DLA Piper considers firmwide partnership structure overhaul

DLA Piper is planning to overhaul its partnership structure, with the firm to consult with partners about options including a shift to an all-equity partnership.

The firm plans to discuss overhauling the partnership in DLA Piper International, which includes offices in the UK, Europe, the Middle East and Asia, where it currently operates a three-tier partnership split between a band of equity partners and two tiers of fixed-share partners.

Partners suggested a consultation could launch as early as September, with one option on the table including asking fixed-share partners to contribute capital in return for equity status.

Any move in this direction would take the international partnership structure closer to its US business, where 275 salaried partners were asked to contribute capital for the first time in late 2008 in return for a direct stake in the firm's profits.

The all-equity partnership consultation, which forms part of DLA's three-year strategic plan running from 2011 to 2014, comes after Legal Week reported in October 2010 that the firm had put plans to move to a one-tier partnership on the back burner.

The firm initially put together a working group in 2009 to look at the issue, planning to make changes by May 2011, but delayed the project, with some partners attributing the delay to higher than anticipated activity levels during the downturn. DLA Piper also appointed PricewaterhouseCoopers to look at issues including aligning partner careers and remuneration.

DLA Piper managing director of groups and services, Andrew Darwin, said: "The intention as outlined by our current three-year strategy is to conduct a review of our partner structure and then make a recommendation to the partnership. We will look at a range of options including having one class of partner."

A partner at the firm said: "The firm is moving in the right direction. It will show that management has trust in its partners and it will give them a greater sense of ownership. The firm will require less external funding and there will be more partners to share the risk."

DLA Piper's three-year strategy also addresses areas including the firm's geographic spread and the services it offers.