Semple Fraser gears up for remuneration overhaul” />
Scotland’s Semple Fraser is reviewing its remuneration structure in a bid to attract talent at the top of the equity.
The firm operates a modified lockstep that is 80 per cent weighted towards equity, with the remaining 20 per cent based on performance. Partners enter equity on 50 points and gain five each year until reaching the 100-point plateau.
Managing partner Alister Fraser said: “We’re looking at changing our equity arrangements so we have a single ladder with wider variants between the top and bottom. In Scotland quite a lot of firms seem to operate an equity that has a narrow range, with a lot of people nearing the top end. That means the average profit per equity partner [PEP] figure is very close to the highest level and that makes it very difficult to recruit at the top end.”
The firm wants to widen the equity spread and make progression relate to performance, allowing partners more scope to ‘eat what they kill’.
Semple Fraser is still finalising its PEP figure for the past financial year, but Fraser said net profit rose by 17 per cent during the 12 months to around £7m, while turnover grew by 15 per cent to £15m.
Fraser said the rises are due to the firm’s continued focus on six sectors: commercial property, construction and engineering, waste, extractive minerals, banking and finance, and projects.