Amarchand Mangaldas has announced variable compensation to salaried staff on Friday with total rewards up to 80 and 95 per cent of maximum levels, as the firm is expecting a record turnover for the 2009-10 financial year.
Amarchand Delhi managing partner Shardul Shroff (pictured) said: “We have paid our bonuses to staff and variable compensation to our retained lawyers across the firm. We have maintained our bonuses and variable compensation - last year and this year is no different.”
He stated: “We have paid variable compensation ranging from 80 to 95 per cent of set levels to our lawyers for services rendered in the year 2009-10 in accordance with our usual practice.”
Shroff said that Amarchand’s salary structure consists of various seniority grades where between around 50 to 60 per cent of remuneration is fixed, with the rest being made up of a variable element. Usually that additional distribution is between 20 and 50 per cent of the base salary, said Shroff.
These bonuses and variable compensation are calculated on the financial figures as at 28 February and are announced and paid out in March of every year.
According to Shroff the firm had recorded its best ever set of financial results this year, which would be finalised on 31 March 2010.
“Like all firms which suffered, we too suffered in the recession. But we did not retrench at all. We rode the crises. We had a slow first six months,” he explained.
“We are ending our year 2010, with a turnover better than the best of turnovers of last decade… The recession commenced in the last six months of 08-09 but since we had a pipeline of work, we did our best performance from 1999 to 2009, in 2009.”
One Amarchand associate told Legally India that fee-earners were pleased with the bonuses paid out this year.
[Apologies for the delay on the associate survey of last year. We have decided to split the results into a series and hope to publish the first this week.]
Comments
USD 75 million revenues? Anybody else wants to speculate?
umm, on further thought - USD 75 million might be a tad conservative.
and AMSS - I ECHO #3. what is stopping you from announcing your results? why this secrecy? if you claim to be number one, why not be a trendsetter and let the world know, how well indian law firms are doing?!!!?
I would think AMSS's revenues are in the range of INR 250-270 crores.
Of course, they should pay the mumbai lawyers higher:-)
I would be very surprised if AMSS's revenues were less than 150-180 million dollars.
350 crore for a team of 20 across the board seems too high, probably the better teams make that much, while average teams would be closer to the 25 cr mark and the worst in the 15 cr range, so i would guess its closer to Rs. 400 cr. How much of that gets dispensed as fee to retainers and how much is retained by the equity partners??? lets speculate (help me out with the numbers, those of you who have better knwoledge)
say, 90 A0 - 12 lac * 80 = 10.8 cr
150 other A0-A3 at avg of 18 lacs = 27 cr
70 sr assoc at avg Rs. 30-35 lacs = 21-24.5 cr
25-30 prpl assoc avg Rs. 50-60 lacs = 12.5 - 18 cr
30 salaried partners avg Rs. 80-90 lacs = 24-27 cr
total = 95 - 108 cr roughly.
rental expenses will be minimal considering that most of their offices are owned.
That leaves a pie of around Rs. 300 crore for distribution after misc expenses (am not aware if they have any outstanding liabilities to discharge in respect of owned property)
What say you ppl of the above numbers?
Do you find educational institutions and universities disclosing their financials to UGC ?
This is not correct. I believe the Mumbai office is owned by the Shroff's and rented to the Firm.
Revenues of Rs.500 crores across all offices is a good estimate i'd say.
If this were the size of the Indian legal market, why would the foreign firms be interested? In fact if they do enter and operate in the current legal environment, where the local firms have no professional indemnity cover (another reason for lower cost of operation) then may be clients will prefer to engage them and may be pay a higher fee, in the hope that if things do go wrong then they can sue them in NY or London and get some comfort that they would be able to recover sizeable damages, unlike in India where initiating proceedings for professional misconduct against a law firm is unprecedented.
There are some interesting points about disclosure. It will be interesting to wait for the say when Indian firms will disclose their fixed remuneration scales and Legally India or some other similar site (Kian and the other guys in business are you listening?) will have a “inside information” section like “abovethelaw” or “rollonfriday”…. we wait for that day