DAC Beachcroft will reward top-performing partners with more generous bonuses after the top-25 Legal Business 100 firm voted through changes to its remuneration structure.
The national firm has introduced the new bonus scheme with immediate effect following a full governance review, removing a cap on the level of profit going into its merit pool to allow for more flexibility in remuneration.
The change is part of DAC’s new member’s agreement, which follows the consultation process started by senior partner Virginia Clegg and managing partner David Pollitt when they took over in November 2015.
A newly-established remuneration committee, including Clegg, will make recommendations to the LLP group board on the distribution of the bonuses.
Clegg said the changes ‘will support a more diverse international business operating in a variety of highly competitive environments’.
Partners also agreed to extend the powers of the LLP group board, run by Clegg, and to establish a new group executive role, reporting to Pollitt. A new audit committee will be responsible for financial matters and risk.
The changes also allow for the appointment of a non-member chief executive, although the firm said it is not actively seeking one at the moment.
Reflecting a greater focus of management on profit and reducing debt, profit per equity partner at DAC grew 20% from £358,000 to £432,000 this year, despite subdued revenue growth of 3% to £207m. It has reduced its debt from around £30m in 2015 to £19m since the new management team took over.
The insurance-focused firm is also responding to the need for wider geographic coverage in its core sector through collaboration with international firms.
In January, it signed up to the collaborative insurance alliance Legalign, while in December last year it established associations in Peru and Central America .
marco.cillario@legalbusiness.co.uk