Charles Russell shakes up equity

Charles Russell has restructured its equity partners’ remuneration package after an impressive financial year.
The firm’s turnover rose by 17 per cent and profits per partner went up 9 per cent. Previously, equity partners received an extra £20,000 for each year spent on the lockstep, up to a maximum of six years. They will now receive extra points each year, and the value of the points will be a percentage of overall profits.
Charles Russell brought in revenues of £41.7m in 2001/02, up from £35.6m the previous year. Average profits per equity partner were £260,000, up from £238,000 last financial year.
Managing partner Grant Howell said: “We changed the way we pay equity partners after looking at the competition. We now have a similar turnover to the other mid-sized firms and wanted to achieve similarities in the other indicators, such as the lockstep.”
At the beginning of this financial year, Charles Russell also changed its equity distribution, meaning partners at the bottom of equity took home less than they did in 2000/01. Last financial year, top of equity was £270,000 and bottom was £192,000. This year the top was £285,000, but partners at the bottom took home just £160,000.
Howell said that the firm had done this to change the ratio between the top and bottom of equity as previously the spread was too narrow. “Partners who came into the equity in 2001 are still on more than they were as salaried partners, and this has not affected those who were at the bottom in 2000-2001,” said Howell.
“We did this in a transparent way and all the equity partners agreed to it,” he added.