Lengthy contractual notice periods have long been used by law firms to discourage partners from leaving for rivals. But such stringent exit clauses are causing increasing frustration among clients, particularly for general counsel and other in-house leaders.
Just last week, Ince Gordon Dadds welcomed its new senior partner, but was made to wait eight months by the partner’s old firm, Hill Dickinson. Were it not for the pandemic and the firm’s need to trim costs, the partner would have been held for a further 12 months. Another recent example saw Allen & Overy preventing an M&A partner from joining Skadden Arps Slate Meagher & Flom, again for eight months. But it too had its hand forced by the pandemic, and finally decided to release the partner.
