Gender diversity, but not compensation disparity, pushes elite UK law firms toward the adoption of “non-equity partnerships”, finds new study co-authored by Dr Thomas Roulet and Dr Lionel Paolella of Cambridge Judge Business School. The study looks at some of the factors associated with the adoption – or non-adoption – of non-equity partnerships. These factors include profitability per equity partner, compensation disparity among partners, the percentage of lawyers who are “associates” rather than partners (known as the leverage ratio), gender diversity, and the reputation of partners. “We found that compensation disparity is not a driver” toward non-equity partnerships, Dr Roulet said.
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