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Profitability drive strengthens the case for salaried partners

As part of a bid to compete with its more profitable magic circle rivals, city law firm Lovells is considering the introduction of salaried partners.

18 February 2002

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Profitability drive strengthens the case for salaried
partners

As part of a bid to compete with its more profitable magic
circle rivals, city law firm Lovells is considering the introduction of salaried
partners.

Several
options being considered include making most new partners move through a fixed
period as salaried partners or even de-equitising some existing partners.
Partners, however, would be given incentives to work their way back onto the
equity. According to an estimate, the scheme could affect up to 15 per cent of
the partnership, although the process could take some years to
implement.
Although Lovells is one of the most profitable City firms outside
the magic circle, with average partner profits of more than £500,000 a year,
larger rivals Clifford Chance and Freshfields Bruckhaus Deringer last year saw
average profits in excess of £700,000.  

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