Field Fisher joins firms holding back profits as SNR Denton addresses past delays
Growing numbers of law firms have been holding back profit distributions in response to the ongoing economic uncertainty, it has emerged, with Field Fisher Waterhouse and SNR Denton joining the ranks of firms to have deferred payments to partners. Field Fisher has opted to delay payment of its March partner distribution ahead of a period of investment after paying the last three 'special drawings' to partners in full and on time. Monthly drawings have been paid as normal. Incoming managing partner Michael Chissick pointed to the firm's change of head office, lateral hiring programme and international expansion as reasons for a "more prudent approach" to distributions.
March 14, 2013 at 08:03 PM
2 minute read
Growing numbers of law firms have been holding back profit distributions in response to the ongoing economic uncertainty, it has emerged, with Field Fisher Waterhouse and SNR Denton joining the ranks of firms to have deferred payments to partners.
Field Fisher has opted to delay payment of its March partner distribution ahead of a period of investment after paying the last three 'special drawings' to partners in full and on time. Monthly drawings have been paid as normal.
Incoming managing partner Michael Chissick pointed to the firm's change of head office, lateral hiring programme and international expansion as reasons for a "more prudent approach" to distributions.
He said: "Due to our conservative approach to cash flow and debt, we have chosen to hold the [March] special payment. We will continue to assess our financial position over the coming months and will pay the March drawing when we feel the time is right."
SNR Denton, meanwhile, has delayed several profit distributions to partners in the firm's UK partnership over the last 18 months relating to the 2010-11 financial year.
While all 2011-12 distributions have to date been made on time and in full, the transatlantic firm paid out the previous financial year's profit share on an adjusted instalment schedule. All payments have now been made in full.
In a statement, the firm said: "We do not disclose details of the amount or timing of partner distributions."
Other firms to have delayed some distributions in recent months include SJ Berwin, Ashurst and Berwin Leighton Paisner, which has held back its annual bonus payments to senior equity partners due to unsettled market conditions.
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