- An incentive to boost profits
O'Melveny & Myers is among the bigger law firms "suggesting" early retirement to some of its lesser-performing partners, a way of increasing the equity pool. Masood Sohaili, who is 50, took advantage of the offer - not to retire but to join Manatt, Phelps & Phillips as an equity partner. Other requests to cash in on the retirement offer are still pending, a source close to O'Melveny management told The Recorder.
Offering such an early retirement option can also be used to open up opportunities for younger partners who may be able to transition into more significant client relationships, said Newport Beach, Calif., legal consultant Peter Zeughauser. But mostly it's used as a means to increase profitability. "It's another technique for dealing with unproductive partners who might be incentivized to opt out -- you don't have to counsel them out -- it's their decision," he said. While other top firms have lowered early retirement to 55 or 60 -- compared with the traditional 65 -- Zeughauser said he hasn't seen it lowered to 50, even on a temporary basis.
|
|
| 03:11 PM Mar 13, 2008 | Email the Daily Dragon | Email this Article | Post Comments |
|
|
