Partners who were asked to leave their firm, what was your severance? I’ve heard anywhere from 6 months to 1 year with retention of pension

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Should be a part of the partnership agreement.

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I wasn’t asked to leave my firm but was probably on that path if I hadn’t initiated the conversation myself. What is spelled out in the partnership agreement is much worse than reality. In my experience I negotiated a 6 months of compensation, a year of full family health insurance, immediate payout of my deferred comp and of course roll-over of my other retirement accounts. I also took clients and negotiated better terms than the partnership agreement spelled out for that. What I ended up paying for the clients and files was pretty close to what I received in compensation and health insurance.

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depends on your years of service. no pension if you haven’t had your ten years to vest

I heard it was one year of earnings plus retention of pension when they culled underperforming partners at our firm a couple of years ago (Big 4)

Hmmm good question- not sure. We’re also complicated by the fact that we changed to a cash balance plan ~6 years ago, so newer partners were vested already anyway.

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I dont think anyone getting culled now is going to get a whole year of covid-boosted earnings/share value/unit value. The real culling will happen when the market flips back to a more normal time....

Don’t you have an employment contract that spells it out?

Does anyone in this bowl have an employment contract? Are they in the right bowl if so?

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I’m just asking out of curiosity. It’s likely that some general guidelines are in the agreement, but believe these are decided somewhat case by case based on the facts and circumstances

I highly doubt the specifics are in the partnership agreement, for legal reasons. The firms generally wants soft landings for those who are counseled out, to minimize litigation risk.

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