Mayer Brown 'De-Equitizes' 45 Partners

Chicago's Mayer, Brown, Rowe & Maw has announced a major restructuring calling for the termination -- or "de-equitization" -- of 45 of its partners, around 10 percent of its total.

A spokesman for the 1,500-lawyer firm said the move, first reported in the Chicago Tribune, primarily affected U.S. partners, but he declined to name them or break down the impact of the move by office or practice area.

Though its largest office is in Chicago, Mayer Brown also has 200 lawyers in New York and other large offices in Washington, D.C., and London, where it merged in 2002 with British firm Rowe & Maw.

In a statement Friday, the firm praised the affected partners as "fine lawyers who have made significant contributions" to the firm and pledged to provide them with ample transition and placement support.

The firm said it was restructuring its partnership despite strong financial results in 2006, with revenue up 11 percent to $1.1 billion and profits per partner over $1 million for the first time. It said the move was "designed to enhance the firm's position among the world's leading law firms," noting that other firms that had taken similar steps in the past "have achieved significantly improved health and competitive position."

It has indeed become commonplace at many firms for partners deemed unproductive to be asked to leave. Rival Chicago firm Sidley Austin's move in 2000 to de-equitize some 32 partners is currently the subject of a lawsuit by the Equal Employment Opportunity Commission, which claims the firm discriminated against those partners on the basis of age. Sidley claims the partners were demoted based on performance.

Firms generally shed equity partners with a goal of increasing profits per partners in order to retain and attract rainmaking partners.