Berwin Leighton Paisner (BLP) has delayed paying out bonuses to senior equity partners as a measure of caution in the difficult market.
Monthly and quarterly partner drawings have been paid as normal over the past year at BLP but bonuses, which are usually paid in separate instalments during the second half of the financial year and the first quarter of the next financial year, have been put off following management’s decision to exercise caution in light of the difficult market.
Managing partner Neville Eisenberg said the firm fully expected to pay the bonuses by June 2013, however.
“We have paid monthly and quarterly partner distributions over the past financial year in accordance with our usual timetable,” said Eisenberg.
“The performance element (ie, bonus element) for senior equity partners from the last financial year is usually paid in instalments during the course of the second half of the next financial year and first quarter of the following financial year. In other words, the partner bonuses for 2011/12 would usually be paid during the period November 2012- June 2013 in instalments.
“We operate a conservative and prudent approach to partner distributions which is important in the current market and expect to pay these bonuses in instalments by June 2013.”
Following an structural overhaul in 2010/11, 25 per cent of senior equity partners’ pay comes from a bonus, which is tied to individual performance across a range of financial and non-financial indicators.