaphor we introduced last week, have enough managing partners yet jumped in to convince the others that the waters below are safe?