In an article for New Law Journal, Jon Molot explores the decision by UK law firm Hodge Jones & Allen to move from partner ownership to an employee ownership trust. Molot uses the example to illustrate the benefits of non-lawyer ownership of law firms and the drawbacks of the traditional partnership model, citing the need for law firms to create incentives for reinvestment in their firms and to offer more compelling financing arrangements to their clients. He posits that as the legal industry becomes increasingly competitive, law firms—particularly in the UK, where outside ownership is already permitted—will be well served in moving to outside-ownership models.
