How did firm deferment programs work during the Great Recession?

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Sawtooth

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How did firm deferment programs work during the Great Recession?

Postby Sawtooth » Mon Mar 23, 2020 2:51 pm

Obviously I imagine deferral programs varied between firms, but I'd love some info on how they generally worked. My understanding is that the firm would pay the deferred associate between 60-80k to work for a nonprofit, government entity, or client for a year? Is that correct?

Was this paid in one lump-some, or as a paycheck?
Did the firms match deferred associates to these positions, or did the deferred associates go out and find them?
Did the deferred associates get firm benefits (i.e. health insurance)?

I know some of these programs were "optional." What were the pros/cons of taking the deferral vs. starting?

Totally understand that how deferral programs would work this time around or even their existance is total speculation.

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nealric

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Re: How did firm deferment programs work during the Great Recession?

Postby nealric » Mon Mar 23, 2020 3:03 pm

It varied from firm to firm (both deferral, length, and payment terms). Some firms were optional, others mandatory. Length varied from 6 months to 18 months. Some firms also just rescinded offers. Some firms cut salaries during the downturn. And of course, some firms folded.

I ended up with 6 months unpaid (c/o 2010) at a v100.

legalpotato

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Re: How did firm deferment programs work during the Great Recession?

Postby legalpotato » Mon Mar 23, 2020 7:32 pm

Also interested in this. Would be particularly interested if any of the v20s did this and if associates (including midlevels) had the option to elect in to this.

Libya

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Re: How did firm deferment programs work during the Great Recession?

Postby Libya » Mon Mar 23, 2020 7:51 pm

Didn't Cravath do this in the great recession

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tuesdayninja

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Re: How did firm deferment programs work during the Great Recession?

Postby tuesdayninja » Mon Mar 23, 2020 8:32 pm

Apparently WilmerHale had a decent year long deferment not tied to doing pro bono work. Latham apparently had a decent one too but I couldn't find specifics. https://abovethelaw.com/2009/04/nationwide-start-date-watch-winston-strawn-wilmerhale-baker-mckenzie-and-sonnenschein-delay-start-dates/

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Re: How did firm deferment programs work during the Great Recession?

Postby Anonymous User » Mon Mar 23, 2020 8:48 pm

Talked to a partner today about an offer who said Cravath did this, as did Latham.

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TrynaLaw

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Re: How did firm deferment programs work during the Great Recession?

Postby TrynaLaw » Mon Mar 23, 2020 9:06 pm

See https://abovethelaw.com/deferral-stipend/ for a bunch of firm responses.

BrainsyK

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Re: How did firm deferment programs work during the Great Recession?

Postby BrainsyK » Mon Mar 23, 2020 10:48 pm

https://abovethelaw.com/2009/12/nationw ... t-in-2010/

Mega list of treatment of 2009 incoming class. Changes were made later, but gist is that higher ranked firms treated people better--though I suspect that that's because they were richer, not because they were nicer. The distinction matters because richness and Vault are a lot less correlated now than then (e.g. Cahill, SRZ, etc.) so this time around may be different.

s1m4

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Re: How did firm deferment programs work during the Great Recession?

Postby s1m4 » Mon Mar 23, 2020 11:16 pm

What happened to midlevels? Anyone asked to take time off or something?

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nealric

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Re: How did firm deferment programs work during the Great Recession?

Postby nealric » Tue Mar 24, 2020 4:18 pm

s1m4 wrote:What happened to midlevels? Anyone asked to take time off or something?


A few firms did paid sabbaticals, but it was mostly the exception.

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