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Law Firms Generously Offer Voluntary Buyout Packages
Observers and participants of the legal profession note its trends over time, the swells and crashes as the industry retains its positive correlation to the US and global economy. Legal business is slow now and in the doldrums, but things wont always be that way. However there is much more focus on the bottom line in today’s competitive environment.
News has come of yet another firm looking to shrink in size, and that is hardly making waves when law firms, law schools, and legal entities across the board are reducing costs in the face of reducing revenues and slowing cash flow streams. However what is notable about the firm Schulte Roth & Zabel, is that unlike other firms with an excess of support staff, the firm isn’t just sending out pink slips to sad employees. They are remarkably offering a buyout package.
The firm wants to have fewer per lawyer support staff, and they “hope that 20 to 30 secretaries will accept the buyouts, resulting in a more optimal lawyer-to-secretary ratio,” according to Above the Law. The exact severance package being given is a lump $10,000 and an additional one week’s pay for every year of service, plus health care benefits for an entire year. The firm believes that the package is attractive and some people will accept it. Above the law felt that the package was nice, but there will always be naysayers who disagree and contrarians who will call the buyout meager or insufficient. To have any severance in these times may be a boon however. Schulte Roth, like other firms will seek to have the flexibility to expand in the good times, and contract in the bad times, so as to stay competitive and to be able to survive the upswings and the downturns in the market.
Schulte Roth & Zabel have an investment management practice, focusing on hedge funds with much work in structured products and derivatives. The firm has offices in New York, Washington D.C. and London.