Associates at Biglaw firms that have not matched the new Milbank/Cravath compensation scale are understandably concerned about their financial futures. This anxiety creates a tense atmosphere within these firms, a reality that the decision makers should be cognizant of. As it appears, not all executives seem to be in tune with this fact, as illustrated by a recent incident at Allen & Overy.
Allen & Overy, a Biglaw firm, circulated an internal email encouraging its associates to donate some of their earnings to Women for Women International. This is a commendable charity doing valuable work in conflict zones. However, it was the suggested donation that rubbed some the wrong way. The email asked associates to donate their first hour or first day of January’s pay to the cause.
Given the raise adjustments set to take effect from the start of the year in many Biglaw firms, whether Allen & Overy planned a salary increment remained a critical question before associates could decide on how much to donate. This understandably led to some friction within the firm.
An anonymous whistleblower at the firm remarked that Allen & Overy appeared to be more inclined towards soliciting part of their salaries for charity before revealing whether there would be any bonuses. This created apprehensions about the future for associates, particularly in the context of an anticipated merger and earlier departure of a few high-profile partners to rival firms.
Allen & Overy’s misstep continues an unfortunate trend among law firms making ill-advised announcements that create unnecessary anxiety among employees. This incident highlights the importance of empathy and astute communication. It is a critical reminder that before circulating firm-wide emails, company leadership should assess their messaging from employees’ perspective, especially when these employees are eagerly awaiting news about raises and bonuses.
To read more about this interesting case, visit Above the Law.