Legal 500: few gain while others weather downturn

Macfarlanes joins top ten as Simmons & Simmons slips down

City firm Macfarlanes has joined the ranks of the top ten firms - forcing out fellow square mile practice Simmons & Simmons in the process - as rated by a leading legal directory in figures published last week.

And Allen & Overy clung onto its position in the Legal 500 - instated by the directory last year as a member of the so-called magic circle.

Macfarlanes entered the list for the first time, ranked as having 'profits to rival the magic circle', with its top-end equity partners earning 920,000, last year - higher than those at City giant Clifford Chance.

The firm acted for Pernod Ricard last year on its acquisition of Seagram's drinks division for 5.4 billion.

Robert Sutton, Macfarlanes's senior partner, said: 'We're pleased but distinctly uncomplacent about our ranking.

It is a testament to the commitment and skill of my colleagues.'

Simmons left the top ten, reflecting decreased average annual per partner earnings - down from 412,000 to 375,000 last year.

Although the firm remained in the top 20, the directory said 'the firm urgently needs to expand its base of corporate and banking clients if it is to improve its status in the market.'

Elsewhere, Herbert Smith was highly rated at sixth place in the general commercial listings.

Its strength in litigation and corporate work 'enabled it to make strides when others were weathering the economic downturn', the directory said.

Meanwhile, a survey of legal salaries conducted by Legalbudgets showed an ever increasing gap between the salaries awarded to City lawyers and those in the rest of the country.

City commercial lawyers can expect to charge 500 an hour, while others can generally expect 275.

Legalbudgets found that the first 1,000 an hour lawyers will soon be among us, with City partners charging 500 an hour, with a 100% uplift.

Jeremy Fleming