Incoming managing partner Hoyland brings in junior equity rank

Simmons & Simmons is set to introduce a new tier of fixed-share partners in a move that will give some of the firm's non-equity partners voting rights for the first time.

The introduction of a three-tier partnership was approved by partners last month (27 April) and is one of the first key decisions by new managing partner Jeremy Hoyland (pictured), who formally took over from Mark Dawkins on 1 May.

Hoyland has also launched a strategic review that is set to identify where the firm will focus future investment, as well as less profitable areas that it may exit. The review is a key part of Hoyland's bid to improve profitability at Simmons, which last year saw profits per equity partner fall by 12% to £457,600.

The introduction of the new partnership rank will see some salaried partners offered the opportunity to become fixed-share partners before the summer. They will not contribute capital, but will share in the liabilities of 
being part of the equity partnership and gain powers to vote on key decisions such as management elections.

Currently around 90 of Simmons' roughly 200-strong partnership are salaried and therefore have no voting rights.

Hoyland said: "It is cost-neutral but I want to make people feel more engaged, and having a vote is quite an important point."

Meanwhile, the review of the practice areas comes after the firm merged its 10 previous practice groups into four key areas: corporate and commercial; employment; financial markets; and dispute resolution.

Hoyland added: "This prioritisation is a project that I am very keen on and care very much about. I think the firm should not be full-service but should instead focus on investing in growing the areas where we are really strong and can outperform others."

The firm's international strategy includes an initiative to strengthen its emerging markets practice, with the creation of three focus groups – covering China, the Middle East and Africa. Both Hoyland and new senior partner Colin Passmore are also keen to achieve a US merger.

Simmons would not comment on the likely balance of the partnership following 
the changes.