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COVER STORY: 75%*
*of assistants want an alternative to partnership. Time to act? |
The big news this month is that Allen & Overy has introduced radical measures in a bid to attract and retain top quality lawyers. From this month, associate pay will rise by 15%, with the firm’s lawyers also eligible for a performance-related bonus via a points system similar to lockstep. It will also introduce the role of ‘counsel’ as an alternative to partnership. The move has been seen as a drastic reaction to the crisis of confidence in the assistant market.
As our cover story points out, 75% of associates want an alternative to partnership. Throwing money at the situation and offering new career tracks will appease many in the short term. But it is the high level of disconnection felt by many assistants that will cause problems in the future. Many feel they have been sold down the river, particularly those deemed surplus to requirements three years ago when the transactional climate couldn’t accommodate them. With the capital markets booming, firms are having to atone for their unwillingness to invest in staff during the 2001-2003 downturn. They don’t have enough decent lawyers to do the work and have no choice but to buy talent back in.
Call it old fashioned but what many assistants want is a belief that they have a stake in the future of the firm. Last year – excluding retirements – the number of partners in the entire LB100 rose by 2%. If partnership is out of the question for most, then a meaningful alternative – in addition to quick-fix cash promises – must take its place.
James Baxter, editor
LEGAL BUSINESS APPOINTMENTS
The ultimate partner moves and our special Job of the Month section |
THE LEADER Pritchard
Cost-cutter law and the American way
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THE BUSINESS
Richard Lloyd reports on Herbert Smith’s success in the Middle East. Plus exclusive news and the best market analysis |
THE FORUM Career coaching
Anne Scoular, co-founder and managing director of Meyler Campbell,
on why executive coaching can be of benefit in maintaining the optimum performance of your lawyers |
 FEES Sale of the century
American law firms are reluctant to offer UK clients the discounts they have come to expect from UK advisers. Claire Smith asks whether this bold approach has become untenable
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 CORPORATE FRAUD Illegal business
Fraud is an estimated £72bn problem. James Lewis examines whether Lord Goldsmith’s review is comprehensive enough to tackle the issues |
COVER STORY: ASSISTANT SURVEY 2006
The majority speaks
The model of partnership as the only route for promotion has become unworkable, according to 75% of assistants in Legal Business’s poll of over 2,000 lawyers. Stephen J Doggett looks at whether there are any viable alternatives
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DUBAI AND THE MIDDLE EAST Palm springs
The arrival of top clients such as Goldman Sachs has made Dubai the place to be, but costs are up and competition is rising, says Anthony Notaras
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 NHS IT PROGRAMME Medical waste?
The NHS’s new IT system has been hit by delays, £30m in legal fees, and missing contractors, James Lewis reports. Where did it go wrong?
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THE LAST WORD
William Charnley of McDermott Will & Emery hedges his bets
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