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Irwin Mitchell: we’ll float and take on the mid-tier

I think the move to external investors will be transformative as this will give the insititution many more levers to incentivise performance apart from cash. Barry is thinking old style. The use of options and such like can allow firms to incentivise "partners" and staff over a longer period of time linking their success with the success of the firm at the same time allowing for longer term investment rather than cashing out the profits each year in the form of partner draw. By unlinking the ownership from the management, firms will be able to hire leaders who are focussed on delivering shareholder value and good managment and the "patner" can concentrate on delivering the revenues. Furthermore, if a "partner" does not perform then the scrutiny from external investors and the board will probably be more robust than current partnership structures. Good luck to IM - I hope the succees.

29-Apr-2011

2:06 am