Law Practice Management
Pillsbury Defers 54 to 2010 and 2011, Offers $60K to Go Away
Posted May 18, 2009 2:54 PM CST
By Martha Neil
In yet another law firm response to the dismal economy, Pillsbury Winthrop Shaw Pittman is deferring 54 members of its incoming class of new associates.
And the firm is also offering $60,000 to incoming associates who opt to take the money and find work elsewhere, reports the Shark blog published by Cal Law. Alternatively, those who find nonprofit legal work during a one-year deferral can expect to be paid $60,000 for 12 months of work and additionally are eligible for a $15,000 loan, according to a law firm press release.
Almost three-fifths of the deferred group, a total of 32 new associates, will start in January 2010. The other 22 are to start in January 2011. It appears from the press release that the firm may be seeking volunteers to pursue the one-year deferral option. The Shark says the 54 are roughly half the incoming class of new associates at the firm.
“We regret that current economic realities mean that some of these highly talented and gifted law school graduates may have to wait up to a year before they can join us,” said firm chairman Jim Rishwain in the written statement. “But regardless of whether they start in 2010 or 2011, we view each incoming associate as a member of the Pillsbury team, and we hope the options we are providing may help lessen the difficulties they may face during the transition period.”
Related coverage:
ABAJournal.com: "Stroock Deferral Options for New Grads: $50K to Delay, $75K to Go Away"
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Comments
B. McLeod
May 18, 2009 11:23 PM CST
$60K to “go away.” What profession is this again?
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James
May 19, 2009 10:50 AM CST
It’s called “severence pay or cash to secure a release from the obvious promisory estoppel claim. I’m sure you’ve heard of it. These firms made offers to students that were probably weighing other options during their third years. They likely turned down offers to accept Pillsbury’s offer of employement. I think $60,000 is an entirely reasonable amount.
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B. McLeod
May 20, 2009 12:08 AM CST
I suppose we might speculate that some of them may have turned down other at-will offers for Pillsbury’s at-will offer (all in a tanking economy). Not much of a claim there (and “severance” is not really a pre-employment concept). Somebody once said, the real reason for paying hookers is so they will go away. In each instance, it seems more like reputational PR than anything. I wonder if IRS will challenge these buy-offs as expenses the firms aren’t really obligated to pay.
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