Lovells shakes up salaried partner bonus ahead of Hogan deal
Lovells is set to change the way it pays bonuses to its non-equity partners to bring them in line with merger partner Hogan & Hartson. The new system will see Lovells' salaried partners receive a fixed sum paid out of a central bonus pool directly related to the overall profits of the firm. The fixed sum is yet to be decided.
March 08, 2010 at 06:19 AM
2 minute read
Lovells is set to change the way it pays bonuses to its non-equity partners to bring them in line with merger partner Hogan & Hartson.
The new system will see Lovells' salaried partners receive a fixed sum paid out of a central bonus pool directly related to the overall profits of the firm. The fixed sum is yet to be decided.
The regime will replace the current model in which salaried partners are paid a bonus equivalent to three equity points on top of their fixed salary. In the 2008-09 financial year, the three points were worth £36,798.
The new system, which will be paid for the first time from the end of this calendar year, will be phased in over a two-year period and ultimately lead to a bonus pool that amounts to 15% of the overall profits of the firm – the percentage currently used by Hogan & Hartson. This year the bonus pool will be at around 7% of the firm's profits while the following calendar year that will increase to 10%.
Lovells senior partner John Young commented: "As we have looked at and plan to change the way we pay our equity partners there will be some changes to the way in which we pay our non-equity partners."
Lovells had already confirmed plans to change its 10-year modified lockstep for equity partners, which runs from 30 to 60 equity points. This lockstep will swift towards Hogan's merit-driven pay model over four years from May 2010.
The transatlantic merger between Lovells and Hogan is set to go live on 1 May with the firms recently confirming their combined management structure and top-level committees. The union will create a top 10 global firm by revenue under the name Hogan Lovells.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllSkadden to Close in Shanghai and Make Cuts to China Corporate Practice
DWF Group's Canadian Firm Set to Add Fourth Office With 16-Lawyer Montreal Team
UK Law Firms Face £75M Money Laundering Investigations Alongside Russia Scrutiny
3 minute readTrending Stories
- 1The Law Firm Disrupted: Playing the Talent Game to Win
- 2A&O Shearman Adopts 3-Level Lockstep Pay Model Amid Shift to All-Equity Partnership
- 3Preparing Your Law Firm for 2025: Smart Ways to Embrace AI & Other Technologies
- 4BD Settles Thousands of Bard Hernia Mesh Lawsuits
- 5A RICO Surge Is Underway: Here's How the Allstate Push Might Play Out
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250