News

Clifford Chance equity partners to earn an average of £1.6 million

By on
31

First magic circle financials released

Clifford Chance has fired the starting pistol on another magic circle financial results season, revealing sizeable uplifts in its profit per equity partner (PEP) and overall partnership profit.

Drilling down into the numbers, partnership profit at the Canary Wharf giant was up 13% to £626 million while PEP hit £1.6 million, an increase of 16%. Global revenue for the year ending 30 April ballooned to £1.62 billion — up from £1.54 billion on the previous year.

The 2018 Firms Most List

Matthew Layton, Clifford Chance’s global managing partner said the firm had made “cumulative progress” since the outfit implemented its “ambitious strategy” three years ago, and cited the firm’s success in the Americas and investment in technology. He continued:

“Overall, these figures are testament to the firm’s unrelenting focus on work where our unrivalled platform and expertise enables us to guide clients through game-changing opportunities and risks. Technology presents a formidable example, as it drives a pace of change that is faster than ever before. Businesses who understand this environment and are agile enough to adapt, will thrive; and our multi-disciplinary, global tech group is perfectly positioned to advise them.”

Magic circle aside, a host of other City firms have already posted their 2018 financial results — and the early signs are positive.

Last week, Legal Cheek reported that of the dozen or so big firms to release their results so far, all have reported rises in revenue while those that published PEP figures have posted increases too.

Sign up to the Legal Cheek Newsletter

31 Comments

Anonymous

Hey is this is just equity partner (senior partner), what does a new partner earn (say in their mid 30s)?

(3)(0)

Lord Denning

More than you.

(9)(2)

Anonymous

Yeah just equity partners. CC famously has a fairly small number of equity partners given the sheer size of the firm.

(10)(6)

Anonymous

Roughly £300k in their first year with increases of £100k for the next two years. Also not all equity partners are paid £1.6m. Their portion of the pie is determined by equity points (which need to be accumulated).

(9)(0)

Anonymous

thank you very much!

(0)(0)

Anonymous

300K for a newly made up partner? Where on earth are you getting that from? It’s 200k absolute max, and depends on practice area, amongst other things.

And salaried partners never get over the 500k hump – only equity partners.

(1)(6)

Anonymous

Figures probably do vary, but what I said is 100% accurate for more than one office. Won’t go into further detail for obvious reasons. Also your second paragraph aligns with what I originally wrote.

(5)(1)

CC Partner on 300 mil a year

“For obvious reasons”.

Yeah, you have no sources so it’d be a bit embarrassing.

(0)(1)

Anonymous

It’s not “200 absolute max”.

I know first year partner salaries at two firms that are smaller than CC and have a much lower PEP and their first year fixed share partner salaries are around £250K.

(2)(1)

Anonymous

It is 200 absolute max. CC is tight af.

(0)(0)

Anonymous

Well that’s almost as much as a kirkland NQ

(2)(0)

Anonymous

You do realise that “take home” pay is commonly understood to be earnings after tax etc. is deducted. So they do not “take home” £1.6m.

(24)(0)

Anonymous

ABOLISH ICE
ABOLISH PROFITS
ABOLISH BORDERS

(0)(5)

s.32 Salmon Act 1986

Abolish ice? I mean, you’re clearly nuts, but pro-global warming as well?

(1)(0)

Anonymous

Brothers!

Sisters!

We need to redistribute this greed! A windfall tax to fund the NHS! It’s taking the people’s money back!

Vote Corbyn!

FOR THE MANY, NOT THE FEW

(10)(36)

Corbyn. Sympathiser

WELL DONE CC PARTNERS! HARD WORK PAYS!

NEVER VOTE COMMUNISM.

FOR THE HARD WORKING, IMAGINATIVE AND CLEVER, NOT FOR THE LAZY!

(2)(0)

Equity Trainee

What does a newly minted partner make at say, the MC firms, compared with top US firms (Kirkland, Dorsey, etc.) and then mid market City (BCLP, Fieldfisher, CMS)

(0)(2)

Random passer-by

It is quite hard to say with all firms. I know a salaried partner at BCLP/Squire Patton Boggs earns about £150-200k. Normally you have to be salaried first before moving up the ranks, so don’t be distracted by the 35 year who is a partner at these sorts of firms. I would imagine Fieldfisher and Trowers etc. earn a lot less than this. At the US firms, experienced associates are on £200k plus so the new partners must be on a fair bit more. These PEP figures are misleading in most instances, the exceptions being Slaughters/Travers/Macfarlanes.

(4)(0)

magicass

I think it’s quite difficult to say for Macs and S&M as well. Macs has tons of non-equity partners & S&M has a very small pool of equity partners for a firm of its size (600+ lawyers).

(7)(1)

Random passer-by

Fair enough. It is quite hard to know for certain with all these firms. I only really know of a couple because of friends, and even then the recent mergers may have changed things.

(0)(0)

Does not know Katie King

Can’t speak with any certainty here, but isn’t slaughters famously all-equity? Hard to get on that letterhead, but I expect given how profitable it is there’s a healthy bump up the pay scale for those who make it.

(2)(1)

magicass

Yes of course, an absolutely huge jump in pay, still less than you would get if you were an equity partner at the bottom of the equity at a top US firm.

(2)(0)

Anonymous

I don’t think that’s true. US firms tend to be “eat what you kill” and have a much larger difference between the highest and lowest paid equity partners.

(1)(0)

Anonymous

After 10 years (I think) all partners at Slaughters get paid the same.

(0)(0)

Anonymous

Bullshit speculation – Slaughters famously refuses to divulge details of its partnership structure, and from that people assume all partners are on millions. The reality is they have wide gulfs like anyone else and only the Corporate rainmakers are taking home multiple millions.

(3)(1)

Anonymous

Not bullshit speculation. Used to work there – a partner told me. I just couldn’t remember if it was 10 years or slightly less/more.

(0)(1)

Anonymous

“A partner told me”.

I take it you’re new to critical thinking.

Anonymous

Perhaps you can explain why you think he would be lying? It wasn’t said just to me and was used as an example of the way in which partners are more collaborative across departments as at the end of the day the vast majority walk away with the same amount of money…

Anonymous

People and businesses say lots of things about their compensation structure designed to make it sound more attractive. It’s basic PR – you want people to think you’re doing really well, everyone is totally collaborative, and God himself smiles down on you when you wake up every morning.

People. Always. Over-sell.

Anonymous

Did you use to work at SPB?

(0)(2)

K&E partner

That’s nice, good budget for a holiday.

(41)(0)

Comments are closed.

Related Stories