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Addleshaws mulls delaying salary reviews again as divisions told to halve travel costs

Senior management at Addleshaw Goddard is putting further cost-cutting measures in place, with talks to delay staff salary reviews further, while division heads have been told to cut UK travel costs by 50%.

It is understood that the delay on salary reviews will particularly impact associates, who are unlikely to see their salaries backdated to September, as any new salary only potentially going live from 1 January 2017 or later.

In addition, divisions within the firm have been told to cut internal travel in half, with travel costs between the Leeds and Manchester offices and the London office being closely scrutinised.

An Addleshaws spokesperson said: ‘We have seen an encouraging uptick in activity across the business and will be going back to staff by mid-November, when we’ve said we should have as good a picture as we can get about the year and therefore be in a position to decide our approach to salary increases, including partner remuneration.

‘As for the travel, we’re always being challenged to deliver operational efficiencies, including travel spend, through alternatives like video conferences, but there is no moratorium on travel, just encouragement, as always, to be thoughtful.’

In August Addleshaws confirmed it had frozen its salary review until the autumn as a result of Britain’s vote to leave the EU. The delay includes an annual review of fixed profit share for salaried partners, as well as the next profit distribution for equity partners.

The move followed Berwin Leighton Paisner’s decision to freeze pay and bonuses until November. In June managing partner Lisa Mayhew told staff in an email the reason was ‘political and financial uncertainty in the UK following the recent vote to leave the EU.’

Meanwhile, last month Gowling WLG restarted its delayed salary review, which was backdated to July 2016 and was applicable to all staff excluding fixed share.