Birmingham giant Wragge & Co has become the latest firm to resort to managing out partners in a bid to bolster profits, The Lawyer can reveal.
The programme has so far resulted in six partners exiting the 117-partner firm since the start of the current financial year. However, it is understood that, by April 2005, at least one other partner may be managed out if that individual’s performance does not improve.
Additionally, two more partners are expected to leave Wragges, although it is believed that they have reached retirement age.
The departures are unusual for Wragges because the firm, which is an all-equity partnership, has historically prided itself on losing very few partners.
Commenting on the managing-out programme, a Wragges source said: “The meritocracy at Wragges has to apply equally… It’s true to say that we were probably a bit soft on this issue in previous years.”
Meanwhile, Wragges has reported a 7.25 per cent jump in its half-year turnover, rising from £38.6m to £41.4m. In the last full financial year the firm’s turnover remained static, while average profit per equity partner plummeted by 17 per cent to £210,000.