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Aspiring Lawyers - Applications & General Advice
General Discussion
Why a higher ratio of fee earner to partner hours results in a higher profitability?
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<blockquote data-quote="Jessica Booker" data-source="post: 27520" data-attributes="member: 2672"><p>what partners’ salaries/dividend payments? Highly unlikely but in annual reports you can see what was paid as remuneration to partners as a whole (eg paid a salary + benefits before profits are calculated).</p><p></p><p>But even that figure isn’t straight forward or clear cut. Some firms loan partners money to allow them to buy into the equity - this loan then has to be paid back, so would skew data.</p><p></p><p>Some partners choose tax efficiencies and may not draw as much, and so are owed (typically when they are nearing retirement or if they know they are leaving).</p><p></p><p>Have a look at A&Os annual report - this will give you a really high level view of profits/partner payments and the like.</p></blockquote><p></p>
[QUOTE="Jessica Booker, post: 27520, member: 2672"] what partners’ salaries/dividend payments? Highly unlikely but in annual reports you can see what was paid as remuneration to partners as a whole (eg paid a salary + benefits before profits are calculated). But even that figure isn’t straight forward or clear cut. Some firms loan partners money to allow them to buy into the equity - this loan then has to be paid back, so would skew data. Some partners choose tax efficiencies and may not draw as much, and so are owed (typically when they are nearing retirement or if they know they are leaving). Have a look at A&Os annual report - this will give you a really high level view of profits/partner payments and the like. [/QUOTE]
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Why a higher ratio of fee earner to partner hours results in a higher profitability?
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