Munck Wilson Mandala’s managing partner William A. Munck announced today that his firm has implemented compensation reductions among partners, associates, and exempt directors and managers effective Apr. 1, 2020, but the firm has no plans to reduce attorney headcount. A limited number of salaried employees will be furloughed, and some hourly employees will work reduced hours. All employees will receive full benefits.
“There is tremendous uncertainty in the economy right now, brought on by the ongoing pandemic,” said Munck. “We are taking precautionary measures to better position the firm and to ensure our workforce and clients have what they need.”
According to Munck, MWM’s executive committee and CFO, Ted Ainsworth, began modeling business outcomes three weeks ago projecting the next three quarters of 2020. The numbers from these models led the firm to take precautionary steps in order to better position MWM during this unprecedented time.
“We are a team, we all understand the uncertainty of the present situation, but we intend to find solutions that benefit our team as a whole,” said Munck.
When MWM attorneys and staff were notified, the news was met with several partners choosing to defer the entirety of their base salary for the next three months. Other principal attorneys, associates, and directors/managers also offered, but the firm gratefully declined, to take deeper pay cuts to ensure the firm could protect the salaries of the remaining staff (whose salary was not affected).
“I am very proud of our team. For 23 years, we have overcome a variety of obstacles, this is just one more challenge we will defeat together,” said Munck. “Our MWM team and practice groups remain connected, and we have collectively decided to run lean for a few months. The burden is shared across MWM for the benefit of the team as a whole.”
Munck says the firm fully anticipates and intends to treat the reductions as compensation deferrals to be paid by the end of the year or when practical but it is impossible at this time to fully predict whether or when 100 percent of compensation deferrals can be paid.
“Our intent, like so many other businesses, is to maintain access to cash while evaluating the impact of this pandemic on our clients’ businesses and, as a result, MWM’s long-term finances,” said Munck. “The executive committee intends to revisit the compensation adjustments in three months subject to changing circumstances with the pandemic.”
Munck Wilson Mandala is a technology-focused law firm with offices in Dallas, Austin and Marshall, Texas, and Los Angeles, California. The firm offers full-service counsel in the areas of intellectual property litigation, complex commercial litigation, intellectual property portfolio development, corporate transactions and securities, and employment law. Munck Wilson Mandala represents clients from start-ups to Fortune 50 companies. Learn more about the firm at http://www.munckwilson.com.