Top UK firms take shears to equity partnerships

Top UK firms are taking the shears to their equity partnerships, according to a new survey by professional services firm Smith & Williamson. Of the 20 firms in the UK top 30 to complete the survey, nine were already in the process of de-equitising partners, and another six indicated that they expected to consider the move during the current financial year. Expanding the view to the top 50 firms, 20 of the 34 responding firms were either already making de-equitisations or considering it. Smith & Williamson head of professional practices Giles Murphy said: “Income levels are steady at the same time as costs are rising and that means profit shares are going down – one way to fix this is de-equitisations. I don’t see it as a one-off. It’s not a relaxed job for life anymore – partners have to compete on an annual basis now.”

Top UK firms take shears to equity partnerships legalweek.com Fri, Nov 4, 2011