Friday July 24, 2009 at 4:37pm
Solicitors firms outside London are showing no signs of a recovery. According to an article in The Times this week, many such firms saw their profits fall by more than a third last year. The Article reports that many firms are imposing salary cuts of 10% or so in return for longer holidays as a way of cutting costs. I have seen this happen in firms in the Midlands area too and many very able solicitors are finding their route to an equity partnership blocked – why would existing partners want to share their dwindling profits amongst more people?
With no real increase in property development and corporate deals taking place, I can only think this trend will continue for some time yet. Some commentators are saying that no substantial improvement is likely until 2012 or even later.
Worst affected seem to be the large regional solicitors’ firms and the small high street general practice firms. Specialist niche firms, such Cousins Business Law, appear to be bucking the trend.
Indeed, we still have vacancies for good commercial lawyers and commercial litigators. We offer a generous profit-sharing arrangement which means that good lawyers can expect a substantial increase to what they are earning now.
This goes to show once again that recessions do create winners as well as losers, even among law firms. Well-run, flexible and truly forward-looking firms will always do well, even in today’s economic climate.
Gary Cousins
Business Solicitor
» Categories:
General,
Business
This blog is not intended to constitute legal advice, nor is it intended to be a complete and authoritative statement of the law, and what we say might be out of date by the time you read it. You should always seek legal advice to confirm whether or how any information in this blog applies to your particular situation. We offer a free 30-minute telephone advice session to discuss your particular circumstances.