Turnover (£m): 87

Average PEP: 352

Equity spread (£k): 315-400

Profit margin (%): 16

RPL (£k): 259

Vision –
Execution –
Governance –

After raising eyebrows with a savage round of redundancies and a consequent 83 per cent hike in net profit in 2009-10, Shoosmiths maintained its ­upward spiral of profitability with a new strategy targeting high-value, low-volume work.

While the past financial year saw the firm’s turnover continue to decline, sinking slightly from £90m to £87m, its profit margin surged from 12 per cent to 16 per cent. Average profit per equity partner leapt from £256,000 to £352,000.

CEO Claire Rowe admitted that profitability is an area ­Shoosmiths had earmarked for improvement. The firm’s consumer division, Access Legal, has also shifted its focus to low-volume, high profit-margin work.

Rowe and chairman Andrew Tubbs head Shoosmiths’ ­management board, which also includes the chairs of each practice group and the directors of finance, HR and IT.

Shoosmiths’ equity includes 38 partners out of a total of 104. The firm operates a modified lockstep, combining a five-year ladder, ranging from 25 to 50 points, with an added merit-based element. All partners are set annual objectives and appraised at the end of each financial year, at which point the firm’s remuneration ­committee, which consists of six elected partners, including Rowe and Tubbs, allocates a merit-based pay component.

The firm is currently developing its Manchester office, which opened last year, into a full-service facility. And despite recent partner defections to Trowers & Hamlins and DWF in ­Birmingham, Rowe said the firm is intent on growing its existing teams and offices rather than searching for mergers or bolt-ons.