Earlier this year, King & Wood Mallesons overhauled its profit distribution structure so that payouts would occur on a monthly basis. However, a statement from the firm has confirmed that no such distribution was made in July following a partner vote in favour of a push for strategic recapitalisation. ‘King & Wood Mallesons confirms that no partner profit distribution was made in July. This should be viewed in the context of the recent announcement made with regards to the recapitalisation of the firm and a tax bill which is payable at the end of July.'
Prior to moving to a monthly model, King & Wood Mallesons’ quarterly distributions had been plagued by delays. The firm didn’t pay out the complete first profit distribution relating to the 2014/15 financial year until December 2015 – five months late – and had only released 25 per cent of payouts it was due to make in 2015/16 when it switched to the new monthly model in February.