AG launches new bonus scheme for salaried partners
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Addleshaw Goddard is proposing to introduce a points-based bonus system for its salaried partners after plans to introduce an all-equity partnership were abandoned.
Under the new plan fixed share partners (FSPs) and directors would be awarded points reflective of both individual performance and the profitability of the business, with each point equal to the value of an equity partner point.
Recipients would be able to move up and down the points pool and see where they sit in the scheme but would not need to contribute capital to the firm.
Under the current scheme recipients can earn up to 50 per cent of their base salary on the basis of individual performance, while a separate element links rewards to firmwide year on year profit rises.
Last year, however, profitability fell by at Addleshaws, meaning that no salaried partners were eligible for the firmwide profit-linked element.
The firm consulted at the end of last year on eliminating the salaried partner role, but decided instead to tweak the current structure.
This follows news that Simmons & Simmons has redesigned its salaried partners bonus scheme after a reliance on firm-wide profitability meant that not one single partner got paid (TheLawyer.com, 25 January 2010).
