Post by Law.com International

Krishnan Nair: "What Clifford Chance is facing right now is rare and basically untested in the market. But how compromised is the firm, really? "Some have argued that the most costly aspect of the NY dispute is unlikely to be the few million dollars the firm may or may not find itself having to pay out to the disgruntled former partners, but the potential competitive disadvantage the publication of the agreement now poses. "'Well it’s not good is it,' a senior partner at a global elite law firm told me last week. "'Pay structure, guarantees, terms…the bonus mechanics, clawback clauses. All their bargaining chips are public record.' "Most clauses in legal documents will spend their whole lives sitting on a page untested. But what this case does is tell current and prospective Clifford Chance partners what the firm is prepared to do in practice to enforce its clawback clause—its ultimate disincentive tool—to protect its business." Read "𝗪𝗵𝗮𝘁 𝗜𝗳 𝗬𝗼𝘂𝗿 𝗠𝗼𝘀𝘁 𝗩𝗮𝗹𝘂𝗮𝗯𝗹𝗲 𝗦𝗲𝗰𝗿𝗲𝘁𝘀 𝗚𝗼𝘁 𝗢𝘂𝘁?": https://lnkd.in/gHcUi_qV