Magic Circle firms kick out partners
02 December 2011
Allen & Overy
has confirmed that it's at it again: asking a number of partners to find jobs elsewhere. And Freshfields
is thought to be doing the same too.
RoF first broke the news
some weeks ago, and A&O has now confirmed that between 1% and 3% of its partners will be leaving. It said that this was simply part of good business management, and it's certainly not as bad as the full scale restructuring programme in 2009 in which 47 partners were asked to leave.
Still, it's bad news for around 12 partners. And it's not the only firm either: Herbert Smith
is kicking out around a dozen corporate partners, Freshfields
is believed to be doing the same to a couple of real estate partners and managing partners at several City firms have told RoF that they're taking a much more aggressive approach to managing the equity.
||Some partners yesterday |
London revenues are generally pretty flat, and so the only way that firms can promote talented associates in the UK is by clearing some room at the top. But that task that has been made more difficult by age discrimination legislation, as partners can't be automatically asked to leave at 55, as many were in the past, And the recession hasn't helped either as many partners have clung on for an extra couple of years to make up for falling pensions and rising tax bills.
Expect to see more partners' CVs floating round the City in 2012.