Retire at 50? Many Firms Offer Early Option, But Few Match O’Melveny’s

Law Firms

Retire at 50? Many Firms Offer Early Option, But Few Match O’Melveny’s

March 13, 2008, 11:10 am CDT

Corrected: Many law firms offer early retirements to boost profits per partner, but few are setting the floor at age 50, as O’Melveny & Myers recently did.

The law firm made a temporary buyout offer to partners over age 50, and Masood Sohaili is taking advantage of it to jump to Manatt, Phelps & Phillips. Other lawyers have buyout requests pending with the firm, sources told the Recorder.

William Nason of Watanabe Nason Schwartz & Lippman in Los Angeles told the Recorder he’s not surprised at the buyout offer, but he is surprised at the age. “They haven’t pioneered this theory, though going at it at age 50 is a little younger than most,” he said.

O’Melveny also offered an early retirement buyout several years ago, but the age was higher. Typically partners can retire at the firm with full benefits at age 65 or partial benefits at age 55.

Many law firms have lowered early retirement to age 55 or 60, according to legal consultant Peter Zeughauser. Many are looking at voluntary rather than forced retirement after the EEOC, on behalf of demoted partners at Sidley Austin, sued for age discrimination, he told the Recorder. A settlement reportedly paid an average of $859,375 per attorney.

Corrected on March 14 to note that it was the EEOC who brought suit on behalf of demoted Sidley partners.

Correction

Post corrected on March 14 to note that it was the EEOC who brought suit on behalf of demoted Sidley partners. The ABA Journal regrets the error.