Law firm pay structure to change say top leaders

Pay and incentives at law firms will need to change for practices to be able to cope with huge changes ahead, according to a survey of leaders in the sector in Scotland.

Issues such as the challenge of funding technology and innovation mean almost two-thirds (62 per cent) of partners questioned believe current compensation structures will not be fit for purpose in five years’ time.

The law leadership survey, published today by BDO, also highlighted greater client demands, generational change and legal market consolidation as the biggest factors that will impact on their businesses in the year ahead, although firms were generally positive.

The research also found that the changing nature of many roles may result in a move away from the traditional pyramid model of large numbers of junior associates, fewer senior lawyers and a small number of equity partners with junior lawyers being replaced by paralegals and technology now handling some lower level tasks.