The number of solicitors being promoted to partner has fallen for the first time since the peak of the recession as law firms struggle with a tough economic climate.
According to accountancy firm Wilkins Kennedy LLP, the number of new partnership positions created fell by 153 in 2011-12, whereas more than 2,100 new partner roles were created in the previous two years. It attributes this to a slump in promotions of solicitors and associates, adding that the rise in law firm mergers may also have caused a dip in partner numbers as practice areas consolidate.
Tommy White, partner at Wilkins Kennedy, said: “Slow growth in fees means fewer promotions are taking place. At the same time some partners at smaller law firms have been forced to delay their retirement because of the recession.”
“Some partners approaching retirement age have looked at their savings and decided that a comfortable retirement simply isn’t possible yet — especially with such low annuity rates.”
“They might also own commercial property and private equity investments — whose value will have been hit by the financial crisis. When existing partners delay retirement, it means that senior associates are forced to wait longer for their opportunity to join the partnership.”
White said firms may be reluctant to promote lawyers who don’t have a track record of bringing in income.
