Rise of 19%

Partners at Allen & Overy enjoyed an uplift of 19% in their average earnings in the financial year before the tie-up with Shearman & Sterling.

A&O Shearman released new figures today regarding A&O’s financial performance prior to the mega-merger going live earlier this year.

They show that the average profit per equity partner (PEP) increased from £1.8 million to £2.2 million, thanks to a healthy 17.2% rise in pre-tax profits, reaching £1.05 billion.

Revenues increased a more modest 3.4% from just over £2.1 billion to £2.2 billion.

Commenting on the results, Hervé Ekué, global managing partner at A&O Shearman, said:

“In the year leading up to the completion of our merger, we’re pleased to report positive growth for the firm. This is testament to our strategic focus on diversification across regions, practices, and sectors.”

The results come after A&O Shearman initially set newly qualified (NQ) associate pay at £125,000, before upping this to £150,000 a month later following similar moves by its Magic Circle counterparts.

Earlier this week the newly-formed firm posted its combined retention score, with 37 its of 56 (66%) final-seat trainees staying on.

Fellow Magic Circle player Linklaters published its results this week, reporting a 10% increase in revenues, surpassing the £2 billion mark for the first time in its history. PEP also saw growth, climbing 8% up to £1.9 million.

10% increase on last year

Magic Circle outfit Linklaters has crossed £2 billion revenue mark for the first time in its history.

The firm has recorded a revenue of £2.1 billion for the 2024 financial year, increasing income by 10% on the previous year.

With this comes the highest ever pre-tax profit at the firm, another 10% increase up to £942 million. Profit per equity partner (PEP) has also seen growth, climbing 8% up to £1.9 million.

The strongest performance came across the pond with Links’ US offices breaking records, delivering a 24% increase in revenue, whilst the UK contingent also topped its previous best.

Elsewhere the firm has hit its annual diversity targets of 40% female and 15% underrepresented minority ethnic newly elected partners whilst clocking 55,000 hours of pro-bono work around the globe.

Paul Lewis, Linklaters’ firmwide managing partner, commented: “Its been an exceptional year with record financial results and revenues exceeding £2bn for the first time. We’ve seen a strong performance across the firm, with M&A, complex restructurings, contentious mandates and energy transition-linked projects the biggest drivers of growth.”

“In what remain challenging markets for businesses, our corporate, bank, funds and financial investor clients continue to turn to our global platform on their biggest, cross-border mandates, like advising VW on its recent landmark US$5bn partnership with Rivian in the US,” Lewis continued. “These are the roles that have placed us top of league tables across the UK, Europe and Asia, as well as powering our UK and US offices to their best ever year.”

Linklaters is one of the largest trainee recruiters in capital, with the Legal Cheek Firms Most List 2024 showing that the firm takes on around 100 trainees each year. The firm recently increased the salaries of newly qualified associates to £150,000, matching the raises of its Magic Circle rivals, except for Slaughter and May, which has yet to increase.

Upticks across the board

The first round of financial results for the 2023-24 year have been released, with several top City and national law firms putting in positive performances.

Osborne Clarke has seen international revenues climb 19% up to €525 million, with the UK figures showing 11% growth up to £240.5 million. Of this, the outfit recorded an impressive £84.8 million net profit, an increase of 14% since the last results.

Profit per equity partner (PEP) also saw a boost, jumping 11% up to £771,000.

Elsewhere Weightmans has reported its most successful year to date, taking income up 12% to above £140 million, with £18 million net profit, a whopping 41.1% rise on the previous figure. PEP is now sitting at £391,000.

HFW has also reported strong numbers, hitting a turnover of £251 million. Whilst this marked a solid increase of 11% from last year, net profit saw a bigger boost, rising 16.5% to hit £75.4 million. PEP saw a more modest, although still very impressive, boost of 9% up to £855,000.

Kennedys has also reported a record year of growth, clocking a revenue of £384 million, a 17% increase on last year. This marks the 10th year of consecutive growth for the firm.

Whilst the UK wing saw a very impressive 18% growth in revenue, the US offices topped this with 22%.