Pay & performance
In our experience, pay and performance issues can create considerable friction within partnerships and LLPs.
Different firms have different structures and cultures when it comes to rewarding performance (or dealing with perceived under-performance). It is important to deal with any issues within the context of the structure and culture of the firm.
Retention and incentivisation of strong performers can bean important factor; but so too can be instilling a culture of collegiality and the pursuit of longer term goals than merely this year’s profit-share.
It is also important in some circumstances to take into account not only the rules under the partnership/LLP agreement, but also statutory rules, for example regarding unlawful discrimination and whistle-blowing.
Our work for partnerships and LLPs in this area includes:
- advising on the remuneration and profit share terms of partnership andLLP agreements;
- advising on progression and promotion mechanisms within the firm
- advising on dealing with issues of under-performance
- advising on termination of partners andLLP members for performance-related reasons
- advising in relation to statutory rights, including unlawful discrimination and whistleblowing
- where necessary, defending litigation in relation to remuneration andunder-performance
- settling disputes through negotiation and/or mediation