For McGrigors 2010-11 was a year of investment and cost-cutting that resulted in relatively flat turnover and profit figures. On the one hand the firm continued its expansion, opening in Qatar, moving into new premises in Manchester and signing a referral agreement with US firm Husch Blackwell. On the other it kept an eye on costs, cutting 40 jobs across its UK network at the beginning of the financial year.
The result? Turnover up by 1.5 per cent to £70m and net profit down by 3 per cent to £14.1m.
The firm is run by a 12-partner board headed by managing partner Richard Masters, who began a second three-year term in April. There is also an operations committee that includes heads of HR, business development and risk.
The firm’s capital base is made up of one-third partner capital, one-third bank borrowing and one-third retained earnings. The firm typically makes its final distribution of partner profit six months after the end of the financial year.
The remuneration system is entirely merit-based, with partners awarded points by a three-person remuneration committee up to a maximum of 60. Any points not allocated by the committee are distributed based on achievement.
McGrigors’ 37 non-equity partners, who contribute capital to the firm, earned on average £150,000 in 2010-11.