Partner profits at City firm Macfarlanes exceeded £2m this year – the highest figure to be reported so far in this year's bumper round of big law firm results.
Results for the 2020/21 financial year released today show profit per equity partner (PEP) up by 9% to £2.085m, while operating profit grew by 12% to £141.5m. Revenue increased by 10% to £261m.
Macfarlanes said its costs had rose over the course of the year, and attributed the record results to growth in its practice.
No other practices have reported partner profits in excess of £2m thus far. Among the most lucrative firms for partners this year are Allen & Overy – which announced PEP of £1.9m – and Clifford Chance, which reported PEP of £1.85m. Freshfields, Linklaters and Slaughter and May have yet to announce their financial results.
Earlier this month, Macfarlanes announced that its NQs will now be paid £90,000 plus an uncapped firmwide bonus – this year paid at almost 10% – on top of individual bonuses. ‘Our expectation is that our newly qualified solicitors will earn in excess of £100k this financial year taking into account all elements of their package,’ said the practice, which cut salaries to £80,000 last summer as a result of the pandemic. Macfarlanes is retaining 22 of its 25 trainees qualifying this September (88%).