Shepherd & Wedderburn had a much better year in 2010-11 than in the previous 12 months, with turnover rising by 6 per cent and net profit up by 23.5 per cent.
This was in part the result of a three-year programme that has seen the Scottish firm harden its stance on factors such as chargeable time and business development.
Management is split into two areas. A partnership board takes responsibility for governance and strategy, while the executive board oversees the day-to-day management.
he former is made up of chief executive Patrick Andrews, chair James Will and four elected partners; the latter consists of the heads of the firm’s four main business units as well as the heads of HR, finance and IT. There is also a four-person remuneration committee. ShepWedd operates a modified lockstep running from 55 to 130 points, although it does not utilise every step and theoretically a partner could move from fixed-share to plateau equity in a single year. Currently the highest rung in use is 120 points.
Equity partners contribute £1,000 per profit point to the firm’s capital base. For the past financial year those on the bottom of equity received a profit share of £160,000 and contributed £55,000, while plateau partners received £348,000 and had £120,000 invested in the firm. The firm’s 23 non-equity partners are not asked to contribute capital.