Non-equity partners at the U.K. arm of SNR Denton will be asked to make capital payments for the first time, according to Legal Week. The 75 salaried partners from Denton Wilde Sapte, which merged with Sonnenschein Nath & Rosenthal in September, each will contribute between $16,000 and $32,000 in return for a small stake in the business.
A firm spokesman told The Am Law Daily, an affiliate publication, that the mandatory scheme, which came into effect on May 1, was approved by a partner vote as part of the original merger agreement and was designed to help non-equity partners, “buy into the concept of one global firm.” All of the firm’s U.S. partners contribute capital in this way. The spokesman denied that the move was a cash call or that it is in any way related to falling profit levels. The firm’s U.K. office recently announced that average profits per partner dropped 36 percent to just $370,000 in the fiscal year that ended April 30.
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