Addleshaw Goddard has voted through several major changed to its partnership deed, including changes that will slowly move the firm’s partnership towards and all-equity model. Currently, just 87 of the firm’s 189 partners are full equity partners: ‘Adopting a single class of partnership isn’t new, but we see some real benefits to a single equity structure… It feels fairer, more motivating and rewarding and for junior partners there’s the added reassurance of a fixed floor with incremental increases through a points-based system linked to performance,’ said a statement from the firm.
Exit restrictions
The proposed restructure will also reduce the term for senior and managing partners from four years to three, and place new rules around partner exits from the firm. Existing partners will be split into two categories: ‘Category A’ for fixed share partners, and ‘Category B’ for current full equity partners. Under the previous deed, no more than seven equity partners were permitted to leave the firm without board consent in any given financial year. While the new cap hasn’t been made clear by Addleshaw, the restructure will see the exit restrictions apply also to ‘Category A’ partners.
Sources: The Lawyer; Legal Business
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