Eversheds overhauls bonus system to reward strong performers

Three-pronged bonus structure rewards performance over hours

Eversheds is overhauling its associate bonus structure, moving towards a broader system that recognises team performance and client skills.

The new system, which will come into effect from the start of the new financial year on 1 May, sees the firm move away from a model based purely on chargeable hours to a system covering three elements.

All fee earners other than partners will be eligible to receive the bonus, which will be based on chargeable hours, individual performance and the financial performance of their own team within each practice group.

The firm expects that assistants will be able to receive up to 30% of their base salary as an additional bonus, although there will be no formal cap.

Between 15% and 25% of salary will be available based on chargeable hours, with the remainder to be split between individual performance across areas such as business development, corporate social responsibility and client skills and the financial performance of each lawyer's individual team and practice stream.

The previous system allowed lawyers to make up to 25% of their salary based entirely on chargeable hours, with fee earners having to work more than 1,800 chargeable hours annually to qualify.

The system will initially only apply in the UK but could be rolled out to overseas offices in the future.

Eversheds chief executive Bryan Hughes said: "Lawyers in a successful modern law firm must be not only fee earners, but also business winners, client managers and team players. This innovative new bonus scheme gives Eversheds the flexibility to recognise great performance in a holistic manner and reward high performers who display commercial acumen in everything they do."

Eversheds is still in the process of reviewing its associate salary for 2010. It has yet to make a decision on moving to a more performance-related system - potentially joining the growing ranks looking at options beyond assistant lockstep.

Eversheds on the Legal Week Wiki