The top 10 City firm is attempting to hit a profits per equity partner (PEP) figure of £600,000 for this financial year, which would represent a 13% rise, and is in the process of setting ‘ambitious’ goals for 2008-09.
Some of the firm’s partners believe the coming budgets, which are being drawn up by Simmons’ 10 international department heads, will place added emphasis on individual performance, although the firm denies that the move will lead to partners being required to meet profitability targets.
Previously, the firm’s office heads were responsible for drawing up the targets, but Simmons managing partner Mark Dawkins is keen to see individual practice groups improve their profitability.
In 2002, Simmons’ partnership blocked proposals to introduce a stronger merit-based element to the firm’s partner remuneration system, despite support from its City transactional and insolvency departments.
Simmons’ finance practice is the most profitable group in its
The firm hopes to match the profitability of its rivals. Of the top 10 City firms, Simmons currently has the second-lowest PEP, with rivals Herbert Smith and Lovells currently reporting PEP of £820,000 and £599,000 respectively.