In this Ten-Minute Talk, Managing Partner Clare Murray and Partner Zulon Begum discuss LLP agreements, with a particular focus on partner remuneration.

Key takeaways from this Ten-Minute Talk:

  • The importance of ensuring the firm’s partner remuneration system, metrics and procedures are clearly documented within the LLP Agreement and any associated policies and allow for a degree of flexibility to respond to issues such as exceptional performance or partner absences and reduced working time  
  • Current areas of focus for firms relating to partner remuneration include (i) ensuring remuneration systems encourage high performance and incentivise transition to higher tiers (e.g., fixed share to equity), (ii) aligning partner KPIs with firm strategy and (iii) ensuring a fair, transparent and clearly documented appraisal process, including an appeal mechanism in appropriate circumstances
  • Key trends in partner remuneration systems and how they are developing; firms with modified lockstep systems are placing a greater degree of emphasis on rewarding individual performance