DLA Piper to vote on giving all partners equity status
DLA Piper is set to vote on a measure that would move all salaried partners to equity status.
The firm currently has three classes of partner - junior salaried, senior salaried and equity, and the change would affect the approximately 70% of the partners that are in the first two categories. While there are some rumblings that the move calls for a significant capital contribution from each partner without significantly changing their profit share, the proposed scheme means that pay for strong performers would no longer be capped at the previous salaried levels.
Sir Nigel Knowles, DLA Piper's Chief Executive, said that "the firm has to strike a balance between bank and partner funding - if partner capital is increased, then bank facilities will be reduced". He stressed that the windfall in contributions wouldn't be going into the pockets of the current equity partners, and added that they "will neither be advantaged nor disadvantaged in terms of the distribution of profits earned in prior periods".
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