Phila. Business Journal (PBJ) -In another concession to the slow economy, the Dechert law firm said late Wednesday it is delaying the starting dates for many of its 63 incoming first-year lawyers who were set to join in the fall.
The firm said groups of three evenly split entry-level lawyers will start at three different points — fall 2009, March 2010 and fall 2010.
Dechert said it will ask the incoming associates to pick their preferred start date and, taking those responses into account along with other factors including its capacity in various practice groups, will decide who will begin when.
“We hope that the staggered arrival will permit us to provide incoming associates with more immediate and direct involvement in matters which will accelerate their development and integration into the practice and the firm,” firm management said in a memo sent to all lawyers yesterday.
Dechert said those starting in March 2010 will receive the normal stipend for bar examination fees and $17,500. Those starting in fall 2010 will receive the bar stipend and $75,000. Any of the deferred lawyers will be expected to secure jobs with either public service or public interest legal organizations until they start with the firm.
Dechert has been forced to lay off 226 people, including almost 100 lawyers, in four separate layoffs since December. Dechert’s firmwide lawyer count has been reduced to about 900 from 1,000 in the past four months.
Among Philadelphia law firms, Dechert has the largest corporate securites and real estate finance practices and those were hit hard by the subprime lending meltdown. After three years of astronomical growth in profits per equity partner (from $1 million to $2.35 million), it fell to $2.14 million last year.
Morgan Lewis & Bockius and Ballard Spahr Andrews & Ingersoll recently deferred the start-dates of their first-year associates for one year but will pay them a stipend to work with public interest legal organizations or pursue another professional development role.
Other large firms such as Blank Rome, Pepper Hamilton, Reed Smith, Saul Ewing and Stradley Ronon Stevens & Young have delayed start dates until at least January.
Firms such as Cozen O’Connor, Drinker Biddle & Reath, Duane Morris and Fox Rothschild have yet to announce such plans.
