Accountancy firms operating a mandatory retirement age of 60 could face legal action when trying to retire partners, warn Clare Murray, managing partner and Rachael Parker, trainee solicitor at CM Murray LLP
The issue of succession planning and the risk of unlawful age discrimination remains a persistent challenge in professional services, including accountancy firms. The recent leadership race of Big Four accountancy firm EY brought the question of age-related policies to the forefront of industry discussions once again.
Controversy arose in relation to the perceived impact of the global network’s mandatory retirement age (MRA) on global leadership race candidate and early frontrunner, Andy Baldwin, one of the firm’s highest paid partners in the US.
Baldwin warned the firm against age discrimination, in response to reports that his age (57) and proximity to the firm’s mandatory retirement age of 60, were featuring too prominently in the candidacy discussions.
