Turnover (£m): 47.5
Average PEP: 208
Equity spread (£k): 113-307
Profit margin (%): 14
RPL (£k): 228

Pannone’s profit was down by almost 13 per cent in 2010-11, from £7.8m to £6.8m, while average profit per equity partner dropped by 9.5 per cent in the same period, from £229,500 to £208,000. Turnover fell from £49.5m to £47.5m.

The firm’s managing partner Emma Holt, who was elected to the role in May 2010, blamed the drop-offs in profit on one-off costs resulting from secretarial and
fee-earner redundancies (14 fee-earners were made redundant in the year) made as part of a firmwide restructure.

Other changes brought in by Holt include rewriting the partnership deed to create five divisions to sit above the firm’s practice departments and establishing a ­management board and a nominations and remuneration committee.

The management board has executive ­decision-making powers and comprises Holt, senior partner Steven Grant and the four other division heads. According to Holt, this is intended to spread ­responsibility for the business and allow strategic decisions to be taken more ­efficiently.

The firm has also overhauled its ­remuneration structure to a hybrid lockstep model. It is no longer assumed that ­partners will join the equity on 50 points (plateau is 100).

The firm has also scrapped its bonus pool and discretionary extra 10 points for high-performing plateau ­partners, replacing it with a system whereby a portion of all equity partners’ pay is based on performance.