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Hammonds posts 9 per cent drop in PEP

Still some way to go? “Lock ins” have unhappy consequences – (1) the good and the bad are locked in together, (2) the people who have suffered the pain consider themselves entitled to a bigger slice in the future and new equity becomes restricted (how many equity partners have been made up in the last three years?) and (3) the firm takes years (if ever) to shake off the “firm in distress” image (as other comments demonstrate). They have pulled out an unlikely success in recovering from the “black hole” and Crossley and the other partners deserve credit. We can expect the credit crunch to affect corporate and banking departments (in the mid tier firms) adversely in next year’s results. What might be worrying for Hammonds is that corporate and banking were, according to Crossley, the performing teams last year.

3-Jul-2008

10:28 am