Thanks to the AFR for the following profile:
Partner Remuneration System
Performance-based with a bonus.
Partner Pay for 2008-09
Equity partners received from $470,000.00 to as high as $1,300,000.00, with most full equity partners getting less than $1,000,000.00. Fixed-share partners got between $175,000.00 and $440,000.00.
Pay
Estimated Profit Margin = 34%
Estimated Profit = $75,000,000.00
reduced by 10%Estimated Profit Per Lawyer = $170,000.00
Estimated Profit Per Equity Partner = $810,000.00
Revenue
Revenue 2008/09 = $220,000.00
Revenue Change = -6.3%
Revenue Per Lawyer = $490,000.00
Revenue Per Partner = $1,580,000.00
Revenue Per Equity Partner = $2,370.000.00
The Verdict
Chief executive partner Don Boyd admits revenue dropped last year due to a focus on profitability in preparation for the merger with UK’s Norton Rose. Headcounr was reduced by 10% and retail banking became less of a focus. Expected revenue was lost after the resolution of the GlaxoSmithKline and Biota litigation.
Comment
A 6.3% drop in revenue sank Deacons below DLA Phillips Fox, but Deacons will hope a new year – and a new name – will propel it into the big league. While many competitors are sceptical of Deacons’ ability to rival the largest Australian firms through the merger, others expect the arrival of Norton Rose – London’s 10th-largest firm by revenue – will provide a challenging new competitor.
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