In an effort to secure their merger, partners at Allen & Overy and Shearman & Sterling faced significant hurdles. However, one of the main challenges was Shearman’s pension. Allen & Overy was bracing for a large liability that could potentially make the merger unattractive. To help counter this issue, Shearman’s leadership approached over 150 retired partners, asking them to make adjustments to their pensions. This move significantly bolstered the feasibility of the merger.
A retired Shearman partner conveyed the sentiment among the pensioners: “It was clear that if we didn’t approve the pension, the [Allen & Overy] deal wasn’t going to go through”. This pension adjustment was a strategic decision that enabled the merger to proceed, ultimately merging two of the world’s biggest law firms.
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