The Equity Partners and Executive Directors of Khaitan & Co have agreed to take a 20% pay cut on their monthly compensation, in light of the COVID-19 pandemic fallout.
However, the firm has decided not to implement any salary cuts below the Equity Partner/Executive Director level.
The decision has been taken so that the firm can have a continuous cash flow to get through this difficult time, until the situation gets better.
"We are not implementing any salary cuts below the Partners/Executive Directors level. At the leadership level, there has been a consensus decision to take a cut of 20% on the monthly compensation. This is to proactively help with cash flows/build a war chest, until the situation stabilises. This is more in the nature of a contribution to our firm, to help tide over the current situation and will be restored during the course of the year or when revenues stabilise.”Amar Sinhji, Executive Director of Khaitan & Co
Cyril Amarchand Mangaldas has made a similar announcement, with its Equity Partners voluntarily deciding against drawing salaries for this year.
For certain categories of lawyers, CAM has tweaked the ratio of fixed to variable compensation, moving some amount of fixed compensation to variable. The firm announced that there will be no change in the compensation structure for lawyers with an annual package of Rs. 25 lakh and below.