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Blank Rome L.L.P. said yesterday that it was cutting the salaries of its most junior lawyers in response to similar reductions at competing law firms.
The announcement follows moves at Schnader, Harrison, Segal & Lewis L.L.P. and Ballard, Spahr, Andrews & Ingersoll L.L.P., both also of Center City, to reduce the salaries of associate lawyers. Law firms across the country have been reducing costs in response to slack client demand for legal services.
Blank Rome, a firm with more than 500 lawyers, said that effective July 17, the starting salaries for first-year associates in New York will be reduced from $160,000 to $145,000 and from $145,000 to $130,000 in Philadelphia. More senior associates would see pay reductions ranging from 2 percent to 10 percent.
The firm said that it had instituted the salary reductions for its 200 associate lawyers as a response to an industry trend and not because it was under financial pressure. The firm said its revenue was meeting projected expenses.
Clients for years have been complaining about high associate salaries, and some law-firm leaders say salary cuts are necessary to assure clients that they are not overpaying for the work of junior lawyers.
Contact staff writer Chris Mondics at 215-854-5957 or cmondics@phillynews.com.
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