A third of City law firms fear that partners will be enticed over to other law firms, as the economic recovery sets in - taking clients with them and pushing up compensation packages, according to research from Thomson Reuters Legal UK & Ireland. Concern over partner pay inflation is rising among the law firm finance directors who participated in the research, said Samantha Steers of Thomson Reuters. She said: 'This has not really been an issue for most big law firms at all in recent years but now it’s a prospect which is clearly rattling many top 100 finance directors, who are keen not just to preserve but improve their firms’ profitability as the economic outlook improves.'
On alert
Law firms are under pressure to cut their fees to clients - particularly, in London, whilst being in intense competition with the high-paying US practices. The Thomson Reuters research also found that FDs are not taking the economy recovery for granted, remaining alert to possibilities that it could fall back.
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