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Article: Partner pacts stop raids on clients. (non-compete covenants)
- Article from:
- Accounting Today
- Article date:
- March 18, 1991
- Author:
CopyrightCOPYRIGHT 1991 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Partner Pacts Stop Raids on Clients
With the accounting profession growing edgy as some firms fail and others cut their partner ranks, firms are showing renewed interest in noncompete covenants.
Just ask the powers that be at KPMG Peat Marwick. Sources report that the firm is requiring the 265 partners slated for separation to sign a noncompete covenant before they can receive their severance benefits.
These covenants are the profession's way of guarding against the time-honored business custom of trying to cut and run with the client list.
"Most professional firms put them in [partner agreements]. It's really an economic question," ...