Average partner profits at Allen & Overy and Linklaters hit £1.7 million

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Rises of 1% and 11%

Global duo Allen & Overy (A&O) and Linklaters have become the latest members of the magic circle to post their 2018/19 financial figures.

A&O confirmed a 1% bump in profit per equity partner (PEP) to £1.7 million and a 5% rise in revenues to £1.6 billion — an uplift of £75 million. Profit before tax enjoyed a boost of 8% to £708 million.

According to the firm, international capital markets (ICM) and corporate were “standout practice areas” over the past financial year, while multinational work continues to be a “significant growth driver”.

Andrew Ballheimer, A&O global managing partner, said: “With growth in all regions, the business continues to perform strongly in an uncertain geopolitical environment. Last year built on our strong performances of the previous two years and the global growth which we are seeing is the result of our long-term international investment strategy, established to better serve our clients.”

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Meanwhile, Linklaters today said that PEP was up 11% to £1.7m, revenue grew by 7% to £1.6 billion and pre-tax profit rose 11% to £751 million.

Gideon Moore, firmwide managing partner, said: “I’m particularly pleased that we have been able to make this progress while continuing to invest in our clients, our people and our culture.”

Earlier this month, Clifford Chance confirmed PEP was up 1% to £1.6 million, while global revenues stood at £1.7 billion — a rise of 4.3% year on year. Twenty-four-hours later, Freshfields revealed a PEP growth of 6% to £1.8 million and a 5% boost in revenue to £1.47 billion.

A&O’s latest set of financials come as transatlantic tie-up talks between it and US firm O’Melveny & Myers continue to rumble on. Despite neither firm commenting directly on the widely-reported rumours, Legal Cheek revealed O’Melveny had temporarily suspended its vac scheme and training contract application processes earlier this year while discussions take place.

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If PEP is £1.7m, why show a pictures of $?



Because LC have about 3 stock images that Alex decided to pay for, and no more. He can’t be expected to be original when the money for new photos would be diverted from his beer fund.



How many years into making partner would someone actually make the PEP figure?



Average – Never. Earliest – 15 years.



That makes no sense lmao. The profits are only shared by the partners. The only way the average partner ‘never’ makes the PEP figure is if the managing partners at MC firms make upwards of like 30 mil which isn’t the case (although they obvs get considerable more). I think it’s fajr to say you can expect to make the PEP figure after about 5 years after making partner.



This is so hilariously wrong. To start, most biglaw partners are salary for at least 3-5 years before dipping their toes in the shallow end of the equity pool. At least that is the quickest I have seen.

Most British firms still operate on a lockstep(esque) partnership model which is why so many MC rain-maker partners jump to the American firms with EWYK partnerships.

There will be salary partners, fixed/partial equity partners, and full-equity partners with differing equity drawings based on both seniority and client portfolio. In a proper lockstep model it is expected drawings of the top of the equity/client value partners will have 3x or 4x the drawings of the lowest equity/client value partners. In the EWYK American partnerships its speculated to be closer to the 7-10x range, maybe more.

A couple years ago there was a report that showed Freshfields had the largest disparity in the MC in that the lowest drawings for an equity partner was around £300k whilst the top dog that year took home like £4.5m or whatever it was. I bet the full equity partner(s) who secured the instructions for the AB InBev/SAB miller deal had 8 figure drawings at the end of that.



No salaried partnership at Slaughters. (Can’t speak for the rest of the MC.) Straight into the equity at 7/ 8 PQE.


300k as an equity partner at an MC firm is absolutely woeful. 5 pqe associates at US firms make the same


I meant to even become a partner, fool.



Well you’re clearly a nonce, that’s not what OP asked.


I say wat i please, foo.

A&O gave out TC offers to its vac schemers today




Kirkland Big Dik humiliates u fools.


K&E big boi

Not just big but also phat . check out ma girth


K&E Associate

Oh man my cock is so phat today. Must be all those £50 notes I started mixing into my morning protein shakes whilst I’m smashing mega-PE deals over the phone. This is amazing.



Congrats if you got one.



You’ll be waiting a while for those Slaughters financials #frit



Slaughters is not an LLP, it does not therefore disclose its financials…



Has to disclose the average salaries of directors though I think.



“Directors” is completely at odds with what a Partnership is. You get that, right?



Yes but the convention is when a professional services firm is constructed as a limited company rather than an LLP, the individuals referred to as partners will be directors of the limited company.


It’s not a limited company though fuckwit, it’s a partnership. Do you need a diagram or should you ask an adult to explain it to you?


It just chooses not to


Kirkland NQ

Cute. Anyway, please ask in future when you use a photo of me for your articles.


Inspector Bantz

1/10, better luck next time.


Jobbie Travers

With salaries like that, wtf can’t you hire a few more associates etc? Instead of working us to death.



Because you relish the pain!



Legal Cheek Limited are not doing so bad either:


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