China's Yingke Reduces Lawyer Performance Targets Amid Coronavirus Outbreak
Individual revenue targets for all of the firm's lawyers were reduced by 20%, but the firm says it remains confident it will achieve a 30% increase in firmwide revenue this year.
March 12, 2020 at 11:00 AM
3 minute read
China's Yingke Law Firm will implement a series of programs, including a reduction of lawyers' individual performance targets, to help overcome coronavirus disruptions.
The Beijing-based law firm said last week it will reduce the minimum revenue target for every lawyer in 2020 by 20% as part of an effort to help lawyers relieve performance-related stress during the downturn caused by the coronavirus. Women lawyers will receive a further 20% reduction on minimum performance target, the firm said, in order to encourage their growth.
In addition to performance targets adjustment, Yingke, which has nearly 9,000 lawyers, also announced a firmwide exemption for the cost of renting office and cubicle space in February, given that most lawyers in China weren't able to do business that month. Yingke operates in a traditional Chinese law firm structure where most lawyers operate as individual contractors with a firm affiliation; for a fee, they can share the firm's resources, such as office space and administrative support.
The rental waiver will apply to all 77 of Yingke's domestic offices, regardless of local regulations. New lawyers joining the firm between now and June 30 can work six months rent-free in their first three years.
Meanwhile, Yingke has also signed up all of its lawyers for an online virtual office system that will be available for free in 2020. The system, which the firm dubbed LAW WIT allows lawyers to handle case matters, sign documents and sort out administrative matters online.
The entire relief package, according to Yingke global chairman Mei Xiangrong, is worth rmb100 million ($14.4. million).
"The February rental exemptions alone are worth close to rmb30 million ($4.3 million)," Mei said. "The online virtual office system costs rmb3,650 per person per annum—that's over rmb32 million ($4.6 million) for 9,000 lawyers."
He added that, for 2,000 new lawyers, the six-month rental exemptions will amount to rmb40 million ($5.8 million).
Yingke is the second-largest law firm by head count in the world, according to the most recent Global 100 report. The firm also reported $624 million in 2018 revenue, a 40% increase from a year earlier, making it the 78th highest-grossing law firm in the world.
Mei said that, despite the reduction in individual revenue targets, he hasn't lowered expectations for the firm's overall revenue in 2020.
"In the past, over 90% of our lawyers achieved revenues exceeding their targets … We expect firm-wide revenue to grow no lower than 30% this year," he said.
Even if a lawyer performed below their target this year, they will not lose their job, according to Mei. "As long as they recognize our culture, they will have the chance to make up next year," he said.
|Related Stories:
China's Yingke Grows in US Without CKR, Recruiting Some of Its Lawyers
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