Survey Finds Many Top UK Law Firms Are De-Equitizing Partners
Posted Nov 03, 2011 07:15 pm CDT
Many of the United Kingdom’s top law firms are either considering a plan to strip some so-called partners of their equity role or already implementing one.
Of the 34 law firms that responded among the top 50, a total of 20 were at least considering the option, reports Legal Week.
The survey was conducted by Smith & Williamson, a professional services company. Among other findings, it also determined that changes being made in partner compensation are accompanied by greater confidence in the financial future of law firms.
“Income levels are steady at the same time as costs are rising and that means profit shares are going down—one way to fix this is de-equitizations,” says Giles Murphy of Smith & Williamson.