Due to unproductive members in its partnership, Shearman & Sterling were facing difficulties. Thanks to its restrictive partnership agreement, despite profit per partner, has tumbled by 4 percent in the year 2015 65 percent of a super majority of equity partners is required for a partner removal. This major problem for the firm is having a hard time dealing with this problem. Shearman was thinking of downgrading existing equity partners and sinking its current number of the practice group heads was disclosed by an anonymous partner to various media outlets, thanks to the firm’s push for a greater profit. The firm’s regional and global managing partners are supposed to be discussing this issue during a meeting in New York City on Wednesday.
Sherman & Sterling was bearing in mind a major renovation to its entire partnership structure but no one is sure about this. The firm’s plans to change to a two-tier partnership structure, a confidential memorandum leaked to Above the Law while making a non-equity partnership part through a time when many law organizations are reevaluating or phasing out this type of partnership model. Global Managing PartnerDavid J. Beveridge and Senior Partner Creighton O’M. Condon has made an announcement throughout the company, which explains the big changes the firm will face.