Using a performance-based point system, lawyers will receive a share of the firm’s annual profit over and above the salaries and bonuses that they are entitled to
Bengaluru, November 15: Aimed to bring in a positive narrative for lawyers and the legal industry, technology driven full-service law firm Algo Legal has announced that it is expanding the firms’ profit-sharing beyond partners to associates and senior associates. Any lawyer that has spent over a year at the organisation, will receive a share of the firm’s annual profit, which is over and above the salaries and bonuses that they receive. Powered by an entrepreneurial spirit at the heart of the digital revolution, Algo Legal works closely with entrepreneurs and investors across sectors providing tailored legal solutions.
Across the world, the economic blueprint of law firms is largely similar, wherein partners at the top receive most of the profits, after the slivers of salaries, bonuses, and expenses have been met. This trend tends to create a skewed relationship amongst the teams and that reinforces the struggles of being a lawyer until one makes partner. Algo Legal, through its new narrative, aims to change this trend. Built on the foundational values of equity, merit, and solidarity, the firm believes that the principle of profit-sharing beyond partners will go a long way in helping deliver the best possible services to customers.
Commenting on the announcement, Sandeep Kapoor, Founder and Managing Partner, Algo Legal said, “Algo legal was founded on the premise that effort and merit will be rewarded, square and fair. We value each member of the Algo family for their contribution to our rapid growth trajectory. This initiative is also a way to thank them. We are fortunate to have a core team of open-minded partners – Abhinav Bhalaik, Richie Sancheti, Ankit Guha, Smita Goel, Namitha Mathews, and Venkat S – who are driven towards building a forward-thinking firm that enables wealth creation at all levels.”
Most law firms are organised in a pyramid wherein the hierarchy is based on knowledge and experience. However, pyramidal structures are sub-optimal as they restrict profit-sharing to the small circle of partners and create a divide within professional firms at the detriment of synergy and real teamwork.
“The only way in which associates in law firms can feel true ownership of the organisation is through a genuine share in profits of the firm. Since the inception, we have always believed that the firm we build, must have genuine profit sharing as a fundamental pillar. I am extremely proud of my partners for agreeing to unanimously contribute a part of their profit share towards the associate profit pool,” added Abhinav Bhalaik, Partner and Head – Private Equity, M&A and Securities Law Practice, Algo Legal.
Algo Legal embarked on a process inspired by design thinking, to find a structure that would further better collaboration across the firm. Through the application of organisational innovation and the participation of colleagues from every level, Algo Legal has started something that will change the game not only within their walls but also for firms who will value and emulate the model.
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