DLA Piper is slashing salaries for its U.S. associates in conjunction with an announcement that the law firm is shifting to merit-based compensation.

DLA Piper is slashing salaries for its U.S. associates in conjunction with an announcement that the law firm is shifting to merit-based compensation.

The law firm will reduce first-year associate salaries in major markets from $160,000 to $145,000. First-year salaries of $145,000 in other cities will drop to $130,000.

It will cut salaries at other class levels on a case-by-case basis, based on performance and class year. The firm has about 550 associates in the United States.

DLA Piper announced the changes Friday in a firmwide memo written by Global Chairman Frank Burch Jr., Joint Chief Executive Lee Miller and U.S. managing partner Terry O’Malley. The memo stated that the three firm leaders themselves and other partners had taken “significant reductions” in their projected 2009 compensation. It also said that the firm had reduced compensation for senior counsel and of counsel attorneys.

The memo stated that changes were based on the downturn in the economy and on client needs.

“The broad consensus is that the business environment in the next few years will be fundamentally different, and our clients have taken dramatic action to reshape their businesses to fit this new reality,” the memo stated.

To implement the new plan, which will base associate pay primarily on job performance rather than years of service, the firm has appointed partners Fredrick H.L. McClure, a member of its executive committee, and David E. Nachman to develop compensation alternatives.

The law firm declined to comment on the new plan. The salary cuts become effective on June 8. The firm will continue to pay associate bonuses in 2009 for “exceptional performance,” the memo stated.

DLA Piper, with 3,785 attorneys worldwide, is ranked No. 1 on the NLJ 250, The National Law Journal’s annual survey of the nation’s largest law firms.

It is one of several law firms that recently have announced reductions in salaries. First-year salaries at major law firms shot up to $160,000 from $145,000 in 2007 amid intense competition for associate labor at the time. Many law firms have found those salaries unsustainable during the recession.


Real Estate Law – Luce Forward Ranked Third Among California Law Firms

SAN DIEGO (May 13, 2009) – Luce, Forward, Hamilton & Scripps LLP, a prominent California law firm, was recently ranked the third largest major real estate law firm in California by the California Real Estate Journal. California Real Estate Journal is the number one news source for the state’s commercial real estate industry. The rankings are based on the number of real estate attorneys in each firm as of January 2009.

“Our real estate practice is one of the most comprehensive in the state,” said Partner Clint Callan, who leads Luce Forward’s transactional real estate practice group. “Because of the breadth and depth of our real estate practice and the talented attorneys who contribute to its success, we are able to handle every aspect of a project, from acquisition to disposition.”

Luce Forward has 83 attorneys in its real estate transactional and real estate litigation practice groups, 38 of which are partners. The firm specializes in representing developers, owners and lenders in major commercial and residential real estate developments throughout California and across the nation. Projects include major office buildings, luxury hotels, and industrial buildings, as well as retail shopping centers, master-planned residential communities and large high-rise buildings in major cities.

Because of Luce Forward’s practical experience in real estate, financing, securities, tax and bankruptcy, it is also heavily involved in helping its clients maximize the value of troubled assets. The attorneys in the firm’s Distressed Real Estate Asset practice group understand the complicated legal issues involved and have experience in handling all aspects of troubled real estate.

“Real estate transactions and financing have always been and continue to be mainstays of our firm,” said Kurt L. Kicklighter, Managing Partner of Luce Forward. “Our attorneys have built a strong reputation for our real estate practice, which continues, despite the economy, to expand throughout the state.”

Founded in 1873, Luce, Forward, Hamilton & Scripps LLP is a full-service California law firm with offices in San Diego, San Francisco, Los Angeles, Carmel Valley/Del Mar, Orange County and Rancho Santa Fe. For more information, visit www.luce.com.

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