ABA Offers Employee Buyouts Ahead of Reorganization

https://www.law.com/sites/almstaff/2018/02/15/aba-offers-employee-buyouts-ahead-of-reorganization/ (can’t access without membership)

https://finance.yahoo.com/news/aba-offers-employee-buyouts-ahead-065922229.html (what I can only assume is the content of the article)

The ABA is offering a buy out to its long term employees as an incentive for them to retire. Executive director of the ABA, Jack Rives, notes that eliminating or transforming positions is a frequent occurrence during reorganization. The re-organization is expected to occur in mid-April and are financially motivated as caused by declining membership and dues. According to the article, “nearly $11 million” was cut from general operations budge in the fiscal year of 2018 (see article). The treasure of the ABA said in a presentation to the ABA’s House of Delegates last week that an “additional $5 million in cuts are needed for the coming year.” (Id.) A $7.7 million operating deficit was reported in 2017. Executive director Rives told the House of Delegates lawyer membership to the ABA has dropped from 50 percent 40 years ago to 22 percent today.” (Id.). The ABA hopes to develop a new model that will help fight the declining members and the declining number of those members that are paying dues. (Id.).

Are the declining numbers explainable in part by the proliferation of resources available through other technology outlets? Is this just the beginning of old model failures coming to the surface?


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