Bingham Problems Stem From Major Partner Payments

Bingham

Law firm mergers are tricky business, but the payment to Bingham partners of amounts of up to $4 million to $5 million contributed to the problems for the firm, the departure of partners and other major issues.

AmLaw Daily reported the story about the financial guarantees to the former McKee Nelson law firm after its 2009 merger and following AmLaw’s interviewing several of Bingham’s former partners.

Bingham told partners the total value of the guarantees was $59 million in 2010 and $70 million in 2011, the story says, citing sources briefed on the matter. The value decreased as the guarantees expired. The largest of the guarantees ended last year.

The five largest annual payments to McKee Nelson partners ranged from $4 million to $5 million, the story says.

Bingham confirmed to the publication that guarantees were paid, but said it could not comment on amounts paid to individuals. According to the story, the deal to pay guarantees “now raises questions as to what role it played in the lead-up to the firm’s current financial state, with revenue and profits plunging in 2013 to mark its worst financial performance ever.” The story notes that the slowing of countercyclical practice areas and increased expenses also contributed to lower profits.

Bingham had an open compensation system, but the law firm agreed to keep guarantees paid to individual lawyers at McKee Nelson secret for their duration, in keeping with McKee Nelson’s closed compensation system, the story says.

Bingham is looking for a merger partner and reportedly approached at least four major firms within the last three months, according to a report published earlier this month.


The Right to be Forgotten and The Effect on Recruitment

The ‘right to be forgotten’ ruling will force google to eradicate links so that the information does

The recent European Court of Justice ruling regarding the “right to be forgotten” has altered many things for many people, including the people who use Google for background checks like the rest of us – The recruiters.

So what changes will be made by recruiters given the ECJ’s ruling about the need for the search engines to remove “inadequate, irrelevant, or excessive” information at the request of the very people recruiters are checking out?

Requests granted under the “right to be forgotten” ruling will force Google, Bing et al to eradicate links so that the information doesn’t appear on search results, remaining undiscoverable.

Understandably, recruiters and other commentators have warned that the ruling could detrimentally impact the screening process. If access to certain data is removed, will it cause the “wrong” candidates to be hired? Or is it actually better for people’s job prospects?

Promotes fairness
One notion suggests that removing old links can only make screening fairer. Searching the internet presents recruiters with information that they wouldn’t ordinarily see, which might then prompt subconscious, prejudiced decisions about an applicant.

A spent conviction, for example, doesn’t necessarily mean that an applicant won’t perform well in a role. What if the information that was posted was slanderous or not proven? Removing associations between such content and an individual surely must improve screening, preventing recruiters from unfairly discounting people.

Negative connotations
Or could it have the opposite effect? Will the removal of links cast suspicions on an applicant? Jonathan Zittrain, writing for ft.com, wonders whether a “specific notice that a search on someone’s name is missing something could lead to negative interference about the person – which might be worse than the substance of whatever has been removed”.

Google’s senior vice-president for corporate development and chief legal officer, David Drummond, said that the company is doing its best to be transparent but can’t “be specific about why we have removed the information, because that could violate an individual’s privacy rights under the court’s decision”.

It’s been proposed that search engines could keep “an independent database of takedowns”, but would this “resource” eventually form part of the screening process, with the results being used against an individual?

Individual rights v public rights
Mashable says Google has received more than 70,000 requests from aggrieved individuals since the ruling was made. The big dilemma, however, is achieving a balance between an individual’s right to be forgotten with the public’s right to know certain information.

Read more at The Guardian

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