LG to ditch salaried partners

Hugh Maule

Hugh Maule

The firm’s management has consulted all 24 of its salaried partners, inviting them to convert to the fixed-share equity role.

If the ­voluntary scheme goes through it will be phased in during the ­coming months.

“We’ve put it out to all the salaried partners,” said ­managing partner Hugh Maule. “If they don’t want to they don’t need to do it.

“I think salaried partner is becoming a bit of an anachronism. There are advantages to the firm in terms of national insurance and tax savings as well.”

The firm currently has three classes of partner – salaried, fixed-share and equity. Internal promotions from the associate role tend to be made into the salaried tier. There were three
made up in 2009 and five last year.

Lateral hires usually join the ranks of the fixed-share partnership, which currently has 13 members. The 49 equity partners took home on average £281,000 each last year, a 35 per cent drop on the previous year.

Maule said: “Part of the rationale is that it is slightly unwieldy having three ­different types of partner. It’s probably ­better to have two rather than three classes.”