Posted Mar 15, 2012 07:43 pm CDT
Putting DLA Piper’s offices in the United Kingdom, Europe and Asia on the same footing as its United States offices, the firm’s partnership voted this week to establish a one-tier, all-equity partnership.
Converting all 628 of the firm’s foreign partners to full equity status (they are presently split about equally between equity, salaried and fixed-share partners) is expected to raise around 20 million pounds, or about $31 million in U.S. dollars at the current exchange rate, for the megafirm, Legal Week reports.
Non-equity partners probably will be asked to contribute a minimum of 50,000 pounds, or about $78,000 in U.S. dollars, to join the equity ranks, the article estimates. However, they will get three years of guaranteed salaries, to ensure that the move to equity status doesn’t reduce their pay during that period.
The U.S. offices of DLA Piper agreed on an all-equity partnership in 2008, resulting in contributions of up to $150,000 by 275 partners.
The change in partnership structure in the firm’s other offices will take place on May 1, 2012.
ABAJournal.com: “DLA Piper Asks 275 Non-Equity Partners to Ante Up, Goes to 1-Tier Structure”
ABAJournal.com: “DLA Piper and Several Major UK Firms Cut Partner Payouts”
ABAJournal.com: “DLA Piper Considers Switch to All-Equity Partnership in International Offices”
ABAJournal.com: “DLA Piper Could Jettison Some Smaller Clients, Lawyers with the Wrong Business Fit”