UK firm mulls partner voting rights overhaul in governance review

Addleshaw Goddard is considering handing more power to its salaried partners by giving them voting rights on some aspects of the firm's management.

The national law firm is kicking off a governance review in the coming weeks in a bid to update its internal structures and is looking into extending the voting rights of its partners beyond the equity.

The review will be led by Monica Burch, who was elected to the newly-created role of chairman last month, replacing senior partner Paul Lee.

The move follows a decision against a transition to an all-equity model last year. Addleshaws also recently overhauled its bonuses to align salaried partner remuneration with equity partners, as well as better reward individual contribution. From May, salaried partners will be allocated a number of points – each equivalent to the value of an equity point – based on their individual expertise and performance.

Burch (pictured) commented: "We need a light touch governance review. This is not about navel-gazing, but where something strikes us as anachronistic it will get amended. There is no reason why voting should just be for the equity partners. We need to be open-minded and forward-thinking."

Other planks of Burch's strategy will include building Addleshaws' reputation in the City, while the firm's international strategy is now set to be reviewed by the board annually.

Partnership specialist Ronnie Fox commented: "It is quite unusual for salaried partners to be given a vote. At one time, being a salaried partner was just a route to joining the equity – these days that is not always the case. The partnership model is changing. If firms want to keep their salaried partners engaged and at the firm, hearing their voice and giving them a vote might be one way to do it."

The firm currently has around 70 fixed-share partners and over 100 equity partners.