On August 15, the American Bar Association’s House of Delegates voted to encourage law firms to abandon mandatory retirement policies. The resolution traveled under two flags, the anti- age discrimination flag and the “graying of the bar” flag.
With regard to the discrimination issue, Law.Com noted that “The issue of mandatory retirement has received particular attention because of a lawsuit pending against Sidley Austin. Law firms are anticipating a decision from the U.S. District Court for the Northern District of Illinois in Chicago in an action filed by the Equal Employment Opportunity Commission on behalf of about 30 former partners against Sidley Austin over whether its alleged retirement policy violated age discrimination laws.”
My guess is that this issue’s place on the agenda is due to the increased number of delegates and partners in general that are nearing mandatory retirement age.
From the standpoint of midrange size law firms, the big issue is continuity. For midrange law firms to have a life beyond that of their current partners, there must be an orderly hand-off from one generation to the other. Mandatory retirement is one method of forcing that hand-off. It isn’t necessarily the best, but those in power are often reluctant to give it up.
In an earlier post titled Continuity or How Law Firms Acquire a Life of Their Own, I suggested alternative strategies assuring the hand-off between generations. Without an orderly handoff a law firm fades away or just survives for at least one more generation through an ugly or quiet revolution. We old guys leave one way or another. It needs to be through a win/win arrangement. Continuity planning is most important to the entrenched partners. Without planning for the handoff to the next generation, it is the entrenched partners and their heirs who lose the value of the legal service business they built (or improved) during their tenure.
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Posted
Tue, Aug 21 2007 1:33 PM
by
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