‘Bitterness and Anger’ Aimed at Thacher Managers Over Partner Losses
A former partner at the dissolved law firm Thacher Proffitt & Wood says there is “a lot of bitterness and anger” directed at former managers of the law firm.
The former partner told The Lawyer that partners are facing losses in the millions of dollars as a result of the dissolution. Some are angry that the firm’s former managing partner, Paul Tvetenstrand, is one of 100 lawyers who have landed new jobs at Sonnenschein Nath & Rosenthal.
In an interview with The Lawyer, Tvetenstrand defended his actions and also addressed rumors about increased partner capital contributions and decreased distributions before the firm shut down.
“We fought tooth and nail to save the firm,” Tvetenstrand told the publication. “If we hadn’t got this deal done, there was really nothing else going on.” He said Thacher partners even offered to take pay cuts if Sonnenschein would take on additional Thacher associates, but Sonnenschein refused.
Tvetenstrand addressed the partner compensation rumors this way:
• Did the law firm use credit lines to pay 2007 partner bonuses and distributions? “Not in any way that was different from any other year in order to meet the regular cash-flow needs.”
• Did the law firm ask partners to make additional capital contributions last January amounting to about $500,000 for some partners? The amount sought was “nothing extraordinary, but over the past three years we had an annual increase to fund the build-out of floors.”
• Did the law firm hold back partner profits in amounts ranging from $150,000 to $250,000? There was not an increase in the amount held back, “though some people voluntarily left some of their 2007 money in the firm. Why? To help the firm.”
