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Blake Lapthorn PEP sinks to associate level

I suspect there will be a lot of firms in the same position this year. Things have been really tough for practically every firm in the market and salaries were set during the boom times. It's not great news for the equity partners but they are after all the owners of the business so this is a risk they have to take. At least the firm is still in profit and they are not sharing a loss, which has happened to many businesses in different sectors. Salaried partners and associates are employees so have to be paid no matter what. The owners get to share what's left after all costs and rightly so. A couple of years ago their share would have been massively greater than that being paid to the associates and in a few years it will be again. This is just a business risk.

27-Jul-2009

5:37 pm