Howard Kennedy has mooted plans to move to a full-equity partnership as it kicks off an internal review of its remuneration system.
The firm is set to bring more partners into the equity in the first half of 2016 as it updates its remuneration system, which joint managing partner Craig Emden said was “a little outdated”.
The firm currently has 18 equity partners on a part lockstep structure, with the remaining 57 partners on a fixed-share remuneration system.
Emden said the review includes plans to broaden the number of equity partners by May next year.
“We want to encourage younger partners to progress their careers,” he told The Lawyer. “While associates might wonder why they are not already a partner, I would then ask why are they not a full equity partner?”
The full extent of the expected changes is not yet known. Emden said there were a number of different options available to the firm, including moving to a full-equity structure or fixed-share partnership.
A small group of partners have been evaluating the various options as part of the consultation and are expected to present their findings in the coming month.
Howard Kennedy saw a 29 per cent increase in average profit per equity partner over 2014/15 from £279,000 to £360,000.
It also went through a rebrand last year, dropping the Finers Stephens Innocent (FSI) mention from its name nearly two years after its merger with the firm.
