Ashurst doubles number of partners at top of equity and pays out bonuses to top performers
Firm rewards top performers after extending top of lockstep from 65 to 75 points in 2016
June 07, 2018 at 10:42 AM
2 minute read
Ashurst has increased the number of partners at the top of its equity ladder, with around 10 partners now sitting at the firm's 75-point plateau, Legal Week understands.
The firm has more than doubled the number of partners at the top from last year, when it gave four partners maximum points following an overhaul of its lockstep that stretched the top of the equity from 65 points to 75.
In addition to increasing the number of partners at the top, Ashurst has also handed out bonuses to about a fifth of its partners. The firm introduced a new system in 2016 that allows it to reward full-equity and fixed-share partners for strong performances in a particular year.
The partners now at the top of Ashurst's lockstep are understood to be spread across the firm's London, European and Australian offices, with at least one sitting within the firm's corporate group, according to a source close to the matter.
Partners discovered their new positions on the 25- to 75-point scale last month.
Ashurst revamped its lockstep in 2016, extending the top of the equity ladder in a bid to retain star performers, following a run of poor financial results and a spate of exits. When the new ladder was ushered in, partners told Legal Week the new plateau was intended to reward "a small, exceptional minority".
The following year, the firm also overhauled its profit distribution system so partners receive a single profit payment each year in addition to their monthly drawings, instead of a quarterly system.
Last year, Ashurst saw revenue climb 7% against an 11% increase in PEP that took average equity partner earnings up to £672,000 after a bruising 19% plunge in PEP in 2015-16 to £603,000.
Earlier this week, Ashurst re-elected chairman Ben Tidswell after he ran unopposed for the position. Tidswell's four year term will run from 1 November 2018.
Ashurst declined to comment.
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