Our firm is a twenty-five lawyer firm with ten partners. Six of these partners are in their sixties. What should we be doing concerning planning the succession of these partners?
In a larger firm with multiple partners, shareholders, or members, succession and transition involves transitioning client relationships and management roles. Such transitions take time. Many larger firms have five-year phasedown retirements for this reason and require equity owners to properly transition clients and management responsibilities. Some firms tie retirement pay or compensation to completing a successful transition program.
A plan might included the following:
Some firms are providing economic incentives for the transitioning partner to handoff work to others.
The internal succession/transition plan provides a mechanism for the firm to outline a general timeline for a senior partner’s retirement, a process to effect an orderly transition of clients and management responsibilities, and a vehicle for starting initial discussions.
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John W. Olmstead, MBA, Ph.D, CMC
Posted at 08:30 AM in Succession/Exit Strategies
Tags: and, Firm, Law, of, Partners, Plan, Succession, Transition