How did firm deferment programs work during the Great Recession? Forum

Sawtooth · Post by **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.

nealric · Post by **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 Some firms also just rescinded offers.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 · Post by **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 · Post by **Libya** » Mon Mar 23, 2020 7:51 pm

Didn't Cravath do this in the great recession

tuesdayninja · Post by **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/nationw ... art-dates/

Anonymous User · Post by **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.

TrynaLaw · Post by **TrynaLaw** » Mon Mar 23, 2020 9:06 pm

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

BrainsyK · Post by **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 · Post by **s1m4** » Mon Mar 23, 2020 11:16 pm

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

nealric · Post by **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.

How did firm deferment programs work during the Great Recession? Forum

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