Firm also reverses US associate pay reductions
Hogan Lovells has reinstated lawyer and business services staff salary reviews following “strong performance” this summer.
The international firm confirmed it has also reversed its reduction to US associate salaries by 10% in June this year.
Hogan Lovells announced in April that annual salary reviews and discretionary bonus payments due to associates in the UK in May had been postponed, to be “reassessed later in the year”, due to COVID-19. It will now conduct the review during the course of September, and for business services staff, after the third quarter.
Decisions for those eligible for bonuses at the end of this calendar year will be made in the normal course of business, applying the normal standards, a statement from the firm said.
For equity partners, the firm is keeping in place the current set of previously announced reduced draws, compensation, and deferred bonus payments through to the end of the year. The current compensation reduction for non-equity partners and senior counsel will be reviewed later in the year.
Hogan Lovells CEO Miguel Zaldivar said:
“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. 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.”
Such “prudent” measures implemented earlier this year include cutting the salaries of its newly-qualified (NQ) solicitors in London and Birmingham, and keeping second year trainees on first year salaries, as we exclusively reported in June.