(November 10, 2009) -- Reed Smith LLP today announced a 20 percent reduction from the 2008 level in the hourly billing rates and annual salary levels for first-year associates in its 15 U.S. offices. These changes will apply to the 51 new lawyers joining the firm in January 2010.
“In response to our clients’ feedback and concerns about driving down the cost of legal services, we wanted to send a clear message that we are listening. So, we have therefore reduced both the rates and the salaries of our incoming first year associates” said Gregory B. Jordan, Reed Smith’s Global Managing Partner. “We have also launched a new competency based development program to better prepare our new lawyers to meet the needs of our clients.”
Annual starting salaries for the new associates beginning in January 2010 will range from $130,000 in major markets such as New York City, Chicago, California, and Washington, D.C. (down from a high of $160,000 in 2008), to $110,000 in Pittsburgh, PA. These actions solely involve the new associates entering the firm’s U.S. offices. Salary levels for 2010 newly qualifying lawyers in the firm’s European, Middle Eastern and Asian offices will be determined in the normal course of business during 2010.
“Our new U.S. starting salaries represent a reasonable and appropriate reset based on today’s economic environment,” said Eugene Tillman, the firm’s Global Head of Legal Personnel. “We believe this will put Reed Smith in a stronger business position in a changing marketplace while still providing fair compensation to our new associates.”
In conjunction with the new compensation, Reed Smith has also reduced the first year associate annual billable hour expectation from 1,900 to 1,700 hours, allowing additional time and opportunity to take advantage of the training and development programs associated with CareeRS™, the firm's newly launched talent development initiative.
About Reed Smith
Reed Smith is a global relationship law firm with nearly 1,600 lawyers in 23 offices throughout the United States, Europe, Asia and the Middle East. Founded in 1877, the firm represents leading international businesses, from Fortune 100 corporations to mid-market and emerging enterprises. Its lawyers provide litigation and other dispute resolution services in multi-jurisdictional and other high-stakes matters; deliver regulatory counsel; and execute the full range of strategic domestic and cross-border transactions. Reed Smith is a preeminent advisor to industries including financial services, life sciences, health care, advertising, technology and media, shipping, energy trade and commodities, real estate, manufacturing, and education. For more information, visit reedsmith.com.
U.S.: New York, Chicago, Los Angeles, Washington, San Francisco, Philadelphia, Pittsburgh, Oakland, Princeton, Northern Virginia, Wilmington, Silicon Valley, Century City, Richmond
Europe: London, Paris, Munich, Greece
Middle East: Abu Dhabi, Dubai
Asia: Hong Kong, Beijing