Simmons finalises move to overhaul partnership track
Simmons & Simmons is set to finalise its move to a three-tier partnership later this month, with the firm overhauling its traditional route to partnership. The overhaul means the firm will now promote all of its associates into a fixed-share partnership rank – abandoning the previous system that saw associates first become salaried partners or occasionally go straight into the equity.
July 13, 2011 at 07:03 PM
2 minute read
Top 20 UK firm converts half of 90-strong salaried partners to fixed-share rank for 'clearer career path'
Simmons & Simmons is set to finalise its move to a three-tier partnership later this month, with the firm overhauling its traditional route to partnership.
The overhaul means the firm will now promote all of its associates into a fixed-share partnership rank – abandoning the previous system that saw associates first become salaried partners or occasionally go straight into the equity.
The firm will still keep a group of salaried partners, known within the firm as non-equity partners, for those choosing to leave the equity but remain partners.
All of Simmons' salaried partners were offered the chance to become fixed share as a result of a decision in April, with more than half of its roughly 90-strong salaried partner rank taking up the new status, as well as all those promoted as part of the firm's most recent internal partner promotions in May.
Simmons declined to comment on how much the fixed share equates to, but all of the partners will take the same share, with some regional differences, progressing through a number of tiers within the rank before joining the full equity partnership.
The firm said the "clearer career path" will be an incentive for partners to work through the ranks and would therefore help boost the firm's profits per equity partner, which stayed broadly static during the last financial year, at £460,000.
As previously reported by Legal Week, the fixed-share rank will not be expected to contribute capital but will gain full voting rights on key firm issues, including management changes.
Managing partner Jeremy Hoyland (pictured) commented: "This change is about partners getting a say in the business but also about a more natural, clear progression through to equity."
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