Aussie firms take tough stance on equity partners

In the last quarter Australian firms have taken a tougher approach to saying good-bye to under performing equity partners, especially in M&A.
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Aussie firms take tough stance on equity partners

Australian law firms' equity rationalisation lead to demotions tetxu

Legal recruiters have told The Australian that a range of measures are being taken - including raising the bar for an acceptable level of earnings, demoting under-performers to salaried partner level and asking them to leave. The Australian approach stands in marked contrast to the US approach where, a Wells Fargo analysis, published this week shows a greater reluctance to shake out non-performers. Katherine Sampson of Malhab Recruitment has said that the 50+ age group is primarily being targeted. She said: 'Money is tighter and you are seeing a rationalisation of equity. Partners are fearful the money they are used to earning will start to go down and that’s when the claws come out.' One well-known firm is said to have demoted or forced to leave 30 partners out of a total of 150 this year. Source: The Australian

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