The firm has removed a cap on the amount of its profit that is contributed to its “merit pool,” which means there will be more to split between the firm’s star partners.
The pay structure overhaul is just one of numerous new changes to the firm’s members’ agreement, which had not been changed since 2006. Managing partner David Pollitt and senior partner Virginia Clegg are leading a comprehensive consultation into changes to the firm’s members’ agreement.
DAC Beachcroft now also has a new compensation committee, composed of Clegg and at least one of the two non-executive directors of the firm, which will oversee how the larger bonus pool will be divvied up.
The firm has also approved a mechanism allowing it to look for a chief executive from outside the partnership. The firm said, however, that it has no plan to do so soon.
At the start of the year, DAC Beachcroft formed the Legalign Global alliance
with Australia’s Wotton + Kearney, Germany’s Bach Langheid Dallmayr, and America’s Wilson Elser Moskowitz Edelman & Dicker.
Wotton + Kearney recently took over
the DAC Beachcroft operations in New Zealand. It consists of offices in Auckland and Wellington.
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The DAC Beachcroft partnership has approved a new pay structure that allows for more bonuses to be given to the best-performing partners of the firm.