Cyril Amarchand Mangaldas equity partners have agreed not to draw any take-home pay this financial year. In predictions of worse financial times to come. Additionally, the firm announced the salary postponement for senior fee-earners and office staff. Explicitly, all fee-earners and staff earning more than Rs 25 lakh per year will see 10% of their fixed salary factor in May and June 2020 delayed into a variable component.
All senior salaried partners’ fixed salary component will be deferred into the variable up to 30%. Significantly, a variable component is elective for the firm to payout. On the other hand, the firm has not announced a permanent reduction in wages. No job cuts, no pay cuts. At least until June, 2020, but has moved a portion of the fixed to variable. Cyril Amarchand Mangaldas’s 35 equity partners volunteered to not take any pay this year. All the 35 equity partners willingly gave up their pay.
Cyril Shroff stated, “It’s too early to tell whether it’s going to get worse or not.”Actual adjustment amounts will be communicated to fee-earners individually. Shroff stated that they were not afraid to be the first in taking such measures. Adding that while all the firms are thinking about it now, it is going to be inevitable to do so in the coming days. As a matter of fact, all international law firms have been making significant salary cuts, deferrals, or requested partners for cash calls in recent weeks. Further, on March 27, 2020, Agarwal Law Associates became one of the firsts to take such measures in light of the COVID-19 shutdown.