Eversheds has finalised a major overhaul of its remuneration structure, which will put top partners at the firm in line to earn up to £1.2m. The national giant has put the finishing touches to plans to place partners in 12 performance groupings. Partners in the top band will stand to receive up to £1.2m, making them some of the highest-earning lawyers in the UK. Under the current system, top earning partners are receiving £630,000 this year.
However, chief executive David Gray told Legal Week there are currently no Eversheds partners likely to be placed in the top tier.
The new regime, which will be rolled out across the national giant from 1 May, 2007, was drawn up after a year-long consultation period and follows a formal vote earlier this year that saw just 5% of the firm’s equity partners reject the plans. The firm previously operated a six-tier lockstep.
Under the new system, Eversheds partners will be assessed on a series of performance criteria: client feedback and the ability to win new business; management of their teams; adherence to the firm’s core values; profitability; and overall strategic value to Eversheds.
Partner assessments will be carried out by a group of senior partners that includes Gray, Midlands head Alan Meredith, northern chief Stephen Hopkins and finance director Claire Hafner, as well as European chief Michael Brown, UK managing partner Bryan Hughes, London head Cornelius Medvei and the firm’s six practice group heads.
Gray told Legal Week: "There is no automatic calibration for this. This is about what the individual is generating, both inside the business and out. There is also the question of managing expectations so that people feel they have been dealt with fairly."
In contrast to many major UK firms, remuneration bandings will be fixed in advance by central management for two-year block periods in a bid to reward prolonged strong performance rather than brief periods of success by a particular practice group.
The shake-up comes as Eversheds gears up to roll out its new three-year strategy plan, which includes a £600,000 target for average equity partner profits.
