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They all murmured their assent.
‘But I think we all also agree that this firm cannot support unproductive partners.’
‘Meaning Matt,’ said Alex. Helen smiled.
‘Exactly. Look at what he’s bringing in: roughly the same as our best trainee. Not good for a senior partner.’
‘Sure, but he’s only been here a few weeks,’ said Alex. ‘Shouldn’t we give him a chance?’
Helen nodded.
‘Absolutely. I’m not suggesting anything else. I’m merely pointing out the obvious: his area of law is an additional service for this firm, not a core one, and I’m not entirely convinced that a family law solicitor is going to generate the same level of fees that the rest of us do.’
She paused, letting that particular nugget sink in.
‘So our hard work will be rewarding the largest stakeholder in the firm,’ said Edward with a hint of bitterness. Helen had guessed he would be the easiest to sway with the money argument; she had got the distinct impression that his fiancée Caroline was a woman who responded well to extravagance.
‘What are you saying, Helen?’ said Will. ‘You want to get rid of him? Larry would be furious.’
She had prepared herself for this argument; after all, they were Larry’s boys.
‘Not at all. We just need to have an agreement that rewards effort equally.’
She looked at each of them individually.
‘Look, Larry was an incredible figurehead and leader for this company, but he’s gone, and if I’m frank, his insistence on keeping his name on the masthead is really confusing the client base. In the last week alone I’ve had two major football agents and one FTSE 500 CEO calling up expecting Larry to represent them. When I told them he was no longer on active duty, they turned very sniffy indeed, thinking we were making excuses, that Larry didn’t consider them important enough. Is it any wonder that they took their business elsewhere?’
She laid her hands flat on the table.
‘I’m not saying that we oust Matt from the company. Simply that we de-equitise him.’
De-equitisation. It had been a buzz word around the big city law firms since the financial downturn. Getting rid of underperforming partners, cutting away the dead wood. They all knew that to survive in a shrinking marketplace, they needed to stay lean and effective. No one could afford to carry passengers any more.
‘So he becomes a salaried partner and not an equity one?’ said Will.
‘That’s right,’ nodded Helen, although she was quite sure Matt Donovan would leave the firm rather than suffer the humiliation of being demoted. That would force a sale of his equity, and Helen would make damn sure she was in a position to snap it up this time. Pierce’s. Helen smiled to herself. It had a much nicer ring.
‘Okay,’ said Edward. ‘Let’s say we all agree this is the way forward. I’m not sure there’s anything in the partnership agreement that allows us to remove someone.’
‘You’re right,’ said Helen. ‘It doesn’t, not at the moment anyway. But as you all know, changes to the partnership agreement can be made with a super-majority partner vote, so if all of us around this table think we should do it, then we can make it happen.’
Alex was frowning. ‘I still think we should give Matt a chance.’
‘We are,’ said Helen firmly. ‘All we’re doing is adding a clause to the partnership agreement that says that if anyone underperforms, we can reconsider their position as a partner. So if Matt performs as well as he should be – as well as we are – then he should stay. This is simply a safeguard. Many other big firms are doing it, and I think it’s fair and sensible.’
‘But the partnership agreement applies to all of us,’ said Will nervously. ‘Surely that will make our own positions more precarious?’
‘The three of you are bringing in ten times the fees Matt Donovan is billing, so I really don’t think you have anything to fear. Besides, with Matt out of the equity partnership structure, that leaves more of the profits to be spread around. At the moment, you’re each getting what, three, four per cent? I’m sure you’d all prefer a fairer slice for all the work you’re bringing in?’
She didn’t point out that once she’d bought up Matt Donovan’s shareholding, they would still only have a tiny percentage each.
‘Umm, Helen?’
Helen turned in her seat to see Sid Travers standing there holding a document case.
‘Sid? What are you doing here?’ she snapped.
The young trainee almost melted on the spot.
