Chadbourne & Parke told half of its incoming associates on Monday that the firm will extend their deferrals indefinitely and pay them an additional stipend of $60,000, according to a firm spokesman.
The news first appeared on Above the Law, and a firm spokesman confirmed the accuracy of the report. The class of 25 associates from the graduating class of 2009 was initially supposed to start at Chadbourne in January, the firm said. About half the class will start on that date, while the other half now has no certain starting date.
All 25 would-be associates have so far received a $13,000 stipend. Those whose deferral dates have just been extended into the (uncertain) future will receive an additional $60,000. Those slated to start on time will not receive any more cash between now and their January start date.
How did the firm decide on the extensions? "The decisions were made based on a review of our currently anticipated departmental needs," a Chadbourne spokesman tells us.
We suspect Chadbourne will not be the last firm to make such a decision.
This article first appeared on The Am Law Daily blog on AmericanLawyer.com.