Thanks to the AFR for the following profile:
Partner Remuneration System
Performance based on objective formula for equity partners. About 55% are equity partners (principals) and 45% “base and bonus” partners (national partners).
keeping their heads above waterPartner Pay 2008-09
Principals earned from $600,000.00 to $900,000.00 though payment in US dollars may have pushed this above $1,000,000.00 at the upper end. Local partners received $300,000.00 to $650,000.00.
Profit
Estimated profit margin = 34%
Estimated profit = $53,000,000.00
Estimated Profit Per Lawyer = $200,000.00
Estimated Profit Per Equity Partner = $1,080,000.00
Revenue
Revenue 2008/09 = $155,000,000.00
Revenue Change 2008/09 = -8.8%
Revenue Per Lawyer = $590,000.00
Revenue Per Partner = $1,730,000.00
Revenue Per Equity Partner = $3,170,000.00
The Verdict
Managing partner Mark Chappie says the year was one of “consolidation and investment” in a volatile market and he is cautious for this year. “Market volatility continues to throw up valuable opportunities to make strategic investments in key practice areas which we are vigorously pursuing, keeping faith with our long-term strategies,” he says. Baker also has the benefit of a global referral network; it advised the firm’s Tokyo client, Asahi Breweries, on its purchase of Schweppes for $1.18 billion from Cadbury.
Comment
Baker went from having the largest revenue growth of the top 10 in the 2008 financial year to the biggest fall, of 8.8%, a year on, although revenue was still at the second-highest level ever. The firm has a leading private equity practice that suffered as transactional demand plunged in the wake of the crisis, while the profit margin slid as the partnership was hit salary and rent rises.
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From an insider, my impression is that B&M lacked management and was poorly run. My problem was quality of attorney in the so-called global network.