Normal
PEP is calculated by dividing net income by the whole number of full equity partners at the end of the last financial year. PEP is an average figure used to benchmark the profitability of firms, which is not necessarily the same as saying that any partners take home this amount of money. Some could take home more, some could take much less depending on how the firm allocates its profits.NB: the ratio between the highest-earning and lowest-earning partners is now more than 9 to 1 throughout the top 100 firms in America, suggesting that an “average” profit is almost meaningless as it is too easily skewed by those at either end of the scale.
PEP is calculated by dividing net income by the whole number of full equity partners at the end of the last financial year. PEP is an average figure used to benchmark the profitability of firms, which is not necessarily the same as saying that any partners take home this amount of money. Some could take home more, some could take much less depending on how the firm allocates its profits.
NB: the ratio between the highest-earning and lowest-earning partners is now more than 9 to 1 throughout the top 100 firms in America, suggesting that an “average” profit is almost meaningless as it is too easily skewed by those at either end of the scale.
