UK Law Firms in London
Historically
Prior to the past 5-10 years, UK firms in London have had significant numbers of salaried partners within their partnerships. After significant tax changes during the 1990s, this situation has been transformed and the majority of salaried partners became 'fixed share' equity partners (sometimes called 'B' equity).
Today
A small number of the larger UK practices remain pure equity. However, the majority of UK firms have reasonable numbers of fixed share partners. Some firms have as many as 60-70% of their partners in this category.
In the main, this is a level of partnership that is provided by law firms as a bridge between assistants and equity partners. It is common for individuals to stay at this level for between 2-5 years before being considered for equity. Increasingly there has to be a business case to promote individuals into equity and if this case is not satisfied, individuals stay at this level on a permanent basis.
Market Demand
As with equity partners, there is a very active market for fixed share partners which is divided between opportunistic and strategic opportunities.
- Opportunistic – Most small firms, many of the medium-sized practices and some of the larger practices are always interested in looking at junior partners who have significant clients to bring with them. As an indication, individuals will be expected to deliver three times their earnings in terms of new business introduced.
- Strategic – There has been a trend with firms looking to recruit in strategic areas to take partners on a fixed share basis. This is normally quicker, cheaper and allows law firms and individuals the chance to get to know each other before committing to equity. Some firms will only hire at this level.
In general terms, client development skills and client followings will be expected in all cases where partnership is immediate.
Client followings at this level are not expected to be huge, but are seen as an indication that clients like and respect the person in question.
As market conditions improve, client followings become less important at this level compared to the individual's skill set.
Notice Periods
These are generally 6 months within UK law firms.
Levels of Income
| Substantial City Practices | £150,000 - £270,000 |
| Medium-sized City Practices | £120,000 - £175,000 |
| Smaller City Practices | £70,000 - £125,000 |
| West End Practices | £70,000 - £110,000 |