Addleshaw staff set for payout after review of bonus system

Addleshaw Goddard has overhauled its non-partner bonus system after staff received no payout last year.

The national firm has lowered its profit trigger to a 26% margin after last year posting a margin of 26% on its 2008-09 turnover of £173m.

Last year Addleshaws had a profit trigger of 32%, which the firm failed to meet, resulting in non-partners missing out on a bonus.

Even if this year's 26% margin is not met, non-partners will still be eligible for a bonus for exceptional performance, which will be decided upon during individual performance reviews.

Bonuses are normally paid out dependent on four criteria - financial targets, individual performance, productivity and extra value-added measures including client skills and an observance to the principle of 'one firm'.

A firm spokesperson commented: "The bonus will be available to all non-partners across the board; for individuals who have made exceptional contributions throughout the year, if we are unable to pay a firmwide bonus. This will be worked out during the annual performance review process."

The news comes after Legal Week revealed last month that Addleshaws is set to overhaul its salaried partner bonus scheme in a move expected to see the firm scrap the firmwide performance element to better reward individual contribution and align salaried partner remuneration with equity partners.

The proposals would see fixed-share partners allocated a number of points - with each equivalent to the value of an equity point - based on their individual expertise, potential and performance. In addition, extra points could be awarded for exceptional performance.

Addleshaw Goddard on the Legal Week Wiki