The Equity Partners and Executive Directors of Khaitan & Co have voluntarily agreed to take a 20% pay cut on their monthly compensation, amidst the COVID-19 crisis.
However, there will be no salary cuts below the Equity Partner/Executive Director level.
The decision has been taken in the backdrop of the current circumstances in the country due to the COVID-19 crisis. The firm took this move in order to have continuous cash flow to get through this difficult time.
Amar Sinhji, Executive Director of Khaitan & Co said,
“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.”
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A similar announcement was made by Cyril Amarchand Mangaldas where its Equity Partners decided against drawing salaries for this year.
CAM decided to tweak the ratio of fixed to variable compensation for certain categories of lawyers by moving some amount of fixed compensation to variable. The firm however announced that there would be no change in the compensation structure for lawyers with annual packages of Rs. 25 lakh and below.