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Philadelphia-based legal powerhouse Dechert is pioneering a novel approach to accommodate its incoming class of 2024 associates. The firm has introduced a deferral option, allowing summer associates slated to transition to associate roles in fall 2024 to postpone their start date by a year. Notably, Dechert is offering an enticing incentive for those who opt for this route—a $75,000 stipend if they choose to dedicate their interim year to working with nonprofit organizations.
A spokesperson for Dechert elaborated on the firm’s innovative move, stating, “While there is a spot for all should they choose to start in the fall of 2024, we created the opportunity for up to 20 summer associates to defer for a year and come back in the fall of 2025.” This approach provides a unique avenue for these aspiring legal professionals to explore alternative opportunities, pursue further studies, travel, or gain diverse experiences.
The spokesperson further emphasized the firm’s commitment to community engagement and pro bono work, revealing that the deferral plan extends to those who are interested in dedicating their deferred year to working for pro bono or not-for-profit organizations through Dechert. Participants will receive the $75,000 stipend and associated benefits in this scenario.
As of Monday, the summer class at Dechert comprised 85 individuals. This development was initially reported by Bloomberg Law, shedding light on Dechert’s pioneering deferral strategy.
See also: Top BigLaw Firm Announces Layoffs and Postponed Start Dates for New Associates
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Dechert’s initiative to offer a deferred start date is notably the first of its kind among prominent law firms targeting the upcoming class of associates. This proactive approach aligns with the evolving dynamics of the legal landscape, wherein some firms have encountered cooling demand for legal services and consequently adjusted their operational strategies.
Associate salaries constitute a substantial expenditure for large law firms, and the adoption of deferral options could mitigate financial pressures. Notably, first-year lawyers at many prominent firms receive substantial compensation, often starting at $215,000.
Dechert‘s decision follows the precedent set by Cooley, which, in June, unveiled a similar deferral program for incoming corporate associates. These associates were presented with the choice to defer their start dates by a year, accompanied by a $100,000 stipend. Alternatively, they could commence work in January, with the possibility of being assigned to different practice groups.
Other law firms have also introduced variations of deferred start dates to adapt to the changing legal landscape. Katten Muchin Rosenman recently announced a deferral plan that shifts the start date for a portion of its incoming associate class to February 1. Likewise, Orrick Herrington & Sutcliffe, Fenwick & West, and Perkins Coie have postponed start dates for some of their incoming lawyers, setting the commencement in January.
These adaptive strategies align with the broader trend of legal firms recalibrating their workforce and operational models to address shifts in demand for legal services. Some firms have navigated these challenges by implementing staff layoffs and restructuring. In May, Dechert announced a reduction of around 5% in its global workforce, encompassing 55 lawyers and 43 business professionals.
Dechert’s deferral initiative emerges as a proactive and flexible approach to cater to the diverse needs of its incoming associate class. The offer of a stipend to support engagement with nonprofit organizations reflects the firm’s commitment to societal impact and professional development. As the legal industry continues to evolve, such innovative strategies hold the potential to reshape the traditional paths of legal career progression.
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