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How did firm deferment programs work during the Great Recession?
Posted: Mon Mar 23, 2020 2:51 pm
by Sawtooth
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.
Re: How did firm deferment programs work during the Great Recession?
Posted: Mon Mar 23, 2020 3:03 pm
by nealric
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 Some firms also just rescinded offers.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.
Re: How did firm deferment programs work during the Great Recession?
Posted: Mon Mar 23, 2020 7:32 pm
by legalpotato
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.
Re: How did firm deferment programs work during the Great Recession?
Posted: Mon Mar 23, 2020 7:51 pm
by Libya
Didn't Cravath do this in the great recession
Re: How did firm deferment programs work during the Great Recession?
Posted: Mon Mar 23, 2020 8:32 pm
by tuesdayninja
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/
Re: How did firm deferment programs work during the Great Recession?
Posted: Mon Mar 23, 2020 8:48 pm
by Anonymous User
Talked to a partner today about an offer who said Cravath did this, as did Latham.
Re: How did firm deferment programs work during the Great Recession?
Posted: Mon Mar 23, 2020 9:06 pm
by TrynaLaw
Re: How did firm deferment programs work during the Great Recession?
Posted: Mon Mar 23, 2020 10:48 pm
by BrainsyK
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.
Re: How did firm deferment programs work during the Great Recession?
Posted: Mon Mar 23, 2020 11:16 pm
by s1m4
What happened to midlevels? Anyone asked to take time off or something?
Re: How did firm deferment programs work during the Great Recession?
Posted: Tue Mar 24, 2020 4:18 pm
by nealric
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.