News Law firms Shoosmiths posts massive profit hike despite falling turnover By Margaret Taylor 14 July 2010 11:18 17 December 2015 16:10 Sign in or register to continue reading. It's FREE Sign in Email Password Keep me logged in Forgot your password? Not registered? It's FREE! Register now Register with The Lawyer Anonymous 14 July 2010 at 11:27 Surprise surprise … another firm reporting rise in PEP and profits despite a fall in turnover … “Chief executive Claire Row said a series of cost-cutting measures were behind the boost in profits” … what Clarie Row meant to say was kicking out staff in an unfair manner, and make like hell for lawyers and staff who did keep their jobs has meant that partners have been able to enjoy more take home pay! The economic crisis has seen hundreds of lawyers forced out of work, and partners seem to forgets that these lawyers are skilled workers. Lawyers unable to find jobs have had to leave the profession, and so when the market bounces back and deal flow increases where exactly do firms and partners hope to find these skilled workers to come in to work on these transactions. Reply Link IHateBPP 14 July 2010 at 11:48 Looks like Shoosmiths permanently destroyed what reputation they had for a quick buck. Reply Link Anonymous 14 July 2010 at 12:06 Watch out Slaughter & May. Reply Link Anonymous 14 July 2010 at 13:11 What ever next!? Reply Link Anonymous 14 July 2010 at 14:18 Those remaining associates at Shoosmiths may be working at a deeply unimpressive, third-rate firm but at least they can console themselves with the knowledge that the partners really care about their staff and are genuinely decent and honorable people. Reply Link City Gent 14 July 2010 at 14:30 So the PEP goes UP 69% (albeit from a paltry level) and the pay for those few employees who are “lucky” enough to have kept their jobs goes DOWN by 3.5%. I’m not sure the term “equity” partner is really appropriate any more, as the word has connotations of fairness, which seem grievously misplaced. Perhaps “SITT” partner would be better – Snout In The Trough. Reply Link Anonymous 14 July 2010 at 14:46 The treatment of staff by Shoosmiths has been truly despicable. This PEP increase has been achieved purely on the back of very large numbers of redundancies (both announced and stealth), appaling treatment of trainees and a pay cut for remaining staff. Reply Link Tim 14 July 2010 at 16:15 Nicely done. Reply Link Anonymous 14 July 2010 at 16:22 “Turnover has continued to fall.” I’ve always thought that well-run firms should be able to weather the credit crunch storm and I imagine that all the redundancies and reduced pay/hours at Shoosmiths are just a temporary fix for a much wider problem. The Equity Partners should enjoy their 69.5% “windfall” while it lasts and the minions should brace themselves for more bad news in the future. Reply Link Anon 14 July 2010 at 16:42 No doubt all the staff they made redundant, and the trainees whose contracts they deferred without offering compensation, will be truly delighted at this news! Reply Link Ashley Balls 14 July 2010 at 21:38 It seems cutting to the bone is highly selective which may not be the best message to send clients. It will be intersting to see if a similar outcome in terms of cost reduction can be repeated next year. Reply Link Anonymous 14 July 2010 at 23:39 This just stinks! I love the smiling partner photo though! This is so blatantly selfish and greedy that you have to admire the audacity. If there was any justice……… Reply Link Anonymous 15 July 2010 at 12:46 Firms can’t keep on reducing costs just to increase PEP. Do they have a strategy for growth?! If Shoosmiths don’t tackle staff morale quickly they’ll be losing a few more people and not just the ones who are surplus but the ones who have kept the firm going thus far. What must the 90% of employess who took a cut be thinking when not only the PEP rises massively but also about the10% who didn’t take a cut. Maybe the equity partners would like to give the 90% some of their money back! Reply Link The man from the City 15 July 2010 at 14:19 well its nice to see that the Equity Partners are doing really well, one day they may think about the rest of the staff. Is Shoosmiths getting back to glory days or is this just a flash in the pan? Reply Link Anonymous 15 July 2010 at 16:21 A bit short sighted for the greedy Shoosmiths partners. Getting rid of their best and most loyal staff in return for more cash in their pay packets at least for this year. I think I would sack the person who has written their business plan first. Perhaps they should ask who is really earning them the money and building up the long term reputation of the business? Different and better ? er right… Reply Link Anonymous 15 July 2010 at 16:42 As an ex-employee of Shoosmiths this doesn’t surprise me one bit. They are the tightest, most unappreciative and most unprofessional firm I’ve ever worked for. After they have cut back on trainees and junior staff, it is not surprising that turnover is down. Most of those partners are probably dying of shock at having to do their own work. Reply Link Anonymous 16 July 2010 at 09:13 I believe assistants and associates will stay there just for the privilege of working for a “national” firm in one of its key strategic offices in the commercial hotspots of Northampton, Milton keynes, Reading Basingstoke and a business park near Portsmouth. Rumour has it they are thinking of re-opening their former offices in Daventry and Towcester to really shake up the big boys. Reply Link Anonymous 16 July 2010 at 09:50 Seems to me that Shoosmiths realised they were carrying a lot of dead weight and made a commercially sound decision to shed them . I can name several other firms who would do well to follow the same path Reply Link Anonymous 16 July 2010 at 11:51 Shoosmiths are one of a few firms I have worked at, and they do have this impression of themselves that they are “special” and “superior”. Not sure why though, always struck me as being below average – in all senses! Full credit to the 10% who did not take the pay reduction, shame all others did not follow suit. Reply Link Anonymous 16 July 2010 at 16:48 A tenth rate firm with tenth rate partners trousering their temporary windfall on the back of lay-offs whilst investing zero in the future. Long may they Halliwell. Reply Link Anonymous 19 July 2010 at 11:09 The way that Shoosmiths works amazes me. They want to be seen as commercial but at a time when they should be investing profits back in to the business and holding back on their take home pay they are grabbing all the money that they can for themselves at the expense of the business. A limited company holds back on dividends to their shareholders in difficult times isn’t it time that greedy partners did the same and saw past their own pockets. Just a thought! Reply Link Anonymous 19 July 2010 at 11:33 Anonymous | 16-Jul-2010 9:50 am. You may have a point with regard to redundancies. But what about those they retained who took reduced hours and pay? I’m assuming they are still expected to do a full workload – so hardly dead weight. Likewise you don’t take into account the fact that turnover hasn’t increased after all this. Why is there no new work coming into the firm? Perhaps Shoosmiths should be looking at its partners for the real dead weight … Reply Link Anonymous 20 July 2010 at 12:21 The smile says it all – bitch! 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