Italian independent to phase out junior rank in favour of profit share

Italy's Bonelli Erede Pappalardo has reshaped its partnership and elected a new compensation committee following its partner conference last month.

The firm plans to phase out its junior partner rank by moving the group into the equity.

The decision will see 13 junior partners become equity partners from 1 January, taking the equity partnership to 51. They will be paid based entirely on profit share rather than under the current structure, which sees them receive a fixed salary as well as a share of the firm's profits based on performance.

Six Bonelli partners will remain as salaried partners for personal reasons; however, the firm does not expect to promote further lawyers to this rank.

Bonelli managing partner Alberto Saravalle (pictured) told Legal Week: "The specific reasons for the elimination of the junior partner level are, first, so that their contributions can be evaluated using the same criteria applied to the equity partners; second, to ensure that the compensation methods are based on the same point value system; and third, to allow young partners to promote relations with clients, who will simply focus on their ability, without drawing distinctions based on title."

The leading Italian independent has also elected a new compensation committee and made changes as the current committee's three-year term draws to a close.

Partners Vittorio Allavena, Eliana Catalano, Marcello Giustiniani, Carlo Montagna, Roberto Pistorelli and Andrea Silvestri have been elected to the committee with effect from 1 January 2011.

The firm has changed the committee's terms to ensure continuity. Half will now stand down after three years, with the remaining half staying in the role for a four-year term.

Separately, Bonelli plans to look at shortening its lockstep and reviewing partner remuneration next year.