Herbert Smith to de-equitize 15 partners

Herbert Smith is set to de-equitize around 15 partners – ten per cent of its total equity partnership – in order to reach profits on the same scale as the so-called ‘magic circle’ firms. The move follows a strategic review of the firm, and will involve removing 1,200 equity points from its corporate and finance teams, with a number of partners being asked to either move from equity status to the salaried level or leave the firm. The Lawyer points out that in 2010-11 Herbert Smith posted an average profit per equity partner of £900,000 against the magic circle average of £1.2m.

Herbert Smith to de-equitize 15 partners thelawyer.com Mon, Dec 12, 2011