Clifford Chance partners receive £2m payout

Clifford Chance’s top partner pay increased by £40,000, to an average of £2,04 million. The City law firm has reported its best financial results in seven years.

The company “magic circle”, announced that its revenue for the fiscal year ending at the end last April increased by 9 percent to £2.3 billion. This is the largest increase since 2017.

This partnership generated an overall profit of £856million, an increase of 10% per year.

Clifford Chance, which is part of the City Magic Circle, also includes A&O Shearman Linklaters and Freshfields Bruckhaus Deringer, has published its financial results for the year.

A&O revealed earlier this month that its partners earn an average of £2.2 million. However, the figures were calculated prior to the landmark merger between Shearman Sterling and Shearman in New York, which took place at the beginning of the year.

Clifford Chance’s senior partners attributed their latest increase in revenue and profits to the US operations, which have delivered the best performance since their controversial merger with New York-based firm 24 years ago.

The firm revealed that litigation and regulatory investigation work grew by 20 percent over the past year.

The partnership reported that this field of work accounted for over a fifth (or more) of its total income.

Senior partners have also noted an increase in the demand for financing and cross-border mergers & acquisitions deals.

The firm announced that it had advised on 224 transactions during the past calendar year with a combined value of $208 Billion.

Clifford Chance has promoted 29 associates into its partnership in the last year and recruited 29 new partners from other firms. The firm hasn’t published the number who own a 100% equity stake in its practice.

The financial figures of the firm were released a day after it was revealed that Clifford Chance lagged behind US and UK rivals when it came to revenue generated by advising UK companies.

Researchers at The Lawyer’s website found that Clifford Chance ranked ninth on the list of the UK’s top ten income generators. The firm earned an estimated £173million from domestic instructions. This was well behind the top ten table which was dominated mainly by US firms with London offices.

Charles Adams, Clifford Chance’s managing partner, said that the firm’s sources of revenue were more widely spread globally than those of US competitors.

The partnership will be boosted by the practice’s success in New York. In City legal lore, the firm’s merger with Rogers & Wells in 2000 is renowned for its high-profile integration problems.

Adams stated that Clifford Chance “is making great progress everywhere, but at the fastest rate in the US”.

He described the newly opened Houston office as “thriving”, and said that the firm “continued strategic hires” in the US.

Freshfields is an Anglo German firm that announced last year it would not be releasing its financial figures. However, as it is a Limited Liability Partnership, they are still required to make them public.

Linklaters is yet to release its financial figures for this year. Slaughter & May, however, is a traditional partnership that is not required to publish financial statements.

Last year, partners at Macfarlanes – a City-based law firm which advises wealthy clients – saw their average salary increase by nearly 24 per cent.

The increase was due to a 13.7% rise in turnover, which reached more than £309 millions.

In recent years, the firm has been promoting its corporate law practice and its expertise in wealth management for private clients as well as tax advice.

Sebastian Prichard Jones said, in announcing the latest figures for its firm, that there was a high demand across every practice area, despite an “economic environment which is challenging”.

He did note that “especially strong performance from our transactional practice”, particularly around financial services.

Jones said that “our ability to operate at the intersection between entrepreneurs and their business stood us in good standing.” He added that the firm’s litigation practice and investigations had doubled over the last decade, and the latest results showed a record-high revenue.

Post Disclaimer

The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.

This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.

The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.