Chinese firm trials new remuneration
Chinese firm Jun He, based in Beijing, is embarking on a three-year trial of a new remuneration structure. Jun He was founded in 1989 and since that time has operated on its original lockstep, which was almost completely merit-based, leaving seniority points only a marginal fraction of influence.comments powered by Disqus
Of the firms total 159 partners, 75 percent will adopt the new scheme during its trial phase. The other 25 percent will continue to use the existing remuneration structure.
The old structure inhibited upward movement of junior partners and gave less incentive to more senior partners to share their business leads within the firm. The new system will encourage more cross-selling between partners and teams at the firm.
The new structure also uses an annual review to asses a range of metrics based on market conditions, firm priorities and non-financial contributions, in order to allocate points.
The system was proposed and voluntarily adopted by more than 85 percent of the partners, however only 75 percent will take part during its trial phase.