Incentivising partners in a partnership structure

Copyright © 2025 LexisNexis
Published by a LexisNexis Share Incentives expert
Practice notes

Incentivising partners in a partnership structure

Copyright © 2025 LexisNexis

Published by a LexisNexis Share Incentives expert

Practice notes
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Introduction

Partnerships of all sizes continue to struggle with how best to design a partner Remuneration structure that is fair, motivates the right behaviours, and supports strategic growth. Today's world is increasingly complex, challenging, and unpredictable. Volatility and uncertainty are the new catchwords for business leaders globally. As firms evolve, so too must the systems by which they evaluate and reward their owners. What does this mean for the partnership Model? How can firms build resilience to not only survive but thrive in this new reality?

This Practice Note explores the current state of partner remuneration models, highlights emerging themes and innovations, and considers the question of whether a partnership's model is future-proofed.

Evolution of partnerships

Traditionally, partnerships were relatively small and collegiate. Partners worked together in one office, often shared profits equally, and rarely left the firm before retirement. However, the professionalisation and internationalisation of services industries over the past 30 years have radically changed the partnership model.

From the 1990s onwards, lateral partner movement, global expansion, and increased competition -particularly from highly profitable

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Partnership definition
What does Partnership mean?

A partnership (as defined) formed under the Partnership Act 1890 (PA 1890) and governed by English law is the 'relation that subsists between two or more persons carrying on business in common with a view of profit' and is also referred to as a ‘firm’.

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