Cooley To Defer Incoming Associates Again, But This Time The Firm Is Offering A Six-Figure Paycheck

It's turning out to be a hot deferral summer in Biglaw.

Back in April, following a round of layoffs, Cooley kicked off the race to shrink incoming associate classes by deferring its first-years to January 2024. Then, Fenwick jumped on the bandwagon, deferring only its incoming corporate and technology transactions first-years to January 2024. Now Cooley is back, and this time the firm means business -- but only for its entry-level corporate associates.

According to a report by Bloomberg Law, soon-to-be first-years in the firm's corporate practice group have three options: delaying their start dates by a year, starting in January in the low-demand corporate group as planned, or starting in January and switching to a busier practice group. For those who decide to take the year-long deferral, there's a $100,000 stipend to be had (less than half of their projected first-year salaries).

Cooley offered the following statement to Bloomberg:

"We can confirm that due to current market conditions we will be reassigning a limited number of incoming corporate associates to alternate practice areas.

We are also offering a voluntary full year deferral to this same limited group of incoming associates along with a stipend to compensate for their deferral. We continue to be focused on ensuring that all our associates have the opportunity to receive meaningful development opportunities throughout their tenure with us."

Will Cooley's incoming corporate first-years choose to take the money and run? Or will they start as planned in January, and potentially risk it all if they choose to remain in corporate? Only time will tell.

Is your firm planning to start making major deferral offers to associates? If you have an intel, please don't hesitate to let us know. Best of luck to all affected incoming associates at Cooley.

If your firm or organization is reducing the ranks of its lawyers or staff, whether through deferrals, open layoffs, stealth layoffs, or voluntary buyouts, please don't hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive. You can email us or text us (646-820-8477). Thank you for your assistance.

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Cooley to Delay Some First-Year Associate Start Dates by Year [Bloomberg Law]

Earlier: After Layoffs Last Year, Cooley Delays Start Date For First-Year Associates

Staci Zaretsky is a senior editor at Above the Law, where she's worked since 2011. She'd love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.

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