Can you ask an employee to resign?
Generally, yes. But what if they’re over 60, built a lucrative practice for your company, and have a vested pension?
You might be opening the door to a multimillion-dollar lawsuit.
The $67 Million Question: How Not to Let a Senior Partner Go
Here’s a case in point that’s making waves in the legal and HR worlds: Stuart Herman, a former partner at Katten Muchin Rosenman LLP in New York, is suing his old firm for a staggering $67 million.
The claims?
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Age discrimination
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Fraud
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Denial of benefits
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Breach of contract
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Emotional distress
Here, briefly, is what went down…
Herman, 62, and his colleague Timothy Lyons, 60, led a successful aircraft finance practice. According to the complaint, the duo weren’t let go for poor performance, misconduct, or business restructuring. Instead, Herman alleges that age was the deciding factor.
The Allegations
Herman claims the firm’s leadership began systematically dismantling their group with no clear business rationale. He says the firm’s CEO and general counsel told him the malpractice insurance carrier had flagged him as a liability based solely on his age. (That’s not a red flag, right?) When he pushed back, he was allegedly pressured to resign and told he wasn’t protected by anti-discrimination laws. (Hmm could that be Red Flag #2?) If he didn’t leave quietly, he says, he was warned he’d be fired immediately—and lose his pension in the process. (Possible Red Flag #3).
What followed, according to Herman:
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Suspension without pay
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Prohibition from bringing in new business
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Public expressions of age bias by leadership
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Being shut out while still working on $100 million in active deals
It’s worth noting: Herman reportedly earned between $900K and $1.5M annually. And this all took place against the backdrop of a firm-wide revenue dip in 2022—raising the question: were higher-paid, pension-eligible partners being strategically nudged out to improve the bottom line?
Not surprisingly, the firm, for its part, denies all wrongdoing. It’s called Herman’s claims “desperate and baseless,” painting him as a disgruntled former partner.
Maybe he is. But does that mean he’s wrong?
The Bigger Picture
Even if Herman’s case doesn’t hold up in court, the damage to the firm’s reputation may already be done.
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👀 Current employees are watching.
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🧠 Future talent is taking notes (and yes many will decide accordingly).
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🤝 Clients might start to question the firm’s values—and judgment. Yes it does happen.
And let’s not forget the irony (and I do like pointing out irony): Katten Muchin Rosenman is a law firm that specializes in employment and benefits litigation.
What Should Have Happened?
Letting a senior employee go is rarely simple—especially when compensation, pensions, and legacy are involved. But even in tough situations, there are better, cleaner ways to handle transitions:
✔️ Document any legitimate performance concerns
✔️ Offer a phased retirement or severance package
✔️ Consult HR and legal before decisions escalate
✔️ Keep communication transparent and professional
Whether or not Herman’s allegations prove true, this situation shines a spotlight on a broader issue: how do we treat senior talent when the business evolves or priorities shift? Bosses who ignore this question, take note: You will someday reach the same age (unless you prefer the alternative?).
Why It Matters
We live in an era where workplace equity, ageism, and transparency aren’t just ethical concerns—they’re brand and business imperatives. One mishandled exit can spark years of litigation, millions in legal fees and settlements, and long-term cultural fallout. It happens all the time.
Letting someone go will never be easy. But doing it wrong? That’s a lot more expensive.
What do you think?
How do you balance risk, respect, and business realities when parting ways with high-level, high-earning employees?
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