We’ve all been there. A vote is coming up before the partnership that requires individual partners to vote against their own best interest.
- It could be the opening or closing of an office, that you reside in
- The investment in new technology, but you’re about to retire
- The deequitizing of a partner, but you’ve been buddies since you were summer associates
- A change in the partnership agreement; it’s equitable, but not for you
It happens all the time. But should it?
Gina Passarella Cipriani wrote about the issue today in The American Lawyer: The Death of the Law Firm Partnership Vote? With an eye on efficiency, firms are ditching old methods for a more corporate form of governance.
“There’s increasing recognition that partnership agreements, a lot of them, fundamentally are obsolete, in the sense that they were written for a different time and place,” Bruce MacEwen of Adam Smith Esq. says. “Notions that it takes some super-majority … to de-equitize a partner, you can’t run a firm that way.”
It used to be that everything from a lateral hire to new leases to major capital expenditures on new laptops for lawyers would require a vote, says Frank D’Amore of Attorney Career Catalysts, who handles lateral and group moves as well as mergers. But those days are fading.
“You could do it in 1950, but it’s a heck of a lot harder in 2018,” D’Amore says of holding partner votes on most initiatives.
Law firms are big business
Legal is not just a partnership, it can be, and often times is, big business. Our industry just welcomed in our first $3 billion firm (congrats, Latham). But sometimes we’re caught operating no differently than when the doors opened decades (or even a century) ago.
Whether you are operating in 10s or 100s of millions of dollars, or billions, operating as a business should not be held hostage by personal interests. Continue Reading Should the partnership vote be up for a vote?











