Mayer Brown has slowed repayment of departing partners' capital investments as the firm faces unpaid client bills and an outflow of money tied to exiting U.S. partners. Last summer, firm leaders changed policy to take up to six months to return departing partners' capital investments instead of handing it back immediately. During transitional periods when law firms are cutting partners, the costs of exit compensation and lingering overhead items sometimes drive up expense, says consultant Peter Zeughauser.
Bad Market, Partner Exits Trigger Temporary Cash Flow Problems at Mayer Brown
The National Law Journal
April 23, 2008