Camerons set for partner departures as firm kicks off performance review
CMS Cameron McKenna is holding performance reviews that are expected to lead to a number of partners leaving the firm, with others set to move down the equity. It is understood that affected partners were told about the review - first reported on RollonFriday this morning (10 December) - within the last two weeks. Fewer than 20 partners are expected to be affected in total, with the review coming as the top 15 City law firm bids to increase profitability.
December 10, 2010 at 07:29 AM
2 minute read
CMS Cameron McKenna is holding performance reviews that are expected to lead to a number of partners leaving the firm, with others set to move down the equity.
It is understood that affected partners were told about the review – first reported on RollonFriday this morning (10 December) – within the last two weeks. Fewer than 20 partners are expected to be affected in total, with the review coming as the top 15 City law firm bids to increase profitability.
The move comes after Camerons recorded an 18.3% drop in profits per equity partner (PEP) for the 2009-10 financial year, with PEP dropping to £452,000, while revenue was down by 10.9% to £214.4m.
Camerons declined to comment on the extent of the partnership review, with a spokesperson saying: "We regularly undertake partner reviews and we never discuss individual partners."
One partner within the firm commented: "It would be wrong to talk about this now, as this is people's livelihood at stake, but this is something that needs to happen. We have low PEP and we need to drag this firm into the modern world. This is a big thing, but it is a positive thing. People have been dying for this to happen."
News of the partner reviews comes after Camerons last month secured partnership approval for a deal to outsource its back office function to legal process outsourcer Integreon. The move is expected to save Camerons between 10% and 15% of staff costs.
Camerons made a number of associate and staff redundancies during the economic downturn, laying off 73 people after a consultation that closed in June last year.
Further job cuts were avoided through the use of a flexible working scheme that saw around 700 UK employees – including 364 lawyers – sign up to either two weeks' unpaid leave or a reduced working week or sabbatical.
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