Miguel Zaldivar, Hogan Lovells
Hogan Lovells has reversed salary cuts for its US associates and reinstated deferred salary reviews for UK and Asia Pacific associates in response to a ‘solid performance’ over the summer.
Ten per cent US salary cuts instituted in June, which also applied to Mexico and Brazil, have now been reinstated and backdated while salary reviews and discretionary bonuses that should have happened in May for associates in the UK and across Asia Pacific will take place in September and be applied retroactively from 1 May.
“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.
“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.”
The deferred salary reviews also apply to eligible members of business services teams although ‘equity partners will continue to see reduced draws and bonus payments through to the end of the year while the position for non-equity partners and senior counsel will be reviewed later in the year’.
The austerity measures were announced by the top 20 US firm in May as a procession of Am Law 100 law firms announced associate pay cuts and leading UK firms froze salary reviews.
Hogan Lovells is the latest of a number of firms to roll back their austerity measures.
In July, Ashurst said its reduced hours scheme would end on 31 July while in the US, Above the Law has started to track the ‘rollback’ of austerity measures among top US firms, reporting today that Troutman Pepper is reversing its salary reductions, which include 25% cuts for associates.