has introduced a new bonus scheme for all UK staff after preliminary figures revealed a 9 per cent increase in London revenue to break the £100m barrier for the first time.
London managing partner Gary Senior said the new bonus scheme, introduced from 1 July, would provide all fee-earners and support staff an expected 5 per cent bonus if the office hits its budget for revenue for 2006-07. If successful, the first bonuses will be paid in July 2007.
However, Senior said fee-earners could have their bonuses increased to 7 or 10 per cent to reward exceptional contribution over the year. “It’s more of a thank you scheme than a true performance- related bonus scheme,” he said.
The introduction of the scheme follows a solid year for the US firm’s London office, which operates on a June year-end. As reported on www. thelawyer.com (18 July), preliminary figures for the UK limited-liability partnership accounts show that gross fees jumped by 9 per cent, up from £92.1m in 2004-05 to £100.4m for 2005-06.
Net profit also increased by 15.5 per cent to reach £30.5m, although the office could not maintain the same level of growth in average profit per equity partner, which rose by 10.5 per cent to £526,000.
Senior said the London corporate and banking and finance teams enjoyed the most growth, contributing an estimated 26 per cent and 15 per cent to the overall revenue respectively. Transactional highlights included advising L’Oréal on its £652m takeover of The Body Shop.