Everyone knows that commercial law firms, exposed as they are to a considerable extent to volatile markets, should base a substantial amount of their remuneration in bonuses. Upcoming Legal Week research shows that such schemes are now rife, with 93% of leading UK law firms operating some kind of bonus. Yet, more than seven years on from the last round of boom-time pay hikes that initially gave the concept of bonuses traction, most City law firms have a long way to go before they get it right.
The main problem is transparency. Too many firms like the bonus concept because they are less comparable than the traditional post-qualification assistant salary bands. In short, they think (so far rightly) that it is far easier to conceal if you are paying less than your rivals.
