1. Based on the information given, what issues have law firms considered in their decisions about their pay structure?

2. How would you expect first-year lawyers to perceive the fairness of the pay decisions described in this case? How could the decisions be communicated so that lawyers in these firms will see their pay as fair?

Skadden, Arps, Slate, Meagher & Flom LLP cut year-end bonuses for first-year lawyers by as much as 71 percent, part of a plan to keep client costs down and ride out a recession that has forced structural changes in the industry. Bonuses dropped for first-year associates at many toptier New York firms while staying the same or increasing for more experienced associates. Bonus reductions, along with overall pay cuts, signal a diminished role for junior lawyers at the larger U.S. firms, said consultant Bruce MacEwen.

The industrywide move to cut pay is “reflecting, frankly, the low value clients place on junior associates,” MacEwen, who is based in New York, said in a phone interview.