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Clifford Chance partner profits up 9% to £1.85 million

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Revenues reach £1.82 billion

Clifford Chance has become the second member of the magic circle to go public with its 2021 financial results, revealing solid upticks in both profits and profit per equity partner (PEP).

The Canary Wharf-based giant boosted profits by 8% to £716 million for the financial year ended 30 April 2021, while revenue nudged northwards 1% to reach £1.82 billion. Meanwhile, PEP underwent a healthy uplift of 9% to £1.85 million.

CC said this is the sixth consecutive year of profit and revenue growth, and its strongest set of financials to date, despite the first few months of the year being “significantly affected by Covid-related uncertainty”.

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Matthew Layton, Clifford Chance’s global managing partner, said:

“I am hugely proud of what our team has achieved this year. Our goal is always to stand shoulder to shoulder with our clients giving them the very best advice and support on their most complex and business-critical matters; and never has this been more important. Our robust financial performance reflects the value that clients place on that partnership and on the expertise and dedication of our teams.”

Last week, Allen & Overy revealed a whopping 17% jump in PEP to £1.9 million thanks in part thanks in part to “exceptionally high levels of M&A activity”. The firm’s profit before tax rose 19% to £822 million.

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12 Comments

Curious Stat George

MC ranking so far in order of PEP followed by revenue for 2020/2021:

1. A&O (£1.9m and £1.77 Bn)
2. CC (£1.85m and £1.82Bn)
3. ?? [LL/FF]
4. ?? [FF/LL]

S&M refuse to be ranked as they don’t release their financials, but likely competing at the top for PEP, though with far lower revenue (£507m according to The Lawyer).

(21)(5)

Cynic

You have to wonder – what do Slaughters have to hide?

Why wouldn’t you be an LLP instead of a traditional partnership (like pretty much every professional advisory)?

Is this a very convenient way of not disclosing their real profits, bragging about the size of their profits to journalists and maintaining some Slaughters allure/‘prestige’? 🤔

(15)(19)

Harry

Macs would be on top . A silver circle firm.

(18)(6)

Some logic...

CC and A&O have global equity partnerships though…so Macs in London may not actually outperform either of those firms’ average PEP for the London office only (those firms are more likely to be weighed down by offices in lower fee paying markets)

(3)(7)

Anon

Sorry exactly what logic are you using? You’re saying CC could outperform Macs if they didn’t have the costs of global partnership and offices. So what, they do.

Macs is more profitable. You can’t deny raw figures

(2)(5)

Anon

I’d rather be at a firm giving big bonuses to staff and putting money into initiatives to improve rather than just a high PEP… which is only good for the Partners. Who cares about Macs anyway?

Phat wedge, phat beasting

I am surprised considering how hard everyone works at Clifford Chance that they have the energy to pose for the photos above…

(7)(14)

Touker

While the partners rake on the profits, the sweatshop gets sweatier and sweatier

(28)(1)

2 PQE MC

2 predictions:
1. Freshfields will break £2 million PEP for the first time.
2. Freshfields will not increase pay.

(46)(1)

Anonymous

That is so much money!

They could literally pay off a nice house on the commuter belt in ONE year.

Absolutely insane.

Unfortunately I’m not clever or hard working enough to make it into such a position.

Admirable people, admirable salary.

(7)(7)

Anonymush

Bit wet mate. Get yourself together.

(13)(1)

Revenue Police

Just 1% revenue increase? That’s hardly reflective of the “2020 turned out to be massive” tune.

(0)(0)

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